To buy or sell in times of corona
The coronavirus is currently plunging the world into an absolutely unprecedented situation. The consequences for the economy are immense and the first companies have already filed for bankruptcy. But to what extent is the corona crisis impacting the real estate industry? And is it better to buy now – or to sell?
Real estate as a secure investment
The real estate experts at David Borck have forecast that property prices will remain largely stable despite the corona pandemic – as long as the outbreak does not extend beyond May. Of course, any such forecasts can only be issued on the basis of the current market situation, which is why our experts are closely monitoring developments and adjusting their advice as the situation progresses. The only scenario in which our experts are forecasting demand to decline and the real estate market to experience significant price corrections is if the corona crisis causes a prolonged and deep-rooted economic crisis. Buyers and sellers are, of course, affected by the general uncertainty surrounding the coronavirus, and this uncertainty is feeding through to the housing market. Nevertheless, provided incomes remain stable, real estate remains a safe investment. After all, even in times of crisis, people need homes.
Neither should sellers be deterred by the current situation. Property prices are still high, and any fluctuations or price corrections will probably not be felt for a few months yet.
Real estate vs. stocks
For reasons outlined above, real estate maintains its status as a secure form of investment – in contrast to stocks, which can be extremely volatile even at the best of times. Real estate, on the other hand, is subject to much less fluctuation than other assets and, thanks to the rent payments you save if you use a property yourself, real estate still offers attractive returns. So, if you want to put your money in a safe place now, you should definitely consider buying real estate and rather than waiting any longer. Even against the backdrop of the coronavirus, buying your own home remains a great option. After all, interest rates are extremely low and the corona crisis means any chance of imminent rises have evaporated completely.
How to buy real estate without any need for personal contact
All across Germany (and the world for that matter) security precautions have been introduced to contain the virus. And these necessary precautions have made the real estate purchase process a little more complicated. Nevertheless, it is still possible to view properties, for example with a personal property viewing without a broker. What’s more, the seasoned team at David Borck Immobilien has always focused on digital marketing, which means we experts at organizing virtual viewings, either via video chat moderated by our real estate consultants or digital, click-through tours that allow potential buyers to click through the respective property on their screens at home. The same need to maintain a safe personal distance also applies to meetings at a notary’s office.
Expert advice and answers to your questions
The coronavirus creates challenges for the real estate industry and for us as brokers. As the situation develops, we are constantly optimizing our processes, adapting them and closely monitoring the market. Even working remotely, we continue to advise our customers via telephone, email and video call, offering them professional support at every stage of the real estate purchase process. Whether you are a prospective owner-occupier or a buy-to-let investor, there is no real reason not to consider buying (or selling) a home or apartment right now. Despite the crisis, real estate remains a stable and attractive investment. Crisis or not, real estate is a long-term investment that is not directly affected by short-term market volatility.
Buying or selling a property will alway involve a host of questions. Now, given the ongoing impact of the coronavirus, you probably have more questions than ever before. Whether you need information or advice, please feel free to contact us during our business hours by telephone or anytime via email. Our associates are ready and waiting to provide expert guidance and highly personalized support.
We look forward to hearing from you!
Your David Borck Immobiliengesellschaft
Schlüterstraße 45 | 10707 Berlin | firstname.lastname@example.org
Phone 030 – 887 74250 | Fax 030 – 887 742525