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Top 5 Reasons Why Investing In Real Estate Is Not A Good Idea Anymore

Real Estate has historically been a great area of investment. However, in recent times, there are other far safer and more promising areas of investments, which one should look at. Investing in precious metals or cryptocurrencies like Bitcoins is something most economic experts are suggesting.

Introduction

  • Are you still considering making an investment in real estate, both residential and commercial in the next few months?
  • Have you considered other credible sources of making investments, which offer higher ROIs than even real estate?
  • Do you know why most experts are of the opinion that the real estate market is going to crash in the next few months?

As the Coronavirus pandemic continues to plunge economies into despair, the real estate sector is one of the worst hit. With global currencies experiencing a downward spiral, property prices are showing a downward curve.

Many people who had invested in real estate as a profitable investment have seen their investments hit rock bottom. This is especially true of countries like USA, UK, India and other developed countries. In this article, we look at five reasons why you should shy away from investing in real estate for the next five years.

5 Reasons why you should not invest in Real Estate: The List

1) There is no demand for Real Estate:

The first thing people do when they are facing economic issues is putting off big investments. A home is probably the biggest investment you will ever make. In this scenario, with job losses and no economic guarantee, there is no demand for real estate at all.

If you have been following the news, experts are stating that the economy is heading for the worst depression ever. Storing money in real estate is only going to devalue it in the coming years. Hence, it is best to avoid depreciating your money in real estate investments.

2) We are in the midst of another Mortgage Crisis:

According to data, nearly 5 million Americans have been unable to clear their mortgages in May 2020. This means that we are looking at a similar scenario to the 2007-08 financial crisis. The Housing sector is on the brink of collapsing nationwide.

Given this scenario, the government and the Federal Reserve are not going to help bail out real people (consumers). The government and its authorities have already noted that they will not be able to pay unemployment benefits post-July 2020.

3) You cannot expect any growth from Real Estate:

If you think that your real estate investment is growing to appreciate in the next few years, think again. This is because the world economy is not going to bounce back anytime soon. International financial institutions peg the recovery period by the end of 2022.

Rather, people who are looking to make investments in credible ventures should turn to cryptocurrencies. Using the bitcoin trading app, you can make decent investments in Bitcoin and expect three to four times returns by the next year.  Keep reading to know: How to achieve success

4) Commercial Real Estate is far worse off as a means of investment:

Companies, both big and small, are reducing operations, laying off people, and cutting down costs. They do not have the need for maintaining huge commercial spaces anymore. The WFH set-up is becoming the new normal for most companies.

An analysis done with commercial real estate property owners in America points to missed rents, bankruptcy, and other problems. There is no scope to attract new business owners to occupy office spaces in most parts of the world.

5) You are not going to get a good deal from Real Estate investments anymore:

One thing you need to understand is that during a contraction of the economy, the value attached to an asset becomes a lot more. This means that for realtors, the property rates are not going to come down, as they only have this to sell off at best prices.

Do you think anyone wants to miss making money? No, not at all. The realtors have invested money, taken loans, paid interests and are now looking to get the best for themselves. Likewise, the prospects are also going to be doing the same. There is not a good deal when it comes to the real estate market now.

Conclusion

Real Estate has historically been a great area of investment. However, in recent times, there are other far safer and more promising areas of investments, which one should look at. Investing in precious metals or cryptocurrencies like Bitcoins is something most economic experts are suggesting.

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