Real estate capital gain: an investment opportunity in the days of Covid 19
As you may already know, properties increase in value over time, thanks to factors such as location, accessibility, services and infrastructure. These provide an urban and architectural value that favors the increase in its price. What we call in real estate: Home equity
However, the slow growth in the construction of residential homes during the health contingency of COVID-19, has caused a slowdown in the growth of surplus value in different properties.
These data do not sound very encouraging, but what if I told you that an increase in property sales is expected at the end of the health crisis? That's right, this is a great investment opportunity for people looking for high value properties.
Next, we will present you some points about the importance of real estate capital gain and why it should be taken into account in the days of Covid-19.
A capital gain of 17%
A wonderful piece of news for those who decide to start investing in real estate during COVID-19, is that they will be able to maintain 17% capital gain on their properties, as stated by the Director of Operations at International Investment.
This marks a clear difference between the growth of surplus value during the health crisis and an ordinary time, since if the pandemic had not occurred, the value would only have increased only 3% against the current 17%.
This is due to the effect of the exchange rate observed in late March and that affected our country and other parts of the world. Without a doubt, the best time to invest in a home is during and after the pandemic.
The increase in capital gain by area
We have already observed that the reduction in inventory of properties for sale contributes to the growth of real estate capital gains. But another important factor in increasing the value of a home is the area in which it is located, if this area increases in value, the surplus value of the house will improve.
Defining the area to invest in real estate well is very important to obtain a good capital gain in the medium and long term. Then it's just a matter of choosing a neighborhood with the best location and access.
Real estate: an opportunity to invest
Real estate investments represent a real opportunity in the face of the economic ravages of the pandemic, since real estate is the only property that increases in value over time, as long as it remains in optimal conditions.
It should be noted that not just any property can have a favorable capital gain. So it is important to invest strategically.
Invest wisely in Bay Realty we have the best options for your money to grow, contact us.