Real Estate: Yannick Callens wonders when a global threat becomes a property opportunity.
Should we invest locally or internationally in real estate? Have you ever dreamed of owning a residence abroad? In real estate, as in any business, supply and demand play a huge role in the price you pay. If demand decreases and the market supply remains stable or
increases, the price is automatically under pressure and decreases in the negotiation of the deal.
Without wanting to talk too much about the virus that is blocking the economy, we have entered this trend. You can see it as a threat or as an opportunity for everything. You are free to choose.
As in 2011 in Spain, when the economy froze and the demand for real estate collapsed, prices were put under pressure. Will Italy understand this? Or other countries in the world? It is still too early to talk about it, but the blocking factors are there. Demand is blocked, supply is on hold – time will tell. In any case, the investors who bought in Spain in 2011 and 2012 did very well.
Are we in a possibly similar scenario in the coming months? It’s still too early to tell, but stay tuned! Any crisis has room for opportunity. Which side do you want to be on? I have made my choice!
And what about Belgium?
Let’s say that currently the real estate market could be experiencing a slower cruising speed. This would give buyers considerable bargaining power. I’m not talking about breaking prices, but rather being able to negotiate real estate prices down. Four factors need to be taken into account in real estate: supply, demand, quantity and quality of goods.
The difference between supply and quantity
The offer is the general state of the real estate market. The quantity is more specific to each type of property offered on the real estate market. Before investing in real
estate, ask yourself the following question: do I want to invest locally or globally? In other words: do I want to invest in my country or abroad? From my point of view, I invested a lot in my country, but I did my best business abroad.
You can also enjoy your property abroad and combine your return on investment with the pleasure of going there. Remember that the benefit of a real estate transaction is the purchase and resale of the property. Often, we forget that buying well is as important as being able to resell your property. Take your time to analyse all the information necessary to make an advance in your investment.
Three other factors to take into account to seize a real estate opportunity: timing, advisers and information. Timing: is it a good time for me to invest? Do I have time to follow this myself or is it time to delegate? Advisers: am I well surrounded by the right people who can help me? Notary, banker, broker, etc. Information: do I have enough information to make my investment decision calmly? Am I sufficiently educated?
If you have control over these three factors, you are able to invest in the right circumstances on your own terms! Then, you just have to multiply what works. I wish you lots of opportunities. Any crisis has two sides, I personally advise you to choose the right side. Ask yourself this simple question: what can I gain from this temporary situation?