Buying a House During COVID Pandemic
When the World Health Organization announced a month ago announced about the Corona Virus which started in Wuhan China, is now pandemic. A lot of people were in a panic and started hoarding and buying stuff for survival. The Philippines responded with an immediate Community Quarantine, the moment the number of people showing symptoms and diagnosed with COVID-19. Metro Manila was placed immediately in Enhanced Community Quarantine, forcing everyone to stay home, to avoid crowded places, and the imposition of quarantine passes. Other cities also followed the precautionary measures all over the country. As scary as it may sound, I still find it as a surprise that people still choose to purchase a property at this time.
Is now really the best time to buy a house?
“Assuming you can afford a loan and the other costs involved and your job is not in danger of being cut, then yes,” says Amanda Abella, millennial business coach and author of Make Money Your Honey: A Spirited Entrepreneur’s Guide to Having a Love Affair with Work & Money. “Smart investors and people who are financially savvy know these times are ridden with opportunity because the general public is going to contract. But every individual situation is different. Unless you’re sitting on pretty hefty savings and know your industry won’t be impacted by what’s going on, then you should err on the side of caution.”
Our case here in the Philippines are maybe quite different from what is happening in other countries. But in our Realty alone, sales are quite low from normal but agents and brokers still get buyers buying houses and condominiums even at this time.
Pre-selling properties are quite in-demand because of the fact that equity payments can be paid monthly and not on the spot cash. There are developers that accept online reservations with minimal requirements for reservation. The complete requirements will be collected as soon as Enhance Community Quarantine will be lifted.
Buyers are buying today because of the possibility that prices will surely increase after this pandemic period. For pre-selling properties mostly. For brokerage sales, it will be quite different. I’ll talk about it in our next blog.
What type of buyers are we seeing today?
We are seeing a lot of Flippers in the market today, searching for the best deals in the market. These are buyers with a good amount of dispensable cash, that are ready to purchase but just waiting for a good deal to earn more in the near future.
They are either looking for pre-selling properties or distressed properties from sellers who want to turn their assets in touch cash for cash-security just incase this period may take longer.
First-time home buyers
These are buyers who are now seeing the importance of having your own home today. They are possibly renters or couples/families living with relatives. Having your own home gives you security for your self and your own family. Most especially for new couples or starter families, it will give you the reality of life helping you straighten up your budget for the family.
Having your own home will not only give you pride but also security that you have provided shelter for your family. [Tips for First-time home buyer]
If you are fortunate enough to be employed in an industry that hasn’t been devastated by the coronavirus, have the necessary resources, and decided you want to strike while the iron is hot, there are a few things you can do to take advantage while minimizing your risk. Now is a good time to start browsing online and get yourself familiar with the market. Check out FilipinoHomes.com
If you found a good deal already, check if the developers are accepting online reservations, if they do, then you can proceed. A real estate agent can help you with your intent or interest in purchasing this property. You can ask your questions to them through chat or you can use other means like Video Call in Messenger, Viber, WeChat, Kakaotalk, Whatsapp, and the likes for you to see and be familiar with the real estate agent.
You may request for a virtual tour of the model unit so you will have an overview of what you will be getting in the future.