The second wave of the pandemic is sweeping the globe showing the same patterns with Europe’s COVID-19 spike spreading to the U.S. as before. Although it’s scary to think about a second wave, it’s important that we face this pandemic head-on. When the second wave hits the U.S.A. will you be ready to make more money in Real Estate?
“The good news” is we are in control of what happens in 2020 – 2022 Real Estate Investing as long as we plan. The Commission Group’s Mission is to help as many people as possible reach financial freedom with smart real estate investing and education.
“More than 6 million households failed to make their rent or mortgage payments in September, according to The Mortgage Bankers Association’s Research Institute for Housing America, a sign that economic fallout from the coronavirus pandemic is weighing on jobless America as Congress stalls on relief measures.” – USA TODAY October 17, 2020
So, as we hope for the best and plan for the worse; here are some Key Economic Drivers to consider over the next 6 to 24 months when investing in Real Estate.
“For even a man that sets out to build large towers first sits down to consider the costs. Considering the costs helps identify success or failure.”
An old girlfriend of mine loved to quote Dr. Myles Monroe who said “success and failure are predictable” and here’s why… today leaders are using “Key Performance Indicators” KPI’s in order to more accurately predict the overall success or failure of their investment strategies. KPI’s identify exactly the points of increase or decrease in progress (i.e. how many leads are generated daily, weekly, monthly, annually? How many of those leads were converted into customers? How many customers returned?)
Now these KPI’s can be realized in any system such as the market place. The following are three “Key performance indicators” or “Key Economic Drivers” to stay ahead in Real Estate 2020-2022.
National Interest Rates
As so far as Interest rates are low we can tell that the federal reserve is encouraging buyers to purchase. Meaning that home purchases will more than likely remain stable until Forbearance delinquencies take shape.
To keep it short and sweet; what we are ultimately looking at is the trend of the people’s progress to evaluate how the flow of currency. If people are employed/ making money then they can make Mortgage payments but if the masses are underemployed then they won’t make payments. How many underemployed American’s are under a COVID-19 related forbearance plan and when will they expire? According to DSNEWS.COM
“We’ll certainly see more repossessions by lenders once the foreclosure moratoria have ended, but maybe not as many as people might expect” Sharga noted. “Given the record amount of homeowner equity—over $6.5 trillion—it seems likely that many homeowners in financial distress will opt to take advantage of strong demand among homebuyers and sell their property rather than risk losing it to a foreclosure auction.”
& Finally, we watch If lenders raise interest rates. Interest rates help determine the number of mortgages made. Interest rates will slow if the number of delinquencies is high in order to slow the financial bleeding. With raised interest rates home prices will stabilize to a new normal giving us time to organize the chaos. Eventually interest rates will lower and home prices will begin to raise over time. Buyers will have time to buy low and hold (rental) then when prices raise they property value increases.
You do not want to be is the person in default trying to get rid of a property that’s under the water so if you can predict your demise get In touch with us or a professional to get you from out of your troublesome situation.