Is it practical to buy a house during Covid-19 pandemic?

Slowly, the world economy has been undergoing the recovery phase as governments are easing quarantine and health protocols. Back to business, as one may say as the new normal for business and social mobilization is not considering slowing down at any rate, even the threat of Covid-19 surge is looming around. At one point, you might be one of those people who have paused their dreams of buying a house or land when Covid-19 pandemic started. But now that everything seems to be normal again, the question is “Is it practical to buy a house now?”

The answer lies in how strong and competitive the real estate market is. In an article published by Forbes, an urban planner stated that the real estate industry benefited from the pandemic. And as the pandemic drove more and more people out of city centers and into less densely populated areas, where they sought spaces better suited to remote work and study, real estate prices rose at a record pace and reached record highs.

According to a Bloomberg article, a venture capitalist believed that the pandemic has created something big which is called pandemic gentrification. As remote work has increasingly garnered attention from employees and work-from-home enthusiasts, housing prices have skyrocketed in once-affordable communities across the USA. The pandemic has brought an incredible demand for space which pushes up the market price of houses and land.

In the Philippines, around 78 percent of house buyers are millennials and a news article in Inquirer cited that the Pandemic drives young Filipinos to buy their own homes.

But even without the pandemic, the price of land property is expected to increase over the years as land and houses are considered fixed assets, and having a land property or a house entails monetary value as it grows over time. Perhaps, it would make sense that if a person keeps on pausing or delaying the house buying, chances are that finding an affordable piece of land or townhouse might be nil.

So the real point is the pandemic is not a big factor to consider, but rather the budget of the buyer.

Citizen Advice says that planning the budget will be a big help. Calculate how much you take in each month and how much you need to live. Include amounts for food, clothing, and other household expenses for you and your family. You’ll also need to budget for regular bills such as gas, electricity, water, etc.  And also consider that the pandemic is still ongoing, save for the possible medical bills and health insurance.

If you are eyeing a certain property, check the price and the estimated loan that you can afford to pay based on your current salary or income.  Check how affordable that dream house is.

And just in case, you already have a mortgage, from time to time, check to make sure you’re getting the best deal. If you have a special fixed-term mortgage contract, you should check a few months before the end of the term to see if there is a better offer. Make sure you don’t pay more than you need to. But just in case you have trouble making the repayments, you can always calculate it through mortgage checker just like MortgageCalculator.uk

It’s a real challenge to know when the perfect time to buy a house.

But the ultimate factor for this tough decision is your personal situation because it will really determine whether you should buy a house or wait a little while.