Will The COVID 19/ Crisis Make RCBI (Residency & Citizenship by investment) Real Estate More Attractive?
It’s no news that the effect of the COVID-19 pandemic on the world economy will not be totally favorable to many. Due to the pandemic, lockdown measures employed to combat the pandemic, visa and travel restrictions on business owners and associates, many of them have reached certain resolutions and have made reevaluation on the possibilities. Most of these decisions however are made in strict consideration of the financial strength of the investor. In consideration of some factors it can be seen or conclusively recommended the real estate of the RCBI will indeed be positively affected.
Firstly a complete restriction on industrial activities for so long will definitely affect the prices of so many sectors n the market. Real estate is no exception from the affected market areas. Due to the current shutdown of the economic activities of so many countries, this will most definitely result in a complete global economic recession. This will most likely affect the general price of everything including real estate properties, that is housing.
Owing to the fact that there will be a general deflation of prices due to the current situation of most of the populace not having enough money and very little money in circulation, the prices of property will most likely drop. This is indeed a very favorable time for a person who wishes to purchase properties with the intention of resale to purchase them as much as he can cause after the resumption of economic activities which will be actively resumed, the economy will definitely stabilize in no long time, thereby giving the real estate investors a chance to resale the property in no time as a very lucrative amount.
People are Thinking to Move to safest place with family after this Pandemic
It is important at this point to explain one of the major reasons behind this depreciation in monetary value. Over the course of this pandemic, it can be observed that both the government and banks all over the world in a bid to provide both relief and healthcare services in order to combat the ravaging effect of the COVID -19 by providing both health equipment, food and other welfare packages.
In order to provide this relief, money was pushed into society, money circulation occurring in a way totally different for what is applicable in the modern business world. Naturally it is known that when there’s new money in circulation previously existing money loses its worth. This situation is known to economists as inflation of money supply. In layman terms, money is made too common and totally independent of market forces this will reduce the value of money. Reduction in the value of money reflects sin everything, from the prices of commodities to the general market sectors. This is what brings about the recession. This is where real estate comes in. The real estate is a part of the economy is not shielded from this downturn. Now even as this could affect the prices of properties favorably, there are other factors that come into play.
Might be Price Decrease in Realestate during & after this Pandemic
Governments of the most affected regions will most likely wish to create an atmosphere that will encourage residency and citizenship by investment. It will most likely appreciate a situation where more investor immigrants come into the country to carry on business. Added to the fact that the government will create favorable citizenship procedures, they could create provisions for discounts on residential properties and in turn positively affecting the prices to properties.
This situation being one that will not last much longer after the storm of the pandemic has passed, this property will not stay too long in the hands of a real estate investor before the prices neither normalize or increase. It is therefore in the best interest of a real estate investor to make good use of this opportunity reduced monetary value to purchase as much property as he can afford.