Apartment prices rise year after year. What exactly does the situation look like during the pandemic? Is it still profitable? Find out!

An Apartment as a Source of Steady Income

Many people decide to buy an apartment to secure their own or their children’s future. During the pandemic, obtaining a loan for one’s own property has become even more difficult, which is why some people give up buying their own apartment and opt to rent, usually long-term, guaranteeing monthly income. If you want to invest your money this way and start earning from rent, you must properly prepare the apartment for a long-term rental arrangement. During the raging coronavirus pandemic, it is worth considering renting out the property by room. Studio apartments and two- or three-room apartments are currently the most popular.

Your Own Apartment and Workplace at the Same Time

A very large proportion of people work remotely during the pandemic. Their home therefore also becomes their office. Not everyone can cope with this, and families with children in particular have trouble organizing their space. Suddenly, the four walls of their own home, which had been completely sufficient until then, turn out to be far too small. Experts predict that remote work will not end when the pandemic ends; it may even become more popular and, in many places, the norm. Therefore, you should invest in an apartment that allows every family member to organize a quiet space of their own where they can work or study in peace.

Is Trading in Real Estate Profitable?

In the second half of 2020, we observed a significant slowdown in the growth of real estate prices. Noticeable price declines even occurred in some local markets. However, experts predict that prices on the market should stabilize in 2021. This assessment is influenced primarily by moderate consumer demand. Many investments are planned for 2021–2022, resulting in a substantial supply of new apartments. Low interest rates are another factor. At the same time, very high land prices will not allow prices to fall.

Advantages and Disadvantages of Investing in Real Estate

Is investing in real estate still a reliable way to make money? Can you lose on such an investment? Of course, there are situations in which people lose money buying an apartment, but even during the pandemic these are isolated cases. If the purchase is well considered, the costs have been calculated, and the property’s location has good prospects, you have nothing to worry about. Buying one’s own apartment continues to attract many potential customers, as is particularly evident from the demand for mortgage loans.

Advantages of this type of investment:

  • apartment prices are still rising, so the risk is very limited,
  • keeping money at home or in a savings deposit earns you little or nothing; you have a better chance of increasing your income by investing capital in real estate,
  • you can always rent out the property and earn additional income from it,
  • it can serve as loan collateral,
  • you may be able to take advantage of tax deductions and reliefs.

Disadvantages of this type of investment:

  • you need to have substantial capital, which will cover not only the purchase of the apartment but also any necessary renovation,
  • the investment will pay for itself, but this may take a long time,
  • the apartment will not always sell immediately or at the price you want; sometimes you will have to be patient.

Which Apartments and Locations Are Worth Investing In?

The properties that sell best are those characterized by spaciousness; apartments with kitchens open to living rooms are particularly fashionable. Buyers also value access to a balcony or garden, partly because of the pandemic. Location is also quite important when buying: more and more people are looking for a place from which they can quickly reach the city center while also enjoying peace, quiet, and proximity to nature.

It is worth viewing new apartments in the Tricity – obido.pl, as investing in them may prove to be a particularly attractive transaction.