Now that the coronavirus outbreak has created a very uncertain situation, we are regularly asked whether investing in real estate is still interesting these days. Wouldn't it be a better choice to postpone or forgo it? The experts at Momo Estates can reassure you in this area. This is certainly not a choice that needs to be made in this situation. It can still be very profitable to invest in real estate. Past situations support the claim that you can safely invest in the real estate market in our area.
Why there is great uncertainty among people considering investment
Economic models currently provide an understandable basis for uncertainty. The corona virus outbreak is causing considerable economic damage. Although steps are being taken to combat the virus, no clarity can yet be given as to when we will be rid of it. This raises the question for many people whether investing in real estate is still interesting these days. To what extent is the economic crisis affecting the housing market? It is a very logical question with the devastating financial crisis in 2007-2008 still fresh in our minds.
Is there a chance of a financial crisis like the one in 2007-08?
Our experts expect that there is little chance of falling into a financial crisis like the one in 2007-08. There is no so-called 'real estate bubble' about to burst. This was much more the case in 2007-2008. In this crisis, the property market was much more central to the crisis. To recall the situation back then: At that time, there was a stagnant housing market in the US. As a result, mortgages fell rapidly in value. As money dried up, the 'housing market bubble' did burst. The effect spread to other financial products with which the well-known banking crisis was born. A form of domino effect emerged.
It is worth emphasising that even during that time, the Northern European property market never crashed. We merely shared in the economic malaise that arose elsewhere in the world. It is also a fact that in northern Europe, there is a very different ethos regarding the provision of financial products. There will never be irresponsibility in our area as we have seen in the past. This highlights that investing in real estate is still interesting, even in this uncertain period.
Investing in German real estate, an interesting consideration
Besides the above, it is worth pointing out that the demand for housing is still rising even during the corona period. This is certainly the case with rental properties. This emphasises the fact that investing in German real estate is an interesting consideration. After all, the rental market in Germany is many times larger than in Belgium. So here we see an extremely stable growth margin for those looking to invest there. This is why our experts are happy to inform you about the opportunities for investing in German real estate. Especially the state of North Rhine-Westphalia certainly comes into consideration then. North Rhine-Westphalia is not only one of Germany's largest federal states but also certainly the most important economic region of our eastern neighbours. This makes investing in real estate in Germany even more attractive. Feel free to make a non-binding appointment with us if you are interested in finding out what your options are.