With the world on its head and with the country in economic limbo, making a major purchase is likely to be one of the very last things on your mind. However, much like the crises of the last few decades, the CoronaVirus has caused stocks to plummet, which means that for those who are looking to buy a house, a car, or even a yacht, they’re bound to enjoy the benefit of flexible payment terms and low rates, much like in the way that people saw an opportunity amidst austere conditions during the Great Recession.
Will My Purchase Appreciate in Value?
The answer depends on a few key factors. Major purchases like a house almost always appreciate, especially when they are purchased in a market downturn. Classic cars usually also appreciate or retain their value, especially if you buy when the market is low and wait until the market recovers to sell.
What You’re Planning On Buying
As a general rule, depreciating property such as cars and yachts are not going to be as practical as a property that increases in value, such as a house or land. However, there is an exception to this rule: if you’re able to increase the value of the car or yacht by purchasing upgrades such as an Aerial Wakeboarding tower for your yacht or an improved engine for your car, you should be able to make money off of your investment.
On the other hand, any property that increases in value over time, such as land and houses are bound to reap you the most benefit, especially when the economy recovers and prices for houses shoot back up.
Your Job Security
One of the biggest factors to consider before making a major purchase during these economically-challenging times is whether or not you can rely on your job to keep you afloat even after you’ve made the purchase. Nobody wants to make a purchase that ends up draining them of vital resources. This is even truer when you consider that a badly-timed purchase could mean that you end up in debt, the adverse effects of which are going to be felt even after the COVID-19 pandemic. If you’re absolutely sure in the security of your job or your income, then that’s one less thing to worry about.
Is The Property Sellable For A Significant Profit?
You have to remember that you’re making this purchase with the intent of making a profit by selling it once the market recovers and market prices shoot right back up. Take note that the operating adjective here is “significant”, meaning that the profit you gain should be worth the trouble of making the purchase (market value assessment, property taxes, real estate and legal fees, processing fees, etc.) If you’re going to end up where you started, you might as well not go through the trouble at all. It’s because of this that it’s important to do your research on the market and on the property you’re planning on buying and selling later on.