To face the Covid-19 health crisis, several countries are entering a new period of containment. The virus is gaining ground and every government is taking steps to try to limit the spread of the coronavirus. Many of you do not know the impact of the containment on real estate. Many club members have stopped their investments while others have benefited. In this article, we will explain what you have the right to do in terms of purchase and rental management during this containment.
Investor : what can you do during containment ?
Looking for a property for sale : exploiting your free time
The professional activity is well slowed down during this confinement, it is the moment or never to take advantage of it to hunt for bargains. Contrary to popular belief, there are not necessarily fewer sales offers on the market. On the other hand one can wonder about the real number of buyers… The real estate agents work during the confinement, but do not receive people in agency. You must take advantage of this to learn about real estate niches and make a maximum of contact with sellers.
Visit with a view to investing : opt for the virtual tour
The advantage of the real estate niche of the parking lots, garages, cellars, boxes and warehouse is that you can invest without necessarily visiting the property. You take less risk than to buy a traditional property such as a studio, an apartment or a house. Be careful, you should always take the time to analyze the geographical location of the property for sale. This is not a reason to buy anything and everything. You can use our simulator to evaluate the value of a property and ask your questions by phone. Ask for several photos of the property for sale and do not hesitate to share your doubts on the club forum so that the community can advise you.
💡 Did you know that : Contrary to the previous confinement, a real estate agent now has the right to visit his client’s property to take photos or videos. Ask salespeople to give you a virtual tour !
Real estate negotiation : the ball is in the buyers’ court
We are not going to lie to each other, there will be no better time to negotiate a real estate purchase. This unprecedented crisis will have an impact on the future economy and nobody knows how to predict which one. Even if there is a good chance that the price of real estate will fall in several months, sellers are afraid. Everybody is moving forward into the unknown and this is the real advantage for those who have the audacity to invest in this period of crisis. Several members of the club made very good deals during the first containment. Offers of prices even below the market price pass because the sellers in a hurry are at a dead end; either they let time pass without knowing what the real impact of the crisis will be, or they sell as quickly as possible.
Getting financing : real estate brokers and banks are working
The good news is that real estate brokers and banks work during containment. It is not possible to make an appointment in an agency. You can manage your financing requests remotely by email or by phone. Response times are shorter than in the spring. However, allow a little more time to finalize your financing file. The rules for allocating financing are stricter but banks still lend money. As proof, Christophe, the club manager, obtained a property loan of 324.000 € over 20 years with a rate of 1.10 excluding insurance during the first confinement. Member of the club, evaluate your bank scoring thanks to our training module on financing included in the membership at 48 € per year. Even if you are not a club member, you can put all the chances on your side by using our bank file template to present your projects to several credit institutions.
Signing a compromise in dematerialization
Real estate agencies and notaries also work remotely. Since the first confinement, professionals in the sector have been equipped en masse with software and tools to dematerialize deeds. It is now possible to sign preliminary sales agreements without leaving your home, simply by using your internet connection. A videoconference allows you to bring together the buyer, the seller and the notary(ies) to electronically sign a compromise or a deed of sale. When dematerialized exchanges are not possible, a notary can receive private individuals in strict compliance with the gestures barriers.
Netflix to multiply its sales : there are fewer buyers on the market !
To conclude this chapter on what an investor can do during containment, we take the telling example of the Netflix company. If you don’t know, this company offers subscriptions to see series on your television. They have never had as many new subscribers as during containment! People spend more time in front of the TV thinking that the world has stopped. Wrongly, they forget that it’s the best time to hunt real estate. It’s the principle of supply and demand : the sellers are always there… On the other hand, there are far fewer buyers and investors on the market. Good deals are made during times of crisis, when everyone is afraid to invest.
💡 Did you know that : Everyone is afraid to invest in times of crisis, only the bold will succeed. There is no better time to get rich than in times of crisis !
Owner-lessor : what can you do during containment ?
Visit for rent : opt for the virtual tour
For several months now, we have implemented the possibility of offering virtual visits on the members’ showcase cards. This video presentation allows you to make visits without moving around; to follow up on the signing of a rental contract online. This is the time to review your rental approach. Presenting a property with photos is usual, arriving on the market with an interactive video is even better to attract future tenants and make them want to rent from you.
Rental contract, a single watchword : dematerialization
The club already has its own online contract signing platform, included for Premium members ✨. The dematerialization of the rental lease, the online electronic signature coupled with credit card payment will solve all your rental problems during this period. Go quickly to your toolbox to activate its services free of charge!
Delivery of key or access beeper : use delivery services
During containment, the closure of small businesses leads to an explosion of online sales on the Internet. Postal parcel delivery services are increasing their workforce to meet the high demand for delivery. A landlord can easily send a beep in a parcel once the deposit is received. There is also no real brake on the handing over of the key.
Furniture storage activity : it is possible to move during confinement
The good news for storage owners is that individuals can move during containment. Movers can perform all the tasks associated with their move and continue to rent storage units.
To conclude on the real estate niche in times of confinement
As we have seen above, there are solutions to keep your projects or assets moving forward. In these difficult times, it is possible for both investors and landlords to cope with the crisis. Our platform has never known so much connection; our club members are forming and moving forward with their projects. Luckily a large part of the volunteer team is available to help you. We also thank all the members who spend time answering questions on the forum. If you still have any doubts : now is really the time to learn and benefit from the experience of others by joining our club of investors and owners.
Once again, the real estate niche of parking lots, garages, boxes, cellars, warehouses and commercial premises is less affected than traditional real estate. It is an opportunity that should not be missed, the misfortune of some makes the happiness of others, it is up to you to turn this crisis into an opportunity. Take care of yourself and your loved ones and achieve success in your projects !