Since the start of 2020, Europe has been facing the biggest global pandemic since the Spanish flu. Gold, consequences for the economy are catastrophic and the repercussions on the estate market were not made to wait. Future buyers are worried about investing in such an unstable environment. Many hire mortgage loan brokers to help them find an attractive loan.
A global economic recession
Most experts agree that the global coronavirus epidemic will have negative effects on all economic sectors, including real estate. In the short term, they anticipate a slowdown in growth or even an economic recession. Most sectors that rely on mobility (tourism, trade, industry and construction) will be exposed by stopping international trade. States will have to rely on central banks for the implementation of stimulus programs, particularly with regard to aid provided to businesses. In the longer term, specialists wonder to what extent the global economic system will have to be rethought, in particular on the question of economic interdependence, on the promotion of short circuits and the consideration of environmental risks and social issues in the investment field.
The impact on real estate
According to the first study reports on the subject, all real estate sectors are affected by the coronavirus crisis. To begin with, there is that of construction. Most of the sites are paralyzed and the suppliers of materials depend on international trade. Then, the promoters and the agencies depend on the state of progress of the works and also on the capacity of future buyers to be able to move for an appointment. Finally, there is the purchase, which was blocked due to containment. The trend could be down property prices, but increasing interest rates, as visits and appointments have been interrupted.
The most affected sectors
As we mentioned earlier, real estate sectors the most affected are those related to the mobility of goods, people and services. It is therefore certain that the latter will experience the effects of a reduction in investment in this area. This is the case, for example, of the hotel sector which is impacted by the absence of tourism. Logistics and trade were also severely impacted by the decline in trade. Office furniture also suffers from the effects of employee confinement. Uncertainty still weighs on residential property. An increase in the unemployment rate and economic difficulties could make buyers more reluctant. Low-income households that have difficulty accessing borrowing may slow down transactions, while others will find it easier to access credit, which would widen inequalities in the real estate market.
The advantage of using a real estate broker
Finding real estate to buy is very complicated when the economy is unstable. It is even more so when you are an individual and you know little about the market. In this case, the best solution is to use a real estate broker.
What is a real estate broker?
A broker is a recognized expert in different fields (real estate, banking, insurance, stock market, etc.). Its clients give it a mandate to find the best placement and investment solution by approaching all of the providers concerned. In real estate. He supports his clients in obtaining the best financing, whether it is a project such as the purchase of a main or secondary residence or a rental investment or a purchase in SCPI.
With a real estate broker, you will have in one appointment an overview and a comparison of the most interesting offers.
What are the advantages of using him in the current state of crisis?
The clients of real estate brokers mainly seek three benefits.
• Take advantage of a double expertise
Le real estate broker indeed combines two levels of expertise. First, he knows the real estate market perfectly and follows all of its trends in real time. He will not hesitate to share his impressions of the situation with you. In addition, it seeks and obtains the best financing for you according to your project and your profile, by negotiating with its banking partners.
• Facilitate the assembly of your file
The real estate broker takes care of his clients' files from A to Z. He will help you to collect all the necessary parts to assess your debt capacity and will transmit it to the various banking organizations. As soon as he has obtained the proposals, he will study the proposals and begin to enter into negotiations to obtain more attractive offers by bringing competition into play.
• Find more attractive loan contracts
Its role is not to find the cheapest offer, but rather tailor-made financing in relation to a project. For this, he will focus on two things. First, he will start by looking for the best loan interest rate for his client. This will give his client the opportunity to increase his budget when looking for his property. Then, he can also look for borrower insurance at the best rates and guarantees for his client by comparing the offers of external insurance.