Jacques Poujade is one of the top real estate investors and advisors of the time. With over 30 years of experience under his belt, Poujade is managing partner at LendsPlus, a real estate financing firm that helps homeowners make their property investment dreams come true.
There is no doubt that 2020 was an unusual year in the real estate world. That being said, we caught up with Poujade to get his insights on the current market and where we might be headed in 2021.
How did COVID-19 alter the course of the real estate market?
The global pandemic definitely changed how people lived. Overall, everyone is spending a lot more time at home due to remote work and lockdown restrictions. That being said, I still saw a big shift in the real estate market. I talked about this with USADailyChronicles - more people moved out of metropolitan areas and to more unique, exotic locations they couldn’t experience before because they were anchored to their office’s location.
Is property investing a safe choice for investors even in uncertain times?
I would say so - remember that property investing is a lot more stable than the stock market. People will always need a place to live, even in the midst of a global pandemic. You also have a lot more control with an investment property - you put in the work from renovations to marketing. In essence, what you give is what you get.
Will mortgage rates get lower in 2021?
With the pandemic, we saw mortgage rates hit a record low for the first time in a long time. This has been a blessing and a curse - it has allowed a lot of people to invest in properties they were never able to afford before. Though the economy is expected to improve in 2021, we will probably see mortgage rates continue to stay on the lower side throughout the course of the next year.
Should people purchase a home in 2021?
Despite the low mortgage rates, home prices are still inflated. That means that the inventory on the market is limited and sellers are charging whatever they want. However, if things really do improve in the next year, I think that 2021 will be a better time to make the purchase you’ve been planning for.
What is one trend you know will carry on into 2021?
I talked about this with PRMWire - I think cryptocurrency will be the biggest trend we see in 2021. I’ve seen cryptocurrency become convenient for some of our borrowers in the heart of the tech world out here in California. I think by offering cryptocurrency as a payment option, it shows that we are on the cutting edge of a lot of different things and willing to accommodate the needs of our borrowers.