News > Blog Article > Why Real Estate is a great …
Every new year brings new and fresh opportunities and the same can be said for financial opportunities. We all want to be able to make money and to use our money wisely. In an ideal world, we want to invest in things that come with minimal risk, that allow us to be protected, and yet enable us to enjoy viable and positive returns.
Putting your money into a savings account just does not cut it anymore. Even with a high-interest account your money will not grow fast enough or turn into a worthy enough investment to class it as an income. If you are lucky it might just beat inflation!
So where should you invest your money? The stock market has always been the next natural option from a savings perspective however it does put many people off. Crashes over the years, and high losses have ensured that many people are more reluctant to risk their money in the stock market and are not comfortable with the fact that they may lose their capital.
This might explain the popularity of real estate investment. According to Forbes magazine in the latter part of 2018, many people will be turning to real estate investment for several reasons. Even if a real estate crash was to suddenly occur, it may not be all bad news. If you have the money to invest during a crash, and you are willing to ride things out, then it could be your golden opportunity to make some great capital. You may just have the chance to buy real quality real estate whilst prices are low; which puts you in an amazing position once things start to bounce back. For those people who have already invested in real estate they just need to be sure they are invested in good quality secure real estate.
Above all of this, there are perhaps three factors to consider if you’re looking to invest in real estate during 2019 and beyond:
Many people are willing to buy property however having the resources and capital to do so can be quite tough. We define affordability upon the percentage of a person’s median household income spent on the median mortgage on households in a particular area.
Affordability is one of the key fundamental reasons behind the slowdown that has occurred within the housing market over the past year or so. With this in mind, many potential home buyers are now having to opt for rented homes instead.
So, when it comes to choosing your investment options for 2019, real estate is a great thing to invest in for the right investor and if you have the funds to do so. Owning a rental property for example can generate solid ongoing returns throughout the term of your investment.
In 2017 alone, 10 of the top 100 metro areas actually saw prices soften. This means that the growth was at least 1 percent slower than annual growth over the past three years.
As the aftermath and effect of the recession start to wear off home, sales are gradually starting to increase. In fact, household wealth in the US has increased by 13.5 percent over the last 10 years and an increase in construction suggests that we should start seeing an increase in buyers in 2019.
One key thing to keep in mind when it comes to real estate is that real estate is local; whenever there is some form of economic volatility, you can always expect to see different trends among different neighborhoods; even if they are in the same city.
There are a number of ways to invest in real estate; many of which will provide a good return if managed in the right ways. This of course all depends on your investment strategy. Why not try investing for long term income as opposed to a simple fix and flip strategy which appeals to so many first-time investors. In the 2019 market, investors are advised to opt for more of a cash flow situation as opposed to appreciation. As we mentioned earlier, many of the younger generations are now having to opt for the rental market and are renting for longer. This means that you have a high chance of strong returns over a long term – especially if you can find the right tenants and you can keep them happy and satisfied.
So if you are looking for great investment opportunities in 2019, and even beyond, do not neglect the real estate market. Real estate as an investment will never disappear and is something that many people will need for years to come in a whole array of needs; whether it’s from housing or commercial use. s with any investment, real estate does carry a risk - however if you look at real estate as a whole over the past several decades and beyond it has always stood the test of time and should be considered a viable option for your investments in 2019.
The idea of real estate crowdfunding is well known. Investors have been pooling their money to invest in real estate investment for decades. Real estate crowdfunding is just a more direct way to invest in property that is managed by professionals and that comes without some of the headaches of traditional investment.
Real Estate Crowdfunding offers investors the chance to invest in real estate without any barriers, such as capital requirements, local knowledge, and legal structuring etc. and is a great opportunity to start generating real investment returns in some of the world's leading currencies. So why not benefit from real estate investment today.
Investing carries risks, including loss of capital and illiquidity. Please read our Risk Warning before investing.
