Now Is the Time to Invest in Real Estate

Investing in anything can be daunting. Are you making the right decision? Will you benefit from this? Will something plummet when you least expect it? While we can’t say much for many investments, we can say a lot for real estate. One thing is for sure and that is 2019 was the year for investing in real estate, and 2020 will be even better! Real estate is not only a good investment but actually one of the best things to invest in. Here are 5 reasons why you should be investing in real estate this year.

• Prices are Up

The vast majority of real estate experts expect the values of homes for sale in the US housing market to continue increasing, albeit at a lower rate. The most valuable properties can be found on the coastline – California, New York, and Hawaii – but, don’t overlook your small home towns, college towns, and anywhere in between. 

While homes are more expensive now, if you can afford a down payment, you can rent out the property at a rate that will surpass the mortgage, putting money in your pocket.

• Rentals are Popular

Many millennials are opting to rent instead of purchasing a house. In fact, more people, in general, are choosing to rent rather than buy. With this in mind, now is the time to invest in property if you are choosing to rent it out. 

While day to day housing rentals are very popular, so are vacation rentals. People are choosing to book their stays through rental lodging sites like Airbnb because they can get more bang for their buck. There are so many choices when it comes to renting out your property. Whether you are purchasing a property and renting the whole thing out or renting out a portion of your home that you don’t use, you are sure to make a substantial amount of passive income.

• So Many Ways to Finance 

Nowadays, there seem to be so many ways to finance a purchase of real estate. Sure, traditional mortgages are still available, and as long as you keep a high credit score, you can get a good loan rate. But there are also other options available.

Feasible options include fix and flip projects. Essentially, you find a property that is more or less attractive at a much cheaper price. You then use hard money loans to get short-term financing. Once you’ve improved the real estate, raising the value of the property, you can sell it a higher price.

You can also consider a few other loans such as an FHA loan, USDA loan, or the VA loan. Each loan has rules and regulations. For the FHA loan, this is for low-income to medium-income borrowers. You are able to secure a loan with a down payment as low as 3.5%. The other two loan options are government-secured. USDA is for when you’re buying a property in a rural area and the VA loan is for military veterans. The VA loan gives you the option to put $0 down. Just keep in mind that your monthly mortgage payment will be higher since you have to make the money up in the length of your loan (15 or 30 years).

• Retire in Comfort

Referencing back to our rental properties, if you choose to invest in a rental property, you will benefit greatly from this when you choose to retire. After years of renting out your property, you’ve either been able to pay it off, or you have a lot fewer payments left. With that being said, you’ve already secured a great home to retire in long before you take your last paycheck. If you’ve invested in several rental properties, you now have passive income to supplement your retirement funds.

• The Internet Makes it Easy

Before you even have to call up your local real estate agent, you’re able to go online and compare properties, neighborhoods, comps, etc. Having all of this information will be helpful for you in the long run, as you know and understand what you need and want before you meet with your agent.

Real estate properties continue to head the list of the top investment strategies as they allow investors to make money in both the short term and the long run while keeping their full-time job. As a new-comer, just remember to start small – with a single-family home or a duplex – and consider hiring a rental property manager to avoid stress and to enjoy your rental income.