People have been investing for years, and not just in real estate. For years and years, people have been investing in stocks, cryptocurrencies, real estate contracts, investment bonds, etc. If you’re looking for a way to invest your money and make it back with high returns this is the article for you.
Are you thinking to yourself, “Can I invest in real estate?” It’s a difficult task to invest money in real estate but with the help of this article, you will know if investing in real estate is the job for you. If investing is for you, we must question if it’s still a safe way to make money in the world of 2019? The concept of investing has been traced all the way back to the 17th and 18th centuries, and real estate was established sometime around the beginning of the 1900s. Meaning there has been plenty of time for the rules of the trade to change and evolve. Over the duration of this article, we will analyze the concept of real estate investments and see if it is still a safe way to generate cash flow in the year 2019. Unfortunately, we cant answer this question with a simple yes or no, there are many details involved when buying an investment property so follow closely because everyone can benefit from a little research.
Recent research from Forbes indicates that nothing drastic is set to change in the world of real estate in 2019. However, they did advise investors to stay away from high priced cities like Miami, Denver, San Francisco, etc. in 2019. Despite all the talk about our economy and the fact it’s in great shape, our economy is currently adding jobs at the lowest rate it’s ever been in the last 8 years. Most of the jobs that are being landed are at the modest end of the pay scale. Meaning that investors will continue to see a high demand for rentals – single/family apartments and studios. Forbes indicates that people still won’t opt for high priced rentals during an economic period like this, there just won’t be enough renters for the more expensive properties as time goes by. So far it still looks like it’s a good idea to invest money in real estate, just not the more expensive areas that renters can’t currently afford.
While no one can say for sure how things will pan out in 2019-2020, good research and studying key market trends can get us pretty close. Studies show that home sales are gradually increasing as the aftermath of the recession starts to wear off. Current home sales are looking similar to what investors would have expected them to look like in 2003, while household growth has increased by 13.5 percent. This could lead to increased buyers in the 2019 real estate market. This is where studying the local market comes in handy, after all, real estate is local. When the economy is unpredictable you can expect to see different trends everywhere, even among neighborhoods in the same city. Which is why its good to understand the local economy before investing money in real estate there. You can find the best real estate investments for 2019 by studying neighborhoods that meet your specifications of low property prices. Is buying real estate still a good investment? It is when you can acquire the right resources and the right rental.
You can also answer the question “is buying real estate a good investment in 2019?” depending on your specific investment strategy. Research is revealing that investors should invest for cash flow and not appreciation in the 2019 market. The fix and flip strategy can be expensive for investors especially in the form of taxes. Did you know when investors fix and flip a house they have to give up 20%-40% of their overall profit in taxes? I didn’t until I conducted more research on why buy and hold strategies are favorable in the upcoming 2019 market place.
Buy and hold means that when investors renovate a property they know they will get a tenant who is paying rent and supplying them with a steady income. This property can keep on generating cash for profit regardless of the property values and the market. Plus the income on long-term rental properties is taxed at a lower rate than you are charged with when flipping houses. Furthermore, renting properties allows for the freedom of location and time through passive income provided by good property management.
Are you still asking yourself “Can I invest in real estate?” If you are it’s okay, its the same question many first-time investors asked themselves before starting their career in real estate investing. Hear what this customer of Real Estate Investing Women Katie Watts has to say about her journey of investing in properties for the first time. “I currently employ Laura as my real estate investing coach. With her assistance, I’ve put together a real estate business and am in the process of purchasing my first property. She takes the fear out of this difficult and challenging business with her excellent advice and creative ideas for solving problems. In a short time, she has saved me from making several beginner mistakes that would have cost me time and money. I highly recommend Laura to the beginning and experienced real estate investors who want to take their businesses to the next level”.
Rental properties can be a smart, money-making investment that allows you to retire early. However, it is not a get rich quick scheme and it’s not an easy thing to accomplish. Smart real estate investing takes patience, time, flexibility, and ambition to make it work well. I think that investing money in real estate is a tricky thing to analyze, it depends on your budget, how you want to invest, where you want to invest, etc. However, I think it’s safe to say that if you want to achieve extra financial independence in 2019 becoming an investor is a safe way to accomplish your long term goals.