The 2020s are becoming a complicated decade for the real estate industry. The pandemic made a profound impact on the economy of most countries. Low-mortgage rates created the perfect opportunity for those with the financial means to invest in properties. However, housing prices have gone through the roof.
Whether you wish to invest in real estate to resell it or to manage a rental property, real estate is a stable investment that guarantees you a profit in the future. With the right plan to overcome economic issues, you can handle shifts that may occur in the industry. But what makes 2023 a great time to invest in real estate? There are several factors that have great weight in your decision.
A Drastic Increase in Prices in The Housing Market Continues
Housing prices have already greatly risen compared to the last decade. This has been a cause of foreclosure increase in 2022. According to ATTOM statistics, Nationwide one in every 4,580 housing units had a foreclosure filing in November 2022.
This gives us a reason to suspect that there will be a rise in the number of rental applicants. There is going to be even bigger competition among potential renters. The foreclosure numbers put more real estate on the market, therefore, the housing inventory is bigger than before.
Residential Rental Prices Are Getting Higher
With mortgage rates doubling over the past years many first-time homebuyers have backed off the market and now are looking for rental properties. Moreover, there is a low rental property inventory at the moment. Landlords have less competition in contrast to renters.
Investing in real estate in 2023 is going to give you multiple benefits as a rental owner. Firstly, because of the house pricing issue, more people are looking for residential rental properties to live in. You can also invest in an Airbnb, as people didn’t really have a chance to travel due to the pandemic, but since the global lockdown is over, they have been trying to fulfill their wishes to travel. Rental property owners are making more profit now than ever before.
Moreover, more people searching for rental properties means that there are fewer buyers. This means that you get a chance to purchase the property to flip with less competition. You now have the room to negotiate with the seller and get the market price to go lower.
Therefore, if you wish to invest in rental property and property management, now is the time.
Real Estate Is The Perfect Long-Term Investment
Whatever you are purchasing real estate for, owning a property is the best way to invest. You can make a profit on your own terms by owning real estate. As a property owner, you can conduct renovations on your own to make a cheap house look fabulous. You have a chance to paint the walls and move the furniture on your own without spending much money on help.
So you can create a wonderful interior design without spending much money and make a profit. In the end, you will be able to increase the value of your property without spending too much on it. You can resell a flipped house for a much higher price than you bought it for. Moreover, a well-furnished, pretty property that you flipped around can be a source of your monthly income.
A real estate investment can turn into not only a rental property business but into a commercial business as well. You can turn the house around and make it into a salon, a bar, or a small inn.
Either way, at any point in your life, you will have a valuable asset that will get you out of a crisis if you use it well.
2023 is a great time to invest in real estate due to a variety of reasons. House prices are going to increase in the future, and this factors into people’s decision to easily buy properties, and rental property owners get a chance to increase their rent prices. Foreclosures are actively happening and there are more properties on the market and inventory keeps increasing. You get to own a valuable asset that can bring you some profit at any point in time. Therefore, property investment is always a good idea, especially now that fewer buyers are in the market.