Diving into real estate investing can be a great choice not just for your current income stream but also for your long-term retirement goals. There are plenty of ways to start your investment journey, so if you’re worried about time or how much investment experience you’re entering this new venture with, fear not, everyone starts somewhere. But before you begin taking steps to start your portfolio, contact me for some expertise from a real estate advisor with 35 years of analysis experience. Read on below for all of the pros and considerations of investing in today’s market.
Pros of Investing:
- Real estate investments can take on many forms, meaning it’s easy to find an entry point into investing that works well for your lifestyle and goals. If you’re looking to be less hands-on, then a rental property with outsourced management could eliminate the daily time and work put into handling the investment. For a more involved project, with potentially a bigger, more immediate payoff, flipping a home could be an option for you.
- Real estate can serve as long-term investments, so a market that is uncertain or shifting today shouldn’t worry you about an investment you know you’ll be holding for a long time. Even amid immediate highs or lows of the market, you can stay focused on the future.
- Build a steady revenue stream and prepare for retirement through your portfolio. Real estate investments rely less on the state of the economy than stocks and bonds do. You’ll enjoy passive income as you rent out the property and the security that comes with owning a tangible asset.
- If you’re investing through other avenues but haven’t yet explored real estate investments, you’re missing out on the level of protection that a diversified portfolio offers. For an extra secure portfolio, consider investing in recession-proof properties like senior housing, land for farming, or student housing.
- Real estate investment trusts (REITs) are an option for those who want to invest in real estate but aren’t up for managing properties or don’t yet have the finances to make the big leap into purchasing.
- With mortgage rates higher than they’ve been since 2008, some potential investors may be putting their plans on hold until rates decrease. However, rates may not have yet peaked, and buying now may get you a lower rate than waiting will.
- Housing affordability is at a record low. Because property can be a long-term investment, don’t rush into a large financial burden until you’re absolutely ready to take it on. Real estate isn’t going anywhere, so make sure your finances are in order before taking on additional, unfeasible expenses.
- The “where” matters as much as the “when” right now. Certain areas are currently overvalued, meaning you’ll be purchasing a property for perhaps more than it’s worth or more than it will be worth down the line. Researching your desired market’s area will help you predict if prices there are likely to hold or are forecasted to significantly drop in the near future.
- As always, one of the biggest considerations before making a big move, like investing in real estate, is do you have a trusted advisor on your side. I have years of analysis experience and data-driven research that have guided my clients and helped them make incredible moves, regardless of the current state of the market.
With over 35 years of experience providing real estate investment analysis to my clients, I’m happy to lay out the realities of the rewards and risks of investing in today’s market. Backed by Sotheby’s International Realty’s incredible global network, I’m able to connect you with extraordinary properties both locally and internationally. Email me today for a consultation. We’ll review your current portfolio and create a strategic plan on how to achieve your investment goals.