Innesting in real estate has always been one of the most effective ways to earn a good return on investment .The opportuinities that the housing market offers are almost endless and property investor of all levels of experience can reap massive rewards if they implement the right investment strategies .
in this article, we will reveal 15 real etsate facts that will change your outlook on this sector.
The 15 Real Estate Facts You Should Know
The real estate facts that are listed here are design to help you fanalised yourself with various aspects of the market. The list covers everything that a begginner Real esatate investors should know before getting started.
1-Real estate investing is one of the best ways to secure an early retirement. Becoming a real estate investor can help you build a sizeable nest egg in a relatively short period of time by buying an investment property and rentinh it out , you can generate a steady positive cash flow for years. As long as you properly manage this money and continue to slowly build your rental property portfolio, you can put the extra income towards securing an early ritirement.
2 – Real estate has a low barrier to entry .One of thr most interesting real estate facts is the low barrier to entry of the housing market. Contrary to popular belief, you don’t need to invest big to start making money with real estate.Infact, you can put in as little as 15% of the total sum of the investment. This makes real estate a much more interesting option that traditional stocks or bonds.
3- Real estate appreciation your networth soaring. Appreciation is one of the main reasons why you should consider investing in real estate . A real estate portfolio will appreciate in value overtime without requiring any direct intervention on your part. You can expect an an average appreciation rate of 5% in the most markets.
Consequently, your networth will grow exponentially in a rapid fashion .
4-investing in real estaste is the best protection against inflation owing a rental property can be the perfect hedge against inflation . While most assests tend to witt under inflation, real estate experiences a boom during those period. The reason for this is quites simple . As inflation increases, so do the value of your investment property and the income that it generates, moreover, the average appreciation rate in the US has consistently been higher than inflation rates, so real estate investors are assumed of beatings pria spikes regardless of their strategy.
5- Real estate investing comes with several tax benefits . On top of it’s hihg-profit potrntial , real estate offers a number of tax benefits. First of all, income that is generated through real estate investing is no subject ti pica . The only exception to this is when this income is pais as an salary through a holiday company. In addition to this , there are other benefits on lower capital gains, refinancing, depreciation, and 1031 Exchanges.
6-Millennials constitue the majority of home buyers . US housing markets 2019 data shows that millennials have completly eclipsed baby boomers and Genxers when it comes to buying homes. They rae also expected to taek on more mortgages than any other demographic by next year . The implications for real estate investors are not negible . As a matter of fact, this shift is an encouring sign. if you plan on buying an investment property to quickly sell it you should be able to sell if you first leam what millennials are looking for.
7-The real estate market will continue to grow. of all the real estate facts on this list, this is probably the most consequential one for reticent investors. Despite bearish resistence a few yeras ago, the us housing market 2020 projections are overall bulliush more important, all the indicators thst sre used to predict market growth are trending upwards. Here is an overview of the most important ones. The unemployment rate is low and the job market is offering new opportunites
-Fewer buyers are using internet -only home loans
-The youngers generation is willing to invest in real estate
-Taxes are faring low
– Spending in the economy is steadily increasing.
8-Even subpair neighborhoods are attracting buyers. This doesn’t necessary fall in the category of real estate fats as it is subjected to variable market conditions, curreent market trends seems to indicate that even properties situated outside the best neighborhoods are selling well. This is especially the case in larger real markets. The fact that areas without access to highways or essential amenities are performing well for real estate investors.
9- Your real estate investment will pay off your loan. One of the amazing facts about real estate investing is how effectively your loans can be paid off. By renting out an investment property , you will be able to generates enough income to pay off your debt in a gradual manner. In essence, your tenants are helping you build your wealth and equity with each monthly payment they make.
10- No other investment afffords you asd much controls as real estate . When you make real estate investment, you are completely in charge of evry steps of the way. Everything from the strtegy you want to implement to the mortgage provider you want to get your loan from is up to you , furthermore, you have the option of screening tenants and only renting to those who fit your reqirements.
11-You will always be able to sell a real estate investment during recessions and strong economic downturns, it’s not uncommon for companies and institution to go bankrupt or default on their debt. This can effcetively wipe out your entire investment if your portfolio is made up of stocks and bonds . On the other hand, you will always be able to sell property even in the worst economic situations. Investing in real estate is the perfect way to mitigate the isk of financial markets
12-Real estate makes for a relatively stress- free investment. When this does not apply to all strategies, real estate is not as stressful as other ventures . This is due to the fact the real estate market is more stable and less volatile than other market. Trends take longer to materialize and a real estate -based portfolio is not affceted by every market dip. Aditionally, you have the option of taking a hand-off approach when it comes to managing the investment property. Hiring a professional property management company that managesthe rental on your behalf will save you both time and effort.
13-Flipping can still be profitable. This is one of those basic real estate facts that even novice investor know. flliping properties has always been one of the best ways to make money in real estate . While this investment strategy is not easly implemental as it was during the last boom period. You can still find tremebdous opportunities if you conduct a thorough property search . An effective way to esarch for an investmet property is to use la-Paz real estate finder.
14- Data anayslitiucs as essential compound of real estate. Getting rich with real estate is heavily reliant on varrying oput on-dept market analysis. Such as analysis makes use of various metrics that reflect the value and earning potential of an investment property. Data has become an integral part of every real estate investment strategy .
15- The holidays are the best time to invest in real estate .The last item on our list of real estate facts is this litle know tip.
Savvy investors and industry experts believe that the bet time to n make real estate investment is during the winter . This is based on the belief taht negotiation are easier to conduct around the holidays becuase of sense of good will is high . As consequenceb sellers are more likely to cave in and the likelihood of landing a good real estate deal increases
