Right now, it is certainly a scary time to start investing in the real estate market. What with so many news outlets doomsaying what will happen and predicting that the bubble will burst like it did back in 2008, I know I am hardly alone in my concerns. That being said, there are ways in which we can get involved without too much risk.
That is what I am here to cover today. Can we sell our homes right now, or should we wait? Are there truly definitive answers to these questions? It is hard to say, but hopefully this article can provide some insights into the topics at hand.
The State of the Market
I find it is most prudent to start this discussion off here, as this is the big question on everyone’s minds right now. What does the real estate market look like right now, anyway? Well, you can see some information on it on this page, https://www.forbes.com/advisor/mortgages/real-estate/housing-market-predictions/, for a start.
That being said, I do think we should be careful about fully leaning into the doom and gloom thoughts. While we should exercise caution about getting involved in real estate right now, there is no guarantee that the market will fail or that the bubble will burst. As it stands, that is all speculation.
As of right now, things do look to be in a fairly good place. Many homes are selling for high profits and house flippers are enjoying the benefits of this. That does not mean that we should not be careful still, of course, but it is a good sign. Right now, it might actually be a very good time to get involved.
Can You Invest in Real Estate?
Hopefully, if you are reading this, you already know that the answer to this is yes! There are plenty of ways in which owning property can actually serve as a form of investment. If you are curious, you could consider talking to a great real estate coach for further details on how to make that dream a reality.
That being said, I will cover a few of the methods here first. One such is fairly simple. We can purchase properties and use them to rent spaces out to tenants. Doing this is known as becoming a landlord.
Now, do keep in mind that there are responsibilities that come with this. Most importantly, a landlord is expected to keep up with repairs in the rooms or buildings that they rent out. If a tenant has an issue, it is their duty to have it fixed, usually without additional charge, as it is part of the agreement between the two parties.
So, if that does not sound appealing to you, this might not be the route to take. Additionally, you may need to make some renovations before the property is able to be rented out. Generally speaking, people do not like to spend money to live somewhere that is not appealing.
The other method is not less labor intensive but does involve interacting with people less. House flipping is a lucrative way to invest in the real estate market if you know what you are doing and what you are getting into. Those who are inexperienced may not reap the highest profits, but it remains a learning experience at the least.
So, what does it involve, then? In short: renovating. Lots and lots of renovating. It is worth noting that this is what turns people off of house flipping in a lot of circumstances, but if you do not mind the physical labor involved, you can turn a fairly large profit.
Now, you can hire contractors or other professionals along the way to help you out, certainly. However, the less need you have for them, the more money you can save. You can even put it towards design ideas instead. If you are looking for inspiration, you could try this web page for some!
The amount of work involved will really depend on the property that you purchase. Fixer-uppers will of course require a lot more renovation than a home that simply looks a bit dated. Aesthetic fixes are easy – structural ones tend not to be. That is part of why I would say it is a good idea to have a reputable inspector check out any houses that you are considering purchasing before you bite the bullet and do so.
How Hard is This?
While it does seem quite intimidating based on my descriptions above, you should be comforted (and perhaps surprised) to learn that it really does not have to be. In practice, once you get started with real estate investment, you have the hard part over with! Taking that first step is often the most difficult aspect of it.
Of course, that is not always the case. Do not expect everything to always go perfectly. As is life, there will always be some hardships and trials along the way. However, once we get on even footing, it does help us roll with the punches much more effectively.
One of the best parts about humans is our adaptability and ability to learn from our mistakes. For example, say you did not get a high-quality home inspection on your first house flipping project and ended up with a property that needed a lot of structural work. Most likely, the next time you go to do this, you will not make that mistake again.
As with all things, this is a learning process. If you are not certain, you can opt to talk to a professional any time you want. There are even coaches who specialize in getting people introduced to this field, like I briefly touched upon above.
Almost anyone can start investing in this field if they put their mind to it. So, if you are considering it, I recommend giving it a try! More than likely, you will be glad you did, as the rewards can be sweet.