After the real estate crisis of 2008, many investors lost trust in the stability of property investment. Many would-be investors are afraid to jump back into the real estate market. They’re afraid they’ll lose money or run into more problems with their new investment property.
The good news is there’s not much to worry about. Whether you plan to purchase a property to rent to tenants, for vacation homes, or even for commercial use, you want to feel confident in your investment. According to the latest market trends, the property market is swinging in the buyer’s favor. Let’s take a closer look at why property is a good investment in 2019.
Increasing Affordable Markets
While it’s true there has been a fight for more affordable home prices in the past decade, this is slowly easing up. Depending on your local market, it actually might be cheaper to purchase a home than to rent. This makes it more affordable than ever for individuals to achieve their dream of owning an investment property.
There’s greater availability in the market today. More homes are on the market than ever before, and the market itself is softening to welcome new homeowners and first-time investors. You also have more flexibility to choose between an old house or a new house, especially with the rise in new constructions and renovation projects.
The Rise of Renting
Rental prices are on the rise. According to Pew Research, more U.S. households are renting now than at any other point in the past 50 years. With rising rental demand in cities across the nation, it’s a good bet that there will be a demand for your property as well.
Because it’s a landlords market, you have more flexibility with choosing your tenants, setting competitive prices, and making a profit. The low vacancy rates are a blessing for first-time property investors. Choosing your tenants is a big part of the process, and when you’re allowed to be picky with credit scores, background checks, and rental history, you run less risk of having problems arise with your property.
Stable Income Return
Finally, one of the best reasons to choose to invest in property in 2019 is the total return. There’s a high asset value with property that you don’t get with other types of investments like stocks or even some bonds. You don’t have to rely on a manager or debtors to get a return on your investment because it’s a brick-and-mortar property.
If you’re looking for a less volatile investment you can count on seeing a return from, consider investing in property. In the current market, you can count on finding paying tenants and having an increasing demand long-term. This is a good move not just for today but also the future.
Is Property a Smart Investment for You?
Whenever you’re considering a new investment, especially a big purchase like a property investment, it’s best to seek advice by My Wealth Solutions or a local financial professional. If you have the tools and resources to make a move in the current real estate market, now is the best time to act.
In short, property is a great investment for 2019 whether you’re an experienced property buyer or this is your first time. It’s a buyer’s market, and landlords are in a position to make a solid return on investment for the foreseeable future. The market is only continuing to grow, so it’s smart to strike while the ball is in your court.