Many of you would have thought of investing in real estate at some point in time. However, most of you would have not taken the plunge thinking whether it is the “right time” to invest or not.
Investing in a property is one of the most thought out decisions that one makes in life. You put in your hard earned savings in buying a property hoping that it is the best investment. Also, the market value should appreciate over the years. Therefore, knowing a bit about the market and the property trends is always a great idea.
The year 2018 started off well and somewhat tapered in half way. However, plenty of real estate investors cracked good deals and ushered in the New Year in their new homes. So, is this the right time to invest in real estate as we enter 2019?
What’s In Store?
Well, the answer is yes! If you are planning to invest in real estate then the time is now. Though no one knows exactly what will happen in the coming months, the trends show that the home prices will rise at a much slower pace as compared to the previous years. The increase in home prices will obviously vary with region. In 2018, the real estate market witnessed a demand and supply gap. However, with a number of eager buyers around, new home construction is projected to increase in 2019 by approximately 8 percent. Well, that’s good news for real estate investors.
Now, let’s assume that the real estate market is in a bubble across the United States. The prices continue to rise with no end in sight. However, even if the real estate market takes a downward turn, people still need to live somewhere, right? This means that as a real estate investor if you buy a rental property, you are still on the gaining side.
However, the downside is that the mortgage rates continue to rise and experts predict a steep climb in 2019. According to the Mortgage Bankers Association, by the end of 2019, the rates would reach 5 percent. This means that if you are looking to get the lowest mortgage rate possible, then you should try and seal the deal as soon as you can.
The advantage of investing in property now is that the first-time buyers who would be apprehensive about the rising mortgage rates may still choose to stay in the rental property. Therefore, if you invest now in real estate, you will find renters easily in the near future.
According to economists, the country’s economy is booming minus the political tensions. The main contributing factors are high employment, the return of high paying jobs, new career opportunities, and stable taxation. This is a positive sentiment and will stimulate the real estate market. After all, when the economy is healthy, investing in real estate can be the best way to make profits.
So, if you are wondering when to buy a property, we would say now is the best time!