- Even though home prices are on the rise, now is the best time to start investing in real estate.
- Diversifying your portfolio doesn’t require a lot of money. In fact, there are more options than you might realize!
- You don’t have to be an investor expert to get a great deal.
What buyers need to know about real estate investing
Even if you don’t own or have sold a home this year, there are likely to be wild predictions and statistics about real estate. Both novice and experienced investors are wondering if this is the right time for them to increase their portfolios. There are many options available to buy income-generating properties, and this might be the best time to do so.
Are you still on the fence about investing in real estate? These are some quick tips and tricks to help you get started in investing in real estate.
Real estate investing isn’t just for the wealthy
Despite what HGTV may tell you, anyone can invest in real estate with careful planning. A real estate agent can help you get started, but it doesn’t take much experience.
Begin by finding an agent who is familiar with the local market. They’ll help find the right property for you based on your goals and budget. You don’t have to limit your search to fixer-uppers. It’s worthwhile looking at land, condos, single- and multi-family homes, office space, warehouses, and other properties.
You can turn your investment into an income-generating asset that will pay off your mortgage with a little effort and a bit of sweat equity. Renting your property to tenants is the easiest way to achieve this. The average rent has increased more than 30% in the past decade. If you intend to keep your property for a long period of time, you can turn a substantial profit and build equity.
Mortgage rates remain low
Timing the market is one of the most costly mistakes investors can make. Although it might seem appealing to wait for a recession to see prices drop, it is impossible to predict how they will change over time. Low mortgage rates are important to consider even if prices rise.
Real estate investing is more affordable because of lower mortgage rates. The average 30-year fixed rate mortgage rate was 3.4% in November 2021. This is almost a full percentage point less than it was in 2018. Let’s look at this in context: If you buy a $400,000 property and pay a 20% downpayment, your monthly payment would be $1,419. If you purchased the same asset at 4.4%, your monthly payment would be more than $200. This adds up over time.
This post was written by Dayana Susterman Dotoli. Dayana is the head real estate agent for the Tiffany House In Ft. Lauderdale Beach. Dayana has assisted over 150 individuals with buying, selling, and leasing at Tiffany House. The Tiffany House Residences is a 12 story tower, offers 129 residences, including 1, 2 and 3-bedroom condominiums and townhomes, with exclusive, resort-style amenities and views of the Intracoastal Waterway and the Atlantic Ocean. To view our luxury oceanfront condos for sale in Fort Lauderdale, Contact us today!