Low-interest rates over the past year have caused the housing market to boom. Right in the middle of a pandemic. Some people are buying simply because they have the opportunity to borrow the money, while others are hesitant because of the economic future post-Covid-19.
But there are still great investment opportunities to be seized in a property. It's one of the safest investments with the highest ROIs — even with all the uncertainty.
Still not convinced? Check out important reasons why buying a house is a great investment.
Buying a Property is One of the Most Stable Investments
While the housing market may be all over the place at the moment because of the pandemic, in the long-run real estate is an incredibly stable investment.
Buying a house is also a safer bet because, unlike stocks, you can actually use it. Even if it depreciates over the years you'll have a physical asset that you can live in, or rent out for passive income.
We're early into the pandemic and we won't know the true effect on the housing market for many years to come. However, looking at consumer reactions and market trends from previous pandemics shows us that the market is likely to stabilize within a few months after the 'end'.
You Can Choose to Maximize Value
The general rule when buying a house is that it will appreciate over time. Depending on where you buy it, it will either appreciate at a rapid rate or relatively slowly. Either way, the opportunity to maximize the property value is in your hands.
Some people love buying 'fixer-uppers' for example, doing some work on them and then flipping them for double the price. If you add certain features, such as a pool, or upgrade the living and cooking areas, you'll be increasing the value of the home.
Due to the fact that real estate is a tangible asset (it's a physical asset), any and all improvements will increase its value.
Opt For Diversity
If you're looking to make sound investments and already have some stocks tucked away, then it's time to invest in housing to add diversity to your portfolio.
During these uncertain times, you should not be relying too heavily on one single market. You can diversify within property management, too. For example, investing in property in different areas.
Real Estate Has the Best Returns
Unless you hit the jackpot and find out that the stocks you bought in Bitcoin 15 years ago are suddenly worth millions, then real estate has the best return on investments.
Real estate generally appreciates at around 6% to 8% every year, which is much higher than the 1% to 2% on a money market investment.
If you're really smart when buying a house, for example by choosing a single-family home or an up-and-coming area, then the ROI will be even higher.
Take Advantage of Property Investment Opportunities
The best time to buy property is always right now. You can be sure that it's one of the safest investment opportunities and you'll always have a tangible asset even if the housing market had to take a knock.
If you're ready to get buy a home or invest in a property why not get in touch? Investor's Realty, LLC has insider knowledge on the areas in your local market and we can assist in finding the perfect property.