If you have made a new year's resolution to "make more money," then you may still be unsure about exactly how you will go about doing this. Are you planning to ask for a raise or switch careers altogether? While both of those ideas are worthwhile, 2017 is also a great time to begin investing in real estate. Read on to learn why investment experts consider now a great time to finally make some relatively easy cash investing in real estate along with their tips for making the most money off your investments in today's housing market.
Why Is 2017 a Good Year to Invest in Real Estate?
Financial professionals began advising investors that investing in real estate was once again a good idea toward the end of 2016. Some even declared that it is the best time in history to invest. Home values in good markets are expected to rise by about 10 percent by 2020, so these professionals feel there is no reason to worry that a home you purchase now will depreciate in value due to another "housing bubble burst," similar to the one from the 2008 foreclosure crisis.
In addition, banks are once again lending money to people with less-than-perfect credit after a long period of not providing mortgages to applicants who didn't have perfect credit following the market crash. The interest rates of these loans are also very low.
In addition, some investment experts think that the election of Donald Trump will effect the housing market greatly. Specifically, they suspect that when the student-loan forgiveness initiative he has proposed happens, people who are now using much of their paychecks to cover their student-loan payments will have much more disposable income once the loans are forgiven. They may then decide they can finally afford houses, leading to even more competition for new homes, which itself will drive the value of homes much higher.
How Can You Get the Best Return on Your Real-Estate Investment Dollar?
Of course, just like any other type of investment, using the right strategy is important when investing in real estate. First, professionals advise purchasing foreclosure homes currently owned by banks because they are typically priced much lower than homes being sold by private owners.
They also advise investing in rental properties to rent out instead of homes to "fix and flip." After production of new homes halted after the housing crash in 2008, builders have continuously kept their new-home production low to stay safe in case another housing crash happened. Many people affected by the housing crash now have bad credit that forces them to rent properties, since their credit score prevents them from qualifying for a new home loan. This has led to intense competition for rental properties in many areas of the country, and this is driving property rental rates very high.
If you have made a New Year's resolution to "make more money," but are not quite sure just how you will make it yet, then consider investing in real estate. Many industry professionals believe that it is a great time to purchase real-estate properties to rent out and use to earn a steady, passive income.