While many people may feel that the economy is on shaky ground, experts like David Ebrahimzadeh are encouraging investors to buy into real estate. Real estate is a good investment because it generally appreciates over time.
As far as a return rate is concerned, real estate investments typically receive about 10.5 percent in annual returns. This compares favorably to stocks, whose annual returns typically average around 7 percent.
David Ebrahimzadeh explains the six reasons why this is the right time to invest in real estate, offering suggestions for would-be investors who want to get into the market.
Recessions and Delinquencies
When the economy is entering a recession, this means that many people lose their jobs or enter periods of economic instability. Homeowners may become distressed because they can no longer afford their mortgages.
If you have the right knowledge, you could experience a great opportunity to help homeowners in your area and make a difference in the community.
A Flooded Market
When there are many foreclosures, there is often a flood of homes on the market. This oversupply can drive prices down, but you have to be careful to invest in homes that will not cost too much to sell. If the property has too many physical problems, it may not be worth buying it.
Low Mortgage Rates
Right now, low mortgage interest rates are presenting an excellent deal to real estate investors. When people who are not in financial distress due to the coronavirus look at the market, they may see dollar signs. Selling a home with low interest rates, however, may cause some sellers to raise their asking price.
Investing in Rentals
One of the hottest real estate tips that is useful right now is the growth of the rental market. A multifamily home can be a great investment because it provides passive income. Right now, rental vacancy rates are very low, and rents are on the rise. If you can find a multifamily building for sale, this might be the perfect time to buy it.
Investing in Owner-Occupied Property Versus Rentals
Your real estate strategy needs to change based on whether you are buying a property to occupy or rent out. If you are buying a property to use yourself, you should think long and hard about whether it makes more sense to rent or buy. It typically takes 7 to 8 years to recoup the costs associated with buying a building and to make it worthwhile to sell the property.
If you are buying rental property, your main concern will be the amount of money the property will generate. You will need to understand the rental market and the expenses of maintenance.
While many people may feel that the economy is on shaky ground, experts like David Ebrahimzadeh are encouraging investors to buy into real estate. Real estate is a good investment because it generally appreciates over time.
As far as a return rate is concerned, real estate investments typically receive about 10.5 percent in annual returns. This compares favorably to stocks, whose annual returns typically average around 7 percent.
David Ebrahimzadeh explains the six reasons why this is the right time to invest in real estate, offering suggestions for would-be investors who want to get into the market.
Recessions and Delinquencies
When the economy is entering a recession, this means that many people lose their jobs or enter periods of economic instability. Homeowners may become distressed because they can no longer afford their mortgages.
If you have the right knowledge, you could experience a great opportunity to help homeowners in your area and make a difference in the community.
A Flooded Market
When there are many foreclosures, there is often a flood of homes on the market. This oversupply can drive prices down, but you have to be careful to invest in homes that will not cost too much to sell. If the property has too many physical problems, it may not be worth buying it.
Low Mortgage Rates
Right now, low mortgage interest rates are presenting an excellent deal to real estate investors. When people who are not in financial distress due to the coronavirus look at the market, they may see dollar signs. Selling a home with low interest rates, however, may cause some sellers to raise their asking price.
Investing in Rentals
One of the hottest real estate tips that is useful right now is the growth of the rental market. A multifamily home can be a great investment because it provides passive income. Right now, rental vacancy rates are very low, and rents are on the rise. If you can find a multifamily building for sale, this might be the perfect time to buy it.
Investing in Owner-Occupied Property Versus Rentals
Your real estate strategy needs to change based on whether you are buying a property to occupy or rent out. If you are buying a property to use yourself, you should think long and hard about whether it makes more sense to rent or buy. It typically takes 7 to 8 years to recoup the costs associated with buying a building and to make it worthwhile to sell the property.
If you are buying rental property, your main concern will be the amount of money the property will generate. You will need to understand the rental market and the expenses of maintenance.
