What The Smart Property Investors Would Be Up To In 2020?
With the start of a new year also come countless speculations around how the real estate scene will progress. There’s a very good chance, in fact, that you have read at least one of such predictive articles yourself.
Admittedly, predicting the real estate market is almost impossible even for a market maven. With so many factors influencing the scale, it’s essential for market players to not blindly trust these predictions in decision-making. This is, especially, during the economically-uncertain times that we’re seeing at present.
However, that said, such forecasts from qualified experts, who use countless data points to base their thesis, can be used to get a decent sense of what may come ahead.
The price of homes will continue to rise even in 2020. Add to that the impending risk of a bust and investing in single-family homes gets even more controversial. Even if you get a good deal, there’s a good chance that you’re getting a deal at a peak time, which would otherwise have been relatively affordable.
Moreover, even if you look at the trend of numbers of people owning a property and renting it, investment in the likes of condos and bungalows feels like a bad idea. The rising price of homes has many people steer to rental apartments. While this was more prevalent in top-tier cities like New York and San Francisco earlier, even Miami, Boston, Seattle and others have joined the line too.
So, if you’re a property owner looking to optimize your portfolio, investing in rental properties is a much better option. And that’s what the smart players will expectedly do in 2020. Even if the price of the home goes down, the rent will continue to rise. In addition, as opposed to a single-family home, the maintenance of rental apartments is much easier and cost-effective. This further plays into your financial benefits.
In short, this New Year, much like other smart players in the game, bet more on smaller rental properties. It’s comparatively less risky and assures to add big value to your portfolio.
Sure, a lot more will happen in 2020 in the real estate market. As economic challenges prevail, those willing to take calculated risks in investment property would be rewarded the most.
The key is to play along with the fundamental rules of real estate investment. Factor the market movements properly, spare enough time to analyze the emerging trends, work along with one of the best real estate companies, have a well-thought risk management strategy in place and, most importantly, invest with a long-term approach.