5 Reasons Real Estate Is, Once Again, a Prudent Investment The wreckage of the burst housing bubble has largely been cleared and mortgages are still historically low. America is ready to go home.
By Brenton Hayden Edited by Jason Fell
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If you are someone who has given up on the dream of real estate investment, before even giving it a serious look, consider a few trends.
Construction is on the rise, foreclosures and repossessions are decreasing. The U.S.. Census Bureau recently reported that new residential sales in May 2014 have increased an estimated 16.9 percent compared to the same period last year.
Far from least, US median property sales are up by 11 percent annually, the biggest increase since 2012.
Related: Why You Should Be Investing Your Money In Real Estate
It's clear, conditions are optimal. Given today's economy, with low property prices, decreased interest rates and a high demand for housing, there has never been a better time to profit from owning rental property.
In my opinion, the next five years will be the best ever for those who choose make their fortunes in real estate. If you already own property, hold onto it dearly. Don't be tempted to sell. If you're still on the fence, there are five things I want to share with you:
1. Don't miss the lucrative "bottom bounce." The best time to purchase stock is when it has bottomed out and is rebounding upwards. I like to call this the "bottom bounce.'' We can expect three-to-five years of strong appreciation after the market lows witnessed in late 2012 and early 2013.
With housing prices rising steadily this year, it's an ideal time to invest in a rental property, both from a personal finance perspective and from a smart business investment one. Keep in mind, the earlier you act, the more money you will accrue.
2. Property hasn't been this affordable in decades. Mortgage rates are holding at a remarkably low 3 percent. That means reasonable monthly repayment costs that make owning investment property an attractive way to create wealth.
In these market conditions, the value of the equity that an income property offers is not to be underestimated.
3. Rental prices are soaring. Despite these low mortgage rates, home ownership is unfortunately a distant dream for many Americans still recovering from the financial crash. As a result, more people are living in rental accommodations.
Related: Crowdfunding's Next Hot Frontier: Real Estate
With demand driving up costs, rental prices are at an all time high. This spike in demand is highly beneficial for property investors who will see their investments appreciate, as well as earning steady monthly returns.
4. Capital is increasingly accessible. Beyond seeking a bank loan, there are increasing numbers of private capital investors available to offer financing in exchange for a portion of the returns.
An example is Blackstone Capital, which has spent $8.6 billion in the past 24 months on housing to hold and rent. They have invested in 48,000 homes across America. Consulting the PERE 50 will provide insight into many of the options available to you.
5. You can be a stress-free landlord. Welcome to 2014, when being a landlord doesn't have to be a headache anymore.
With technology-based solutions and the rise of service-oriented businesses, the bulk of the work takes a fraction of the time and energy. There are two options: You can either offload this entirely to a reputable property manager or you can go it alone, using apps and online software to market your properties, collect rent and analyze your investments.
It's time to make your move, America! I am passionate about getting more Americans involved with real estate investment. I've seen first-hand how the wealth from income properties can transform lives, families and futures.
Whether you'll be making your first buy or maximizing your portfolio's earning potential by outsourcing the hassle of property management, and let an out-of-sight, out-of-mind real estate investment pay dividends, it's time to take advantage of this market.
Related: Become a Successful Landlord