With the global pandemic, interruptions in supply chains, rising interest rates, and record inflation in 2022, professionals in the real estate industry are forecasting a period of turbulence for the upcoming 2023 year.
It’s only natural that investors feel a bit shaky about what the future holds for their incredible assets and it may even delay those who are on the fence about it – getting into real estate investing, to begin with.
Don’t give up hope on the market. We’ve got some hot real estate investment tips for 2023 from national experts so you can decide which of your “cards to play” and “which ones to hold.”
Top 5 Real Estate Investment Tips
Keep in mind, real estate pricing, as you know, is location specific, and while the market is currently unpredictable, here’s what the experts have to say.
Keep One Eye on the Calendar, and Another on Your Calculator
While possibly not until the end of 2023, home prices are forecasted to drop due to the lack of traditional home buyer financing options. With talk of additional interest rate hikes, it may put some home-owning-hopefuls back to writing rent checks. Get your investment finances in order so that when those prices do fall, you’ll be ready – because they’re expected to recover quite quickly – which puts investors in a great position (for a potentially limited time).
Patience Makes the Wallet Grow Fonder
Due to those increased mortgage rates and stagnant income levels, experts believe that we’ll soon enter into a “housing glut” in 2023 meaning – sellers will be ready to get out from underneath their glooming monthly mortgage bills but there won’t be many buyers ready to take on the debt.
It’s a perfect storm of events for potential investors.
Capitalize on Changing Demographics
As some baby boomers approach retirement age in the next year, they may be looking to downsize from their family homes and purchase something a little more modest (and less expensive to maintain), which leaves those 3-4 bedroom homes on the market for investors.
Projections could see this retirement number as a huge plus for those looking to expand their portfolio with more reasonable offers.
Get Your Passport (and Your Pocketbook) Ready
With the uptick in required funding necessary to purchase homes in the United States, many investors are looking for less tax-burden, more affordable homes, and the opportunity to expand their investments globally. A shift is beginning with real estate investors looking abroad for homes to invest as vacation rentals or to later resell as affordable retirement homes.
It could be a draw for those looking to save money in their golden years due to the lower cost of living in countries outside the US.
A Series of (UN)Fortunate Events
Sadly, traditional homeowners may feel the pinch of mortgage increases, and experts are looking at a rise in delinquencies which, for investors who aren’t afraid of foreclosures, means there could be a slew of properties waiting for an overhaul.
Economists aren’t seeing inflation slow down and the effects may be seen far into 2023 so take care of organizing your financing now so you’re ready to jump on those hot investment leads when the opportunity presents.
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