Is Real Estate Still A Smart Investment

Those who watch the market closely are likely exhausted with the up and down nature of what is going on. First the market is crashing, and then two …

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Those who watch the market closely are likely exhausted with the up and down nature of what is going on. First the market is crashing, and then two weeks later, it is soaring. Luckily, most retirement investors need not worry just yet. If you have money in the stock market, it is best to treat it like weight gain and not check daily. It will only lead to anxiety and unwarranted fears for the future. Over the next several decades, it is likely that whatever is going on won’t affect you at all. Like having children, soon you won’t even remember the stress the market is now causing you.

 

Unlike the stock market, buying a rental property or real estate investment is more than just seeing numbers on paper. When you have something to call your own, and it is earning monthly income, there is less anxiety. It isn’t that you don’t have to worry about how much the dwelling will be worth when you are done, but rental properties aren’t like a home. The profit is not only found in building equity but accumulating wealth over time.

There are some who are ringing the alarm that interest rates will soon be on the rise, but the reality is that even if the Feds do decide to hike the rates, it likely will have little to no effect on home mortgages anytime in the future. A slow and barely incremental change may be felt, but nothing that should make you feel like you have to buy and buy now. 

Putting all that aside, with the mortgage catastrophe still fresh in the mind of investors, many are wondering if buying into real estate is still a worthy endeavor. The answer is a frustrating, "yes and no." If you are buying a rental property, then you are probably making a great investment for the next decade. If, however, you are buying a home for the long-term equity built, that may not be as guaranteed or as sure.  

The third proposition is somewhere in between. If you are considering buying into a property to flip it and create equity, then you really don’t have to be concerned about the mortgage rate at all. That is more in the realm of home sales in your area, and honestly, the statistics are varied and specific to the locale you are in. There are many big cities that are seeing a housing boom while still others are experiencing a stagnant market with too much inventory. 

So, real estate is still a good investment, but only when you take all matters into consideration. The impending mortgage rate hikes should really only concern those who are purchasing a home with a thirty-year mortgage to build equity. If you are thinking about buying a home, then now may not be the time. However, if you are buying to rent, with low-interest rates, the money that you get for rent will likely be more than your mortgage payment. If you are trying to fix up a house for investment, then be mindful about your location’s housing market and worry less about interest rates. If you are interested in the prospects of real estate investment, consult the professionals at Blue Jay Equity. Professionals in the field, they can provide you with the answers you are searching for.

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