7 Reasons Real Estate Is Only Getting Better In 2018
Real estate looks like it is only likely to get better over the next year. Here’s why…
For a variety of reasons, the national housing market, and property investment space is expected to strength in the months ahead. It is still important to invest smart, but those that do could see even greater results as 2018 plays out.
The Stock Market
Major stock indexes keep setting new records, even though stocks have been considered grossly overpriced for years. While have chosen to be controversial and predict a bubbling in the housing market, past cycles suggest tech and stocks will bubble and burst first. That will spur a further surge in real estate, as investors flee to safety.
Real Estate Lenders Become More Lenient
While it may not feel like it to many home buyers and real estate investors, real estate lenders have gradually been becoming more lenient. LTVs have crept up slightly, and Fannie and Freddie recently announced they are waiving more appraisal requirements. If loans made over the past few years prove to perform well, lenders are likely to continue to push the boundaries.
Bitcoin, crowdfunding, and other investing trends are creeping up in popularity. Yet, they are being increasingly tied into and integrated with real estate. Cryptocurrencies alone can be highly risky to bet on, but they can be made safer when collateralized by real estate. The same will be true of many other new investment trends and tech that emerge in the near future.
Education & Information
Never before have real estate investors had access to such great information. This continues to grow each day too. New access to real estate education and data means investors can invest smarter and more accurately than ever before. Although some niches, in some pockets of the US may appear to be undergoing some form of correction (i.e. San Francisco rents and retail properties), with a little common sense, and paying attention to the numbers, investors can switch investment strategies and locations to keep their profits up.
With the promise of more corporate tax breaks on their way, many more may be drawn to starting real estate businesses. Institutions may launch new ventures into real estate, individuals may launch more startups, or self-directed IRA LLCs. All of which can bring more capital into the market. Some may even be happy to take corporate tax losses on paper until lower corporate tax rates kick in.
After several years of strong gains and results, and with forecasts of ongoing modest growth, current confidence is going to keep fueling acquisitions and growth. This alone is probably one of the most powerful factors that will propel the market.
While some cities appear to have hit a peak in property and rental prices, new tech, better internet, and remote work trends have all been making it more possible and attractive to move out to new areas which are more affordable and can offer better returns. That migration and transaction activity is also going to fuel national stats and the wider economy.
While we’ve already enjoyed several great years in real estate, for many reasons, it only appears that the market and investment opportunities are likely to keep growing strong over the next year.