Investing in real estate amid rising prices
Over the past few years, residential and multi-family real estate transactions and values rose meteorically. This is partially attributed to those who had good returns on investments from stock market trades and activities, who in turn liquidated and diverted their gains into real estate cash based transactions. This resulted in more cash transactions and, more than likely, a lot of new money entering our region—the biggest influx since before the Great Recession.
All of this occurred while the tightest seller inventory of homes and multi-family properties that has been seen in decades has stifled growth potential of demand.
There are two reasons I’m mentioning this:
There is no better way to yield returns on investments than through real estate based investing. To quote a client who recently chose to invest in multi-family properties rather than investing more into the financial markets: "real estate is the king of them all." (Amen!)
there is some investor apprehension with rising interest rates and inflation.
Is there cause for concern here?
Leveraged financing is still advantageous and affordable in spite of trends towards higher lending rates. For the cash investor, who wants to buy and then cash out, just be smart. When cashing out, steer clear of maximum appraised value refinancing. An appraised value is only as good as the information for current market conditions. As we all know, market conditions are always subject to change.
So keep on real-estate investing and reach out to us for how best to keep yourself as well-positioned as possible!
And to sellers, what are you waiting for? Call or email today so we can help you make the next best investment decision!
What's your percent?
