If you’ve been thinking about investing in real estate, the time to do so is now. 2014 is shaping up to be the best time to invest in real estate, thanks to the recovery of the global economy and the current trends for real estate prices. Whether you’re buying your first home or buying a fixer-upper to rent or resell, this is the right time to do it. Here are 10 reasons why 2014 is the best time to invest in real estate.
Finally, The Global Economy is in Recovery Mode
The world economy is starting the year very strong, the strongest it’s been since the Global Financial Crisis. While the world does still have some problems to tackle, it seems the economy is no longer at the top of that list. As the world’s largest economies experience a synchronized recovery, real estate markets throughout the world are also strengthening, making this a great time for real estate investment.
End Users Are Driving the Market
For the past few years, the international housing market has been lead by speculators and investors, buying up as many houses as possible for low prices and flipping the properties. 2014 sees a new trend emerging as the majority of people investing in real estate are doing so for self use. This shift brought on by end user home owners will create more stability in the property market as the year continues.
The Price is Right, or At Least Close Enough
Sure, the cost of the housing has increased a bit since last year, but overall prices for housing are still incredibly low and affordable. Now, with less investors flipping houses, and prices remaining rather low, many first time home owners are entering the scene and joining in the fun of investing in real estate.
Less Competition Equals More Breathing Room A
s housing prices have increased slightly over the past few years, the international housing market is looking less appealing to investors simply looking to flip houses. House flipping isn’t happening as quickly as it was in the past, so as investors back away from the market, buyers are finding themselves in a great position. Buyers can enjoy the freedom of shopping around and finding the perfect real estate opportunity, without the pressure to close the deal because of another offer.
Renting Is More Expensive Than Owning
In the short term, renting might seem like a more viable option, but in the long run, buying a house is actually cheaper. Over the years the money you spend on rent adds up, and in the end you have nothing to show for it. As the housing market recovers, rental costs are on the rise as well. Why rent when buying a house is so affordable and mortgage rates are low?
Invest in Your Future, It’s Up to You
Investing in your future is important and you’re the one solely responsible for making it happen. If you buy a house now, as the cost of real estate increases, so will the value of your investment. Five years from now, you’ll be happy to see your investment appreciate value and you’ll feel content with your discussion to buy when the timing was right.
Low Risk, High Return
Investing in real estate is a low risk investment as prices are still low and in many cases, real estate listings are still undervalued. Buying real estate after a market crash is the best time to buy, as long as you do your research and are smart to not overpay for something that isn’t listed at the right price. Some homes are listed 20% below their market value, so buying now means that in a few more years, as the market finishes leveling off, you’ll see your low-risk investment become a high return investment.
Options, Options, Options
Not only are there great homes available for the right price in 2014, but there are plenty of options for what you can do with your real estate purchase. While the market is being driven by end users, buyers who plan on living in their new home, there is still the option to rent out your new purchase and turn your real estate investment into a money maker. Consider the location of your investment if this is an option you planning on pursuing. And, while investors who were flipping as many homes as possible are leaving the scene, more room opens up for individuals who want to try their hand at fixing up and selling a house a few years down the road. You don’t have to flip the house immediately. Buying real estate now and then waiting 2 or 3 years to sell could help you turn a nice profit on your low risk investment.
A Hedge Against Inflation
Speculators see inflation as the main concern for what to expect in 2014. As the cost of labor and materials increases, so will the overall cost of buying a home. If you buy your home now, you’re locked into current price, pre-inflation, which many say is all but certain in the coming years. Real estate is probably the best hedge against inflation, so you don’t want to miss this chance to purchase real estate now.
Positivity is Better Then Negativity
When it comes to investments, there are always nay-sayers and worriers, and it’s no different in real estate. But things are looking good and while some people may still be nervous or concerned about the housing market, caught up in the post-crash mindset, the thing to realize is the market is always changing. The great opportunities that are out there now, won’t be for long, so you need to take advantage of this amazing time now. Those who have purchased real estate in Tamarindo, Conchal and Flamingo Beach, Costa Rica in the past few years can tell you that buying now is the right thing to do. As the housing market gets stronger around the world, the prices will go up, but for now, they are still low, so make the most of this situation and invest in real estate in 2014.
- License: Image author owned
- License: Image author owned
By Ali Asjad
Ali Asjad is a content strategist based in Stockholm, Sweden. He helps companies in vast and varied verticals be more successful and visible online. Circle him on Google+ to further the conversation.