Investing in real estate can be a wise choice as people always need a place to live. The real estate market has stabilized since the Great Recession of the early 2000’s and the real estate climate for 2017 and beyond is looking positive.
You can invest in real estate for multiple purposes – either to own as a rental property, to flip the property at a profit, to live in as a home or enjoy as a vacation home.
These are the 5 main reasons why real estate is a good investment for 2017:
1. Experts predict a strong rental market in 2017
As a rental investment, real estate can give you an additional passive income stream. That’s the possibility of a steady income without lifting a finger. Investing in real estate can also help you develop a diversified portfolio, thus hedging against market volatility. Forecasts for 2017 indicate that the rental market is looking positive from an investor’s perspective.
Specifically, the luxury real estate market indicates strong rental opportunities in 2017. There is a growing trend that shows baby boomers selling their houses in favor of renting luxury apartments, while keeping the money from the sale as disposable income.
2. Interest rates are currently low
Interest rates have been historically low for the last decade and are predicted to remain at this low level throughout 2017. No significant increases are predicted in the near future. Low interest rates mean low monthly mortgage repayments for homeowners, which could help you maximize your ROI on your property.
In the US, mortgage rates are currently at around 4%. Even though the rate has increased slightly since the US election, the increase is insignificant. In 2006 the average US mortgage rate was 6.41%, while mortgage rates ranged from 9%-10% in the late ‘80’s. This indicates that these 2017 rates can be extremely positive for investors.
It is possible that in the future the situation will change so it’s a good idea to invest in real estate while interest rates are still low.
3. Easier to get a mortgage
During the Great Recession of 2007-2009, many financial institutions in the US made it nearly impossible to get a mortgage. Thankfully this time has passed and banks have loosened up and are once again lending. More significantly, it has become easier for high-end investors to finance their luxury property investments in 2017.
Investors are currently finding it easier to get approval for larger mortgages. Jumbo mortgages or jumbo loans provide real estate financing for high-end properties. Currently, 30-year fixed jumbo loans can be obtained at an interest rate of 4.25% with an APR of 4.27%. This data is according to usbank.com.
4. Property prices are currently competitive
The current real estate market is a healthy one and good deals with high ROI can still be found. In 2017 you can find good value at an affordable price. In a recent MarketWatch article, an opinion was held that this could be the best time to invest in property. It’s been predicted that in 2017 the luxury real estate market should experience more competitive prices.
5. Today’s technology simplifies real estate investing
Real estate investment is no longer the headache it once was. Technological advancement has simplified the investment process, making it one of the easiest ways to invest your money in 2017. Many top luxury property developers offer full property investment services. You can browse available luxury properties online, find the right property, view plans of a new development and submit a purchase enquiry online. Property portfolio managers also offer legal and visa advice for international investors. You can even take a virtual tour of the neighborhood you are interested in using Google Street View.
If you are looking for a relatively safe investment opportunity with positive ROI then investing in real estate could be a good investment for you. Today’s real estate market is a healthy, stable market and all signs point to positive results for real estate investors in 2017.
The information included in this article is intended to provide information for general purposes only, should not be construed as legal or any other advice on any subject matter and should not be relied upon as such.