Real estate investing offers profitable opportunities for new and experienced investors. When educated properly, investors like yourself can yield great returns from real estate properties. However, like with most investments, the real estate market is constantly changing. One year, home prices are decreasing at a steady rate and the next year, they are rising faster than they were declining. In order to achieve your financial goals through real estate investments, you need to stay updated on the latest trends. For this reason, read on to discover the top real estate investing trends to watch in 2019.
Millennial Homebuyers
One of the most prominent real estate investing trends to follow this year is the rise of millennial homebuyers. As a new generation takes the stage to play homebuyer, investors need to adapt. The millennial generation prefers certain cities. The generation also holds a much larger home buying population than the baby boomers. Since the large generation just stepped foot into home buying territory, investors need to account for the next few years of intensification. As the generation grows, so will the amount of desires to purchase first homes. Keep your new audience in mind when investing in real estate in 2019.
Suburban Markets
Another real estate investing trend to watch in 2019 is suburban market opportunities. When looking to invest in major cities, avoid choosing properties in the cities themselves. Instead, turn to the suburban areas just outside of the highly populated cities. Investing in luxury properties in these areas can lead to a high return on investment. Luxury properties in Los Angeles and its surrounding areas offer plenty of variety to consider on top of your other real estate investment strategies. If you’re planning to invest in a luxury property, be sure to check out the area first to ensure its worth the investment.
These areas have profitable investing opportunities due to their good public school systems and accessible transportation options. While the majority of the suburban areas near cities supply profitable investing possibilities, certain areas can lead to adrop in profits. These areas are referred to as luxury price points. Since these points drop before others, stay away from investing in them. Then, you will achieve your real estate investment goals.
LLC Protected Investments
While most investors are using some type of corporation to run their real estate business, there is a growing trend to create an LLC for each property. As explained in the guide to real estate investing for dummies, an LLC for each property can keep your personal and business assets separate from liability. Moreover, it would keep one property’s liability separate from another property. In the event of an injury or lawsuit, the entire real estate portfolio is not under risk. Rather, investors can limit their liabilities by creating an LLC for each property.
Senior-Friendly Properties
Furthermore, senior-friendly properties are currently trending in the world of real estate investing. Like millennials, the senior citizen home buying population is growing. Seniors need accommodating homes and rentals in appropriate areas in the United States. Look into investing opportunities that offer senior-specific amenities. These amenities can include ramps next to staircases, elevators in buildings and restrooms equipped with grab bars. Consider investing in senior-friendly properties in 2019.
In-Demand Multifamily Housing
Professionals also predict that the multifamily housing demand will continue throughout 2019. As portions of Generation Z and millennials enter the home buying market, interest in low-cost living options continues to grow. These home buyers would rather rent smaller spaces than purchase larger, more permanent living quarters. While it is more expensive for investors to purchase apartment complexes, they may hold more value for you in 2019. Unlike other properties,mult-unit complexes yield a constant cash flow on a monthly basis. If you want to collect capital more frequently, invest in multifamily housing this year.
Rising Home Prices
Of course, real estate investors need to consider the rise in home prices. While home prices have been increasing over the course of the last couple of years, they are predicted to slow down in 2019. Economists believe that the slowed pace is due in part by an increase in mortgage interest rates. Investors can earn higher profits from homes selling at increased rates. Many times, a rise in home prices discourages buyers. In 2019, however, home buying is predicted to increase. With this being said, a rise in home prices this year could benefit you as an investor. For this reason, you need to pay close attention to this real estate investing opportunity.
Whether you are a new or experienced investor, you can boost your income through real estate investing. To begin your investing venture in 2019 successfully, you need to familiarize yourself with the yearly trends. For instance, understand that millennials are entering the home buying world at full force. Suburban areas just outside of city limits have potential due to their transportation and schooling systems. The senior citizen population is also growing, making senior-friendly property opportunities more profitable. The demand for multifamily housing is not slowing down, which is why investors should consider investing in apartment buildings. Lastly, rising home prices could lead investors to higher incomes. Keep these top real estate investing trends in mind during 2019.