Recently, we saw that the Gallup Poll called real estate investing Americans’ favorite way to invest long-term. With the stock market struggling a bit, real estate is a smarter move, especially with the current low interest rates. According to The Street, a website with business and stock market news, the real estate market will likely hold momentum even if the stock markets go into a “tailspin.” To help investors evaluate real estate investing this year, The Street compiled a list of factors likely to affect real estate in the next few months.
1. Interest rates
The Federal Reserve raised interest rates in December. They should stay at around this rate until the stock market becomes steadier again.
“This is a positive for real estate investors, including prospective homebuyers seeking investment opportunities in the most popular neighborhoods. It makes sense for them to take action when rates are low. Cheap money increases purchasing power,” wrote The Street.
2. Being a more conservative alternative
Considering the volatile stock market, investors look for safer opportunities. One of these is real estate investment. For this reason, noted The Street, house flipping gained momentum recently. It increased 75 percent in 2015.
3. Buyer Sentiment
According to The Street, some people are still skeptical of investing in real estate because of a tumultuous stock market, but they shouldn’t be.
“Still, real estate landscape has had a prosperous run and investor sentiment is largely positive. That’s unlikely to change. Whether stock markets suffer or not, it’s a good time to invest in real estate,” the website wrote.
These three factors will affect real estate investments this year, including how popular it will be. Overall, investing in real estate looks like a great idea for 2016. At RE/MAX Paradise, we can help you find the best property to invest in here in Miami. Check out the properties, and contact us today!