Is It Still Wise to Invest in the US Real Estate Market?

Realtor giving a house key to elderly coupleOne of the most lucrative investments is real estate. Unlike other tangible assets, such as cars and furniture, buildings (or homes) and land tend to increase in value over time. The problem is it is also the least liquid of all kinds of investment.

It takes several days to weeks before you can convert them into cash. If you are an investor – and a first-timer at that – and wish to place your bet on real estate, you need to understand the market first. How is the US industry doing?

The New Market

Baby boomers are still spending on homes, but if you are looking for a 30-year investment, you need to focus on the biggest market: millennials. Around this time, they are already at buying age.

There is an ongoing debate whether millennials are spending money or not. A good number of them are either renting or living with their parents. They are the biggest fans of shared economy.

A recent Bank of America poll, though, revealed not only do they want to buy a home, but they are also thinking of living in different properties. About one-third of them already owned a house.

Property Prices

Experts believe property prices will increase, but the rise will be slow. The rising costs may reduce its appeal in cities that are now experiencing wage growth. This can be a great opportunity for you to compete, especially if you are capable of providing affordable housing to a growing market.

As a real estate investor, you can start with one property, but if you want to see results fast, you need to buy more than one. If you need money to finance that, you can look for a Freddie Mac multifamily lender, such as Bonneville Multifamily Capital, with loans such as 221d4.

An apartment loan provides up to 90 percent advantage and a fixed rate as long as 40 years. In turn, you can maximize your cash flow while increasing your investment portfolio quickly.