Even after five years of price growth in the housing sector, the housing market is still growing. Unbelievable though and some people feel that it could be a bubble ready to burst. However, the experts are of the opinion that the construction and selling activity in the US is going to surge ahead at a good rate.
The housing sector is growing
Reasons for growth in the housing sector are many and some of these are mentioned here-
- Low unemployment rates
- Demand is going up
- Supply of ready houses is less than demand or not adequate
- Reduction in both corporate and personal taxes
All these factors together are propelling the housing sector to a new level of expansion and prices will soar in the near future. From a studio apartment in New York to a huge four-bedroom house in the suburbs in California, all kinds of houses are seeing an encouraging pattern and their prices are going in only one direction, upwards. The year on year gains is increasing phenomenally.
What can you do?
When the sector is growing so well why should you be left behind? You can invest in the real estate business in a planned manner to get the maximum advantage from this boom.
- You can buy a rental property. You can buy and rent out some part or the entire property. Even if you take a mortgage, the rent and maintenance would cover that and some extra income will be there and later the property is yours to use the way you want.
- You can buy an old house. Repair, renovate and then sell at a higher price. This is not easy though and may need lots of hard work and patience.
- You can use a concept of crowdfunding. Sounds strange for a real estate. Here you can invest your money in a real estate company, or a particular project, through debt or equity. To lower the risks of your money invested in the project, ensure that you use only accredited projects and companies.
- You can invest in REITs, which are similar to a mutual fund, but in real estate.
- Last but not least, you can rent out some part of your property as a homestay and use it for making money.
The real estate market is looking very buoyant. Both new houses and existing homes are looking at an increase in prices and demand. With all aspects being favorable, this sector seems to be on the cusp of a boom. You must invest according to your capacity to take risks and the amount that you can easily spare or repay and find the best tax saving slabs as well. This is a great sector for long-term investment and you can easily invest in reality for great returns.