The Real Estate Market Seems To Be Back
Love or hate the current administration, it is presided over by a man who made his mark on the world through real estate. Building infrastructure can be a very lucrative gig, and facilitating it in places that need it is generally an economically viable strategy, when done right. Accordingly, the last two years have seen vast recovery in real estate markets.
One of the trends in 2019 real estate involves millennials having greater opportunity to get involved in the market. It’s important to remember that this doesn’t always involve purchasing a finished property—though it can. If you’re handy with an electric drill and a table saw, there’s a lot of DIY refurbishment you can effect which expands property value.
Real Estate Strategies
You could finish the basement and attic in a house, landscape the premises, and add a DIY deck. There are a lot of cost-effective remodel choices out there which could increase the value of the property. This sort of strategy is known as “house-flipping”, and it’s very “doable” today.
Something else that’s a trend in real estate involves sustainable living. For under $50k, you can purchase land and build a tiny home there. Add in solar panels, wind or water energy as available, and you’ve got a sustainable property that may be salable for greater than its build cost.
Rental Opportunities Worth Kicking Around
Additionally, there are opportunities in apartment buildings, like this one: http://theurbanavenue.com/dallas-apartments/victory-park/. If you’re looking to get your foot into the real estate market, a wise choice is the acquisition of a PIG, or Passive Income Generator.
Basically, you buy a property and rent it out. It can be rented out to residents, retailers, or whatever group is appropriate to the property in question. Even if you have to take out a loan and a mortgage, after a few years of good property management, your tenants will help you defer the cost, and can put you in a position of profit.
Conversely, if you don’t know whether or not you want to buy property in an area, but you are considering a move there, apartments represent a great opportunity to live in an area for a few months or years before you decide whether or not it will represent your permanent residency.
There’s also strategic real estate to consider. Fifth-generation wireless communications, or 5G, is just around the corner—it’s even in operation in some places. Cell towers are going up like mad, and if you can find strategic areas of a community where a tower is necessary, buying the property could allow you to lease it to big-ticket tech companies.
Check In With The Chamber Of Commerce
The same sort of thinking can be applied to new developments in town. If you’ve never checked with the chamber of commerce in your locality, do so. You can get an idea where businesses are planning to go, and where it’s likely they’ll need land. McDonald’s basically functions as a real estate company strategically buying land where franchise outlets are likely.
Granted, such an approach generally requires a greater financial profile than most millennials have, but it’s something to consider. In years when infrastructure is being built up, new shopping communities come as well. If you’ve got ownership of real estate in such areas, you could be in a position to make a profit you can turn into better real estate.
Making A Safe Investment
Here’s the thing to keep in mind regardless of what sort of choices you make in the coming year: real estate is one of the least liquid assets there is. If you buy in the wrong market, and property values decline, you could be on the hook. When you’re buying, you’ve got to have a long-term plan in mind, whatever the case.
Oftentimes for first-time property buyers, a good choice is smaller buildings in “safe” areas of a city. That is to say: areas where property values have been relatively constant. Again, this isn’t always possible. Whatever you do, you’ll need to do your homework.
Consider what sort of assets you have, what the local market looks like, and your best moves going forward. If you can find a mentor or other professional in real estate who you trust, and who won’t take advantage of you, this may be the best way to help inform your next real estate decision.