Looking For Real Estate This Year? Read This First
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Real Estate has long been one of the most traditional forms of investing, because brick and mortar has been considered a safe asset option for generations. But what does the future hold for real estate investing? Here are some trends to watch out for this year.
What Rentals Will Be In High Demand?
According to recent reports and studies done by a research team called Zillow they’ve suggested that large rentals may be one of the best options this year.1 Because of the harder goals to achieve a down payment for a house more people are turned to renting and demand for larger properties has increased. This is mainly due to middle class families being put into this position with changing interest rates and inflation. We may see suburban properties with multiple bedrooms take some of the best returns for asset growth in the real estate space according to experts.
What Is The Sunbelt?
The sunbelt is a region in the southern United States that is known for its warmer climate. This has made it a desirable area to live for many people, especially retirees. As a result, we’ve seen increased investment in this region in recent years. The trend looks to continue in 2022 as more and more people look to escape the colder winters up north. This is especially true given the current pandemic and how it has made people reassess their priorities. Many are now looking for a place to retire where they can avoid any future lockdowns and be in a warmer climate. The cities in the Sunbelt region include.
- Austin, Texas
- Charlotte, North Carolina
- Jacksonville, Florida
- Las Vegas, Nevada
- Nashville, Tennessee
- Phoenix, Arizona
- Raleigh, North Carolina
- San Antonio, Texas
- Tampa, Florida
What About International Markets?
International real estate markets have always been a riskier investment, but they can also offer higher rewards. In recent years we’ve seen increased interest in these markets, especially from Chinese investors. This is expected to continue in 2022 as more and more people look to diversify their portfolios. However, it’s important to do your research before investing in any international market as there are many laws and regulations to be careful of especially relating to taxation.
What About Renovations?
Renovation and DIY builders has skyrocketed in recent years as people try to increase the value of their homes. Paying attention to certain trends in the market like which colors are the most popular can help to achieve better asset growth. Earth tones and other features have topped the list for most popular renovation schemes this year.2 So, if you’re thinking about renovating your property to sell or rent out be sure to do your research and find out which trends are the most popular in your area.
Will Technology Feature More In Real Estate?
With advances in technology across decentralisation platforms like blockchain it will begin to creep into the real estate markets too. The tokenisation of assets is one of the most popular applications for this technology. This essentially means that a property can be divided into shares or tokens that can then be bought and sold on the market. This would make it much easier to invest in real estate as you wouldn’t need to buy an entire property, but could simply purchase a share. For example , if you wanted to buy a $100,000 property you could instead buy 10% for $10,000 worth of tokens. This trend is expected to grow in 2022 as more and more people become aware of the benefits of tokenisation.
What About Sustainability?
The push for sustainability is becoming increasingly popular as people look to do their part in saving the planet. We’re seeing this trend in many industries, and real estate is no different. More and more people are looking for sustainable features in the properties they purchase or rent. This could include solar panels, energy efficient appliances, or even rainwater harvesting systems. If you’re looking to invest in real estate be sure to keep this trend in mind as it’s only going to grow in popularity in the coming years.
All In All It Should Be A Decent Year For Real Estate Investing
Of course, no investment is without its risks and there are a few things to be aware of before investing in real estate. But overall this year may bring about some bargain discount prices for purchasing assets. Additionally, many of the trends we’re seeing are long term and here to stay. So, if you’re thinking about investing in real estate this year be sure to keep these real estate investing trends in mind!
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