One of the best investments you can make is buying a house. You could be buying this house for yourself or your family, or maybe you’re planning to renovate this house and sell it for a much higher price. Either way, if you know where to look for a house and when the housing market is booming, you could be participating in a profitable time for real estate investment.
The US alone, last year, saw low mortgages and tightening inventories which led to a 10% growth in housing sales. For instance, according to GoBankingRates.com much of the growth happened in inland cities like Buffalo, New York which saw 34.6% of sales and Atlanta, Georgia with 24.54%.
Having said, you might still be vacillating on whether you should try your hand in investing in real estate. Well, there are many ways to become part of the housing market other than becoming a landlord or dealing with tenants. Here we explore housing predictions in 2019 plus ways to invest in real estate in 2019.
An increase in home sales in 2019
The biggest consumers are millennials, numbering around two billion in the world. Their buying behaviour contrasts that of Baby Boomers in that they take the time to research whether anything is a worthy investment before they make a purchase. But if there’s a common investment they all want to make, it’s in housing.
Much of the millennial population are still living with their parents, continuously looking for a place which they can afford without sacrificing much of the lifestyle they’re used to. In the current market, steadier rates are making millennials feel more confident to read more about home loans and how it can help them buy their first home.
In fact, according to an interview made by Investor’s Business Daily with Mortgage Bankers Association Chief Economist Mike Fratantoni, 2019 is poised to have a balanced market for buyers “because of the strong job market, and because you have a lot of millennial buyers entering the market.”
The main take away for developers is to take advantage of a whole generation looking for decent and affordable housing. But for buyers, this is the perfect time to throw your hat in and start drawing advantages from a market that’s expected to become stronger this year.
Ways to invest in the housing market
Of course, dealing with tenants isn’t exactly the most appealing. So how else can you invest in real estate without becoming a landlord? Here are some of the ways.
An exchange-traded fund (ETF) is basically bonds and stocks collected in a single investment fund. This is perfect if you want to have a diverse investment portfolio at an arguable low cost. You can choose a wholly real-estate themed ETF which will allow you to get access to properties like hotels, office buildings, and so on.
Real estate investment trusts
Real estate investment trusts own or operate income-producing properties or assets. Putting money in REITs allows you to earn from different types of properties owned by the trust. However, this is investment is good for aggressive, long-term investors. Which means someone who has experience investing may find this more appealing than those who are still starting to dabble into it.
Indeed, 2019 is the best time to get ahead in terms of investing in a profitable market. While the demand is still high, make sure you can get involved in the housing market and earn significantly from it.