We’ve all seen the ads and stories circulating the internet about house flipping and real estate investments, but is it really worth it?
Investing in real estate is a tricky business. It can be costly, confusing and tedious, but there are lots of rewards!
Real Estate Investments: “It’s Too Expensive”
One of the main fears of people who are looking to invest is cost. Money truly can make the world go round. Although house prices have increased in the last decade, they are only luxury homes that have been taken into account. While you may have to spend over $100,000 in a home, rental prices are at a current rise.
According to the balance.com “It can generate ongoing passive income and can be a good long-term investment if the value increases over time”.
“What if there is another Recession?”
Another fear for people is the possibility of another harsh real estate crash. A little over ten years ago, the United States suffered a hard recession that left many people without jobs and houses with little to no value.
While this fear makes sense, it should not worry investors or buyers too much. The housing market during the recession was harmed but has since bounced back tougher than ever. In just the last few years, real estate value has soared, and more and more buyers have been interested.
“It seems like a lot of work!”
When looking to invest, you should ask yourself if you are willing to do the work. In order to invest properly, you must be willing to do thorough research on both the property and the current housing market.
Something to keep in mind is, the cheaper homes, tend to need the most restoration and improvements. While the problems may be easy fixes, you never know when you will purchase and invest in a home that comes with underlying problems.
In order to avoid this, always ask questions and do research!