Is it Worthy to Buy Real Estate Investment in 2019?

The year is almost ends with many ups and downs in real estate market. As we’re moving towards the 2019, the most repeated question we heard is whether buying a real estate a good investment next year? The answer to this question isn’t simply yes or no. there’s lot more detail and discussion involve when buying an investment property. Ideal deal or investment opportunities differ for buyer to buyer depending on their personal goals and strategies. No one can give you guarantee what will happen next year but good research and study of key market trends will get you close enough. Generally, real estate investment is real game changer for most of the people but if you want to know if real estate investment a good idea right now, here are some important factor to look before making deal.

1.  Affordability

Over the past decade US housing market has been facing a problem with affordability. Affordability is described as the percentage of one’s median household income spent on the median household mortgage in a particular area.  Many people want to buy property but they don’t seem to have the financial resources to do so. Mostly investors prefer to invest in their local markets but they’re afraid that buying a rental property could be more expensive than what you can take on if your local market’s affordability is going down. Because it is one of the major reason behind the slow sown in housing market in 2018. That’s why willing buyers now more inclined to rent for housing. So, in this regard buying real estate investment is good idea? Well, it totally depends on the investor. Owning the right property at right market could pay off with all the renter demand. In case your local market is too expensive, it’s time to search somewhere else to find affordable property.

2.       Home Sales and Property Prices

Affordability is the biggest concern while buying investment properties but in 2017, prices are soften in 10 of the 100 metro areas. It means growth was at least 1 % slower than the annual growth over the past three years. Gradually home sales are increasing all over the country as the repercussion of the recession starts to wear off. Currently the home sales are looking similar to sales in 2003 but the household growth has increased by 13.5 % over the last 14 years. When it is mutualized with increased construction, it can lead to increased buyers in 2019. To get perfect deals when market begins to slow down on national scale, take a closer look at local conditions. Because when there’s economic volatility, you can see different trends even among neighborhoods in the same city. That’s why it’s better to understand different performance level of the sub-markets in local area.

3.       Mortgage Rates

Mortgage rates continue to be lower than they were during recession period and are actually below average considering the type of strong economic growth the US has been experiencing. But, this will change in 2019 as Forbes predicts that the 30 year fixed mortgage rate will reach 5.8 %. So what does it mean, is buying in 2019 is good investment with increase mortgage rates? Some investors might be discouraged with situation but those who already experienced the mortgage rates of recession won’t be too worried about this.

4.       Housing Inventory

According to Forbes, national inventory increases are expected to remain low in 2019. Owning property and low inventory levels is desirable to many investors.

5.       Investment Strategy

Buying of real estate property for good investment also depends on the investment strategy you choose. Instead of fix and flip strategy for investing why not invest in property for income. In 2019, investors need to invest for positive cash flow rather than appreciation. With younger generations staying in the rental market longer, investors could expect strong returns with income property.

Whenever you ask a question like “is buying real estate a good investment” there’s only one way to answer. Yes, it is! If you’ve the right resources and tools. Every investor wants to get the best deal under their local market conditions. There’s no certain rule on how to invest in real estate but depends on reliable resources and accurate data. If you’ve these two you can surely make best deals in 2019.