Investing in Real Estate

Considering Investing in Today’s Real Estate Market?

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If you currently invest in real estate or have plans to do so in the future, it’s essential to understand its risks. Now, we’re in a seller’s market, which means fewer homes are for sale, prices exceed list prices, and fewer incentives from sellers. Be sure to keep these four tips in mind if you plan to invest in real estate shortly:

Home values may decrease

Home prices continue to rise, but no one can predict what will happen to the housing market. Therefore, if you’d like to invest in selling within a specific period, consider the risks of a short-term real estate investment since home prices may fall and take a toll on your plans.

Overpaying is easy

Many people are looking to buy properties. If you know a property has received several offers, you may spend more. By understanding the maximum price you want to spend, you can avoid paying more than a property’s market value.

It can be challenging to find suitable properties

A seller’s market means low supply, and it may take a while to find an investment property or multiple properties that check off all your boxes. You may have to settle for a less-than-ideal property for your needs.

Consider the alternatives

No one has a crystal ball that can predict whether the housing bubble will burst. While you can invest your money in property now and hope that property values continue to go up, you may also want to consider holding off and using other strategies to diversify your portfolio. Here are some options to consider after consulting your financial professional:

REITs

REITs or real estate investment trusts are companies that invest in income-producing real estate. You can buy publicly traded REIT shares, a REIT fund on stock exchanges, or private REITs to generate income.

Real Estate Crowdfunding

Real estate crowdfunding allows you to pool your money with others online to purchase property shares. Ensure you do your due diligence by investigating real estate crowdfunding platforms licensed in your state to see if they are legitimate. Your financial professional or your state’s attorney’s office is an excellent place to start.

Consult your financial professional

Contact us today! A financial professional can help you determine if now is an appropriate time to invest in real estate in the current market based on your financial situation. Contact us today!

© 2024 Trajan® Wealth LLC. Nothing in this blog is intended as investment advice, nor is it an offer to buy or sell any security. Please consult your financial advisor for questions about your personal financial situation. All investments involve risk, including the potential for loss. Trajan Wealth clients and employees may have a position in any of the securities mentioned. Portfolio holdings and other data are subject to change at any time and without notice. Additionally, the above links provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Trajan Wealth, L.L.C., of any of the products, services or opinions of the corporation or organization or individual. Trajan Wealth, L.L.C., bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. These materials are for informational and educational purposes and are not designed, nor intended, to apply to any person’s individual circumstances. It does not take into account the specific investment objectives, tax and financial condition, or particular needs of any specific person. Please consult with your legal and/or tax advisor before making any tax-related decisions.

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