Investing in real estate has the capability to steadily generate income, and is a viable long-term investment option. Then again, investing in real estate is a serious undertaking, and you have to be doubly sure before coming to a decision. You can use a real estate investments API to discern whether the time is ripe for buying or selling.

In the US, the real estate sector saw a steep rise in sales even during the pandemic last year. So considering it a seller’s market, the main question is whether you should invest in real estate in 2021 or not.

What do experts suggest?

Well, according to the real estate gurus, irrespective of whether you are a homeowner or an investor, the real estate market is witnessing a seller's market. People who are interested to invest in the real estate market should understand that real estate works somewhat like the stock market. This means when you buy low and sell high, you make a profit. Nowadays, homes are selling for hefty prices for several reasons. So, if you are planning to buy a house, you have to pay massive amounts, given the current situation. Plus, it is impossible to find anything that is below the market value.

If you want to get a better idea of how things are in the market, it is best to sit with a real estate agent and understand the situation.

Is it necessary for investors to be careful?

Yes, at this juncture, it is massively critical to weigh the pros and cons before walking into the real estate market. You have to decide whether to find a resale home under the market value to rehab and flip or buy and retain to maintain an income from the rents. The decision can be very dicey right now. Master real estate agents suggest that if the property type and location live up to your expectations and suit your investment plan, there is no point in not investing in that property. In fact, we all know that in future the interest rates are going to move up. So, if you have made up your mind to buy a home, you should go for it!

Yes, you can buy now and own the home at low interest. In 30 years, you will be able to reap the benefits of this intelligent move that will guarantee long-term rentals. But, while renting out the property, make sure that they can support the mortgage, taxes, and insurance of the home every month.

What about passive investment in real estate?

Investing in real estate can be really tricky for the matter that it won't be easy to sell off in a month or two. If you make a poor choice, you have to incur hefty losses. Yes, you can gain enormously but, for that, you need to have enough patience, motivation, and ability to fund. Real estate is a long-term commitment. You cannot sell it as quickly as you buy it.

You can be a passive investor in the real estate world; it is best for starters. Build your experience in the sector to understand and be a bigger and better player. You cannot expect to gain massively on day one itself. You can invest in real estate by diversifying your assets. Know what you are walking into before making a decision. If need be, talk to money managers, experienced real estate agents, and more.

Why is it a seller's market right now?

Since 2006, the annual home sales are continuously witnessing a boom. The one thing that is driving the buyers is the lower interest rates. If you are an investor buyer, all the best to you! Because you will have a tough time getting lucrative deals. But, in case you have to buy a home, and it is a dire necessity, this is a good time since the interest rates will lure you. But if you can wait for 12 to 18 months more, please do that. Instead, concentrate on building your cash reserve. Real estate agents are anticipating an up movement in foreclosures due to the forbearance programs falling short to meet the needs, and people will start to experience the full-blown heat of the lockdowns due to COVID-19 that has impacted small enterprises enormously.

By Leslie Wilder

© 2020 Copyright Leslie Wilder - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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