Whether you are a seasoned investor or just getting started, everyone can benefit from some expert real estate advice. That is why we are excited to share some practical ways to help you navigate the 2024 market.
In today’s WealthBuilders Podcast, WealthBuilders Vice President Karen Conrad Metcalfe welcomes Frank Pulley, Pastor Mike Davis, and Troy Peterson to share their insights to help you thrive in the market. Are you ready to make confident investment decisions? Then click here to listen to today’s podcast. You can also keep reading for the outline of this podcast in the following shownotes.
Despite headlines, current interest rates still allow for profitable investments.
- Interest rates should not deter potential buyers or investors.
- If interest rates are scaring somebody else out of the market, then it opens the door for you to come in and make a deal on something that somebody else might not do.
- Historical perspectives show that even higher interest rates in the past did not prevent successful real estate dealings.
- Interest rates create opportunities for buyers to enter the market with less competition.
- Availability of money is key, not the cost
- What matters is that the deal still works profitably.
- Expectations suggest that the panicked response to rate hikes is subsiding and rates should stabilize soon.
First- time homebuyers can benefit from these tips:
- The right real estate agent and knowledge of programs can help overcome down payment obstacles.
- State and city-specific programs are in place to assist first-time buyers.
- Educator, first responder, and even broader first-time buyer programs are offering significant grants and support.
- Sellers may negotiate interest rate buy-downs as part of the deal, increasing the affordability for first-time buyers.
There is currently a strong demand for rentals due to a substantial shortage of new housing units over the past decade.
- Rent prices are expected to remain resilient as housing inventory does not meet demand.
- Current homebuyers are contributing to rental demand by choosing to rent over purchasing amid market uncertainty.
- Rental properties remain a stable investment option as renters continue to pay down the mortgages on these investments.
Vacation rentals present a strategy to increase income from properties.
- Adaptation to short-term rental strategies can double rental income, even for properties in less typical vacation destinations.
- Municipal restrictions can be a factor to consider, but demand remains strong for vacation rental properties.
Builder incentives are creating opportunities in the new build market.
- Possibilities for discounted pricing or upgrades without added cost.
- Interest rate buy-downs are being offered on new construction loans.
- Low maintenance costs and warranties on new builds make it an attractive investment option, particularly for long-term rental strategies.
Here are some commercial real estate trends to consider:
- Demand shifts towards smaller office spaces for independent professionals and medical centers.
- Commercial properties offer stable value, with their performance impacting their value more than comparable sales.
- Double or triple net leases make commercial investments attractive, as tenants pay for property taxes, insurance, and common area maintenance.
Careful consideration of information sources is advised during election years due to potential market manipulation for political gains.
- Exercise caution against waiting for the “right time” to invest, and assess opportunities as they appear.
- The historical pattern suggests that periods of economic downturn can lead to wealth-building opportunities.
Did you enjoy these expert insights about the real estate market? There is so much more where that came from. Frank Pulley, Pastor Mike Davis, and Troy Peterson will all be joining us at The WealthBuilders 2024 Conference to share even more of their wisdom and experience.
This conference is a place for like-minded people to connect and grow in their knowledge of wealth building strategies, including real estate investing. There is still time to join us this weekend, February 16-18, 2024. Click here to get your in-person or livestream tickets.
