Choosing the right real estate investment is essential for generating good returns. But, with so many options, it’s not always clear exactly where you should be putting your money. So based on current market conditions, what’s likely to generate the most steady cash flow for you? Let’s take a look at the most stable, profitable real estate investment options in 2016.
What’s happening in the market:
Recent statistics have shown that across the board, housing inventory is down. That serves to massively drive down the pace of buying and selling in many real estate markets. As one group of homeowners struggles to find a way to afford to move into bigger spaces, young people are struggling to figure out how to afford a first-time home. In other words, the potential for making a steady, stable income through buying and re-selling properties is low right now. Rentals, on the other hand, are a different story.
Rentals are dominating:
With housing gridlock on the rise, more and more people are continuing to rent. That’s why today ,the best opportunity for making a solid return on your investment lies in investing in hot rental markets. Areas near universities and colleges, in markets with a young and developing and markets with high-value markets make prime investment zones. With rentals in short supply in many areas and millions of new renters, acquiring an investment property in one of these markets affords you an incredible opportunity.
You’ll be able to charge a rent commensurate with the area, which presents attractive profits in many markets – especially if you buy a fixer in a trendy neighborhood. From the San Francisco Bay Area to college towns around the country, there are a great many number of properties to choose from.
Our advice for aspiring investors? Do your homework on the hot markets and dive in while demand is high!