Realty Biz News - AUGUST 29, 2016 BY MIKE WHEATLEY
There has never been a better time than now to invest in real estate, says MarketWatch columnist Jeff Reeves in a new opinion piece. In the article, Reeves discounts people’s fears that another housing crisis could be brewing, saying that any mention of a bubble is quite simply “a lot of hogwash”.
Reeves, who is the editor of InvestorPlace.com, points out that we’re not even close to the level of “irresponsible buying” activity seen in the build up to last decade’s housing crisis. “What we are seeing is a healthy housing market that continues to steadily and organically appreciate,” Reeves insisted.
Which means there’s never been a better moment for investors to jump in on real estate, Reeves continued. He points to the fact that median home prices are still rising, and are now currently well above pre-recession levels and soaring to new heights in many parts of the country. In addition, appreciation is growing at a healthy rate of five percent per year.
There are also some great opportunities in certain appreciating markets. Reeves highlights metros such as Miami, Orlando and Tampa, where median home prices are still below what they were before the recession.
There’s also a lot more help for those looking to get into real estate investing. For example, companies like Investability offer online tools like cash flow calculators that allow potential investors to input estimated vacancy rates and rental incomes from potential properties.
“Historically people invest within a 10-mile radius around their own home,” says Dennis Cisterna, chief revenue officer at Investability. “But in 2016, people want to invest in markets outside their own neighborhood.”
Crowdfunding is also booming, with sites like Fundrise and RealtyShares allowing those with less capital to get in on the bandwagon too. With Fundrise, investors need to front up a minimum of $1,000, while RealtyShares sets the bar at $5,000.
“Nobody should put all their savings into one or two properties, but in a diversified portfolio, there is a very good argument for real estate investments in 2016,” Reeves claimed.