With Tiffany Hollinger
September 14, 2020
As the economy continues to sink deeper into the financial hardships along with Covid-19 not disappearing anytime soon, I'm frequently asked, "Is this a good time to invest in Real Estate?"
It is not alarming that some people feel that this is not the best time or feel it may be profiting from others during this global pandemic. As a financial expert, let me begin by acknowledging that yes, we are still very much in a global epidemic that's causing a financial crisis, but you can profit. As I have continued to share in my previous Money Monday's with AskTiffanyH, the most significant amount of wealth has traditionally occurred during and after a crisis. So, contrary to some’s belief, Real Estate Investors are essential to helping prevent market downturns.
For example, many first-time home buyers are currently flooding the market, and there is now a minimal inventory. Not to mention, we have become "spoiled" by the intriguing HGTV. Everyone wants to buy a showroom-ready house, and just move right in. So, it's the Real Estate Investors to the scene! Psst, this could be you!
Real Estate Investors are buying properties in N.E. Ohio, doing complete renovations, with attention to bathrooms and kitchens, turning drab properties to fabulous houses! Now the first-time home buyer sees the upgraded work and is ready to move right in. As a side note: not only first-time homebuyers, but also, buyers who, for whatever reason, left the homeownership market, are either renting or living with family members, are now looking to own again. In addition to, families looking to up-size, downsize, or re-size their current living arrangements. So, the market is ripe for investing in Real Estate because the demand is high.
Now, I know some naysayers are thinking, oh, but what about when the market corrects itself and so on? Let me share, Real Estate has historically been one of the greatest wealth creators in this country. Besides, Real Estate is a very resilient asset to own, compared to stocks, bonds and mutual funds. Even when we look back to the 2008 Housing Bubble Era, while the value of Real Estate may have declined, the Real Estate Investment of rental didn't. as a matter of fact, the average rent increased!
Long story short, YES! Now is a good time to invest in the Real Estate market. Especially if you live in places like N.E. Ohio. To acquire a property, provide some basic updates, i.e., fresh paint, carpet and then find a tenant to rent to; is a huge step in the direction of creating wealth, cash flow and riches!!!!
Currently, there is an enormous inflow of out of state investors buying property here in N.E. Ohio. They recognize the value is very inexpensive here, compared to other areas of the country. For instance, a Canadian couple contacted me to purchase a property that I had renovated and was selling (aka Real Estate Flip). They were using the retirement dollars in their 401(k) to purchase a house, to rent out because the returns (even after expenses and hiring a property manager) would yield them much higher than investing in traditional stocks, bonds, and mutual funds. ***Please note I am not saying everyone, run out and invest in rental properties with your retirement assets! However, what I am saying, as stated in the previous Money Monday's with AskTiffanyH column, the reason it's critical to save, save, save is so that you can use those savings to invest, invest, invest into Real Estate! Are you ready to create wealth?
Any questions, more details, or tips, please contact me at AskTiffanyH@gmail.com or on Instagram at @Ask_TiffanyH, Financial Planner & Realtor.