New Year brings new hopes and opportunities, and this holds true for the real estate market and investors too. Many investors did well in 2018 though it was also a year of many challenges. Will it be the same in 2019 or there is something else in store for us? Let us look at the road ahead of us in the year 2019:
Investing will become centralized and more focused
Centralization of real estate has been taking place for some time now. Realty majors like Roofstock and Zillow are operating in many cities and hedge funds are also paying more attention to the real estate industry. It is today a very difficult task for an aspiring investor to find a foothold in the industry. Deals for small investors will be few and far in between because of the presence of big players. They will have to adopt new, innovative strategies to get their share of the pie and to grow and expand their business.
Popular sentiment will be against landlords and investors
2019 is going to be a bad year for landlords and investors as far as public perception is concerned. Common people will show a negative attitude to the actions and behavior of these two groups of professionals. There will be a call to reduce rents and compulsory registration of landlords. Investors will feel more constrained because of the popular sentiment and conducting business will become more difficult than it is now.
Selling now may be more profitable
In view of the difficulties and challenges facing real estate investors in 2019, it seems that selling is a better option at present. With shortage of inventory and buyers ready with cash, it is possible to get a good price for real estate now. In fact, many housing markets across the country have become seller’s markets with buyers ready to pounce at whatever becomes available to them. It seems that this situation may not persist for long in 2019. It is difficult to predict if the situation will be the same as in 2008. What is certain is that this big opportunity to cash out from the real estate market will not return until after 10 more years. If you intend to remain in this business for long, you can hold on to your properties.
Some adjustments are on the cards
Demand for new properties is at an all-time high and developers are struggling to keep up with this demand. Prospects of high rents and high returns on investment are bringing more and more people to this industry. Supply will be far less than demand, but prices and rents are likely to go down in the short run. This again means that the time is ripe to sell real estate.
Real estate will remain a prudent choice for investment
Despite all the challenges posed by 2019, real estate industry will be a top choice for investment. Investors should be ready to make some adjustments and changes in their strategies to reap the rewards in this year. There will be new laws enacted by the government to control the activities of developers and investors. There will be a new breed of investors that will sense opportunity in the changed market conditions. The fact that real estate remains a tangible asset despite all the new rules and regulations will attract many new investors to this industry. Rental Properties in good locations will continue to offer decent returns on investment.
For newcomers with no baggage, 2019 might be a year of wonderful opportunities. If you understand market dynamics, you will do well as an investor in this year.
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