The economy is in an uncertain place right now considering the pandemic and incoming political administration. Focusing on a few time-tested principles can help to bring more stability.
Secondary and Tertiary Markets are Crucial
Focusing on current demand and secondary markets is a great place to begin your real estate journey or expand your horizons. There’s been over-saturation of the big cities in the last few years – e.g., New York, Boston, and Chicago – that has created something of an asset bubble. A few buyers are scrambling for overpriced homes in these over-saturated markets, rife with competition.
Tapping into these markets isn’t the ideal growth strategy. Instead, you’ll want to focus on secondary, or perhaps tertiary, real estate markets that will present less competition, greater profits, and less interference from foreign investment. Places like Austin, Atlanta, and Nashville are slated to continue expanding throughout 2020. These may be tomorrow’s primary market, but today they are intelligent places to invest your real estate capital.
Consider Suburban Expansion
Instead of inventing tomorrow’s trends, sometimes you are better off following trends that are already established. Consider the fact that young, first-time homebuyers are taking a hard look at upscale suburban areas. Older homebuyers are selling their overvalued home in the city for a larger, more relaxed abode in the suburbs.
These suburban areas are now catering to the needs of younger clientele in the sense that they’ve become much more hospitable to the lifestyles of the old and young. All-hours downtown areas and walking trails, for instance, cater to young professionals and retirees. Simultaneously, cities are becoming more expensive. The suburbs are another growth opportunity.
Broaden Your Horizons to Alternative Properties
Real estate investing does not have to stop at residential homes. Commercial properties, industrial properties, and retail locations are promising growth areas. Data centers and storage centers are expected to do well for the remainder of 2020 and through 2021. As 5G-loaded technology hits the stores, companies will have an even greater need for these properties.
Society is only going to become more dependent on this technology, and you can put yourself in an excellent position to capitalize on that need demand by investing wisely, creatively, and with a practical eye.