While you might have been reluctant to invest in real estate during the COVID-19 pandemic, as the disease’s grip on the world recedes bit by bit, you might be willing to dip a toe in the market. However, when it comes to real estate, there are many different types of investments to be made. But which is the right one for you? Here, we’re going to look at some of the hottest markets at the moment and why it’s worth considering them.
Short-term rentals are up
If you’re looking to capitalize on a growing market right now, then you might notice an increase in people who are renting in the short term. As such, investing in property that is built for this, such as furbished apartments, can help you better appeal to the tenants who are only looking to be in one location for a short time. This market is growing well beyond the vacation home, now, as well, with many commercial centers seeing short-term rentals pop up around them.
Community investments are big right now
There has been a great need for housing for quite some time. One of the most widely proposed solutions is in the investment of more community living spaces, from specifically designed housing neighborhoods to apartment buildings. As such, working with a multifamily construction team to build those communal spaces could prove very profitable indeed. Of course, these are expensive investments indeed, so a lot of capital is needed. That, or a group of investors who are willing to put their money together on one project, is not all that rare.
Moving out from the city
A lot of people have been noting a migration from the big metro areas as of late, with more people heading for the “sun belt,” to smaller towns and cities. Some of the most commonly cited reasons for these moves have been local rates and taxes in the metro areas of the country, as well as an increased emphasis on work-life balance. What’s more, there are more people retiring than ever and moving away for that reason, so buying up some property in these areas could be well worth the time. A Mr. Paul Ognibene of Cohasset has the wisdom to give on the subject.
Taking the hands-off approach
If you want to benefit from the growth of the real estate market but you don’t necessarily want to get too hands-on with managing buildings or even outright having to purchase specific buildings, then you might want to look at getting involved in a REIT. Real Estate Investment Trusts are funds that invest in the real estate market through mortgages, bonds, and stocks, combining the money you provide with that of other investors. With the hands-off approach does come a lack of control over your investment, so you have to make sure you choose reliable REIT managers.
Real estate investments are in a strong place right now, with money to be made from the construction as housing efforts are expected to ramp up. It might be time to think about where you should start putting your own money.