The economy has gone through a big shake up since the year began. Interest rates are rising, the stock market is stagnant, employment is up, but inflation is still lingering. New investment opportunities like cryptocurrencies and NFTs have encouraged a younger generation to get interested in investing. The one investment that has still continued to be historically steady and have additional benefits is real estate. Even at higher interest rates, the leverage that a mortgage provides enables homeowners to work towards building equity in their home with additional tax benefits.
Other than owning a home as a primary residence, I have worked with many clients to buy investment properties, add additional rental units to their existing home, or understand how house hacking can help young people become homeowners while keeping expenses extremely low. Inflation is not looking to slow down anytime soon, so the opportunity cost of owning a home or investment property will be beneficial as rents rise.
Government spending increased substantially during the pandemic and now the delayed impact of inflation has many people rethinking the future for their investments. I have many clients that are considering shifting their investment strategy from being in the stock market to transitioning into real estate. It can be a hard decision, especially for those that have only owned real estate for their own family, but I have been helping my clients understand why real estate will continue to be the best investment moving forward. If you are interested in learning more about how you can make real estate a primary investment for you please reach out to me!