Is Real Estate Still Worth the Investment?

• Author: Mary Singleton
• Posted: 2022-03-23

When it comes to personal investing, there are all sorts of different stocks in which one can invest. The meaning of a stock is not necessarily some commodity on Wall Street. Anything can be a stock. You're basically betting that it's going to increase in value in some way. To that end, you can make investments in precious metals, collectibles, companies, and so much more. Over many years in the United States, one of the most popular personal investments has been to invest money in real estate. From landlords buying apartments to rent them out, to someone buying a home to fix up and flip for a profit, real estate has long been considered one of the best possible avenues in which to place stock. Though is that still tangible in today's America?

Inflation is really out of control. While the crooked government numbers paint a picture of inflation that's barely visible, you know from living in the world that you're paying at least 30% more to live now than you were last year. That's just a fact; hundreds of millions of people are feeling that sting. Then there's the fact that one US Dollar today is only worth 8 cents compared to 1950. That's how devalued the nation's currency has become. Not to even mention a housing shortage, bidding wars, and a fluctuating market that everyone knows can crash at any time.

WIth all of these scary facts about the American economy and real estate in general, you might want to shy away from investing in real estate, right? Well, there are actually some safe and affordable ways to go about investing in this current market. You might not know about them yet, however.

Few New Homes are Being Built

Very few new homes are being built in America. Government is sitting on its hands when it comes to zoning new land, much less spending money on any new housing, and a lot of home-building companies are still closed down in many states due to the pandemic. This actually presents a golden opportunity for people if they're able to get land zoning and build their own homes. There's a lot of this going around. People are investing around $150k to build a home, and they're selling those homes for around $350k. That's a 200% profit; and not like $3 from $1 but rather a $200,000 profit. More and more people are actually becoming millionaires by doing this very thing.

This may only be applicable to people in certain states and localities, however, as the government may not permit you to build in certain states and certain cities. Though if you can, it's a wise personal investment.

The Market is a Bidding War

The bidding war is what makes this an attractive investment, at least for the here and now. With a housing shortage, people are paying huge money to get a new home. And it's not only people getting mortgages from banks to buy homes; you actually have a bunch of different multinational corporations driving the prices of homes up through the roof because they're attempting to buy every home they can find. They have the capital and they're more than willing to spend the money. Could yours be the next home that sells for a huge profit?

No one knows how long this market trend is going to last. In a couple of years, the market could level back off and you wouldn't make as much money. Though there is no rule that says personal investing has to be for ten, twenty or more years. Personal investing can be buying for a dollar today and selling for two tomorrow. Investing is about the hope of profit; time doesn't need to factor into that equation.

You do have to consider this very carefully. For instance, if the reason you want to invest in the real estate market is for retirement, and so you want to sit on your investment for a decade or even longer, then it might not be the smartest move. If the economy were to crash again, you'd lose everything. However, flipping a profit quickly can allow you to invest in other sorts of long-term commodities.

The choice is yours, of course, but you should definitely know that there are no new homes being built in America to meet the demand, so this is currently a great opportunity for investment.