Buying a property can be the ideal plan to start in 2019, whether to live in it, convert it into an investment or to consolidate an estate. Given the volatility and uncertainty expected for next year, real estate is a trusted option that reduces the risk of future losses compared with other financial resources. These are the main reasons why experts believe you should be capitalizing on these assets.
You are Going to Build Wealth
A property is a durable good that appreciates over time, and the most important thing here is to preserve its value, by using proper maintenance while helping the community that surrounds it, in this way you’ll protect your profitability factor in the years to come.
There are countless reasons why homes increase in value through the years, but the most crucial ones are (1) supply and demand as more people tend to buy houses in comparison to the number of available properties for sale, (2) inflation due to the excess of money in circulation causing a depreciation of the value of currencies, (3) market differentiators such as proximity to services like hospitals, schools, malls, public transportation; the development of new infrastructure projects, greenery, open spaces and much more.
Interest Rates Continue Rising
With the market under stress, mortgages are poised to continue to increase in value despite current demand in the real estate sector. The Federal Reserve has already raised interest rates three times this year, with a further increase expected by the end of the year and another rise in early 2019. This phenomenon is taking the industry by storm because people are buying more and more to get the most out of it, even though the rate set by the FED remains constant at the market price.
Millennials Will Take Over
The sale of flats is recovering pre-crisis values, and we cannot forget that the millennial generation could become an essential player in the market by 2019. This demographic group allocates 45 percent of what it earns on mortgage payments, are hyper-connected and always have their mobile phones at hand, used the Internet in the last three months searching for goods and services, so it isn’t surprising that when it comes to looking out for the home of their dreams, they do so via web browsers and mobile applications. In order to not go unnoticed by these new players, it is essential that your offer must be present in the digital world.