Should you bother with real estate investing in a declining market? YES.
You keep hearing that the fed is raising rates, inflation is hitting, and money is tightening. But what does this really mean for real estate investors?
Availability In a Declining Market
As inflation goes up, there’s less money for everyone. Including real estate investors.
This might feel like whiplash from the last ten years. Until recently, there was plenty of money for everyone in the real estate world. Rates were lower, loan-to-values on loans were higher, and money flowed fairly freely.
But now funds are tightening up. This will mean two main things for investors:
- Lenders will require more money down
- They will have higher credit score range expectations for borrowers.
Now is the perfect time to prioritize your credit score. Improving your credit score by thirty percent will put you in a fantastic position moving into this next market.
Real Estate Purchase Opportunities in a Declining Market
Rates are going up, money’s tightening… but inventory is growing. Soon, the cost of homes will drop.
You want to buy right at that moment, as money is shifting down but properties are shifting up. Sooner or later, the market will shift back.
When money gets easy again and prices go up, you increase your cash flow and net worth because you bought in the declining market.
Inflationary times are not a negative for investors. As long as you’re prepared, now is the best time to invest in real estate. If you can get money, you’ll be one of the few people out there looking for deals. Five to ten years from now, you’ll be reaping the benefits in big ways.
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