Scared to buy? Here’s why you shouldn’t be!

Since COVID began, the world of real estate has been wildly uncertain, and we have about seen it all. We saw both falling and rising interest rates, economic stimulus, housing affordability change, and movement to different cities all over the country. For investors, there was quite a lot of winning; Rent kept coming in, the government bailed out renters, and interest rates at an all- time low meant refinancing bought in a new wave of cash flow.

Fast forward to today, with the interest rates rising and house prices higher than they have ever been, people have been scared to commit to the process of real estate investing. Over the past couple of months, we have heard the thoughts: “but regulations are too tough,” “but the market is too competitive,” “but the interest rates are too high,” etc. While we hear your concerns, we want to make sure you have all the information to know why NOW is still a great time to invest.

Let’s break it down.

Rents go up. When the ability to buy a house goes down (due to price, interest rate, etc), the demand on rental homes goes up. Therefore,  if you own a rental, you will have rent prices and the value of your property increases.

Housing shortage. Experts in the real estate world are predicting a housing shortage that has no exact end in sight. Millennials are getting close to the home buying age, which will certainly increase the demand for houses.

Housing affordability. All of these points are interconnected and depend on one another. When interest rates go up, the ability for many to afford a house decreases. We have seen a huge leap in the appreciation of houses lately, and it is just predicted to get even worse in 2023.

Interest rates. While high now, interests rates are predicted to fall again in 2024. An easy way to increase cash flow is to refinance during times of low interests rates.

There will always be the naysayers when it comes to real estate investing, but we will let you in on our secrets that we are sharing with our students.

1.  Buy deals that make sense TODAY. They are out there.

2. Enjoy the lack of competition and NEGOTIATE. Off Leash just knocked $72,000 off the asking price of a $175,000 listing.

3. Think of long term and plan to hold those investments for five or more years.

4. For the next couple of years, do not plan on crazy cash flows, and when those interest rates drop, refinance.

5. Once that investment is yours, appreciate the loan paydown, and positive you are all set.

Here at Off Leash, we are buying 3-5 homes a month. We haven’t been scared out of buying houses, and we won’t be any time soon. As always, feel free to reach out to chat more about real estate investing, your specific situation, or your thoughts on all of this. Email us at nick@offleashinvestments.com and/or follow us on social, @offleashinvestments.

We welcome you into our community.