Because of various government programs, Federal bailouts, and a general investment into the American economy, many cities are starting to aggressively expand their workforce and growing their local job market in an effort to counter the recession brought about by the Covid pandemic. Thanks to these initiatives, the housing market is also thriving, with houses being swept up by the tide of new money coming in from all sectors of society.
There are tons of ways to invest in real estate this 2022 across the United States, from purchasing mortgage notes in New York, buying homes to refurbish for short-term rentals or single-family rentals, or even investing in cyberspace.
The Right REITs Can Make You Rich
But emphasis on the word right. REITs, or Real Estate Investment Trusts, are a type of company that owns and manages multiple income-generating real properties, usually commercial real estate like malls and offices, shopping centers and hospitals, etc.
Much like investing in stocks, REITs can be purchased via a brokerage. It’s one of the best ways for beginners in the real estate investment business to get their feet wet without necessarily shelling out hundreds of thousands of dollars buying up a home and flipping it. Basically, investing in an REIT allows you to access a portion of a premium real estate’s income without actually having to put up potentially millions of dollars to own it.
Most REITs saw a 28% return year for 2021, and it’s a positive trend that experts believe will continue for 2022 and beyond. Take note, of course, that not all REITs are good investments: do your research at the kind of properties a particular REIT owns, assess whether their ROI is acceptable, and basically be diligent with acquiring as much information about it as possible.
Single-Family Rentals Remain a Strong Investment Opportunity
But if you’re really set on owning property and managing it yourself, then you can’t go wrong with purchasing either single-family rentals or short-term rentals. These two particular real estate types are great investments for 2022 because they saw double-digit increases across hundreds of cities and towns across the United States.
In fact, single-family rentals in Des Moines, IA, saw a strong 12% increase in home prices in 2021 alone, with experts predicting an equal or greater increase for 2022, thanks to the influx of people and the increase of jobs to the area. In fact, the decline of average home prices has actually slowed down since January of 2022. Of course, not all cities will have the same rate of increase, particularly in cities where the recession is still active, but in most cases, the gradual increase is felt.
On average, the price/rent ratios across many single-family rentals and short-term rentals across the United States are at around 20, a 7% increase from 2021. Again, many cities across the country are slowly reopening, which means housing markets in many large cities are also on the rise. Couple that with the fact that many millennials are finally starting to become a buying power, and single-family rentals start to become one of the most lucrative real estate investments you can make for 2022.
Don’t Ignore Real Estate Opportunities in the MetaVerse!
It might sound ridiculous (and, frankly, it kind of is), but Facebook’s parent company Meta and its ambitious MetaVerse project is attracting thousands of investors that are pitching in millions of dollars for the digital space.
What is the MetaVerse? Well, think of it as like a giant videogame, a virtual reality space that’s owned, operated, and managed by Meta. While the term ‘real’ estate might seem strange applied to something that’s basically just a few pixels on a VR screen, it’s gaining traction: real estate prices in the MetaVerse are currently on the rise, with one area of the MetaVerse, The SandBox, reporting over $350 million in transactions in 2021 alone. That’s 350 million dollars of real world money. This price is only seen to go up, as stocks of virtual parcels of land go down while demand starts going up.
There’s still plenty of debate on whether the MetaVerse is a safe investment, but one thing is for sure: it’s going to be a major player in the real estate industry over the next few years and it’s not a bad idea to have some investment opportunities while you’re in the ground floor.
Let Us Help You With Your Next Real Estate Investment
The next few years are going to be an exciting time for real estate investments, not only because of how lucrative it is, but also because of the different kinds of investment opportunities you can make, whether it’s investing in REITs in Des Moines, single-family rentals in Little Rock, or buying mortgage notes for sale in New York and, yes, even real estate in the MetaVerse. Contact us, today, to learn more about how we can help you make the right investment opportunity.