3 real estate trends to buy investment properties in 2023

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If you plan to start your investment property buying foray next year or intend to add to your current portfolio of rental units, you’ll want to know what trends to expect. Are there any trends to look forward to in 2023? If so, what are they? Having the answers can pay dividends.

people invest in properties to rent for many reasons, such as rental income, property valuation appreciation, inflation hedging, tax benefits, and investment diversification.

According to a report, investors bought a quarter of residences sold in the US in 2021. It will be interesting to see how things play out at the end of 2022 on this front.

Read on to see three real estate investment trends expected in 2023.

More Fractional Rental Investment Properties

An expected trend for the coming year is an increase in investing in fractional rental properties. If you invest in stocks, you’re probably familiar with split buying. This is a useful feature if you want to buy a relatively expensive stock but don’t have the financial flexibility to buy it outright.

With fractional buying, you can buy a part of a share. So if you like a company that has a stock value of $2,500 per share but you can’t afford to buy it, you can buy one-tenth of a share for $250. Fractional buying in the stock market is all about buying portions. Depending on the platform you use, you can generally buy any size portion of a whole share by fractional investing.

Fractional rental investment properties work on the same principle. It may be the answer if you can’t afford to borrow millions of thousands of dollars to buy a rental property. Various crowdfunding platforms allow investors to buy fractions of rental properties. It can open up opportunities for you if you want to invest in real estate but can’t buy a house outright.

Due to the growing popularity of crowdfunding technology, expect to see more and more people taking advantage of fractional rental investment properties in the coming year.

Technological advances will make it easier to buy investment properties

Technology is helping to level the playing field for real estate investors in different socioeconomic categories. You can expect to see technology make its presence felt even more in 2023. You can use technology at various stages of the property buying process. For example, you can use technology to do the following using technology:

While it’s probably best to physically go and view a property of interest before pulling the trigger, it’s technically possible to search for and purchase a property that hasn’t been viewed. You can expect to see more and more investment property buyers harness the power of technology. Technology is really about leveling the playing field. If you live in an expensive part of town or your state’s real estate prices are higher than average, you can focus on properties in other areas. The use of technology will open up more investment opportunities to take advantage of.

More demand for rural investment properties

Remember the work-from-home orders in place not too long ago? The authorities wanted to slow the spread of the coronavirus and requested that companies allow workers to work from home. Many people, who worked from home and no longer had to commute, decided to move to rural areas.

You can expect to see more demand for rural property in 2023. If you’re a new real estate investor, you can often find better deals if you’re willing to buy in the country’s rural regions. Goal prices are gone in some rural areas due to growing demand. Depending on what rural areas you focus on, you can find some reasonable prices for rental properties.

These are just a few of the trends to watch out for in 2023. If you’re interested in buying investment property, you’ll want to look into a proverbial crystal ball to see what happens next. It will make you more informed about buying investment property in the coming year.

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