Will real estate prices go down in 2022? Why the Answer Has Us Buying Rentals.

There are several factors why many experts do not expect real estate prices to drop in 2022. Firstly, remote work is here to stay. It is very simple. The people have demanded it by quitting, moving, taking pay cuts, and refusing to return to the cubicle grind. Twenty-five percent of all professional jobs in North America will evolve into remote work by the end of 2022, according to data analysts at Ladders, and remote work opportunities will continue to increase through 2023. It’s a new real estate landscape, it’s a new working world, and the demand for single-family homes isn’t going down any time soon.

Secondly, much of the real estate prices are driven by supply and demand and the supply is still having trouble keeping up with the demand, the supply of raw materials to build, and the supply of inventory across the United States. So are real estate prices going up? This is under debate and truly only time will tell. However, most experts agree that real estate prices are not in a bubble and will not drop significantly in 2022. Despite the current rise in real estate prices, the loan rates are still at an all-time low. Many now consider real estate investing as an affordable and reliable addition to any retirement planning already in mind. Now that people can live anywhere and still attract the dream job, the next thought is naturally where to live and where to invest in real estate?

“With The Great Resignation still underway, major life decisions like where to live and how to plan for retirement have changed. Investors must adapt to these changes because they effectively create masses of people looking to rent single-family homes with a yard and a home office. Each home can be a personal retirement plan for the investor that acts now.” - Adiel Gorel, Owner of International Capital Group

With real estate prices rising, and the loan rates still at an all-time low, opportunities are in the air. Adiel Gorel is hosting a free virtual event to answer questions about how regular folks can start a retirement plan that works, how to adapt to the will real estate prices drop in 2022 false hope, and of course, the most pressing question of 2022 will be answered, “which markets to invest in during this time?” Don’t miss out, click icgre.com/guide. Adiel Gorel has helped thousands of investors understand the benefits of retirement planning by investing in rental properties.

Buy brand new homes in the suburbs of large metropolitan areas, mainly in the sunbelt states which attract families with kids. Families with kids make great long-term renters. Great long-term renters make retirement planning a joy, and make retirement riches grow continuously over time.

These homes, right now, are anywhere in the range of $200k-$300k. Fannie Mae enables an investor, to put a minimum down payment of 15% with private mortgage insurance or PMI. Many people choose to put 20% with no PMI. With the minimum down on a home that's $250k, 15% would be $37,500 plus the closing cost and the loan costs, which can add another $10,000 as an example. Looking at it through this simple lens, a first-time investor would need $47,500 rounded up, a little less than $50k. That equation translates into a retirement plan where the renters pay off the mortgage increasing the bottom line, inflation erodes the value of the loan increasing the bottom line, and at any point, an investor can take money out of the rental property (tax-free) and invest in an additional single-family home rental property. That’s solid retirement planning.

Investors can substantially increase the bottom line just by acquiring a new home in a good area with just a down payment, closing costs, and the mighty 30-year fixed-rate loan. Once investors have one, the freedom that it affords becomes so obvious. With that first goal accomplished, the next step is to acquire another rental property. Seeing each one of your rental properties as a business with the sole objective of creating what Adiel Gorel termed “Remote Retirement Riches,” the title of his book is the new mindset for the savvy investor in 2022. Will real estate prices drop in 2022? Not likely. Can investors still prosper? Absolutely.

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Created on Apr 20th 2022 02:01. Viewed 56 times.

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