How to prepare to invest in real estate in 2021, I’m certain any serious real estate investor has had this thought cross their minds in recent months and especially at this time of the year. The year 2020 has been one heck of a year with COVID 19 affecting the real estate and other aspects of the economy at large. There’s also the added fact that we had to determine the direction and future of our country at the polls, In all its been a tasking year. While you’re taking stock of your wins and losses for the year, it’s good to cast an eye to the future and make projections based on the information you have. One of such efforts should be targeted towards answering the question “how to prepare to invest in real estate in 2021”.
We don’t want you throwing money around in the name of investment, that should stop in 2020. This blog post is to guide your investing efforts in 2021 (yes, you’re welcome!!).
What 2021 might look like For Real Estate
COVID19 has changed the dynamics of how we live and will definitely affect the way we all live in 2021. We’ve gathered a couple of trends on that might affect real estate in 2021
Evictions And Foreclosures: 2020 brought a number of harsh economic realities that have resulted in job losses and as a result, there have been shortfalls in payment of rents. Real estate is a business and while there might be regulations that help occupants avoid evictions for the short time, Investors can’t go without collect rent for a prolonged period of time. Inevitably, there are bound to be foreclosures on mortgages and evictions. These events should present buying and investing opportunities in 2021.
Suburbs: Relocating to the suburbs is slowly becoming a thing due to trends like working from home and lesser time spent commuting. Being locked indoors for a couple of months has also made housing with more spacing desirable. There has also been a slow increase in the price of rentals in the suburbs and 2021 might be the year to catch up on that.
These and other trends translate into the fact that you have to be extra careful or cynical with investments in 2021. 2021 should be the year where investors go all in to unearth beneficial property deals, call in favors from your network, aggressively put word out there, the best deals in 2021 will be those that don’t like feature on multiple service listings. 2021 should be the year you go hard on skip tracing(Thanks for coming to our TED talk!!)
Preparing For 2021
We’ve discussed the trends that would affect real estate in 2021, but a brief info on how to take advantage or prepare for it would be necessary:
Put Your House In order: Don’t take this too literally, but a good start to preparing for 2021 would be to do a review of your investment in 2020 and your portfolio of investments. Try and prune out investments that havent yielded enough results.
Also, ensure that you have a reality check and that your investment goals in 2021 are in line with your overall investing goals.