Real Estate as an Investment: optimistic and opportunistic

A slowly improving economy, limited new supply and improving capital markets are responsible for the spike in investor confidence. The recent surge has brought to light the investment opportunities that are available to new and seasoned investors. As mortgage rates continue to hang at historic lows and affordability reaches an all-time high, investors are becoming more “risk tolerant” and seeing the thawing markets as a great time to expand their portfolios. In fact, according to a recent survey by the National Real Estate Investor and Marcus & Millichap Real Estate Investment Services, 69% plan to add to their property portfolios in the next 12 months, that’s up 8% over 2010 (61%) a sizable increase. The ability to lock in extremely low long-term rates has been the biggest force in their decision to increase investments and has provided a hedge against a slow recovery as well as any unforeseen economic issues that might emerge. For those who remain sold on real estate’s ability to build equity there are two types of opportunities: the active (single-family homes, apartment buildings) and the passive (home builder stocks, real estate investment trusts.) Active real estate investments are an excellent jumping-off point for new investors interested in perking up their portfolio. In another study conducted by, NAR, the average apartment rent is projected to grow 3.4% this year and another 4.2% in 2012. Trulia.com, a homes-for-sale listing site, also noticed a huge uptick in people interested in homes for rent. One thing’s for sure. If you or someone you know is considering real estate as an investment opportunity, this summer is the season to start researching properties. Investing in real estate isn’t a “get rich quick” scheme, rather, a long-term investment that can be a great choice for people with patience and perseverance. The opportunity to build financial wealth is open to everyone – and for those who can afford to invest in today’s market – now is the time!