Why 2016 Is The Year To Make Smart Real Estate Investments

With growing uncertainties around banking and other financial institutions, the economic outlook doesn’t seem very positive for investors.

From recent interest rate hike to turbulences in the global equity market, people are hesitant to put their funds at stake.

However, the only market they will be seeking refuge this year is the real estate. When compared, the real estate market guarantees better returns with lesser potential risks.

As an investor, 2016 is a desirable year on the real estate front. Outlined below are some reasons why you should invest in real estate this year – yes, it’s all about making smart investments:

Local as well as International Expansion

While Los Angeles, New York and San Francisco continue to be hot property hubs within the U.S, Americans are expected to enter international boundaries and diversify their portfolios by investing in European real estate.

According to statistics, 43% of investors are looking for properties in London, followed by 19% investors in Paris, and 14% in Frankfurt. In addition to making investments on the residential front, the trend will towards commercial investment will also rise with people investing in shopping centers, commercial offices and retail outlets. This is particularly true for the U.S. where people are investing in residential as well as commercial properties.

The Potential in South America

In case you lack sufficient funds to make real estate investments internationally, go south and make your best bet.

Often smaller markets have higher risks, but the kind of pay-out they yield is phenomenal. In north-east Brazil, you will find a number of condos that can be bought today and sold for as much as 60% higher than their buying price in a span of 2 years. That’s quick, incredible and worth the investment.

Real Estate Market is the Real Deal!

Most investors believe the year 2016 to be the ‘Year of Real Estate’; likely so, properties will be bought and sold like hot cakes around the world.

To begin with, the real estate market is rising collectively. If we look at the U.S. alone, investments made in real estate properties last year (2015) were 11% than the previous year. Furthermore, according to a survey that was conducted on investors worldwide, nearly 50% of them chose to invest in property through 2016.

The Rental Space Will Rake Money

The world is now adopting the rental culture, causing a remarkable hike in the rental rates.

For investors, this is yet another lucrative opportunity as buy-to-let properties are growing to be profitable, thanks to the stabilization of property rates in the U.S.

Speaking of the U.S, the rental market reports suggests that around 90% of property owners amplified their rental rate last year in 2015, and the figure is expected to swell this year as well by 8%.

With U.S. growing to be a hotspot for local and international investors, all you need now is the assistance of an experienced real estate agent to simplify the process for you. Find some of the best residentialproperties in New York and New Jersey with Phillippa Lynch – one of the finest real estate agents with profound industry knowledge.