Most adults today were told, at some point in their youth, that real estate was always a good investment. However, after the crash in 2008, people quickly learned that making money in real estate isn’t a guarantee. But, it also created a new opportunity, and many house flippers began raking in cash. As the markets recovered, which forms of real estate investment were lucrative shifted again. This makes for a confusing situation, leaving many wondering, can you still make money in real estate?
Can You Still Make Money in Real Estate?
If you’re trying to figure out if real estate can still be a sound way to make money, the answer to the question is yes. It is possible to earn quite a bit through various forms of real estate investing, including in today’s market.
For example, house flipping can still be lucrative. As long as the market supports an improved property and the numbers are in your favor, it can work. That’s why it is important to do your research into where the best real estate markets are.
Similarly, securing a property and using it as a rental can be a solid source of income. As long as the rent is competitive for the area and it allows you to come out ahead after dealing with related costs, you could end up in the green.
If actually buying property doesn’t appeal to you, there are potential alternatives. For instance, real estate investment trusts (REITs) have become an increasingly popular way to get involved in real estate without having to buy property yourself. Also you might want to consider a real estate crowdfunding option such as Roofstock.
Is Real Estate a Safe Place for Your Money?
It’s important to understand that real estate isn’t a foolproof way to earn money. If anything, the 2008 financial crisis was a great example of how even a bastion of investing can topple.
Whether it’s through purchasing actual properties or investing in REITs, mortgage-backed securities, or anything else, it’s critical to understand that nothing is guaranteed. Additionally, the housing market has been cooling in many cities. While that doesn’t mean there won’t be any growth, overall, it may be significantly slower than in previous years.
As with all forms of investing, whether short- or long-term, doing your research is a must. While no investment is ever completely safe, some may be less risky than others. You’ll need to explore the options that are available and see if any of them align with your risk tolerance. Just keep in mind that growth or profits are never a sure thing, but that doesn’t mean there isn’t money to be made in real estate.
Do you think there is still money to be made in real estate? Why or why not? Share your thoughts in the comments below or you can check GroundFloor, a wealthtech company that let’s you make money in real estate.
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