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2021 has been a year full of uncertainties for the real estate sector but even amid the roller coaster ride, cool headed folks have made money from their property investments.
As we step into 2022, here are some top real estate moves you can make to come out of the year, looking like a winner.
The Top 5 Moves
🏆 Evaluate Risks: Despite all the tips doing the rounds, no one really knows exactly what is going to happen in 2022. So first up, make sure your portfolio is well positioned in the event of a pullback, big or small.
Over-leverage is the biggest killer investors face during a market crash. It's thus a good idea to assess each of your property positions as it relates to returns, any debt associated with the investment, and its value today. Also, evaluate selling certain properties to increase liquidity if needed.
🏆 Choose The Right REITs: Real Estate Investment Trusts (REITs) performed incredibly well in 2021, achieving high returns for investors. However, remember that REITs aren't immune to market corrections or negative impacts from the economy or real estate market as a whole.
When you choose to invest in REITs, it's important to choose the REIT wisely and focus on quality companies in high-growth sectors like industrial real estate, multifamily, or warehousing and logistics.
🏆 Cash Is King: No matter where the real estate market goes in 2022, continue saving. Whether the market is up or down, you won't be able to invest in new opportunities without the funds to purchase the investments.
Continue to set aside money to invest in real estate, at a minimum of 15%, after your other commitments and cash investments are fulfilled.
🏆 Improve Your Credit Score: Keep an eye on things like your debt-to-income ratio and credit score for starters. With interest rates likely to go up in the face of rising inflation, your credit worthiness will take centre stage in 2022.
Though not every real estate investment will require financing, if you plan to actively buy and own real estate, it's likely you'll be getting a mortgage in some form or fashion, and having solid credit will improve your chances of getting approved.
🏆 Explore All Avenues: While pricing is high, this can be a great time to do research on alternative methods like commercial real estate, buy, refurbish and resell real estate, or others.
2022 is an ideal time to assess opportunities in the market and identify long-term trends that will likely overcome any market corrections and yield returns for your hard earned money.