There are reasons to be optimistic about mortgage rates during 2025, making this a good time to buy a home from a rates standpoint. But there is no denying that we live in uncertain, turbulent times. Is real estate still a good investment during such times? The answer is yes. Let’s take a look at the reasons why.
- Its value is concrete. One great thing about real estate is that it is a tangible asset with concrete value. It is not something that can just have its value drop to zero in an instant if everyone stops caring about it, as can happen with a stock or a cryptocurrency.
- There is scarcity. There is a serious demand for housing right now, which is a scarce resource. Not only that, but only so much housing can ever be built, and only so much land will ever exist. For that reason, real property will always have real value.
- It tends to appreciate in the long run. The value of real estate can drop in the short term. Technically, it can drop over the long term too. But it is relatively uncommon for that to happen. The majority of real estate gains value over the long term, rebounding effectively after short-term drops in value. So, if you hold it for long enough, you will likely be profitable.
- You can still live in it. Even if the value of real estate does drop during the short-term, the practical utility of the real estate still exists. A home can still be lived in or rented out (see below). A commercial building can still serve a purpose for a business. Having a place to live or work is a big deal, and can even help you stay safe through difficult economic times. So, that is another great reason to consider investing in real estate when times are uncertain or unstable.
- You can rent it out. One more reason real estate is a good investment during challenging times is because you can rent out the space for others to use. This is even true in if you are living in it yourself, as you can sub-lease a room if necessary. Indeed, demand for places to live may be high during certain types of economic crises, giving you plenty of prospective tenants to choose from. Renting out your real estate lets you bring in extra income. This can help to offset any other economic losses you might be dealing with.
Buy Residential or Commercial Real Estate in Florida
You can now appreciate the many reasons real estate makes a good investment even in uncertain times. If you are ready to invest in commercial or residential real estate in Florida, PLC can walk you quickly through your application. To get started now, please give us a call at 954-840-8811. We look forward to helping you maximize your return on investment with a suitable mortgage.