I love the start of the month because it indicates a day that I’ll have some income delivered to my bank account but sometimes I wish it could be like the old days depicted in the image below.
I started investing in real estate to diversify away from just holding stocks, bonds and cash. I was fortunate to snag a low 3 percent interest rate which is pretty amazing considering that rates are near 8 percent now. Unfortunately, it seems everyone decided that owning real estate is a good game to play because most people are now competing against hedge funds, corporate entities like ArrivedHomes.com, wealthy people that want to own multiple homes, the FIRE movement, boomers that want to up-size or downsize or buy homes for their kids, and everyone else at the end of the line.
Ironically, commercial real estate isn’t doing too well and empty office buildings will likely end up being transformed into something else but I doubt it will help with residential homes. Mortgage interest rates are now about 8 percent and may go higher and I had hoped that it would bring residential prices down but it hasn’t really worked out that way.
In any event, it’s best to be prepared for an eventual real estate market correction by keeping an eye on the real estate market, the mortgage market, and and the overall economy to be ready to pounce.