Real estate investing has long been considered a nearly surefire way to grow wealth, as property values tend to go up over time. However, in the current market, this form of investing may have lost some of its appeal, particularly to those who are hoping to do a quick flip for profit.
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“With rising rates and prices stubbornly not dropping, real estate is admittedly not as attractive as it once was,” said David Greene, host of BiggerPockets’ “The Real Estate Podcast” and author of “Pillars of Wealth: How to Make, Save, and Invest Your Way to Financial Freedom.”
“Years of quantitative easing have led to inflation. This limits the number of investment vehicles that can outperform inflation, and pushes investment capital in one direction: real estate.”
Although it may now require more capital to get into the real estate investing game, Greene still views it as a strong investment choice for those who are willing to play the long game.
“While real estate may not be as profitable as it once was, it’s still more profitable than other investment options, making it the top choice for long-term wealth building,” he said. “If you’re looking for immediate gratification, this isn’t a great choice, but if you’re playing the long game, real estate is still most likely to be your best option.”
Also see where Grant Cardone suggests investing in property over the next decade.
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Where To Invest for Long-Term Gains
Those looking to invest in real estate in the current market should take the time to research an area before buying. Greene recommends looking for a few key attributes.
“When purchasing investment property, consider buying in areas with restricted supply but growing demand,” he said. “Remote work has allowed people to travel and live in places they traditionally never could due to employment issues. People are looking for great weather, low cost of living and fun outdoor activities rather than just moving to wherever the jobs pay the best. Study population growth trends, where companies are moving to and where you’re likely to see high future rent growth. Buy there early — then wait!”
Gabrielle Olya contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: David Greene: Here’s Where You Should Be Buying Property for Long-Term Wealth
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