A recent article in Forbes shared some of the best financial investment options for 2019, and it just so happens that now may be the best time ever to invest in real estate.
The article not only lists real estate as one of the top investment categories for the year, but also includes options such as the stock market, your side hustle, and paying off debt.
The full story, written by Forbes contributor Jeff Rose, can be found here. Below is the excerpt regarding real estate investments — how to start, where to look, and how to stay afloat in a wavy market.
7 Best Investments To Make In 2019
#2 Real Estate
Just like the stock market, many experts believe that real estate is in a bubble across many parts of the United States. Prices continue to go up and up with no end in sight. Unfortunately, this type of scenario never seems to end well.
Still, many real estate investors that buy rental property don’t seem to be worried. Even if the real estate market tanks, people need to live somewhere, right?
If you’re not someone who wants to invest in physical real estate, you can always buy Real Estate Investment Trusts, or REITs. REITs allow you to take advantage of the upsides of the real estate market without getting your hands dirty or dealing with the hassles of being a landlord.
Real estate crowdfunding sites like Fundrise.com, RealtyMogul, and Rich Uncles also allow you to invest into real estate notes or shares. Fundrise in particular has offered returns between 8.76% and 12.42% the last couple of years, so it continues to be popular with investors.
Buyer beware, however. Real estate investing platform RealtyShares closed its doors to investors in November 2018, which may not be a good sign. Also note that your investments won’t be liquid if the market goes south— as in, you can’t just cash in your Fundrise account and walk away.
Fundrise CEO Ben Miller explains this sentiment in a blog post on the Fundrise website, “What You Can Expect from Fundrise During the Next Financial Crisis.”
If forced selling leads to a temporary plunge in real estate prices, everyone will wait to see where the bottom will be. In such circumstances, writes Miller, “Fundrise will almost certainly suspend our redemption program and investors should not expect us to provide them with liquidity.”
He also notes that, if you think you may need liquidity from your investments during the next financial crisis, then the company’s “long-term illiquid real estate strategy is probably not a good fit for you.”
On the flip side, if you have money to invest and are willing to ride things out, then one person’s financial crisis could be your golden opportunity. Fundrise keeps cash on hand so they can buy more high-quality real estate when prices are low, so you could be in an even better spot when the real estate market does rebound.