2022 real estate investing strategies

The RPM Evolve blog

2022 real estate investing strategies

The new year has brought about new strategies and ideas for investing. Here are the latest 2022 real estate investing strategies.

It is a new year, and it has brought about new strategies and ideas for investing. COVID-19 may have been – and may still be – a huge downer on many different levels. But one thing is for sure. It set off a positive chain reaction in the world of real estate. For instance, at a time when you would have imagined buying and selling homes would halt, it has actually soared.

So, what does that mean for 2022? What will this year’s real estate investing strategies look like?

Factors to Consider

Before making that leap into a new investment strategy, investors may want to take a moment to overlook a few things. We wouldn’t always recommend this with such urgency, but some major changes have happened over the last year or two. It’s a good idea to take a look at your current strategies for investing and determine ways you may want to adjust them.

Consider investment location

The housing market seems to be growing around the U.S. though some areas are growing at faster rates while others are lagging behind. Investors shouldn’t pay attention to the housing market as a whole but rather keep an eye on the markets that they are interested in.

Time it right

With some areas bursting with opportunities, your pockets could be bursting at the seams, in a crazed need to invest because it seems like you should. Don’t get caught up in it just for the thrill. Instead, do your due diligence, use good judgment, and only buy when you are ready.

Hire a property manager

If you find yourself tied up with investments, whether one or a few, then outsource the work to a property management team. You may find that property rentals give you a great source of passive income, but it isn’t really passive income if you have to work hard for it, is it? Choosing the right property manager, such as Real Property Management Evolve in Phoenix, can land you big benefits. Plus, it frees up your time to focus on investing.

Know how much money you’re working with

Smart investing will not send your bank accounts in the wrong direction. You need to know how much you can afford and stick to your budget. Otherwise, you may easily find yourself in hot water.

Investing Metrics for 2022

There are many metrics that investors should keep in mind as they decide on their next move – and, depending on their strategy, they may find that some of these metrics can play a big role. Surprisingly, there has been a lot of transitioning for people.

Rising Rental Rates

Rental rates are rising in markets all throughout the country. According to Apartment Guide, one-bedroom apartment rates in Phoenix have more than doubled. But rents for single-family homes have jumped significantly in price across the country. In fact, the New York Times reported that rental rates from January to October 2021 increased 16.4%. In some markets, landlords have their pick of tenants with bidding wars taking place.

Demand for Housing

There has been a demand for housing as people are on the move. Certain areas are getting flooded with new growth. For instance, Phoenix is becoming a profitable location since the demand for housing continues to be persistent.

Solid Returns

The housing market is thriving in all ways leading to solid returns for investors. Not only is this a good thing for the investment at hand, but it increases the chance for future investments, too.

Need for Larger Units

Those who are moving or transitioning are looking for more space. Since the global pandemic, more and more people have been staying at home – and working from home. Having additional space for home offices, for example, are a huge factor in those looking for rentals.

New Real Estate Investment Strategies

Remember that it is important to review your own portfolio and finances and then use them to form your own investment strategies. However, let’s take a look at a couple of the most common for this year.

Playing it safe with risk assessment

We understand that the marketing is looking mighty good right now. But some investors have their eye on the still-present coronavirus and its new strain, omicron that is spreading rapidly. The supply chain woes don’t seem to be getting better – and some would even argue that they are getting worse. So, the truth is, we don’t know what is to come throughout the rest of 2022. So some are taking this time to review their portfolios, making sure they are in a good position in case there is a pullback, as well as increasing their liquidity.

Buying rental real estate

Rents are up, so it makes sense to a lot of investors to look into buying rental property. It may or may not be your ideal solution, but there is no denying that buying and holding may be a really good idea. The appreciation rates are high, the rental rates are high – all you need is a property management team to handle the property for you.

Focus on single-family homes

With the trend of single-family homes increasing in popularity amongst renters due to the interest in additional space, spending more time at home, and moving out of urban areas and into suburban neighborhoods, many investors are finding this their go-to option for investment in 2022.

Hire a Property A Manager

As you review your portfolio and make decisions about your next steps for the new year, don’t forget to make your life easier with a property manager. It is perhaps the best rental investment strategy you can take. You will have access to experts in the field who can handle your rental properties, regardless of whether your portfolio only contains one property or 101. Work smart and utilize this strategy so that you can focus on what you are good at – and let the property management team handle what they are good at.

The new year has just started, and it is already looking good. What do you plan to do with it?

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