The real estate market is always changing, and what was a good investment last year might not be such a good investment this year. So, what are the best real estate properties to invest in for 2023? Here are a few suggestions:
Single-Family and Multi-Family Long-Term Rentals
Single-family homes and multifamily properties are always in demand as long-term rentals. The current trend of people moving out of big cities and into suburban and rural areas is only likely to continue in the coming years, which means there will be even more demand for long-term rentals. In addition, one of the biggest benefits of long-term rentals is that income is pretty stable, especially if you manage the property and the tenants well. If you’re looking for a solid long-term investment, single-family homes and multi-family properties are a good bet. In fact, single family rentals were at the top of the list for the best prospects reported in the 2022 Emerging Trends in Real Estate report by industry giant PricewaterhouseCoopers (PwC).
However, it’s not all rainbows and butterflies, as these properties have their own drawbacks. One of the common problems that property owners face with long-term rentals is maintaining a good tenant-landlord relationship. It’s important to be fair and reasonable with your tenants and to respond promptly to any maintenance issues that arise. Some tenants can be big troublemakers, which also necessitates good tenant screening. You may also have problems related to maintenance when it comes to tenants like these, which makes it harder to hold on to the property for more than ten years (which is usually the amount of time you’ll need to recoup your investment). It’s also important to have a good understanding of your local rental laws, in order to avoid any legal troubles.
Self-storage opportunities
The recent pandemic has led to a lot of people downsizing their homes, moving into smaller apartments or even RVs, or even moving in with other people they know. This has created a boom in the self-storage industry, as people are now renting storage units to keep their belongings safe. Self-storage is a great investment because it’s recession-proof—people will always need somewhere to store their things, no matter what the economy is doing.
One way self-storage property owners make a profit is by charging tenants a monthly fee to store their belongings. In addition, many self-storage property owners offer other services such as packing and moving services, which can add to their profits. Another way to make money with self-storage units is to rent out the units for a higher price during times of high demand, such as during the summer or right before Christmas. If tenants fail to make their payments, the property they stored is their collateral. By doing a bit of market research and being strategic about when you rent your units out, you can make a good profit from your self-storage business.
Real Estate Investment Trusts (REIT)
REITs are publicly traded companies that own, operate, or finance income-producing real estate. They offer investors the ability to invest in a diversified portfolio of properties without having to actually buy any property themselves. REITs are a great way to get started in real estate investing without having to put down a lot of money upfront. This is the best option for beginners and people who have no money to invest but still want to dip their toes into the real estate market. It’s a great way to start a portfolio, too—REITs belong to a unique type of investment classification that receives preferential tax treatment as long as the trusts give 90% of their taxable income back to shareholders.
Short-term rentals and BnBs
Short-term rentals, such as Airbnb properties, have become very popular in recent years. More people than ever are traveling for leisure, despite the increasing costs of doing so; in fact, recent news reports that many Americans (about 43%) would rather modify their travel plans than to not travel at all. As such, there’s no shortage of demand for short-term rental properties. If you’re thinking about investing in short-term rentals, now is the time to do it.
Equestrian Property
There are a few reasons why equestrian property is a good investment idea. First, as the name suggests, these properties are perfect for those who own horses or other animals. They provide plenty of room to keep horses and other animals, as well as the necessary facilities like stables and paddocks. This is great for people who love horses and want to care for them themselves.
Second, equestrian property is often located in rural areas, which means that the surrounding scenery is usually beautiful. This makes it a perfect place to enjoy nature and relax in peace and quiet. And finally, equestrian property is a great investment because it steadily appreciates in value over time. Average values of rural land increased by 12.4% from last year. So if you’re looking for a long-term investment that will provide you with a steady return, obtaining equestrian property for sale is a good option.
Final Thoughts
Whether you’re interested in self-storage, REITs, Airbnb properties, or equestrian property, there are a number of great investment options to choose from. If you do your research and plan carefully, you can make a good profit by investing in any of these types of real estate. So don’t wait—start investigating today and see which option is the best for you!
