It’s the time of year to think about holiday shopping, get-togethers, and all the endless tasks that keep us busy during the holiday season. But you’re not alone if you have a nagging feeling at the back of your head—what are my resolutions for the new year? What are my financial resolutions?
It’s almost 2020—the beginning of another decade! What were you doing in 2010? 10 years later, trade wars, geopolitical crises, and other shifts in the economy hint at a potentially unpredictable economic year for 2020.
The financial market has changed drastically, seeing trends such as expansions in multi-family housing, opportunity zones, and manufactured home parks. Also, as younger generations become older, it’s certain that the market will change as younger generations have become more proactive with their money and are beginning to seek investment options.
Take the next decade as the motivation to take concrete steps toward securing your own financial freedom. Whether you’re a new or seasoned investor, you don’t have to stick with traditional models. What will you do in the new year to diversify your investments and enhance your investment methods?
How should I diversify my portfolio?
Real estate provides security for the long-term, tax benefits, and steady income as a tangible asset. While building your equity and diversifying your portfolio, you’ll also be able to stay comfortable in an asset that won’t see the unpredictable fluctuations of the stock market. If you’ve been investing in stocks because you view it as a low-effort method of making money while you sleep, consider the passive income opportunities inherent to real estate. In fact, you can even invest in real estate using your retirement funds.
Manufactured Home Parks (MHPs)
In addition, manufactured home parks are seeing growth as well. Housing prices have continued to increase, while the demand for affordable housing grows in rental markets. MHPs have a lower tenant turnover rate, lower cost on repairs and maintenance, and a lower cost per unit.
Multifamily real estate syndications
Zillow’s Home Price Expectations Survey forecasts that home prices will rise in 2020, though at a slower rate. While we won’t be seeing the skyrocketing housing prices as seen in previous years, it’s still indicated that basic market elements will be healthy, making it an opportune time for investing.
35% of American households rent. Rental housing demand has grown alongside American households that can’t afford to purchase a home. Investors have begun to capitalize on Class B and C properties that have begun to reduce in value, adding features and upgrades that allow those properties to be adjusted in rent.
Real estate investments can insulate against downturns in unpredictable markets, and don’t even require daily management on your part. As a hedge against inflation, the correlation between stocks and real estate is low, meaning, while stocks take a downturn, the real estate market may rise.
Self-storage is seeing an upswing
In 2020, we’ll see the continuation of many trends over the last year. Self-storage, for example, is seeing a huge expansion. With self-storage, you can take a more hands-on or hands-off approach with a REIT, or invest in a real estate syndication.
What else can I do?
Creating a wealth strategy rather than using traditional methods can help you to achieve financial freedom in half the time (or even less!) of the traditional retirement plan model. We’ve detailed the possibilities for a five-year plan—how to create a six-figure passive income stream using multifamily real estate syndications.
Instead of stocks, bonds, and other conventional methods of funneling your investments, look into alternative methods that will provide stability now. Don’t think of retirement as the end of a path—rather, commit to financial freedom now to create a cushion to make it through unexpected illness, job loss or changes, and any other tricky financial scenarios. Rather than investing in a system that operates on how long you will live and when you will retire, work with investments that are tangible and less risky, especially in an unpredictable economic climate.
Are you ready to learn about how you can expand and diversify your portfolio with real estate opportunities? The possibilities are endless in the new year, and all it takes to start is a quick phone conversation.
