Real estate tends to be a worthwhile investment. However, your return depends on the market, location, upgrades, and type of property. To ensure you get the most out of your purchase, these are five types of property that are most likely to appreciate in value over time.
Single-Family Homes
Single-family homes refer to houses on independent property that houses one family. The building does not accommodate another household in the same building, such as an apartment building. Single-family homes represent the largest percentage of houses in the country.
Experts predict single-family homes will increase 4% in value over the next three years, surpassing other real estate categories. The current median price of all single-family homes reached $347,400 in April 2021. It is a seller’s market, so if you’re looking to flip a property, buy as soon as possible if you can’t wait for the market to turn.
Waterfront Property
Many people dream of retiring on the beach in a waterfront property, and that fantasy helps keep prices up. This makes waterfront properties a worthwhile investment. Location and view play a large role on whether people will consider the property desirable or not. Since most waterfront properties qualify as single-family households, it should increase in value in the next couple of years. You can talk to a real estate agent like those at The Stockton Team: Keller Williams Showcase about finding waterfront property..
New Construction
Construction went on hold for much of 2020 due to the pandemic, but contractors will get to work this year to attempt to meet the demand. However, the demand will likely outnumber the new houses available. As we all know, high demand means a higher paycheck. Contractors should take advantage while they can.
California Property
California contains several of the locations expected to have the highest growth in 2022, including the top two spots. This doesn’t come as a huge surprise as California has a reputation for expensive real estate. Buyers beware, but sellers will make out well if someone likes the area so much that they will put up with the exorbitant prices
Rental Properties
Since 2020 was not great for rental properties, it saw a decrease last year. However, we can expect to see a rise soon as people move back out of mom and dad’s house. Rent prices are expected to go up, making the investment worth it.
Real estate price trends can get complicated when we look at them too generally. Focus on the numbers in your area. You can’t control the market, but you can control your own actions, such as how much research you do, when you buy or sell, and what renovations you make.
