In this episode of the Forever Cash Podcast, I share the State of the Union in the Real Estate Market, land investing in particular. I talk about what’s going on in the market right this minute and offer my forecast of what things will look like in the coming months.
A Global Pandemic: One Year Later
It’s been a year since the U.S. shut down in response to the global outbreak of Covid-19. Immunization is proceeding slowly but surely. Leading experts say we’ll hit herd immunity in April or May 2021. This means:
- Infections will go down
- Restrictions will get lowered
- States (and countries) will open back up
- People will return to work
- Travel will resume
We’ll get back to a halfway-normal economy, but we have a lot of catching up to do, especially in manufacturing. There will be a short-term boom in blue-collar work. Because of the stimulus money, increased unemployment money, the foreclosure moratorium, and another big stimulus on its way, there will be a floodgate of money, which will affect the real estate market.
What’s In Store For the Real Estate Market?
The pandemic has affected the real estate market greatly, and it will continue to have an impact. Let’s start with the housing market. People living in houses don’t own them free and clear. Homeowners have to make monthly mortgage payments. They can only make those payments if they have jobs. They only have jobs if the economy is open.
Interest rates are low and house prices are high. Some people are going to lose their houses. Others will be able to sell out of their delinquent situations and come out on top. A lot of people are going to refinance at those low interest rates and still be in good shape. The rental market is going to do well. People will sell their houses and rent temporarily before they buy again.
Land Investing Is ON FIRE
Vacant land is still one of the last areas in the real estate market without much competition. People are moving out of cities and into the suburbs, and that trend will continue. This year has conditioned us to want space. People don’t want to live on the 27th floor of a highrise in New York City these days. They want land away from crowds and traffic.
Properties on the outskirts of town, recreational acreage for weekend escapes, will continue to be in high demand even as the economy opens back up. Why?
- People will continue to work from home and don’t need to live close to the office.
- They rented land for RVs this year and now want to buy it for themselves.
- They’re using stimulus money to invest in a piece of land they can retire on someday.
Land investing is hot right now. It’s on fire. The best time to get started in land investing was a few years ago. The second best time is NOW.
- The important difference between the 2009 recession and today
- The lasting impact of this pandemic
- Why the next 1-2 years will be incredible for land investing