Operations: FINDING OPPORTUNITIES
Navigating the Uncertainty of Interest Rates and Market Volatility HIGH INTEREST RATES AND MARKET VOLATILITY OFFER CHALLENGES AND UNIQUE OPPORTUNITIES.
LUKE BABICH
I nvesting in real estate in today’s volatile market can be challenging. Add in high interest rates, and the challenge only increases. Still, prime investment opportunities exist even in this uncertain market. Let’s look at how you can find them amid all the noise. EVALUATE THE MARKET With real estate investments, it’s not just what you buy—it’s also when you
could quickly become profitable. On the other hand, buying that same investment in more of a seller’s market could mean that you have to wait several more years before you start realizing profits. Of course, in a volatile market, it may not be easy to tell when the tide has turned into a clear buyer’s market. In general, investors need to make a judgment call and try to buy when supply exceeds demand and when they can secure favorable terms.
buy. For example, if you bought into some top short-term rental markets a decade ago when Airbnb was just taking off, you would have gotten great mortgage rates and bought into what are now considered prime locations. Making that same investment today may still be profitable, but high interest rates and high competition will likely squeeze your profit margins. So, if you buy when market conditions are favorable to you, your investment
80 | think realty magazine :: september - october 2024
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