Remote Real Estate Investment: Will The Trend Continue in 2022?
The definition of remote real estate investing is broad, but it basically involves owning rental property outside your local market or even country. This could involve anything from vacation home rentals to foreign investments in every corner of the globe. The possibilities are endless, which is exactly why remote real estate investing is growing so quickly.
However, this type of investment is not without risk. As with any real estate purchase, you want to make sure that your choice meets the following: high rates of return, low appreciation in value, and minimal risk for property loss or damage. Here are a few examples of potential selections:
- Vacation Rental Units
- Leisure/Resort Property
- Foreign Investment Opportunities
You can find a ton of different real estate opportunities online to meet your criteria for any investment amount. The Internet age has made it easier to locate, research, and purchase property from the comfort of your own home.
Why Is Remote Real Estate So Popular?
Investing in remote real estate is a great way to save both time and money. With the vast amount of resources available, investing in property can be done from anywhere at any time. It’s never been easier to research property values, the history of a home, market analysis, and estimated expenses. Virtual real estate also allows for investors to be “present” in the deals and management, even from afar. They could successfully manage a rental home without ever setting foot on the property.
Investing in remote real estate also allows for incredible flexibility. Real estate in general offers a wealth of opportunities. But remote real estate opens up a whole new world of possibility! There are virtually no boundaries when it comes to choosing a property to invest in and investors can find just about anything to fit their specific budget and goals.
In some cases, you can invest in property in other states where the market may be more viable and profitable. Investors can find the stable market areas and get the most bang for their buck by investing out-of-state. Many investors have found that home prices in their own local markets have risen so much in recent years that it’s become virtually impossible to find a deal. Instead of turning to foreclosure or other low-end opportunities, investors can instead look out of state and invest where the appreciation has not been as extreme.
In addition, remote real estate investing is a great option for young professionals who want to own a piece of property but have been unable to find local affordable properties. These new investors from out-of-state can get in on the real estate market without having to deal with high mortgage payments or other associated costs that come along with buying a home.
Will This Trend Continue In 2022?
The last five years has seen a significant increase in out-of-state real estate investors. This is due to several factors:
- Housing costs have hit an all-time high
- Property taxes are rising
- Anti-landlord legislation has been set in place
Many investors are seeking higher returns on their money without added risk. These factors have made it easier for people to invest remotely in any property that appeals to them, whether it’s a single-family home, apartment complex or commercial building. This trend continues to grow and shows no sign of slowing in 2022.
How Remote Real Estate Investment Is Easier Than Ever
In our age of technology, it’s never been easier to access real estate opportunities. Whether you’re a seasoned real estate investor or a first-time buyer looking to diversify your portfolio, there are more opportunities than ever before. Pinpointing the city, neighborhood, and exact property that fits your needs is possible from anywhere in the world. Also, it’s worth noting that remote investing is not just for international investors but also national investors who don’t have the time or ability to drive around looking for neighborhoods and properties to invest in.
There are plenty of tools that help aid remote real estate investing:
- Online platforms dedicated to remote real estate investment specifically
- Digital transactions and documentations
- More complex and diverse photography options–drone photos and videos, 3D pictures, virtual open houses, and more
Where Are The Popular Remote Real Estate Investment Opportunities?
Many cities offer ample opportunity when it comes to real estate investment. In the past, large cities were seen as a no-brainer for property investment. But now, even smaller towns have become desirable places to invest in due to growing populations and the economy.
Smaller markets have been trending recently because they offer a unique opportunity for investors who want to escape mainstream real estate markets and find a boutique market that is easier to break into and invest in.
Districts such as Yonkers, New York have become the hottest areas for real estate investment. These cities just outside of larger cities allow a diverse selection of real estate, access to all the big-city amenities while featuring a small-town charm, and so much more! For those looking to break into remote real estate, these are the types of areas you should be looking at!
For investors who are looking for more variety when it comes to investing, remote real estate investment offers an easy way to diversify your portfolio without sacrificing returns. With so many types of opportunities out there that appeal to all sorts of investors, the trend of remote real estate investment is not expected to slow in 2022.