What To Expect – Real Estate 2019

Property consisting of land or buildings is how real estate is defined. Every year, what goes into real estate changes. 

Before you look into investing in new property, here are the list of different kinds of real estate:

Residential Real Estate- This includes reselling homes and construction work. The categories consist of is single-family homes (most favorable), condominiums, high-value homes, co-ops, townhouses, duplexes, triple-deckers, quadplexes, multi-generational, and vacation homes.

Commercial Real Estate- This includes shopping centers, strip malls, medical, educational buildings, hotels, and offices. Apartment buildings can be contemplated as commercial, even if they are only used for residences due to being owned to produce income.

Industrial Real Estate- This includes manufacturing buildings, property, and warehouses. Buildings are good for for production, storage, etc. Some buildings that distribute goods are considered commercial real estate. The classification is important because the zoning, construction and sales are handled differently.

Land- This includes vacant land ( incorporates developed, early development/reuse, subdivision and site assembly), working farms and ranches. 

You may have to worry about mortgages later in time.

Whats a mortgage?  A mortgage is when you take out a loan (usually from a bank), on a property or real estate. You then over time come up with a plan between the borrower and lender, to ensure that the money gets payed back over a specific amount of time till the lender receives all money back. 

Here are some of the best mortgage loans that you should look into:

  • FHA Loans
  • VA Loans
  • USDA Loans 
  • FHA 203k Rehab Loans
  • Conventional Loans 

How to turn real estate into an investment:

Buy REITs - also known as Real Estate Investment Trusts, allows you to invest in real estate. They pay higher dividends meaning its better for investment in retirement. If the investor no longer wants or need the regular income, they have the ability to automatically reinvest the dividends to increase their investment.  

How is NY Real Estate Looking for 2018?

Real estate sales in Manhattan plunged 25% in the first quarter over the past year, as the new federal tax law, stock market swings, and an abundance of luxury condos scared buyers. Sales dropped the lowest it’s been in six years, according to a report from Douglas Elliman and Miller Samuel.

The average sales price also dropped 8% compared to the same quarter last year. The drop was probably caused by the uncertainty over the new federal tax law, which prevents residents in high-tax states like New York from deducting their state and local taxes. Closings at new condo towers have also slowed down, making the decline even steeper. The high end of the market is getting hit harder, as prices for luxury apartments fell 15% and sales were down 24% in the quarter from last year.

It is speculated that the main problem within this market is asking prices, as sellers still have to adjust and lower their prices in order to keep up with the tax law changes and slowdown since 2014.