The new year is an excellent time to begin a real estate investment career — and not just because it’s the season of New Year’s resolutions.
The spirit of New Years and new beginnings is certainly a help when it comes to actually taking that first step toward real estate investment. There’s a sense of new possibility, of opportunity, and of transformation. This spirit is the momentum you might need to finally commit to growing your own portfolio.
Not only is the New Year’s atmosphere great for real estate, but New Years is also a legitimately great time to invest.
If you’re on the fence about real estate or need some confidence going in, consider these reasons that make the New Year an excellent time to invest.
1. Fresh Start in the New Year
While the holiday season may have been hectic with shopping, office parties, and family visits, the new year brings a unique opportunity. With a fresh start, you have more time off work to commit meaningfully to real estate investing. This includes researching, viewing, and potentially purchasing homes without the constraints of a busy holiday schedule. Take advantage of this opportunity to explore market research without the distractions of your regular 9 to 5 routine or recent holiday busyness.
2. There Are More Open Houses Available
Whether you want to fix and flip a house or purchase one as a rental property, you probably need to see the property before making that decision.
During early January, there are way more open houses than you would think. This might seem counterintuitive since the traditional housing spike occurs during the summer, but it actually makes sense if you consider business activities.
Businesses are much more likely to relocate or make staffing changes around this time of year. These individuals must relocate quickly, and they don’t have time to be picky. They’re much more likely to negotiate.
It also helps that people travel during this season. Realtors are much more likely to hold an open house if they’re out of town already.
3. Optimized Tax Incentives in the New Year
Experience enhanced tax benefits by purchasing a new home right after the holidays and into January. Securing a property before the year-end allows you to leverage various tax incentives, including:
- Excluded or deferred capital gains tax
- Deducted mortgage interest expenses
Consult with a CPA to identify the specific tax incentives that align with your financial goals.
4. It’s Easier To Budget
If you create a household budget every year, it’s far easier to see how real estate investment fits at the beginning of the year. You can more accurately set and stick to a budget, including your newest investment, during this time of the year.
5. Motivation and Energy Are High
The start of a new year brings a sense of motivation and renewed energy to tackle big goals and projects. This momentum can give you the boost you need to push past any fears or doubts holding you back from investing in real estate. With the excitement and drive of a new beginning propelling you forward, it becomes easier to take the first steps like researching markets, finding a property, and securing financing. So don’t squander that motivational momentum – harness it to finally achieve your real estate dreams. The energy of the new year could be the key that unlocks your investing success!
As we embark on a new year full of possibilities, now is the perfect time to take the plunge into real estate investing. With more free time, increased open houses, attractive tax incentives, and the ability to easily budget for a new venture, 2024 presents prime conditions for growing your portfolio. Don’t let the momentum of a fresh start go to waste – take advantage of the promising landscape and start building your real estate legacy today. Wishing you a prosperous new year in real estate!