WHAT I’M THINKING ABOUT RIGHT NOW
My cost of waiting five years to get into real estate

So, someone recently asked me an interesting question: How much do you think it cost you to wait five years to get into real estate?

*Important note: for those of you who don't know my story, once I decided I wanted to give real estate investing a shot, I actually procrastinated and dragged my feet for five years before actually getting started 😐)

At first, I thought it was just a random question. But then I realized, why not explore it? Why not find out how much I potentially lost by not taking action earlier? So, I decided to delve into the topic and torture myself a little. Here's what I discovered...

The Curiosity and the Loss

When that question came up, I became genuinely curious. I wanted to know how much I estimate I lost by not getting started earlier in my real estate journey. And trust me, the numbers surprised me. I never realized the impact those five years had on my potential earnings.

The Cost of Inaction

Conservatively speaking, I estimate that my loss amounts to over 1 million dollars. (Yes, you heard me right). Just think about it - five whole years of not taking action, not starting when I wanted to, and not seizing the opportunities that were right in front of me. It's painful to realize how much I could have achieved if only I had made the decision to pursue real estate sooner.

Overcoming the Fear

One of the main reasons I hesitated to get started was fear. Fear of stumbling, fear of struggling, fear of not being able to figure it all out. But in hindsight, I now understand that even if I did stumble or struggle in the beginning, it would have been worth it. The experience and knowledge gained from those early years would have been priceless.

The Power of Starting Early

Starting five years earlier would have given me a head start in the real estate industry. I would have had more time to learn the ropes, build my network, and establish myself as a credible professional. Those extra years could have accelerated my success in ways I can only imagine.

Learning from My Loss

Although I can't change the past, I can certainly learn from it. Reflecting on my lost opportunities has taught me the importance of taking action when I have the desire and the mental readiness to do so. Waiting for the perfect moment only delays progress and potentially costs me more in the long run.

Moving Forward

From this point on, I have made a commitment to myself. I will no longer wait for the "right time" to pursue my goals. Instead, I will seize every opportunity that comes my way and take action immediately. Time is too precious to waste, and waiting only prolongs the distance between where I am and where I want to be.

Conclusion

So, to answer the initial question, the cost of waiting five years to get into real estate is not just a monetary loss, but also a loss of time, experience, and potential. While I may never know the exact figure, I can confidently say that it was a significant price to pay. However, I choose to view it as a lesson learned, a reminder to never hesitate when it comes to pursuing my dreams. After all, life is too short to wait.

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Are you looking to start or grow a real estate investing business in 2024 and want to do it in the most profitable way possible?

Why Real Estate's Future Is Bright in 2024

New year, sunny real estate outlook for 2024. This optimistic projection prompts this i4n-depth review of the key trends and reasons contributing to the bullish outlook. Join us as we share strategic ideas for real estate investment and homeownership in the changing market.

Navigating The Real Estate Landscape

The housing market has fluctuated in recent years, sparking debates about its future. Inflation and tight competition to buy a home in a low-inventory market were prominent themes. Investors worried about hefty offers and purchasers forgoing inspections.

The Federal Reserve raised interest rates to fight inflation, causing a rippling effect. Buyers struggled with affordability while sellers considered trading pandemic-era interest rates for higher ones.

Beyond buyers and sellers, brokers and agents had to consider the future of real estate as a business.

However, 2024's promising real estate picture should ease anxieties. After reaching a high in October, the average 30-year fixed rate has declined by half a percent, benefiting the market. Investors' much-anticipated holiday gift.

Industry Experts Expect a Positive Turn

As constant interest rates combat inflation, the National Association of Home Builders expects 5% growth in 2024 single-family housing starts. Single-family production should reach 925,000 in 2024, up from 744,000 in 2023.

Zillow's 2024 real estate estimate brought more good news last month, with bullish economists. More affordable homebuying options will be available.

Experts at Zillow predict:

Homeowners expecting a return to 2021's historically low loan rates will realize the market has changed and list their properties.

Based on inflation estimates, home values and loan rates should remain unchanged over the next few months.

Compared to previous generations, modern families rent longer. This trend is encouraging homeowners to rent while buying a new home instead of selling and buying.

Rental properties near downtown hubs will remain in demand.

Home flippers and traditional homebuyers may compete for properties.

Redfin's 2024 real estate forecast shared Zillow's optimism:

After a 3% gain in median home prices in 2023, 2024 is expected to drop 1%.

Housing supply exceeding demand may lower property prices.

In 2024, 4.3 million homes will be sold, up 5% from 2023. The sales surge will last all year.

Consistently falling mortgage rates, but unlikely to drop below 6%.

Sellers will become more aware about hiring agents and more proactive in commission negotiations.

Young families see homeownership as increasingly unachievable, redefining the American Dream. Renting has lost its stigma, and these families and individuals want to invest in alternatives to buying. This trend suggests rental property demand is rising.

Lower mortgage rates expected to stabilize

Despite rising housing availability and demand, mortgage rates remain crucial. How would they fare in 2024's real estate market?

Mortgage rates are near 7%. Fannie Mae anticipates that the average mortgage rate will be 7.3% in 2024 and 6.9% in 2025, which may lead to more purchasers in late 2024 and early 2025. Declining unemployment and good job growth will prepare consumers to acquire or invest in real estate loans.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan sums ($726,200 or less) dropped from 7.37% to 7.17%, according to the Mortgage Bankers Association. Loans with a 20% down payment had points cut from 0.64 to 0.60 (including origination charge). Since August, this level has not been witnessed.

Applications to refinance house loans rose 14%—10% higher than the same week last year. These bode well for 2024's real estate market.

Home Inventory Revives

You can read article after report on how hard it was to buy a home in 2023 in minutes. Low inventory led to fierce competition and high prices. In the following year, that should alter.

In November 2023, 7.5% more house sellers listed than in November 2022, according to Realtor.com. The rate of newly listed homes increased annually for the first time since May 2022.

More listed houses in November bode well for 2024. Holidays deter homebuyers from making significant purchases in November and December. People's propensity to buy real estate may not be a trend, but it shows that the real estate market will do well in 2024.

Enhancing Buyer Motivation and Confidence in Tough Conditions

In 2021, when financing rates were at record lows, many purchasers stayed out of fierce competition when checks were written for way over asking prices and sensible practices like inspections were denied. Now that the panic is over, inventory is rising, and financing rates are falling, buyers are more assured.

Some times are better than others to buy a property, and 2024's real estate picture offers some good options.

International interest in U.S. real estate may affect 2024. The Coldwell Banker 2023 International Consumer Survey found many respondents positive about the U.S. real estate market. Indeed, 80% of luxury customers surveyed believed real estate was a secure investment, and 76% thought homebuying market conditions were “excellent” or “good.”

Increasing Housing Zoning Has Support from Americans

Traditional American housing and zoning rules have hampered new construction. Change is coming, and popular support for policy changes is growing.

The public supports measures that make flats more affordable, according to a Pew Charitable Trust poll. Other polls showed:

A positive response to expedited permits.

More commercial housing approval.

A desire for more tiny homes and closer spacing.

One last thought

Real estate investors are projected to participate in 2024 due to a positive outlook. Real estate is a stable investment, and pandemic issues seem to be fading. If you're considering buying a home or investing in real estate through investment businesses, 2024 promises more housing, new developments, increased affordability, falling interest rates, and good investment prospects.

Here’s to a better real estate market in 2024!

-This is a summary of an article found here on BiggerPockets.com

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