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Investing In Real Estate Podcast

How might current events impact interest rates and the market risk? And how can a new investor minimize risk? That’s the first question I’m answering on today’s Q&A episode!

On today’s show, I’m taking three listener questions about market risk, variable-rate HELOCs, and moving money from the stock market into real estate investments. As always, I appreciate your thoughtful questions. Click play to hear my answers on this episode of Investing in Real Estate!

On this episode you’ll learn: 

  • What to expect in the real estate market in 2022.
  • What to consider about variable-rate HELOCs.
  • Why moving funds from stocks into real estate is a smart move.

What to Expect in the Real Estate Market in 2022

We know that rates have already risen considerably this year, and the Fed says we can expect to see up to seven interest rate hikes throughout 2022. It’s hard to predict how high interest rates could go, but in my opinion, as long as your return exceeds your interest rate, it’s a good idea to invest. For instance, if you’re getting an 18% IRR on an investment, and your interest rate is 5%, you’re still coming out on top by using the bank’s money. Not to mention, the tax benefits from investing in real estate are unmatched.

What to Consider About Variable-Rate HELOCs

Most HELOCs are going to have an adjustable, or variable rate. In fact, this is the only kind of HELOC I’ve ever used. I understand why you might think that a fixed rate is more appealing, but there’s nothing wrong with using a variable-rate HELOC. Just be strategic with how you use it, and don’t over leverage yourself.

Why Moving Funds from Stocks Into Real Estate Is a Smart Move

In my personal opinion, moving funds out of the stock market into a more stable investment type is smart move. With real estate, you can count on consistent cash flow, and a hedge against inflation. Real estate is a tangible, recession-resistant asset type. Right now in particular, there’s a housing shortage and we need affordable housing in the US.

Ask Me a Question at morrisinvest.com/clayton

Episode Resources
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Dan Kraus at Churchill Mortgage
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.

AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning, at NO additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinion. We recommend them because they are helpful and useful, not because of the small commissions we make if you decide to​ use their services. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.

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Posted on

May 2, 2022

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