People have much to say about real estate investors, but not all of it is positive. While we can understand where some of the complaints come from, such as those about institutional investors, real estate investors play an integral role in the modern housing market. There may be valid criticisms out there, but by and large, investors—especially individual investors—play a significant role in maintaining the health and viability of real estate at large.
The truth is that real estate investment benefits both the individual and the market, influencing local and national trends. Here’s how investors influence the market the most.
1. Property Upkeep and Values
Investors often purchase distressed or outdated properties and renovate them. This not only improves the quality of the housing but raises local property values. Investors are also diligent in protecting the condition of these properties, preventing occurrences of abandoned or neglected properties that hurt neighborhood safety and value.
Now, before the comments start about lousy landlords, slumlords, and overgrown weeds at rental houses, there are always going to be bad investors who do a poor job of keeping up their properties. However, when properties sit abandoned and neighborhoods become blighted, real estate investors are the ones who step in and take the risks of reinvigorating properties. Yes, investors expect to make a profit, but those profits come with risk, and without investors, there is no progress, no revitalization, and no improvement to the neighborhoods.
2. Alternative Housing Solutions
Some people would bemoan how reliant our housing market is on rentals. But the truth is, rentals…