When you want to become an investor, you always want to know if it’s the right time for you to invest. Well, you can’t be certain about investments no matter how many crystal balls you own. At the end of the day, there is some level of risk involved and only those who take this risk are the ones who reap the rewards. The good news is that a well-known real estate investor, Lior Babazara, thinks that investing in real estate in 2023 can be a great idea.

Remember that he is only speculating based on his knowledge so you still don’t have to assume that you have been given any type of guaranties. However, what really matters here is that his statement comes after analyzing the market from all possible angles. Here are the factors Lior Babazara has considered.

The Fall Means a Rise

According to Lior Babazara, when you see a fall in the market, that’s when you have to prepare for the rise too. He said that anyone can be a hero in a stable market. However, if you really want to test your investment skills, you have to dive into the market when it is moving in one direction. That’s where the money lies. Yes, the housing market has dropped in the recent months, but that also shows you that a rise is on the horizon. More importantly, what happens when the prices of something fall? Well, you guess correctly—the demand starts to increase.

Soon, you can expect the demand to go up because more and more people will be able to see homes fitting within their budgets. People who thought they couldn’t afford a house will now be sure that they can. That’s when you know your investments are going to return well.

Rentals Are Increasing

You can’t deny the fact that just 2 years ago, the world was in chaos. The pandemic hit the world and it seemed that even the best nations in the world were not prepared for it. Most importantly, millions of people lost their jobs and hence their earnings. This pushed many families out of their homes and they were compelled to live in rented homes as a result. The push has given rise to an increasing number of renters in the market and thus it makes sense that you invest in real estate with rental income in mind. However, you are not entering the market to take advantage of people.

Lior Babazara explains that you are supposed to take advantage of the market, not people. You will still have to make sure that you price your rents according to other rental properties in your area. How you benefit from the market is by building more rentable units because you know the demand is high and vacancy rates will be very low.

Millennials Are Aging

Lior Babazara says that you cannot forget the biggest chunk of the world’s population i.e. millennials, when you talk about the housing market. These are the people who are now entering the age of proper responsibility and ownership. This is the age when a person is serious with owning a house and also making investments. Therefore, there is a trend of millennials moving into their homes. They don’t want to live on rent anymore. They have spent nearly half of their lives and now want to settle in a house of their choice.

So, if you are considering investing in real estate, you have to target millennials and know their interests while designing the property.

Final Thoughts

According to Lior Babazara, there is never a bad time to invest. If you know the tricks and tactics of investing, you can make any situation or market condition work in your favor. He also believes that people should get out of their comfort zone and invest in commercial real estate in addition to residential real estate.