How is the real estate business in US? Is it profitable?

[Raaj4you]

Updates

+1 y

I am talking about buying a land, building new houses and selling it.

[MTC29]

Despite signs of a slowing at the start of the year (always slow for home sales) the market, it remains hot with new records set for home-selling speeds and price increases. This has driven rents to unprecedented highs.

Home prices are rising due to a mismatch between supply and demand, caused by record-low borrowing rates in 2020 and 2021 which lead to underbuilding of new homes. The lead to national home prices increasing nearly 33 percent over the previous two years. How long the boom will last is anyone's guess. Interest rates will play a big part because a 1% hike in mortgage rates leads to a 3-5% drop in housing prices.

I don't have a crystal ball, but I do watch housing trends.

[MTC29]

I response to your update: banks and lending institution loan people money to buy homes (an existing structure on a lot) and not to buy raw land and build on it. Building your own home could require one, two, or even three separate loans: a loan to buy the land, a construction loan to bills the house and finally a mortage on the house. Buying and financing land is straight forward- the land is a tangible asset and has real value. The dream home is just: a dream. Now you'll need a construction loan, which are short-term loans, usually 6-18 months, unless the builder drags construction out longer due to the current shortages of building materials. Understand that construction loans are used only to finance home construction, not the land or permanent mortgage. Once the house is completed you can get a mortgage, and move in, or sell it and move on. What you want to do is quite possible... if you have money and good credit. Good luck.

[Raaj4you]

Thanks for the info 😊

[Raaj4you]

😱Wow, So much land is available available for sale in US, I love USA. There is a shortage of land in India.😔 I'm coming to USA.

[Guy13]

It is profitable internationally. In fact, we got we some during COVID for unfair dirt cheap...

[Literalbillionaire17]

You have to know where to look. That’s what makes it profitable

[In_Trance]

Yes it is if you're good at selling

[legalboxers]

depends where