What to consider before investing in the real estate market

While low interest rates have fueled a lot of this demand, they’ve also generated a lot of competition. Real estate investors are not only competing with everyday home buyers, but also corporate investors with deep pockets. With so many dollars chasing so few properties, you’ll probably pay a premium price, which dramatically curtails your potential profit margin. If the economy takes a downturn or interest rates rise, the property could depreciate for reasons entirely out of your control.