Homebuyers ‘should move faster’ amid sky high inflation: Barbara Corcoran

The Corcoran Group founder, Barbara Corcoran, joins 'Influencers with Andy Serwer' to share her outlook for real estate in 2022.

Video transcript

ANDY SERWER: Inflation seems to be roaring back, and I'm wondering if people should really take this into account right now, an individual or a couple who are looking to make a big purchase, or should you try to time it and wait it out?

BARBARA CORCORAN: You should move faster because houses are only getting more expensive. It's harder to get your hands on something that you even find acceptable to live with, never mind something you've been dreaming about. Interest rates are still low, although they've been creeping up, and they have promised to continue to go up. And so there's nothing to be gained by waiting whatsoever, absolutely nothing.

So if you weren't smart enough to get into the market two years ago, a year ago, the idea right now is, get into it as fast as you can if you really want a home. And beyond the home front, I think it's probably the best market I have ever seen for real estate investing.

I think the return on investment is phenomenal and has been in so many markets in so many cities throughout the US that it's-- I don't want to say it can't go wrong, but it's probably the best market I've ever seen in my life. So I think real estate is a champion. And I'm not saying that because that's my gig, because I invest in a lot of stuff. But I'm saying it because I've never seen it more tantalizing and with more promise.

ANDY SERWER: Yeah, I want to pick up on that last point, which is real estate is an investment, not your home per se, but I guess you're talking about like a rental property or something like that.

BARBARA CORCORAN: Rental property or a building with five or six units or 20 units. The number is there. The returns people are getting are really surprising.

ANDY SERWER: Why is that exactly? So, in other words, because there's such demand, and then rates are still low enough to make your cost of capital still pretty good?

BARBARA CORCORAN: A few reasons. One, there was a shyness in the market. People were slow to respond to investment in real estate. Now everybody's jumping into it. But it kind of lagged behind all other kinds of investments, so you had a little rest period. Secondly, the rents have been going up nationally. And if you choose your properties carefully, like if you're investing, say, in Orlando, rents are up almost 30%-- crazy, OK? So picture what that does to the bottom line.

And very importantly, which we all take for granted, like our right to breathe, money is so cheap. And so you can leverage really high. So, even in New York City, which has gone through a really tough period because of all the changes Albany that make it really almost untenable to make money here as an investor, a lot of people have stopped buying. They've moved their money elsewhere. And there are so many opportunities to buy and get very good returns because rents keep going up.