Category Archives: Real Estate Investing

Real Estate Investing

The Future of the Real Estate Industry

Real estate investors do not only look for profit potential, but also consider the risk that comes with the property. The real estate market trend should be considered too because it can directly affect the investment strategies used by investors. Let us take a look at where the future of real estate industry is heading on this year.

Millennial home buyers are the primary market
Real estate is primarily dependent on the supply and demand. This year, the majority of the real estate market is millennial home buyers. These are people born from 1980 to 1999. This year, more and more millennials are looking for a place to call their own, which also means that the demand for homes will increase significantly. Millennial buyers are here to stay, not only this year but for the years to come. They will remain a big chunk of the population.  Doug Clark real estate includes an education on how to buy the right property for this market.

Increase mortgage rates
Mortgage interest rate is on the high side and will continue to increase for the years to come. However, the increase in mortgage interest rate is slow and not in any significant amount. It will require a consistent economic growth and inflationary pressures to have a significant increase in interest rate. The interest rate for a 30-year fixed mortgage is in the 4% to 5%. The increase in the interest rate is not likely significant when compared to the overall home buying market. It could somehow affect the low end of the market, especially the first time homebuyers.

Easy credit access
The deregulation of the financial market has led banks to become lenient for credit borrowers. Easy credit access is beneficial not only to home buyers but also for real estate investors. The availability of credit along with rising interest rate and increased demand for new homes could significantly put inflationary pressures on home prices.
Continuous home price appreciation

There is a continuous home appreciation, not only this year but for the years to come. There will be a 3.9% growth year after year, as per the 2017 Housing Forecast. Some regions will have a higher rate such as in Denver, Portland, and Seattle. The west part of the United States will have a stronger appreciation compared to other parts of America. Home price appreciation is caused by employment growth. Thanks to the increasing demand for skilled employees.

Are there any downsides?
There is no such thing as a risk-free investment. This principle does not only apply to the real estate, but in all other types of business. As a smart real estate investor, you need to be prepared for the downside risks. Factors like political uncertainty, terrorism, and conflict of interest in the country and international trade could significantly impact the economy. The rise in the value of the dollar can affect the export industry, which also has an indirect effect on the real estate industry.

Overall, the future of the real estate industry is going to be great this year and for the years to come. Prices will continue to rise but at a slow pace. Mortgage rage will be volatile, but the credit availability will significantly improve. The housing supply will improve significantly but still remains short because more millennials will be looking for rental properties and most of them are first-time home buyers too. As the demand continues to increase, the competition among real estate investors will grow fiercer. Last year, typical properties stayed on the market for about two months and predicted to be even faster this year. Politics has something to do with the future of the real estate industry. President Trump’s policy priorities can significantly affect the housing market. The president pledges to cut taxes, spend more on infrastructure, and crack down on immigration. Any move in these three areas can somehow impact the real estate market.

More information on Scott Yancey real estate

The Benefits And Drawbacks Of Flipping Houses

Dean Graziosi Flipping Houses – The Keys To Earning Money

Know Your Market, Know the Building. Learn about the community you are purchasing into. It is best if you look in your own neighborhood because you know the kind of people that surround you as well as the sort of people that would have an interest in acquiring in that community. Make sure the recommended renovations appropriate for your location. Do a comprehensive evaluation of the home. Do not learn regarding a major repair after you have actually signed the papers.

These are some ways via which you can find these building capitalists. Yet there could be hundreds of questions arising psychological of homeowner who desire to market their house flipping spreadsheet. Nevertheless a solitary line could address the majority of their inquiries. The people that will address your “Exactly how to sell my home?” inquiry are capitalists who could pay you an amount close to your asking price. Hence you could obtain a bargain shut quickly by functioning with them.

real estate investing expert

You might discover yourself in a challenging setting if you will certainly be taking on capitalists who get houses for leasing and/or long-term investments. Due to the fact that of the reality that these investors do not have a strategy to offer or renovate the house after the acquisition, they could pay for to acquire the residential property at a greater cost. They have a clear benefit of winning the proposal for the building that would certainly have been excellent for a home to flip.

Just What You Have To Know Before You Start Flipping Houses

After you find as well as purchase the flip (techniques on this to be gone over later on) you will certainly relocate and begin the improvement procedure. That’s right, I claimed you will removal right into the flip. Why would you do this? 2 factors. First, if you stay in a flip for 2 years it is a house and also subject to only 15% resources gains tax (versus 35% if you don’t) on your earnings. The other reason is you will certainly be doing a great deal of the work with your personal (whatever you can do) so you need to live there while doing it. See, flipping houses successfully is simple!

For those not yet in the know, a foreclosed home is one where the current proprietor has actually run into monetary trouble and also cannot keep making real estate settlements. Some loan providers will certainly allow an extremely charitable poise period, specifically in today’s economic climate. At some point, they have to call a quit to the losses. This puts lots of Massachusetts foreclosures on the market.

With just $1000 in his pocket thanks to his in-laws, Armando as well as his family set out to San Antonio. Lucky sufficient, he had the ability to discuss for two months totally free rent. They essentially battled making both ends fulfill also to the point of marketing their furniture to get food. During those times, he observed that there is loan in the real estate business. He found that buying a rundown residence, refurbishing it a little and after that selling it at a higher price makes smart service feeling. This has actually happened referred to as house flipping. As well as the remainder is background.

When you do the turning, do not get too brought away with the home furnishing spirit. You are not there to restore the entire house, you are just there making it livable enough to have it sold. Be advised of the preparation that you carried out in the very start. Remind yourself of the why and exactly how you did the flipping in the initial area – the consumer that mean to get your house and also the exactly how they desire your home to be. Typically, neglecting your pre-flipping plans would lead you to surpass your spending plan. So, it is likewise important that while you keep in mind the “just what the client desires”, you should also establish the cash that you intend to invest or the affordable amount that would not go beyond the revenue that you picture to obtain from the flip.