Rents Going up Faster Than a Year Ago
The outlook for investors profiting with residential real estate is improving even more than it's already been as a consequence of once-upon-a-generation low prices and low rates of interest.
At this point, I would downplay concerns over rumors of price declines in the near future and urge investors to reflect on the long outlook of the abundant opportunities.
People should look at this is a longer term investment opportunity, and not a "get rich quick" scheme for real estate investing. Rents are a perpetual return on your investments over the years, returning you with a desirable asset as prices improve. Which they will. The greatest real estate profits build up with long haul investors who look at the view over a long term.
Rents have been growing at an annualized 5.17 percent rate compared to 4.72 percent during the same time last year presuming effective rent increases at a similar rate over the coming four months as happened in 2010, the complete-year total would hover just under the historic highs 6.18 percent in 2000 and 5.81 percent in 2005, in a Axiometrics Inc., report, a data and analysis provider for the apartment rental market.
This year alone, there have been 1.4 million brand new apartment tenants, construction is unable to stay up with demand. Tenants,
particularly former homeowners evicted from their homes due to the economy, are turning to investor owned single family homes,
particularly in high foreclosure areas such as Las Vegas and San Joaquin County.
During the year, investors have amounted to somewhere between 20 to 40 percent of existing monthly home sales, in Realtor surveys and (NAR) National Association of Realtors. However, the market share for investors may further increase next year.
an April survey done by Realtor.com discovered that by a margin og three to one, investors plan on becoming more committed in their local real estate markets in comparison to typical homebuyers over the coming 24 months, while 69 percent of real estate investors believe finding properties in the future close at hand will become easier.
A majority of investors, fifty-nine percent (59%) are newcomers and new to investing in real estate, while 33.5 percent are contemplating their first investment real estate while 8.5 percent are in escrow with buying or selling their initial investment real estate Another 17 percent have just finished their first purchase and plan to do more. While just 36.5 percent have experienced in excess of one transaction.
Even during the Great Depression of the 30s, owning real property was at all times better than not having property. A success formula has always been holding onto real estate over the long haul, while the wealth of most families has been acquired by buying real estate investment property and keeping it within the family over many generations. Real estate over time typically equals success.
6 million people suddenly went from being homeowners to being tenants. Thus, the stars are have been aligned for making this the absolute best time during modern history for being a landlord,
Oct 24, 2011