2019 Real Estate Investing Trends
The sun rises and sparks the dawn of a new day, Similar to yesterday, but a new day indeed. As each day comes and goes the slow and gentle transitions occur and investing in real estate is no exception.
Staying on top of the real estate trends and what investors are doing to maximize their portfolios is something you always want to be cognitive of.
The sun has set on the easy days of buying any piece of real estate because the prices were so cheap you could not go wrong on any deal. The good news is that the competitive field has narrowed and those who are purposeful have a clear path to great investment success.
What are people investing in in 2019 and why?
Single Family Rentals
The most highly sought after and fastest growing segments of rentals have been in the single family sector for these reasons:
· More affluent dwellers have chosen to rent.
· Many people over the past decade were forced from their homes during the Housing bust and found solitude in renting.
· Many baby boomers are now choosing to remain more transient as they want a clear path to relocate and be closer to their children and grandchildren.
What these people all have in common is that they are used to living in single family homes and choose to remain in them. Living in a single family residence and still remaining transient where they are not tied down is appealing to this new group of renters. Investors who want to appeal to this audience will want to think like a lateral move or move up buyer and provide the amenities they seek in a home.
Opportunities: The rental demand for these single family homes are typically a 3 bed 2 bath home with a garage which is in perfect harmony with the most highly liquid able and most profitably appreciating investing class of real estate. Cash flow tends to be less on these property classes but appreciation tends to be strongest. Incidentally this appreciation tends to be the number one wealth building principle and has generated better than 90 percent of todays millionaires.
Multi family Home Investing
With the home affordability becoming squeezed and continued rising rents you cannot go wrong in investing in affordable housing. This segment of properties has become in short supply and there are far more people seeking affordable housing than there is supply.
Many institutional investors have recognized this huge demand and are working to fulfill this need by building more multi-family dwelling to accommodate them. However, they face challenges and expenses that threaten their ability to be effective.
Increased building cost, qualified labor shortages, higher tariffs on imported material all cause delays and increase cost.
Opportunities: Cash flow Investors love this.Existing multi-family properties will generate great cash flow. The big benefit investing in existing multi family is the manufactured growth you can generate. Multi family homes have a reduced buying audience as typically only investors purchase them. The price of them is directly tied to the income it generates so getting a great buy on a well performing property will buy you cash flow but not huge in the appreciation. To gain huge appreciation you want to manufacture growth. The quintessential value play will help you accomplish this and reward you with massive appreciation.
Tax deed Investing
Investing in Tax Deeds has been growing in popularity now that property prices have risen so rapidly. The low cost acquisition potential that is available in this investment class has moved tax deed investing into the popularity spotlight as of lately.
You can go to the courthouse steps and buy these and you will see less competition at these live events. Many counties now allow you to do this online, making it even easier. Keep in mind the counties that allow you to buy these online tend to have more buyers because it has become pretty easy to do so from the comfort of your own home. Online purchases can be made by any savvy investor from around the world. The counties that do not have online sales are actually very short in the competing buyer category so the best deals are found here.
The Opportunities: You can acquire property for pennies on the dollar and have the ability to make plenty of cash flow when buying so low and renting out at fair market rents. If you wish to buy and flip you stand to make great profits from low acquisition costs.
Attend a 3 day intensive training with a bus tour
and attend a live actual tax deed sale
where you can actually purchase a tax deed property
with a trained expert by your side.
(oh, He may even fund your deals for you)
Check out this live training with Mike Wolf