Scottish-American industrialist Andrew Carnegie once said, “Ninety percent of all millionaires become so through owning real estate.” Of course, as a real estate investor, you know this. You also understand how important it is to know and adhere to present trends. To help, here’s a handy list of three big trends that have dramatically impacted the real estate investment market over the last five years.
You Won’t Get the Same Deal You Got 5 Years Ago:
A few years back, the real estate market was overwhelmed with bank-owned properties and short sales. This led to bargain-basement pricing for investors hoping to snatch up a home for a steal of a price. Investors would then flip the property or rent the home out to generatee income.
Perhaps, you were right there among the flippers and were easily unloading renovated properties. Unfortunately, that has changed in today’s market. Now, regular home buyers have the upper hand and investors are waiting for the market to shift once again. Of course, as an investor, you can still make money; you just have to go about it differently.
Rental Property is All The Rage:
Although home buying for the sole purpose of flipping has diminished somewhat over the last five years, renting as a form of investment is on the rise. This means investors who currently own property are hanging on to their real estate and reaping the rewards, since they now can charge and get higher rent for their properties than before.
Zillow recently named the Bay Area to be among the fastest growing locations in the nation in regards to renting. San Jose took the number four spot and San Francisco tops the list. This means, by owning rental property in California in this real estate market, you can rake in a tidy profit. Speaking of demanding more rent…
It’s a Good Time to Cash Out If You’re Ready:
Due to the fact that investors can charge a high amount for rent, the demand for quality rental investment property is on the rise. Consequently, many investors are taking advantage of the opportunity to sell their rental properties while the price is high.
Patrick J. Fracisco of Fracisco Realty & Investments said this about this recent trend; “I see more sellers interested in cashing out, seeing this as the right time to sell their properties.” If you currently own rental property and are ready to sell, it looks like now might be the ideal time.
We hope you have enjoyed our summary of recent trends. Of course, this list isn’t exhaustive, but it does paint a good picture of what’s going on in the market right now. The main thing to remember is to consistently educate yourself in order to get the most out of your real estate investments.