A dilapidated house in Oakland, CA dating from 1905, with rotting wood, peeling paint and, oh by the way, just happens to be located in an up-and-coming trendy neighborhood, just sold for $755k – over a quarter million dollars over its asking price! According to the SFGate, people were lined up out the door during the open house for this one-bedroom, two-bath bungalow. Apparently the owner purchased the home in the 70’s but hasn’t lived there in decades. Investors, take note…. “At least 200 people came through,” Juskys said. “There was a little boy down the street who opened up…
Author: Brad Beckett
Brad Beckett
Director of Education & Outreach, National Real Estate Investors Association
Apartment data provider Axiometrics predicts that annual effective rent growth in 2017 will match the long-term average, however they say performance will strengthen in 2018 & 2019. Their latest forecast estimates an average rent growth of 2.3% this year, equaling the average rate from 1995-2016 and actually 10 basis points (bps) higher than their previous forecast. This slight increase also comes in the wake of a predicted fall in the job-growth rate to 1.4%, with 2.01 million jobs added to the workforce in 2017. Their key takeaways: While average effective rent growth will hit a recent low of 2.3% this…
Is a lack of having a down payment holding back renters from buying a home? A new survey from Zillow found that nearly 70% of renters in 20 U.S. metros said that was the case. When you consider that the U.S. homeownership rate hovering near an all-time low, rents at record highs, and mortgage payments cheaper than rent in all but two of the 35 largest U.S. metros, the findings certainly seem to make sense. Zillow’s Housing Aspirations Report (ZHAR) also found that: Millennial renters are more confident than any other generation that they will be able to afford a…
The U.S. Government is reporting that housing starts in March were at a seasonally adjusted annual rate of 1,215,000. This number is 6.8% below February’s estimate but is 9.2% higher than March 2016. Single-family housing starts in March were at a rate of 821,000, which 6.2% lower than February. The March rate for units in buildings with five units or more was 385k. Privately-owned housing units authorized by building permits in March were at a seasonally adjusted annual rate of 1,260,000. This is 3.6% higher than February and is 17.0% higher than one year ago. Single-family authorizations in March were…
The student housing market can be one of the most lucrative markets an investor can enter, if they know how to identify the right opportunities. Recently, on her Real Estate News for Investors podcast, Kathy Fettke discussed those opportunities and why real estate investors would be wise to pay attention. “If you’re building out your real estate portfolio as a hedge against the next recession, you may want to think “student housing.” A new report says a record number of Millennials are pursuing college and will likely continue straight through any downturn.” Click here to hear more of Kathy’s podcasts…
Coming on the heels of the surging popularity of short-term rentals, the New York Times is reporting that the American Hotel and Lodging Association (an industry trade group) recently presented documents to its board where they outline certain progress from actions they’ve taken against Airbnb and what they plan to do in the future. The NY Times quotes the association’s internal documents in saying the plan is a “multipronged, national campaign approach at the local, state and federal level.” This is pretty heavy stuff – especially when you consider that over 150 million people have stayed in over three million…
What are the best cities for first-time homebuyers? That’s the question that SmartAsset set out to discover in their third annual study of the best cities for first-time homebuyers. They analyzed data from every city in America (with at least 300k residents) and then ranked them according to several factors including market volatility, value per square foot, the number of mortgage lenders, and even how long people stay in their homes (stability). Why top 11 and not top 10 in our graphic? Because Louisville and Wichita are tied. “Homeownership remains a distant dream for many Americans, particularly millennials. But in…
According to a new report from the National Association of Realtors, vacation home sales were down 21.6% in 2016, representing their lowest level since 2013. However, during the same period, investment-home sales rose 4.5% to 1.14 million and owner-occupied purchases jumped 12.5%. The data comes from the NAR’s annual second-home survey which also found that vacation and investment buyers in 2016 were more likely to take out a mortgage and use their property as a short-term rental. Where have we heard that term before??? “…home prices have soared in recent years because substantial buyer demand from strong job growth continues…
Data powerhouse ATTOM Data Solutions (parent company of RealtyTrac) recently released their Q1 and March 2017 U.S. Foreclosure Market Report that showed foreclosure activity in the first quarter was below pre-recession levels in nearly half of U.S. metro areas analyzed for the report. Nationwide foreclosure filings (default notices, scheduled auctions and bank repossessions) were reported on 234,508 properties in the first quarter, down 11% from the previous quarter and down 19% from one year ago – marking the lowest level since Q3 2006. “U.S. foreclosure activity on a quarterly basis first dipped below pre-recession averages in the fourth quarter of…
The folks over at FortuneBuilders remind us that there are number of benefits to owning rental properties – from preparing for a financially stable future, tax deductions, property appreciation and to having a reliable cash flow. To those ends, they recently put together this handy infographic with the Top 10 Markets for Owning Rental Properties…..Happy Friday!! Whether you are just launching your real estate career or you’re already a seasoned professional, owning rental properties is a great way to accumulate long term wealth, prepare for retirement, and diversify your investment portfolio. Than Merrill Hat tip to FortuneBuilders.
