Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Real estate market in Croatia

    June 3, 2023

    What is the difference between an offshore head office company and an offshore holding company?

    June 2, 2023

    How to Use a Self-Directed or Solo 401(k) IRA

    June 1, 2023
    Facebook Twitter Instagram
    directorioszulianos.comdirectorioszulianos.com
    • Home
    • Real Estate
    • Investment
    • Business
    • Marketing
    • About Us
    • Contact Us
    directorioszulianos.comdirectorioszulianos.com
    Home»Investment»2010 Real Estate Investment Outlook and Prospects
    Investment

    2010 Real Estate Investment Outlook and Prospects

    bentalabcod@gmail.comBy bentalabcod@gmail.comMarch 2, 2023No Comments3 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    What future for real estate?

    For most people, real estate remains an essential component of personal net worth. Despite the stock market rally, the average net worth of an American family is down about 25% due to falling real estate values ​​and investment assets.

    Market Trend Snapshot – Focus on Boston

    Although still suffering due to continued unrest in the flagship financial services, insurance and real estate (FIRE) employment areas, there have been signs of stability in and around major regions metropolitan areas like Boston. Although the job situation remains grim, the Boston Metropolitan Statistical Area (MSA) posted the strongest increases in property values ​​in 2009, according to a report recently released by Zillow Real Estate Market Reports.

    Even with strong gains aided by the federal government’s First Home Buyer’s Credit and still low mortgage interest rates, nearly 25% of homes are still “upside down” on their loans. current mortgages.

    High unemployment persists as companies continue to announce layoffs or delay hiring. And given the expected wave of creative mortgage products such as Alt-A loans, interest-only loans and “à la carte” variable rate mortgages, which reset at higher rates, this exerts a pressure on homeowners unable to refinance due to lack of jobs or lack of value, there will likely be an increase in foreclosures.

    According to research reported by HousingPredictor.com, major metropolitan areas across the United States are unlikely to experience a housing boom until 2020. With more than 7 million people unemployed and another 20 million listed as underemployed, this could be 2017 or 2020. when these workers are absorbed. And real estate sales depend on those who have a job.

    Housing booms typically occur in cycles of seven to ten years, with some external trigger precipitating a crisis that burst the bubble. The current situation is unlikely to be different.

    Implications for investors

    Apartment vacancy rates are expected to rise through 2010 to around 7-10%. The continuing collapse of job confidence hampers household formation, as individuals may delay marriage or return to live with relatives or relatives or double up with friends.

    As foreclosures increase, there will likely be greater demand for replacement housing, so vacancy rates could drop. And as workers try to keep their options open to adjust to moving for job opportunities, rental demand will likely increase as well. The caveat is that there will also likely be a range of supply options that will put pressure on rents. And due to continued poor economic conditions, landlords can expect the credit quality of tenants to erode.

    Apartments will have to compete with a growing supply of single-family homes. Currently, single-family homes available for rent have ballooned nearly 10% from the long-term average of 4.5%. And a policy change by mortgage service Fannie Mae will allow tenants living in homes or apartments where owners have been foreclosed to no longer be evicted. This will likely mean that the largest owner of single-family rentals in the United States will be a quasi-governmental entity.

    Sales volume in the multi-family market is far behind and is expected to continue. Potential buyers continue to wait for prices to stabilize. There will continue to be a 1% to 2% increase in cap rates approaching 2002 cap rates (8.2%), which will directly contribute to downward pressure on order prices 10% to 20% more.

    And given tighter underwriting criteria like higher down payment requirements, the number of investors able to buy a property will likely be limited. But there will be opportunities for investors with the capital and credit to buy when prices stabilize.

    real estate investing for beginners real estate investment real estate investment companies real estate investment trust real estate investor
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleTen Commandments for a Successful Real Estate Investing Career
    Next Article Why use private money for real estate investment – Reason 5

    Related Posts

    Real estate market in Croatia

    June 3, 2023

    What is the difference between an offshore head office company and an offshore holding company?

    June 2, 2023

    How to Use a Self-Directed or Solo 401(k) IRA

    June 1, 2023

    How to profit from your real estate investment

    May 30, 2023
    Add A Comment

    Leave A Reply Cancel Reply

    Advertisement
    Top Reviews
    • Real estate market in Croatia
    • What is the difference between an offshore head office company and an offshore holding company?
    • How to Use a Self-Directed or Solo 401(k) IRA
    • How to profit from your real estate investment

    Advertisement

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    directorioszulianos.com
    Facebook Twitter Instagram Pinterest YouTube TikTok
    • Home
    • Terms and Conditions
    • Privacy Policy
    • Contact Us
    • About Us
    The entirety of this site is protected by copyright © 2023 directorioszulianos.com

    Type above and press Enter to search. Press Esc to cancel.