The time is right to invest in real estate
Consider the following tidbits as you make plans to purchase or invest in the near future.
The rate of homeownership peaked at 69 percent in 2004, meaning almost seven out of 10 people/families lived in a home that they owned. That percentage has since fallen back to the 35-year average of 63.5 percent and continues to decline. It is forecasted to drop below 60 percent over the next 10 years.
What does this mean? The rental market will grow faster than homeownership over the next 10 years. This is impacted in part by rising costs of ownership, even though interest rates remain low. It is also interesting to note that nearly 25 percent of renters are spending more than half of their monthly income on rent.
Most private investors own one or two single-family investment properties, or they have leveraged their investment over time and own more than eight properties. Surprisingly, 80 percent of all single-family rental properties are still owned by private investors.
If you’re sitting on the sidelines and thinking about investing in real estate, now is a good time to get started. Unless you are a cash buyer, you will benefit from taking advantage of low interest rates that will strengthen your return on investment.
Category : Blog