The impactful strides towards economic recovery have resulted in an influx of millennial homebuyers. The ability to pay their debts and advancements on time through their careers has accelerated confidence in owning homes. In fact, the homeownership rate is four times higher than any other age group, making this a heated topic of discussion. According to projections soon, the smaller cities will run out of space, owing to the housing boom powered by this generation. However, millennials do not view homeownership as permanent as they change houses from now and then. Let’s review the expected millennials’ impact in the housing market:
No life of a millennial is complete without technology. It is not a surprise; most of them deploy technology in the process of buying homes. This has fundamentally changed the duties of real estate agents and brokers. As a result, the housing market has adapted to new marketing strategies and methods.
The standards of living in urban centers have soared, as the majority of the millennials nowadays are opting for suburban homes. Mostly rental market is the contributing factor to urban life audacities. Due to the many cost-conscious millennials, the housing market will have to shift for cheaper suburban homes.
As the economy continues to strengthen, the majority of the millennials will actively participate in the housing market. This will contribute to higher levels of competition in the housing market as investors strive for perfection to satisfy their customers. This means the commercial real estate investors will have to focus on new constructions rather than the “fixer-uppers.”
Transparent Information and Communication
Due to the housing crisis and frustrations, many millennials value having access to trustworthy information. Thus, the housing market will have to adjust to an airtight system of keeping the customers happy and mitigate the risks. This is only achievable through authentic communication mechanisms.
Millennials will continue to shape up the housing market according to housing dynamics. Their preferences will be significantly crucial to favorable housing market evolutions.
The population growth, growth of job opportunities, and its affordability, primarily determine the best places to invest in real estate. A market with the three factors is likely to have investment opportunities. The rising costs of homes in the United States mean it can be challenging to find the right investment; however, there are cities to invest in and have good returns.
Arlington is attractive and lucrative for real estate investments due to its sustainable population growth. The city’s population growth is 2.2%; the employment growth stands at 3.4%, making it one of the best in the whole country. The value of homes in Arlington increased to 10.3%.
Additionally, the median pricing for homes is an affordable price of $240,000, while that for renting costs most people a whopping $1,498. The combination of the factors translates into a robust rental yield of 7.5%, meaning investors have a high chance of paying off the investment in slightly more than 13 years.
The sunshine state of Florida has seen an increase in the demand for family houses; an individual can get a completely refurbished home in a great neighborhood at a price of below $193,000. Although it is affordable to buy a house in the state, many people choose to rent.
Orlando is particularly interesting because of the magnificent beaches, conducive climate, and numerous entertainment spots. From 2010, the city’s population growth stands at more than 20% and expected to see a 3.44% job growth in the coming ten years. Retirees, job seekers, and students drive Orlando’s real estate business.
The city is popularly known for its space missions and the bountiful Southern heritage. Huntsville offers excellent real estate opportunities owing to its affordability and numerous defense, space, and technological industries.
STEM workers in the city enjoy salaries that exceed the national average. Investors need about $158,750 to acquire a three-bedroom family home in Orlando. The fact that 38% of the residents prefer to rent should further encourage real estate investors to venture into Orlando’s real estate.
If someone intends to have a piece of the real estate market, think carefully about the location because not every town will give a return on investment.
An investment property can be a highly lucrative opportunity for all kinds of investors. Even so, these types of investments do require a bit more hands-on maintenance than other investment vehicles. Fortunately, it is quite easy to increase the value of an investment property. To do so, homeowners must only complete minor upgrades that will significantly improve the overall aesthetics of the property in question.
To get started with your upgrades, first look for minor cosmetic improvements that can be made. For instance, the flooring within many rentals often becomes quite damaged over time. By simply regrouting and deep cleaning tile flooring in the kitchen and bathrooms, you may instantly improve the overall aesthetics of your property. This goes for the rest of the house too. Renters love clean properties. The cleaner are you able to make every surface found throughout your property, the more desirable will it become in the eyes of discerning renters.
A fresh coat of paint on interior surfaces may also go a long way towards convincing renters to occupy a property. Fresh paint can instantly cover up any scuff marks that were created by past tenants while also allowing you to customize the property’s appearance. Try to avoid choosing paint colors you would personally enjoy having in your own house, though. When selecting a paint color, it’s essential to use a color that is widely accepted so that your property may appeal to the highest number of potential renters.
The same principle may be applied to the exterior of your property as well. Dirt and grime build up over time on the exterior of every house. By simply washing down the exterior of your property, and giving it a fresh coat of paint, you can make the entire house look just like new. If you also make the wise decision to add some color through the addition of a few new plants here and there, you will undoubtedly be rewarded for your efforts.
While minor, aesthetic improvements will definitely help to boost interest in a property, they are not the only upgrades that should be made. To ensure your renters will want to occupy your property for many years to come, it is also important that every aspect of your property be in good working order. Replacing hinges on doors and upgrading the hardware on kitchen cabinets will provide renters with an excellent experience that will keep them satisfied for many years to come.
Investing in international real estate requires more planning and understanding than investing in real estate domestically. Anyone considering adding international properties to their investment portfolio should keep these six tips in mind.
Understand Financing and Funding Sources
Getting the proper funding in place comes with a few challenges when dealing with foreign areas. International laws need to be learned and followed. Financing must be secured in local currency. It’s typically challenging to obtain a mortgage as a foreign investor. A person looking to invest internationally should consult with a local professional.
Think Through Tax Liabilities
Each country has its own unique tax laws. Some countries require an investor to pay inheritance tax, stamp duty, or title transfer tax at the point of purchase. Others require the payment of land tax. All of these factors must be considered. U.S. investors need to understand IRS tax deductions when investing internationally.
Confirm Title and Ownership
Proceed with caution when dealing with title and ownership issues. This is especially necessary when it comes to debts on the property. For example, a developer may not have repaid borrowed money. The new owner might be made liable for this debt after the completion of the sale.
Is it Legal to Invest in the Desired Location?
Some countries don’t allow non-citizens to invest in real estate. Other countries regulate where foreign investors may buy properties or restrict the type of property that can be purchased. The best way for any international investor to learn the legal specifics is to hire a local accountant and attorney.
Consider Liquidity Needs
For the most part, foreign investments are non-liquid assets. This must be considered so that the investor doesn’t lock up cash that may be needed in the short term.
Consider Who Will Manage the Property
An international investor must hire someone to manage the property. There needs to be a system in place to handle contractors, repairs, or even language barriers. Security is required to protect against trespassers or burglars. A management company should be hired to maintain an international investment property.
Investing in international real estate can be lucrative if done correctly. Investors should follow these tips and also build a local team to become successful.