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.
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.
So, you’re considering investing in real estate. You’ve done some research, but your first time around has you a little hesitant about moving forward. The key to success in real estate investing is doing your due diligence and finding an investment property that fits within what you’re trying to accomplish. Are you focusing on multi-family properties like apartment buildings or condos? Or are you taking a single-family approach with the intent to rent or sell? Either way, there are a few key steps to take before jumping into your investment.
Find a Good Location
The location of your investment property means a lot more than you might think. Whether you’re renting it to tenants or selling it after a flip, location matters. Do your research on the data and statistics of growth in the areas you might be interested in. From there, narrow your search down to a few select areas that you would consider buying an investment property in. Buying an investment property in an unfavorable area can lead to making it more difficult to rent or sell, causing you to struggle to obtain your return.
Stray-Away From Fixer-Uppers
While fixer-uppers are often the star of home improvement in the media, generally, they’re not what you want to start off with on your investment journey. Small renovations are doable and shouldn’t cause you too much stress, money, or work; really anything small and cosmetic shouldn’t be too much of a hassle. What you want to avoid are properties that need to be gutted entirely, or have issues within the core and foundation of the property. Foundational, electrical, or piping problems can run you into the red when it comes to fixing them, so make sure you’re looking into the property before you make the purchase.
Estimate Potential Earnings
When you’ve narrowed down your locations and property options, look into the potential for earnings and the return on your initial investment. If you move forward with this property, how quickly will you be able to rent or sell it? Is the local area on a streak of growth with new residents looking for home availability? These considerations and questions will help lead you to an accurate estimate of your potential earnings.
Look Into Market Averages
Take the time to research market averages within the area. What is the average income and employment rate? If you’re looking to rent your investment property, what do you surrounding rental costs look like? This will help you determine where your property stands, and how quickly you can see an investment return.
If you’re a first-time homeowner new to property renovation, the idea of fixing up your outdated home is probably extremely intimidating. The professionals on all of those home improvement shows make the demolition and renovation process look so quick, easy, and painless, but you’re smart enough to know it isn’t that simple. For those who are unsure of how to start their first property renovation, this article will give you a few tips on how you can make your home remodel simpler, cheaper, and less stressful.
Get to Know Your Builder
If you’ve never renovated a home before, it’s best to sit down with a builder or an architect to better flesh out how you want your home to look. Additionally, are you planning on flipping this home in the near future, or do you want to settle down in this house and raise a family? Your builder will bring his or her experience to your project, and help you find ways to renovate your home so that it suits your needs.
Your builder will also help you plan ahead and keep your family and pets safe during your first home rebuild. For example, if you’re re-doing your home’s plumbing and need to shut the water off for an afternoon, your builder will notify you well in advance so that you can make the appropriate arrangements.
Stick to Your Budget
Creating and maintaining a budget is the most effective way to ensure that your home renovation will actually add value to your life, instead of leaving you in financial ruin with a partially remodeled property.
One rule of thumb to keep in mind is that your home renovation will always be more expensive than you anticipate. Experts suggest that you should save at least 20% more than your projected budget to cover unanticipated emergencies or hidden costs.
Think About Comfort
One thing first-time renovators often overlook is the idea of comfort during their rebuild. A good question to always ask yourself is, “How can I make my home more comfortable?”
Comfort doesn’t always have to be about adding high-end appliances or fixtures in your home. Instead, comfort can be as simple as making sure you have enough electrical outlets in your living room, or that you’ve got the right lighting in your kitchen for meal-time socializing. As you progress in your first property renovation, always be thinking about adding comfort to your new space.
We all remember scanning the newspaper when we were kids and seeing local real estate agents advertising alongside family-owned restaurants and used car dealerships. At the top of these old ads, you probably remember seeing a head-shot of a smiling real estate agent, inviting you to look at the homes they were listing. Below this picture, there’d be small thumb-sized photos of ranches, bungalows, and mansions with pricing information and listing details printed out in minuscule font under each picture.
You probably didn’t think about it then – because who knew any better at the time – but what an impersonal and ineffective way to sell homes! Would you feel comfortable finding a good home for yourself if all you had was that small picture and those limited details to go on?
It’s no surprise, then, that social media platforms and home buying websites have transformed the real estate industry over the past few years.
Real estate agents who are interested in building a customer base with millennial home buyers have begun utilizing YouTube and Instagram to appeal to young families and upwardly mobile professionals.
For example, innovative real estate agents have begun posting entire photo albums of glamorous hi-res photos of the various homes they have available on their personally branded Instagram account. These real estate agents use things like hashtags to target Instagram users who want to move to a particular neighborhood.
Another huge benefit of using a social media network like Instagram to advertise homes is that people from all over the world are using Instagram. It’s never been easier to sell to buyers outside of a real estate agent’s particular area.
YouTube has also become a hotspot for real estate agents looking to add another visual dimension to their listings. The agents who are most effectively using YouTube are doing virtual house tours where they walk through a home with a video camera and a tripod. A video works well because it shows off the size of rooms and bathrooms much more effectively than traditional photographs do.
Another intriguing way that sellers are showing off homes to buyers is that they are using hand-held drones to take aerial footage of how a property looks from above. These aerial videos are so much more captivating than the thumbnail photos real estate agents used to rely on to make a purchase.