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.
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.
Recently, the problem of housing has come to dominate the conversation in many countries around the world. The UK, with its tradition of council housing, has faced shocks to its system. Housing is more and more out of the reach of many working people there. The US is facing a housing crisis, too. Migration of millennials to cities has created increased demand for housing there. This has driven rents up and out of the reach of working-class people. It almost seems that no matter where you are, rents are soaring up and reasonably priced homes are far and few between.
A companion problem is that working-class wages have stagnated since the Great Recession. Working-class people often lack cars and can’t find a workable way to make a move to the suburbs. All of this has created a seemingly intractable housing crisis in cities like New York, San Francisco and Los Angeles. All of this has been immensely frustrating, both for the people who live in these cities and for politicians. However, there’s also a great opportunity in this crisis, if only people will take the time to think it through.
Currently, four out of ten low income people are either homeless or spending over 50% of their income on rent, which is unsustainable in the long-term. The US is short by at least several million low income housing units. This is a tremendous opportunity for investors, if they are able to play it right. Social housing in the United States often gets a bad name. However, there are real advantages to landlords when it comes to dealing with social housing programs.
For example, section 8 arrives on time every month. Renting to lower income tenants can mean missed, partial or late payments. Dealing with government agencies means much more reliable cash flow, even if there can be a lag initially. Social impact investment firms have also made affordable housing one of their pet causes. Groups like Turner Impact Capital and Building Opportunity have made it a point to focus on affordable housing. This investment takes many forms, from crowdsourcing online to REITs.
Avalon Communities, a company known for providing corporate apartments, has also shifted their focus to renovating older buildings for more middle-income and lower-income clientele. As these big investments by big players demonstrate, there’s a very healthy future in providing low income housing.
When built-ins and fixtures in a home start looking worn and old, it’s time to update.
Homeowners don’t usually think about making changes that can increase the value of their homes until it is time to sell. Then they may be short on cash or the time to make improvements that can add value. The key is to make gradual changes along the way that will keep a home looking fresh and contemporary. Consider the following ways homeowners can increase the value of their homes.
Keep the outside looking fresh
Nothing grabs attention more than a home with curb appeal. Since the outside of the home is the first impression a buyer will make, the outside should be neat and inviting. Keep shrubs and other vegetation under control with regular trimming. Pressure wash concrete surfaces and siding to keep them looking new. Remove dead flowers and plants. When perennials start to get grassy, it may be time to dig them up, clear out the weeds, and start fresh. Make sure wood trim is painted, and clean the cobwebs from around doors, windows, and light fixtures. Curb appeal is usually a matter of regular maintenance and costs very little.
Consider a kitchen upgrade
An upgrade can make the kitchen a place where the entire family enjoys gathering, but an out-dated kitchen can be depressing and a deal-breaker for a buyer. Swap out tired looking white or black appliances for edgy stainless steel. When today’s homebuyers walk into a kitchen, they expect to see stainless steel appliances and granite countertops. Something as simple as s trendy new backsplash can add pop to an otherwise boring kitchen.
Turn a bathroom into a spa
Not only do homebuyers expect kitchens to wow them–clean bathrooms with that spa vibe are also on many homebuyers’ wish lists. If you can’t put in a new shower, consider adding a rain shower head. Clean the tub and shower until it is sparkling. Replace old sink fixtures and faucets with updated versions. Consider adding a new mirror and get rid of the 1990s vanity strip lights. Replace the wallpaper with a fresh coat of paint in a spa-inspired color.
These are just a few simple, and mostly low-cost changes that a homeowner can make to increase a home’s value. Even when a homeowner is not thinking of selling, updates can make a home feel like a brand new living space.