There is a shift happening in the housing market.
After more than a year of soaring demand, exploding home prices and increasing real estate sales, the market finally seems to be cooling off.
“The housing market isn’t crashing, but it is experiencing a hangover as it comes down from an unsustainable high,” said Taylor Marr, Redfin deputy chief economist.
Mortgage rates have increased more than two and a half percentage points this year. And the higher costs of financing a home have changed the calculations for many would-be homebuyers. As a result, year-over-year home sales have been dropping in recent months.
In a Fannie Mae survey on homebuyer sentiment, a record 79% of respondents said it’s a bad time to buy a home.
Investing in real estate might seem like the latest get-rich-quick scheme you’ve seen on TikTok, but it’s been making people rich for years. Leonard Stern of New Jersey started out as an employee at his father’s pet supply store in 1959. He made his first investment in 1966 — a warehouse in New Jersey. He has since turned the money from that investment into a company, Hartz Mountain, which owns over 260 properties. He’s ventured into several other markets, all made possible by his real estate business. He’s worth $4.5 billion today.
For Stern, investing in warehouse spaces has made him extremely successful in real estate. Though you might normally think of buying homes when considering a real-estate purchase, the opportunities extend far beyond that.
It is a proven fact that properties always do not sell for the beginning ask price quoted by the real estate owner. If you are about to sell a property, it should be your priority to know about the negotiation loopholes that may come in your way. Sellers need to understand that mere closing the deal is not the proper answer. They should finalize the deal by getting the maximum output for their investment. Following are some time tested suggestions from cashmyre.com, which might help you a lot while selling your valued property:
Remain Updated About Market Dynamics
No matter what comes in your way, you must focus on prevailing capital values, the latest market dynamics, and trends. It will help you a lot to control the situations. The buyer cannot dictate terms as regards the purpose of the property sale, ongoing financial problems, or any deadline for sale proceeds. If you are in full control of the situation and handle the negotiation with patience, the seller will never dominate you, and subsequently, you will get the best price.
Entrepreneurs tend to be good fits for real estate investing. This has something to do with their creativity, ingenuity, and stomach for risk-taking. And if there’s one type of real estate investing that’s more appealing than the rest, it’s multifamily properties.
The Benefits of Multifamily Real Estate Investing
As the name suggests, a multifamily piece of real estate is housing where there are multiple units. These units are typically all owned by one person, but leased out to different tenants. Examples include large apartment buildings, duplexes, and triplexes. The benefits of investing in multifamily properties include:
Millennials and younger members of Gen X appear to be delaying the financial responsibility of homeownership.
But it’s hard to blame a group who watched the housing market skyrocket and plummet just as they were entering college or becoming young professionals gearing up to buy a starter home.
As the economy improved, and financial arrested development started to end, some 20- to 30-somethings have started to invest in real estate, but not in the traditional sense.
Many have turned to turnkey properties, which offer the opportunity to become a homeowner while adding another revenue stream to an investment portfolio.
This Week’s Headlines:
NEW YORK CNNMoney — Homeowners who were victims of foreclosure abuses during 2009 and 2010 could receive more than $125,000 from lenders as part of an Independent Foreclosure Review that is being overseen by two government agencies.The Office of the Comptroller of the Currency OCC and the Federal Reserve laid out the framework in which borrowers will receive compensation for a wide range of foreclosure abuses and errors that occurred as a result of robo-signing.
Hall’s plans call for seven condo units priced at $2 million each, and, the report says, they will be the only homes in America that can survive a direct nuclear attack.
See companion article, “Anonymous Survival Guide for Citizens in a Revolution” – Ed.