Are Real Estate Investments The Trend Of The Future?
A trend many are seeing in the financial markets are a growing appetite for real estate investments such as commercial and residential real estate
with secured income as the option. Millenials, many who saw their parents go through the last Real Estate Crisis
, are more transient in where they want to live, and are less reluctant to buy. This creates a huge demand for rental property
in desirable areas, where the prices are in some cases 100-150% more than what a mortgage would be in that same unit or house. Whether its college debt or just he need to be frugal, this age group cares less about auto and home purchases than the generations that preceded them.
Commercial Real Estate Investment
As for Commercial Real Estate Investments, huge vacancy has decreased to the point where retail, industrial, and even special use(examples include gas stations, churches) are climbing back into the mix. More mortgage lenders, more banks, more investment trusts, and hedge funds are getting into the financing game. Insurance companies are buying up large commercial units for REIT income designed to maintain steady cash flow which is needed for premiums going out in settlements.
Real Estate Investments Nationally
The coasts are seeing values rise to the point of levels higher than prior to the bust. San Francisco, New York, are much higher than even 2006-07 levels. With the decrease and bubble going on in the Chinese Real Estate market, you can expect many foreign investors coming in on the coast line and paying large sums of cash in a bidding war they plan to outbid domestic investors by a huge percentage. This will drive prices to levels unstainable for the middle class, but will not bust because they are cash purchases and paid for by the wealthy. What they will do is make those cities unlivable for anyone with incomes below 250k household. Welcome to the new reality that is wealth distribution in a mixed economy. Don’t wait, you might get left behind.
Mortgage Market News: Ron Granado
Commercial real estate investing was written by Ron Granado of Plymouth Guaranty Corp. Mr. Ronald Granado is a financial writer for Gustan Cho Associates and a veteran real estate, credit, economic, and mortgage market expert. Ron Granado is sought by many real estate professionals such as real estate attorneys, real estate agents, mortgage professionals, consumers, and bankers for his extensive knowledge in compliance and industry regulations in the real estate and financial markets.
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