With rents growing faster than last year, the image for residential real estate investors is getting even better than it already was as a product of once-in-a-generation rates and small interest rates, in accordance to the creator of the leading Online platform for investors and real estate professional.
Rents are growing at a 5.17 percent annualized rate compared to a 4.72 percent at this time last year Assuming effective rent grows at the same rate in the next four months as it did in 2010, the full-year total would fall just below the historic highs of 2000 (6.18 percent) and 2005 (5.81 percent), matching to a report from Axiometrics Inc., a source of data and analysis on the residence market.
By 1.4 million new renters this year, apartment building can’t continue with demand. Tenants, especially ex- homeowners required from their properties due to the economy, are increasingly turning to single family houses owned by buyers, especially in high foreclosure areas like Las Vegas.
During this year, investors have accounted for between 20 and 40 percent of monthly existing house sales, in accordance to surveys of Realtors by Campbell/Inside Mortgage Finance and the National Association of Realtors. So far, the investor market share may raise more next year.
A survey by Realtor.com in April established that by a three to one margin, investors plan to be more active in their local markets compared to typical homebuyers in the next 24 months, and 69 percent of buyers say it will be easier to find properties in the near future.
A large amount investors are newcomers. Fifty-nine percent (59%) said they’re new to real estate investing, with 33.5 percent considering their first investment purchase and 8.5 percent in the process of buying and selling their first investment property. Another 17 percent said they just completed their first transaction and plan to make more. Only 36.5 percent have experience in more than one real estate transaction.
There are 6 million people who went from being owners to being renters, the stars are aligned to make this the greatest occasion in current history to be a landlord.