Kicking off a new year is always exciting. It’s the perfect time to wipe the slate clean and start fresh, or to take a collective look at the year gone by and make adjustments to improve where possible and/or necessary. To celebrate all of the possibilities of 2018, we’re taking a look at 4 real estate investment trends that should help investors see steady returns throughout the year and beyond.
Home Prices Are Appreciating
As we’ve been seeing consistently for the past couple of years, one of the most exciting real estate investment trends continues to be rising house prices across the U.S. real estate market. This is great news for investors of all kinds whether they’re involved in residential or commercial real estate, or passive or active investing. As home prices continue to rise and lend stability to the market, it means that investors are able to count on both high returns on the sale of properties, as well as the ability to collect competitive rents on both residential and commercial properties.
Rents Are High
Of course, we must add this to our list of real estate investment trends: rents have been consistently high and are anticipated to remain so. While this may not be great news for renters, landlords and investors are reaping the benefits of a robust rental market and are able to use these high rental incomes to reinvest in other projects or into their passive investing funds.
Millennials Make Up A Large Segment Of Homebuyers
A lot has been said about the Millennial generation - those born between the early 1980s and mid 1990s - but there’s no denying that they’re currently a huge segment of homebuyers. While they’ve done things a bit differently than preceding generations - namely waiting longer to get married, buy homes, and have children - even the youngest members of this generation are now reaching their mid-20s and are getting ready to embark on these milestone moments in life. Interestingly, this large segment of homebuyers is actually great news for investors, as they are typically well suited to be the purchasers of fix-and-flipped properties in up-and-coming neighborhoods.
Additionally, as younger Millennials move into the first-time homebuyer space, older Millennials may now be getting ready to sell their starter home and move into their “forever” home as they expand their families.
Flips Of Older Properties Continue To Show Amazing Returns
In many neighborhoods, flipping older properties remains one of the real estate investment trends that guarantees a high return. As long as a property has “good bones,” it can be renovated and updated by an experienced flipper relatively quickly. Additionally, in many markets buyers are intentionally seeking out older homes that have been renovated, as they’re looking for charm and unique features that are inherently lacking in new construction.
As you can see, there’s a lot to consider in the 2018 real estate market and many signs are pointing to yet another strong year in the industry. If you’re considering passively investing in real estate, download our guide, Smarter Ways to Invest in Real Estate, and then get in touch to learn more about working together.