Not everyone is broke, but without a decent return on funds, the future looks bleak as our dollar buys less and less. I attend a seminar at which the President of REALTRENDS, a National Real Estate Forecasting firm and the following are part of their observations.
- Recovery will be slow in the real estate market; unemployment, underwriting standards and negative equity are all creating downward pressure on sales. This will result in a lack of appreciation in the near future for the real estate market.
- 71% of all new households will be minority families
- less than 50% of households will be traditional families ( husband, wife and kids)
- single women are the fastest growing segment of household formation
These statistics are telling us that there is a shift from home ownership to rentals. The prediction is for a 5% decline in home ownership which translates to thousands of new rental requirement. The trends mentioned above will help you in the selection process for your real estate investments.
With lower home prices, extremely low interest rates, and a need for rental homes, careful investment in home rentals can give you a much higher return than what is currently available in many other investment markets.
Our real estate division is working with investors and helping them understand the criteria for the rental market investments. No don’t invest all your money but I believe that this is an excellent time to diversify part of your portfolio in well located rental units. Yes, we are able to help you in the metropolitan Phoenix area.
Opportunity is missed by most people either because it looks like work, or fear of failure.
Have a great day!