Should You Flip, Rent, or Hold- What’s the Best Path to Success?
What’s the best path to building wealth in real estate? Should you flip, rent or hold? With all the quick-buck, get rich by flipping reality tv shows out there it can get downright confusing and often misleading. One thing we know to be true; It’s not easy…..However, hard work, sound advice and due diligence will always pay off.
Existing Home Sales Down 1.7% in August
The National Association of Realtors recently reported that existing home sales were down 1.7% in August, which is still 0.2% higher than one year ago. First-time buyers represented 31% of sales in August, down from July but unchanged from a year ago. All-cash sales made up 20% of transactions with individual investors, who account for many cash sales, purchasing 15% of homes in August.
Disaster Preparedness was on everyone’s mind recently as Hurricanes Harvey and Irma made landfall in the Southern U.S. Hurricane season runs June through November and it’s always prudent to know how to deal with the aftermath as well as what important steps to take beforehand. Obviously, safety should be our greatest concern whether we’re sitting in Illinois, Texas or Florida.
Black Knight: Home Prices Stabilized
Black Knight Financial Services recently released their July, 2017 Home Price Index (HPI) report that says that U.S. home prices were up 6.2% year over year in July and up 0.5% for the month. The HPI value for July was $281k – same as June and the first time all year it hasn’t increased.
Startup Helps Buyers w/Downpayment in Exchange for Airbnb Spot
A while back we told you about WavStay, an Airbnb-like service for boats (although we’re not sure if they’re still in business), now comes a new startup in Seattle called Loftium that will help potential homebuyers with a down-payment (up to $50k) for that dream home. Oh, the catch??? You’ll have to list one of the spare bedrooms on Airbnb for 12-36 months and share the proceeds with Loftium.
Low Inventory Raising Demand for Rentals
According to recent reports (including posts on this site), low housing inventory is driving up prices, but also demand for rental units all across the nation. In a recent Real Estate News for Investors podcast, Kathy Fettke discusses these reports and other analyses showing how there will probably be enough renters to fill whatever developers can put on the market over the next decade – creating a huge challenge for the industry going forward…and an opportunity for investors.
Over 1/3 of Americans Rent
Rental market site Zumper recently released their Annual Renter Survey where they report that over one third of Americans are renters – the highest percentage over 50 years! Zumper surveyed 14,284 people from every U.S. state and D.C.
Millennial Student Debt
Infographic: According to the NAR’s 2017 Student Loan Debt and Housing Report, the U.S. currently has a student debt load of $1.4 trillion, which accounts for 10% of all outstanding debt and 35% of non-housing debt. As this debt rises, homeownership has fallen among the younger generations. However you want to look at it, they will still need a place to live.