Interest rates are projected to increase steadily heading into 2020.
The higher your interest rate, the more money you will end up paying for your home and the higher your monthly payment will be.
Rates are still low right now – don’t wait until they hit 5% to start searching for your dream home!
· Over 10% of all residential homes are purchased by investors, and that number continues to rise. Who are these investors?
· Many have speculated that the large institutional conglomerates such as Blackstone, American Homes 4 Rent, and Colony Starwood dominate investor purchases. However, a special report on investor home buying by CoreLogic, Don’t Call it a Comeback: Housing Investors Have Been Here for Years, shows this is not the case.
· Ralph McLaughlin, CoreLogic’s Deputy Chief Economist and author of the report, explained his findings at the recent National Association of Real Estate Editors conference in Austin:
· “Investor buying activity in the U.S. is at record highs. And our records go back confidently, about 20 years…
· What’s going on and why? Well, it turns out, it’s not the big institutional guys that are leading the increase in home buying. It’s actually the smaller guys. It’s those that have bought between one and ten properties over this 20-year period, they’re the ones that are really leading the increase in investor home buying.”
· Here is the breakdown of the percentage of purchasers by type of investor over the last six years according to the report:
As the graph shows, the percentage of “Mom & Pop” investors are currently dominating the number of homes purchased by investors, as the percentage of homes purchased by both professional and institutional investors are falling.
Most houses purchased by an investor are bought by small investors looking to diversify their financial portfolio by adding a real estate component. If you are investing in real estate as either a landlord or someone who fixes-up and flips the house, let’s chat about the ways you can build or liquidate your current portfolio of properties.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Red Porch Real Estate, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Red Porch Real Estate, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.