Could you profit from the 'fastest-growing trend' in Real Estate?
It has come to my attention that not many people know what is the “fastest-growing trend” in real estate.
Well, CNBC published an article not so long ago that confirms it is the "build-to-rent" movement. Let me explain.
Every day there are more and more home builders concentrating on new single-family homes—specifically, so they can rent them out. Last year alone, approximately 43,000 single-family homes were built for rent, the largest amount in nearly 40 years.
This makes good sense for several reasons:
Rents are increasing nationwide. Home prices grew 2.7% this year. While this is a respectable number, it’s also the weakest increase in seven years. On the other hand, rent is surging and grew 3.2% nationwide year over year. In other words, rents currently offer some of the best returns on investment in real estate.
Demand for single-family homes is growing like crazy. More and more renters may prefer to raise a family or live in a single-family home versus an apartment complex or community or building. The increase in both single-family home sales — as well as the growth in rent — is proof of this.
It's an investment that can pay for itself within seven to 10 years. The math for build-to-rent homes is simple: For investors who hold these properties even for just seven years, the residual cash flow could be worth more than the sale one time.
These are the three main reasons why big builders and investors are so eager to "build to rent" at the moment. But, how about a way you too could benefit from the same underlying market conditions?
Well, the best option out there is to invest in a single-family home yourself and then rent it out.
This makes sense in the current market for two main reasons.
First, mortgage rates are incredibly low right now. They continue to be near all-time lows.
In other words, it's simply more affordable to buy a home in the current market. Even though the prices of houses have increased the interest payments at current rates would be so much lower than if you bought last year.
The other good reason is that several affordable and attractive single-family homes have recently come on the Orlando market. In my opinion, they would make an excellent choice as an investment property.
If you want to see the homes I have in mind, check out this complete Orlando listing:
And if you want to talk in a bit more detail about the kinds of single-family homes that might make the most sense as an investment — in terms of location, size, or price — give me a call at (321) 340-2555. I have my finger on the pulse of the Orlando market, and I'm here to help.