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Tag: Market thesis

  • Demography and real estate markets shift

    Demographic shifts change #markets. Particularly on #realestate. The new trends are in favor of #singlefamilyhome portfolios instead of #multifamilyhousing properties. The reason is the exit strategy. While you can easily dispose of a #SFH, disposing of a multifamily property on a high vacancy market in a profitable way, requires the stress of doing a #condominium conversion and selling individual units.

    For more detailed info look at the entire original post at: Demographics: Renting vs. Owning by Calculate Risk.

  • Three things to know before investing in Real Estate

    1. Understand the real estate cycle before investing

      The first thing we need to know to start to analyze any real estate opportunity is to understand where we are on the real estate cycle. And this is extremely local. What happens in a specific neighborhood might be completely different from 5 miles away. Are we on an uptrend or downturn? How long has the market been on that stage? What are price trends signaling? Is the market changing or close to a change?Although there are good real estate investments in every cycle, different markets require different approach and investment strategies.

    2. Follow demographic trends

      Nothing is more powerful then demographic trends. They can override economic cycles creating a different reality in a specific city or state. Fundamentally, we need to be aware of the social-economic changes. Watch out for migration and age shift trends as they require specific products and services.

    3. Always buy cheap

      It is very difficult to make returns out of an overvalued property. Do a thorough real estate comparables analysis before any purchase.