Real estate has almost always been a good investment. It’s a great way for folks to diversify their portfolios and provides and excellent ROI.
Many people began to shy away from real estate during the last recession.
The market for a single family home is once again exploding. Now is a great time invest as both a buyer. Whether you’re looking to buy your own home or looking to get into being an investor, we’ve got the information you’re looking for below.
Millennials want a single family home now
Known for graduating from college and then moving back in with their parents, this generation is finally starting to leave the home.
They graduated around the time of the last recession. These young people know what it’s like to live on a tight budget. They know how hard it is to find decent paying jobs.
Now that the economy is exploding once again, millennials are finding plenty of work and looking to live on their own.
A single family home is the ideal. It’s the American dream for people of this generation, and after living in their parents’ basements for nearly a decade, it has finally become a reality. The amount of millennials looking to rent rose nearly 10% from 2006 to 2014.
Single family home vs multi-family home
If the demand for the single family home is on the rise, then surely something is going down.
Multi-family homes, usually in the form of apartments, are now on the decline.
It may be cheaper to have a roommate and live in an apartment, but more people, especially young people, have gotten tired of it.
As the newest adult generation begins to settle down, get married, and have children, the need and desire to live in apartments and townhouses is beginning to slide downward.
Diversifying the portfolio
Passive income is an amazing thing. Being a homeowner provides a real passive income opportunity. And with the right property manager, you don’t have to do a thing except own the property.
From 2005 to 2015, over half of the growth in rental properties came in the form of the single family home.
Approximately two-thirds of millennials have yet to reach the typical house buying age of 31, giving investors and home buyers plenty of time to jump on board.
Furthermore, we’re expecting to see this group form close to twenty million new households by the year 2025.
The best part of the investment
Real estate investing is a revolving door, as most investing is. The market goes up and it goes down. The value of your home will fluctuate.
The biggest difference between investing in a single family home and say, the stock market, is that you will still see money in your hand every month.
You may have to lower your rent for a couple of years, but patience will pay off and you can increase this amount as demand for the single family home goes up.
When you need someone to manage this property for you, contact us to see how we can help.