Single Family Real Estate Remain a Solid Investment Say Analysts
At SMART, we aggressively keep up with rental industry news and trends. We know our owner clients are concerned about the occasional risks and setbacks. That’s why we go above and beyond to ensure that single-family rents remain as solid investments.
But what about today’s market uncertainty? Will month-to-month fluctuations impact the assets in your portfolio?
From what we’re hearing from high net-worth investors, the answer is NO. Your assets will remain safe and single-family real estate investments are worth your time.
In fact, according to a recent survey by financial services company Millennium Trust, a staggering 90% of people are more inclined to invest in an alternative asset like real estate.
Interest in Investments is Climbing Steadily
Single-family rental properties are at the top of real estate and of interest to a whopping 73% of high-net-worth real estate investors, as stated in the Millennium trust study. Some trends believed to be causing the interest (and continued growth) include downsizing baby boomers, as well as millennials choosing to rent longer so they can keep their options open.
What Does the Future Hold?
In terms of new home building, expect a jump in the coming years with as much as 13 million additional homes hitting the market.
In a recent US News and World Report article, Quinn Palomino, co-founder, and principal at Virtua Partners in San Diego, states “demand is high, and supply is still constrained, particularly for entry-level housing. We anticipate rent increases will outpace the overall commercial real estate market, landing in the 5 to 7 percent range.”
She also believes that single-family rentals will beat the stock market in 2019 due to low rates and low unemployment.
Build Your Investments Now
The key is to take advantage of good market conditions—not just in the short-term but to build your rental portfolio and prepare it for the extended future.
With SMART in the corner, we can make sure you have the right tools to help take your business to the next level, keeping everyone happy along the way.