How does the economy really work?
This simple but not simplistic video by Ray Dalio, the founder of Bridgewater Associates, shows the basic driving forces behind the economy, and explains why economic cycles occur by breaking down concepts such as credit, interest rates, leveraging and deleveraging.
In order to ensure long-term success when purchasing a rental property, it’s important to develop a strong, reliable team that can help you through the buying process, and your lender is a BIG part of that equation.
That’s why, when it comes to real estate investing, you need a lender who fully understands the investing landscape.
U-Haul moving truck price disparities usually indicate domestic migration trends long before official migration does. In light of that, we compared the costs of renting a truck each direction to and from 16 cities and learned that:
The 2016 housing market is expected to be a picture of moderate but solid growth, with increasing interest rates a minimal concern. Rental investors will particularly benefit as property appreciates, rents rise to record heights and vacancy rates fall.
The housing market is looking more and more attractive for predictable yields as equities continue on their wild ride. “Extreme volatility in the stock market may drive more investors to invest in relatively stable assets like housing,” said Anthony Cazazian, senior VP of national sales and business development at B2R Finance.
Here are four macro trends generally agreed upon by leading housing authorities to take place in 2016. Taken together, they make a solid case for investing in rental housing.
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Children learn by asking questions. Students learn by asking questions. Investors learn by asking questions. People who think that they know it all no longer ask questions – why should they?
The most successful people in life never stop asking questions because they know it's the best way to gain deeper insights, solve problems, and achieve greater success.
CoreLogic released their most current Home Price Index last week. In the report, they revealed home appreciation in three categories: percentage appreciation over the last year, over the last month and projected over the next twelve months.
Here are state maps for each category:
After peaking in 2006, the median U.S. house price fell about 30%, finally hitting bottom in late 2011. Since then, house prices have rebounded strongly and are nearly back to the pre-recession peak.
However, conditions in the latest boom appear far less precarious than those in the previous episode. The current run-up exhibits a less-pronounced increase in the house price-to-rent ratio and an outright decline in the household mortgage debt-to-income ratio—a pattern that is not suggestive of a credit-fueled bubble.
Families are facing much bigger rent checks this year — especially those living in cities in the South and West.
Rent prices have been rising across the country, but rents for single-family homes in these two parts of the country increased the most in the last year, according to a report from RentRange.
“The biggest increases were in the areas where the [housing] market was most depressed,” said CEO Wally Charnoff.
As you have probably heard, China seems to be on the edge of a significant crash. This has prompted questions of how to predict and prepare for the next real estate market crash in the US. We've had a couple of suggestions that tracking NODs (Notice of Default – the first step in the foreclosure process) would be a good indication. We have no crystal balls but here are our thoughts.
There is probably no single, reliable technique for predicting the next real estate market crash because each crash has a different cause. More than once we've been asked if tracking NODs would be a good predictor of a coming crash. I believe tracking NODs will tell you what has already happened as opposed to what is going to happen.
There are more renters now than in the history of the United States. Unfortunately, we’re also in “the worst rental affordability crisis that this country has ever known,” per the U.S. Secretary of Housing and Urban Development. That's a bad combination.
Let’s take a look at what happened…
