Trends in Real Estate for 2018
Introduction • Real estate investing carries a certain degree of risk, but it also has the potential to be very rewarding. One factor that may contribute to your success as a property investor is the ability to adapt when necessary. Staying abreast of the latest developments and trends in the commercial and residential markets is important if you want to stay ahead of the curve.
Real Estate Investing Principles
Real Estate Market Trends With the economy shifting into higher gear and more Americans itching to land a new home before interest rates get too high, the U.S. residential real estate market looks like a hum-dinger as 2018 kicks off.
Coliving And Community-Driven Spaces • Coliving and community-driven residential will increasingly have a larger impact on the multifamily industry as it changes to reflect a new wave of renter demands and wants. Just as amenities have defined the last decade of commercial real estate development, the need for unique experiences and services will heighten competition.
Short-Term Rentals • The rise of the short-term rental market has increased the opportunities for big property owners or owners of a single family. In some rooms, for rent for extra cash from the rent in the rooms, you can now use a global community to rent houses for three to five times the holidays from the local and regional markets.
Fractional Investing • As peer-to-peer lenders and crowds come to mainstream minds, people will be involved in non-alignment investment to explore more diversification and passive investment opportunities. In the last few years some very reliable startups have been renewed in this space, and in the next year, individuals can transfer from sole ownership through crowd-funding to different ownership.
Price Movement • A key question that continues to dominate the zeitgeist in investor discussions is whether prices have bottomed out or will they continue to fall in 2018. In 2017, city-wide prices fell 2.5 per cent, compared to 15.1 per cent in the year before.
The Oversupply Fallacy • Another important topic that has entered the minds of investors, keeping them on the sidelines, is the fear of an oversupply. By the end of 2017, analysts estimated that 34,127 units will be delivered into the market, however of those, only 65 per cent has been completed. In 2018, analyst have predicted that 70,785 units will be delivered.
• Tim Marais is a seasoned real estate investor with over 15 years of experience, who has helped many homeowners sell quickly and resolve difficult title issues.