Soaring house rents

Rising home prices are blocking some investors from home purchases, while others are exploring new markets with better bargaining power. A worthy investment, offer not just solid appreciation potential, but also a lucrative rental returns for a long term.

Soaring prices

According to recent dvelopment in commercial real estate news home prices rose upto to 12.2 percent. Home prices in Riverside, are over 22 percent, and in Atlanta they are up nearly 17 percent, both including sales of distressed homes.
The underlying economy of US is doing well with a consistent increase in jobs enabling people to spend on rent leading to a strong rental demand in areas of Alaska, Philadelphia etc. Interesting is the fact that some of these demands are coming from those who lost their homes to foreclosure and may be seeking single-family rentals.

Renting over Purchase

The national vacancy rate for apartments decreased from 8 percent to 4.1 percent from 2009 to 2013, At the same time, the average price of an existing U.S. House has risen about 14 percent, according to commercial real estate data provided by Reis Inc. to a newspaper report. People are discouraged to invest in Houses as a effect of housing market disaster of 2007. A burden of foreclosures forced many people to move out of their homes and into apartment leases. On the other side, construction of apartments was uphold until the last few years because many builders couldn't get loans during the credit crisis.In certain places, this led to lease and a rise in rents. This was seen as opportunity for the landlords to increase rents in many markets.

Scalability

Large scale properties investors had put a hold on big mouth purchase.Much of that is due to price appreciation and lack of distressed supply; perhaps less is due to investor demand. All-cash sales, which are largely by investors, still make up a historically high 35-40 percent of home sales today, according to several different surveys. The worst markets for investors are High-cost areas with limited distress like New York, northern New Jersey, Seattle, San Francisco etc. yielding just 3 percent annual gross returns. Rental demand and prices there are very high, but home prices still don't make it worth an investor's while.

For the first time investors

Investors swarmed in the most distressed markets, spreading their cash like fertilizer and pushing home prices up faster than most expected. In less distressed markets, first-time buyers were still hampered, as they swing to and fro from loose lending to tight credit.

Now, as the spring season brings more listings to the national market. Some markets, like San Francisco, will be costly, while others, like Philadelphia, could offer easier entry to home ownership.



The cycle of interest rates

First-time home buyers were put at a disadvantage against all-cash buyers, but with interest rates still staying low, with the marketplaces having risen fairly decently, you're seeing the opportunity where it's less of an investment for investors but a good opportunity for first-time home buyers," said Steve Berkowitz, CEO of Move Inc. operator of Realtor.com on a online portal.

Houses are about to get really, really smart


Renting over Purchase

The national vacancy rate for apartments decreased from 8 percent to 4.1 percent from 2009 to 2013, At the same time, the average price of an existing U.S. House has risen about 14 percent, according to commercial real estate data provided by Reis Inc. to a newspaper report. People are discouraged to invest in Houses as a effect of housing market disaster of 2007. A burden of foreclosures forced many people to move out of their homes and into apartment leases. On the other side, construction of apartments was uphold until the last few years because many builders couldn't get loans during the credit crisis.In certain places, this led to lease and a rise in rents. This was seen as opportunity for the landlords to increase rents in many markets.


Top contenders for investment

Investors are looking for a certain level of return. Commercial real estate news clarifies that Pittsburgh,Tampa-St. Petersburg, Clearwater, FL,Philadelphia, Dallas, Phoenix, Orlando etc are top contentors for efficient first time real estate investments.

Texas metro markets also ranked high for first-time buyers, even though those markets are very hot right now, and home prices are rising at a faster pace than the national average. The positives for markets like Houston and Dallas are that there is strong employment growth and plenty of buildable land. New construction would be an opportunity for first-time buyers, whereas the premium would be much higher in states like California, where there is little space to increase supply.

Things that you keep in mind while Real estate investment

Renting doesn't mean “throwing money away” when you are faced with a mortgage payment which is double the rent all calculation goes in vain. The financial reality depends on factors like the locality where you want a house and also on how long you are intended to stay.

Rent comparison

 If you’re comparing the rent of a 2-bedroom apartment and the mortgage of a 4-bedroom detached house, what is that you really want? You can always buy a 2-bedroom condo or rent a 4-bedroom house.

The resale value

  We generally assume a margin of 5 to 6 % but looking at events of 2007 real estate failure. its important to dogwatch the stock markets. As the economy is in recovery stag, investment possibilities are looking greener.

 Especially with increasing cross border investment commercial real estate is in news now.Rising home prices are causing some investors to pull back on their home purchases, while others are exploring new markets in search of better bargains. In order for a property to be worth the investment, it has to offer not just solid appreciation potential, but lucrative rental returns for the long term.


Renting over Purchase

 The national vacancy rate for apartments decreased from 8 percent to 4.1 percent from 2009 to 2013, At the same time, the average price of an existing U.S. House has risen about 14 percent, according to commercial real estate news provided by Reis Inc. to a newspaper report. People are discouraged to invest in Houses as a effect of housing market disaster of 2007. A burden of foreclosures forced many people to move out of their homes and into apartment leases. On the other side, construction of apartments was uphold until the last few years because many builders couldn't get loans during the credit crisis.In certain places, this led to lease and a rise in rents. This was seen as opportunity for the landlords to increase rents in many markets.

A house forever

There are people who are adventurous and like to try shifting and exploring new places in every 3 to 4 years. this leads to added pressure on price high, so if you don't have a pocket and you are not ready to comprise, suggestion is to live in our old locality which is familiar to you and close to your family.