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A Look at Real Estate Investing in 2015
A booming market has contributed to increased investment in real estate, encouraging and sustaining its growth. As such, Real Estate Liability is increased with a growing market, raising awareness for proper practices and protection. Here are some investment trends that have been popular as of lately.
Higher Priced Investments- In comparison to last year, higher priced properties are gaining more investor interest. Contrarily, properties under $40,000 are receiving less attention. According to Inman, current research shows a 63 percent increase from 2014 of investors looking at houses worth more than $200,000. However, investors who purchased less than seven houses on average tended to buy under the $100,000 range.
Portfolio Growth- A survey last year demonstrated that 38 percent of investors were anticipating purchasing 4 or more homes that year. Although only 25 percent followed through, the incentive to purchase more investment properties this year is increased. What’s more, 49 percent of investors claimed to be planning on purchased 4 or more houses this year.
Widened Property Search- As local deals are becoming less available, investors are forced to look state wide and even out of state. For those who purchased homes outside of their home state, Florida is the top ranked investing location, followed by Georgia and Texas.
Smaller Properties- Rather than large vacation homes, many investors are focusing on more functional spaces to accommodate children moving out, going to college, etc.
Rapid Growth- The average median investor income was $100,000-$125,000, twice the median income of the nation. While the average investment profit was only 36 percent of total household income, it continues to serve as a sufficient supplemental source of income.
At NewMark Insurance Services, we stay atop industry trends in order to provide you with comprehensive coverage and protection against possible risk exposures. For more information on our products and services, contact us today at (855) 777-6549.
Posted in: blog Real Estate Liability
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