In US, there is a rise in the housing demand while the rise in house prices are slowing. You may wonder why there is a seeming contradiction. So, here is the answer! As there is an increase in the housing supply and continuous arrival of new-builds into the market, this makes it easier to tackle the demand pressures. According to U.S. Census Bureau, new homes for sale in La Mirada rose by 18.1% by June 2015. It’s also expected that most foreign investors may put more money into US real estate market in 2016, than they did in 2015.
The 24th annual survey by the group AFIRE reports, “Sixty-four percent of respondents said they intend to make modest or major increases to investments in U.S. real estate this year, while 31 percent expect to maintain their holdings or reinvest sales proceeds into other U.S. assets.”
Emerging Real Estate Trends in 2016
If you really want to stay ahead of the curve and win the real estate market 2016, watch these trends!
Single Family Homes
‘Ugly’ family homes hold more weight in today’s real estate market because transforming the unattractive property into the most attractive house on the block is relatively easy. Reports say that there are plenty of distressed and abandoned “ugly” homes on the US real estate market. With a little effort and diligence, one can uncover great returns in a short time.
Recently renovated homes are likely to attract more customers who are looking to buy or rent a house in La Mirada since they offer great returns for a minimal investment. These properties are suitable for customers who don’t want to deal with structural issues, major rehabs, legal violations, and old houses. Even though these newly renovated homes for sale in La Mirada costs a bit higher, they can generate money faster, with no risk. Also, recently renovated homes are perfect for turning into rental properties, can be leased to produce more rental income.
New Construction Properties
Yes! You read it right. While many real estate agents cringe at the thought of buying new construction properties, others find them to be the easiest and most comfortable ways to pick up deals. These quality units sell fast, quick to rent, last longer, and may be flipped quickly with great margins.
Condos can make the most for easy-to-manage rentals and seasonal vacation rentals. Investors acquiring whole rental building can convert them into condos during the boom time and can be flipped like any other property. But when it comes to sales and tenants, they are tougher to work with.
Multifamily properties are doing surprisingly well recently and they make about 25 percent of all housing units constructed. Typically, there are two classes of multifamily properties in the market, one with small, 2-4 units, and others consist of five or more units. In these, the smaller multi-family homes can great opportunity to break into the real estate world and are easy to finance with residential loans. The larger multi-family properties should be considered to be commercial real estate and tend to have a low cost. These properties can be easily streamlined by a professional property management company.
2016 is the best time for vacant land, acreage, and other raw building lots to get fantastic deals as the price looks like they keep on rising. These properties can be flipped, leased, built on, or sold to developers. A good property management company would help you in making really fast deals for these landscapes either by flipping or putting up new, affordable homes.
Mobile Home Units
The need for affordable housing is growing in US and it will keep on getting bigger if we don’t do anything about it. Mobile homes for sale in La Mirada CA are the viable exit strategy and proven as a successful affordable option. These mobile homes are sometimes harder to finance but require only a less capital due to their prices.
Commercial Office Market
The US bureau report shows great advancements in commercial office spaces because commercial real estate spaces are in a high demand these days and the existing stock is getting consumed quickly. This is the reason why office spaces are seeing higher rental yields, and this makes it a good investment option. Commercial properties generally have an annual return off the purchase price between 6% and 12% which is typically higher than single family homes, depending on the area. Also, it’s easier to evaluate the property price of a commercial space compared to other small or multifamily homes or apartments in La Mirada.
Why Connect to a Property Management Firm?
A well-qualified and professional property manager can add significant value to your investment property and hiring them is one of the biggest decisions you will ever make? In general, property management firm is a huge asset for to your business and they deal directly with prospects and tenants, saving you more time and legwork. They carry out several tasks including marketing your rental at the best prices, handling maintenance and repair, collecting rent, , and responding to tenant issues. Here is a list of factors to consider while hiring a property management service in La Mirada.
- If you own a lot of properties and units, the more likely you benefit from a management company.
- You can get help from a property management service, if you are living far away from the property you own, dealing with issues related to your property or you will not be able to handle from afar.
- If you are spending more time on managing your property than business, then it’s time to look for a competent property manager to manage your property.
2016 is expected to be an even stronger year for real estate compared to 2015. By June 2016, U.S. home resale unexpectedly rose in a faster pace in more than nine years. Now, home sales have become the bright spot for the US economy and California maintains its dominance with seven of the top 10 markets.