Friday, August 2, 2013
The Next Real Estate Boom: Buy-To-Rent
The year of 2013 has been proven to be an eventful time for the real estate market, especially here in Tampa, Florida. So far this year, we have discussed: the impact of international investors on the recovery of the housing market, the significant presence of Millenials as first-time home buyers, the recent mortgage rate activity with predictions of what to expect, the low housing inventory levels, and the encouraging signs of home value increases. So what can we expect to see as the next big move in real estate?
The latest headline to grab the attention of the Tampa market came from a CNN Money article labeling Tampa, Florida at third place out of the top ten cities with highest percentage of all-cash home sales throughout the country. This is a positive sign of correction and stabilization returning to our real estate market. An astonishing 58% of all home sales in Tampa last month were settled in cash. This group of purchasers is made up of both international investors and individual buyers who have other plans than actually living in their new homes.
In a recent research report conducted by Morgan Stanley, the “buy-to-rent” market is predicted to be the next big boom in real estate, and could become a $100 billion industry in the next few years. With financial obstacles preventing homeownership for some, others are taking advantage of lower home prices to turn into buy-to-rent properties. Investors could easily expect their return on investment to reach over 10%.
At SI Real Estate, we have anticipated this movement and have been working with loyal clients for years that have been actively reaping the financial benefits of buying-to-rent, especially as home prices are increasing. As the market continues to improve and stabilize, investors can decided whether it is the time to sell or continue renting. Our responsibility at SI Real Estate is to be there for you each step of the way in order to provide you with the most accurate and informative knowledge possessed by our team of real estate professionals.