Norada Real Estate Investments

If You’re Going to Buy Investment Property, Do It Now

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The United States real estate market has always been a dynamic landscape, and recent trends suggest that now may be an opportune time to invest in property. As of 2024, the market is shaped by various economic factors, including interest rates, inflation, and housing market dynamics, which significantly impact investment decisions.

Are You Going to Buy Investment Property Now?

Market Trends

The current climate presents a unique window for potential investors. The CBRE's 2023 U.S. Real Estate Market Outlook Midyear Review indicates that the expected economic slowdown and high-interest rates could lead to more attractive pricing for certain assets. This could be particularly true for secondary office assets, which have seen a decrease in pricing due to the rise of permanent hybrid working arrangements.

Moreover, the industrial and logistics sectors have shown resilience, with leasing activity surpassing expectations. This robust performance is projected to continue, making these sectors potentially lucrative areas for investment. The multifamily sector has also demonstrated strong performance, with new construction and absorption levels exceeding forecasts. Although annual rent growth predictions have been revised downward, the sector remains a strong contender for investment.

The retail market has experienced some adjustments, with slight shifts in rent growth forecasts due to negative absorption and rising availability rates in some markets. However, CBRE's predictions have largely been accurate, suggesting that the retail sector may still offer viable investment opportunities.

Sustainable Investments

For those considering investment property, it's essential to stay informed about the latest market trends and forecasts. The 2024 real estate market is also witnessing a shift towards sustainable and eco-friendly properties, reflecting a broader societal move towards environmental consciousness. This trend opens up new avenues for investors who are looking to align their portfolios with sustainable practices.

Strategic Opportunities

Investing in U.S. real estate now could be advantageous, especially as we anticipate a recovery in commercial real estate investment volume and stabilization in cap rates in the coming years. With the potential for bargain pricing and a market poised for recovery, the current period may present a strategic opportunity for those looking to diversify their investment portfolio with property assets.

Key Considerations

As with any investment, it's crucial to conduct thorough research and consider the long-term implications of market trends. Consulting with real estate professionals and financial advisors can provide additional insights and help tailor an investment strategy that aligns with individual goals and market conditions.

The Role of Technology in U.S. Real Estate

It's important to highlight the role of technology in the U.S. real estate market. PropTech, or property technology, is revolutionizing the way investors and consumers interact with real estate. From virtual tours to blockchain-based transactions, technology is making it easier to buy, sell, and manage properties. This digital transformation is not only enhancing operational efficiency but also providing a more transparent and seamless experience for investors.

Demographic Shift and Housing Market

Another factor to consider is the demographic shift and its impact on the housing market. The U.S. is experiencing significant changes in population dynamics, with millennials now representing the largest cohort of homebuyers. This generation values flexibility, sustainability, and smart home features, influencing the types of properties that are in demand. As a result, investment properties that cater to these preferences are likely to see increased interest and value appreciation.

Rise of Remote Work and Market Opportunities

Furthermore, the rise of remote work has led to a surge in demand for properties in suburban and rural areas, as people seek more space and a better quality of life outside of crowded urban centers. This trend is creating opportunities for investors to explore markets that were previously overlooked, potentially yielding higher returns.

Impact of Global Events

It's also worth noting the impact of global events on the U.S. real estate market. For instance, geopolitical tensions and economic uncertainties can affect foreign investment patterns, leading to shifts in demand and pricing. Staying abreast of international developments is crucial for investors looking to capitalize on these fluctuations.

Conclusion: Strategic Investment Opportunities

In conclusion, the U.S. real estate market is at a pivotal point, and the current conditions may offer a strategic advantage for those considering investment property. By understanding the interplay of economic, technological, demographic, and global factors, investors can make well-informed decisions that align with their financial objectives. The key is to remain vigilant, adaptable, and informed as the market continues to evolve.

For those ready to take the plunge, now might indeed be the time to invest in U.S. property. With the right approach and due diligence, investment property can be a valuable addition to your portfolio, offering both short-term gains and long-term growth potential. Remember, the most successful investors are those who not only seize opportunities but also anticipate and adapt to change. Happy investing!

If you’ve got the money, .  You won’t find a better time to invest!

Single-Family Homes and Their Potential

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As we continue to go through Morgan Stanley's “Housing 2.0: The New Rental Paradigm” we're more confident that 2012 will be a big year for real estate investors.  For one, the financial services company boldly concludes, “…gross rents are historically attractive relative to current distressed prices. Adding to this attractiveness is the fact that multifamily data shows rents continuing to rise.”

This is a good indicator for real estate investments. Anyone who’s been active in the market clearly knows why rental properties have become precious assets among investors. And for the newbie, it isn’t that difficult to discover the logic here. A depressed housing market with very affordable properties means that demand for homes are down. This indicates that buyers opt to rent properties instead of buying a home. With this surge in rental demand, real estate investors are just as excited as everyone else who are poised to earn positive cash flows from their rental properties.

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The Great Potential of Cleveland Investment Property

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Though the current economic climate has left many people without homes and jobs, smart and determined are finding in the Cleveland housing market.  Our new is an excellent opportunity for those that want a great deal of cash-flow and long-term appreciation potential.

All properties are extensively rehabbed with up to $25,000 in work per property.  All properties are tenant occupied and managed by professional management  Properties range from 3 to 5 bedrooms, 1-3 baths, and up to 2 car garages.

Cleveland's cost of living is 15.5% lower than the U.S. average. It has also been undergoing major revitalization in all sectors.  The Economist has repeatedly voted Cleveland as one of the most livable cities, not only in the U.S., but in the world.

If you're serious about beating the hard economy and making a great investment in cash-flow real estate then you should evaluate our latest offering of .

Flipping Homes No Longer Profitable, Investors Pursue A Long-Term Strategy

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Homeowners are facing an economic crunch from the housing crash, but investors often face even more severe repercussions. More than 1 in 3 foreclosures are of investment properties, and should the foreclosure epidemic worsen as forecast, that number is expected to rise as more investors walk away from mortgages.

During the real estate boom investors and speculators bought homes, fixed them up and many sold within months. But the real estate crash prevents them from doing just that. Living in a home intended to be an has become the answer for some investors, while others select to rent the property. More than 240,000 homes sit vacant nationwide, according to the U.S. Census Bureau.

A key strategy of buying a home to flip has gone by the wayside as more and more purchase properties for the long term. Just when and how long it will take to reap profits from their investments is an uncertainty with some economists saying that it could take more than 10 years for the market to become healthy enough to make a good profit.

In his book “The Millionaire Real Estate Investor”, Gary Keller, founder of Keller Williams Realty International, keeps a basic theme: “Buy real estate right, pay it down and pay it off.” The ultimate goal should be to own lots of real estate free and clear for maximum cash flow. That mantra is attracting millions of investors and wannabe investors back into the depressed housing market to invest.

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Getting Paid to Borrow Money

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It is well known that income producing real estate is one of the best investments you can make. What is less well known is that income producing real estate allows you to get paid to borrow money. At least that’s been the case historically.

The reason for this has to do with the reality of inflation. In times of inflation, your best protection against the declining value of the dollar is high quality, long-term, investment-grade, fixed-rate debt attached to a piece of income producing property. In a nutshell, the right kind of debt is good.

Here’s how it works:

Assume that you purchased a property back in 1979 and that a dollar was actually worth a full dollar ($1.00). Then, thirty years later you find that same dollar worth only $0.24 because of continued inflation (driven by the government’s absurd economic policy).

Although the overall purchasing power of the dollar has decreased over those thirty years due to inflation, the principal balance on your long-term debt is never adjusted in step with that inflation. By paying down your fixed-rate debt with continually CHEAPER DOLLARS than those you originally borrowed with, you are effectively saving yourself a lot of money each and every year.

Now, think about it another way:

Assume you purchased $1 million worth of income producing property with a combined mortgage balance of $800,000. And let’s assume that over the course of one year you didn’t pay down any principal and there was a 4 percent rate of inflation. Your loan of $800,000 would now be worth only $768,000 in terms of real dollars. That’s a reduction of $32,000 in one year!

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