The Wall Street Journal recently
published an article on page one, reporting that “big private-equity firms,
real estate speculators and others made up more than 11% of home purchasers in
2018… the highest percentage on record and nearly twice the level before the 2008
housing crash.”
Analysts
expected the investor buying to slow down as the real estate market recovered
and home prices increased, but in the past
two years, investor purchases surprised analysts and surpassed the previous
peak in 2012.
The reasons
given for the increase in investor purchases are, “strong rental demand, technology
that facilitates buying homes online and low interest rates that make other
investments less appealing.” But I believe another very significant reason is
real estate as a hedge against a likely stock market decline on the horizon –
one or two years away. What better hedge
than a hard asset like real estate?!
If you
are looking to diversify your investment assets to hedge against a stock market
decline, buying a commercial property or investing in a rental home makes good
sense. Buying a two-family home, makes
even more sense than a single-family home.
We have several two-family homes available for sale, in good condition,
with tenants in place. Call us at 631
765 5333. Let’s make a deal!
At Beninati Associate, we listen
and pay attention to what’s going on in the economy; we care about you and work
hard for you; and we get you the best result whether you are buying or selling.
Source: Investors
Buy Homes at Unparalleled Rate, The Wall Street Journal, June 21, 2019, front
page -A1.
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