A large percentage of investors are choosing to buy real estate. A recent Better Homes and Gardens Real Estate survey revealed that this applies to 89% of U.S. investors. When someone is new to this type of investment, the survey also showed that 30% would be “more likely” to invest in real estate if they were able to receive professional guidance.
The Benefits of Investing in Real Estate
One of the major reasons for choosing to invest in real estate is that this area has been outperforming the stock market. As of 2000, real estate investments have been outperforming stock investments by roughly two-to-one. Furthermore, within the upcoming 18 months, 97% of real estate investors are planning to further increase their financial investments in this area.
A Brief Overview of Home Construction and Sales
It’s important to remember that the real estate market is cyclic. Over time, this complete cycle has averaged approximately 18 years. The National Association of Home Builders, for example, reported that 37,000 rental homes were built in 2017. Last year, however, this increased by 6,000 to a total of 43,000 rental home constructions. These types of projects are popular with both real estate developers and investors for obvious reasons.
According to the National Association of Realtors, distressed homes, such as foreclosures and short sales, accounted for 49% of sales in March 2009. Currently, however, just two percent of home sales are for these types of properties. Given the real estate cycle, it’s possible that this percentage may fluctuate again within the next eight to ten years.
Learn More About Raffi Shirinian Real Estate
If you’d like to learn more about investing in real estate or in real estate development, contact Raffi Shirinian Real Estate. Whether you’re a seasoned entrepreneur or have recently decided to invest in real estate, the office’s expert staff will be able to respond to your questions. During your initial consultation, you will have the opportunity to learn more about available properties and projects. In case you’re a first-time investor, you will receive professional guidance throughout the entire process.