While all new media reports are heralding the arrival of a solid rebound in the U.S. real estate market are there real estate investing profits to be made by betting against a big economic recovery?
Stock brokers, big funds and even government back housing agencies do it all the time and often make out like bandits. So where are the real estate investing opportunities today that could have your back and wallet in case things don’t turn out as rosy anticipated?
There is currently a big opportunity to both capitalize on the present real estate rebound by flipping houses as well as profiting from the pessimists and a lack of mortgage financing by investing in a specific property niche.
We have all repeatedly heard about the trend in younger people living at home longer and more individuals having to house their aging parents. While there are also currently growing trends in micro-apartments in New York and larger McMansions elsewhere the growth in percentage of multi-family households isn’t slowing down yet and may not for quite a while. Unless the economy dramatically improves including the jobs market, returns on retirement savings and the foreclosure faucet is turned off this will continue. In fact, Bloomberg reports over 1.5 million Americans over 50 having lost their homes recently with rise in foreclosure rates for over 50s 23 times higher in 2011 than 2007 on prime mortgages alone.
For real estate investing this suggests homes with multiple floors with en-suite bathrooms and kitchens or properties with multiple units on them could dramatically increase in demand. It is easier for many to rationalize buying homes like this right now and if parents are ever able to get their kids out on their own or their parents pass on the extra units can always be rented for profit.