Here at RentPost, we’ve been tracking the movement of capital towards rental investments for a long time now. There have been many signs that the rent industry is the next booming sector in real estate (and with some luck, that boom won’t turn into a bubble). But this month, some new insight has come out on just how strong this market can ride.
Data tracker CoreLogic released a report that, among other things, points to a $100 billion valuation of the market for foreclosed homes turned into rentals. Yeah, $100 billion. And that’s for this year alone.
The number of seniors applying for reverse mortgages is going up, according to a new study by MetLife. The study finds that not only is that number going up, but seniors are demanding reverse mortgages at younger ages.
The average age of seniors using reverse mortgages is 73, but 46% of homeowners considering it are under age 70.
Essentially, more seniors are asking for reverse mortgages earlier. What does this mean?
The housing market is still struggling to gain a good pace. That’s a nice way of saying the market is still doing poorly. And as another sign of the bad conditions, mortgage rates have reached historic lows.
15-year fixed-rate mortgages averaged 3.13% last week, a new record low. And the average rate on a 30-year fixed-rate mortgage fell to 3.88%, less than 1% from the record low.
The low rates are a reaction to the decreased demand of homes. Depressed prices, high rents, and low mortgages are all incentives for borrowers to purchase homes.
The record rates make housing more affordable than ever. Yet home prices continue to stay low. So why aren’t more people buying?
As short-term political motivation sullies the sanctity of central banking, presumptuous open market meddling, unrestrained by the boundaries of logic, makes a ticking time bomb of Federal Funds. It’s time we meditate on circumstance, accounting for the rational and the hardly so. Let’s see: inflation without spending? A stagnant, yet expanded money supply? At what point did capitalism become so irrational? What brought life to our economic paradox? The distant thunder of a self-imposed inflationary storm demands anticipation; it will not subside with neglect, and survival is a blessing left only for the aware, but it is the keen that will thrive. Stay informed, and stay ahead.
I recently came across an article that uses a mnemonic device to help folks develop new ideas to innovate products and processes across all fields of industry and life in general. The means for doing so, that I will briefly discuss below, can be found in more depth in the original article, but I’ll apply it here to property managers specifically. So, I encourage readers to visit the original article to explore the psychological explanations provided.
Here’s the mnemonic device:
SCAMPER
S = Substitute?
C = Combine?
A = Adapt?
M = Magnify? = Modify?
P = Put to other uses?
E = Eliminate?
R = Rearrange? = Reverse?
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