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Projected Market Domination for Next 2 Years? Investors!

May 31, 2011

In the next two years, investors are expected to outnumber regular home buyers 3 to 1. Not only are they dominating the market, but they are ready to compete with less experienced first time home buyers even though both groups will run into the same problems with financing. However, 1 in 5 investors say they plan to purchase properties using cash only and 80.5% expect cash discounts from sellers.

Other interesting findings about the growing segment of home buyers include:

43.5% of investors expect difficulty finding real bargains in the coming months. 22% are expecting prices to rise over the next year, and 53% expect prices to stay the same.

About half of investors are planning on holding their properties for 5+ years while 12% plan to sell within 12 months.

Half of investors expect profit around 20% or more while 40% of investors expect 10% profit. 6.5% of investors expect 5% or less return on investment.

Half of these investors plan to live in the property until its sold or turned into a rental.

More than half of investors plan on turning their properties into rentals, while 28% plan on purchasing a vacation property and 30% are interested in buying retirement property.

A whopping 60% of investors say they are new to real estate investing while 33% are considering their first investment purchase and 8.5% are in the process of buying or selling their first investment property. Of all of those, only 36.5% had previous experience in more than 1 property transaction.

Essentially, the market is attracting lots of new people who wouldn’t typically be investing and aren’t the standard deal-driven house flippers the market is used to seeing. For these new investors its all about sweat equity to improve and maintain properties. This in turn will improve housing stocks, home values and property tax bases in every community.

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One Comment leave one →
  1. June 10, 2011 12:14 am

    Thanks for your nice post. Thank you for the info Ben.

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