Categorized | Investing

Single-Family Homes May Be Next Big Investment Opportunity

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Economists and investors in the United States are closely watching the single-family housing market as potentially being the next great investment. Their idea of investment, however, does not resemble the house flipping strategy that, without a doubt, contributed to the decline of the housing market in 2007.

 

Some of the world’s biggest and most successful investors are, instead, looking to buy single-family homes with the intention of renting them out to tenants. Many economists feel that such a strategy would not only be wildly profitable, but it also may just save the housing market.

 

The majority of the big-time investors looking at single-family homes in the United States traditionally have focused on exotic hot spots. However, the affordability of single-family homes in the United States offers too much investment opportunity to pass up.

 

Investment buyers bought nearly one and a quarter million homes last year alone. That number of sales is more than sixty percent higher than it was just one year earlier. Even the legendary Warren Buffett is calling the United States single-family home market an incredible investment opportunity.

 

Some lenders, like Bank of America, are looking to take advantage of the booming increase in investors, and are now offering homeowners the opportunity to avoid foreclosure by essentially relinquishing their home to the bank, and then paying rent for three years. After three years, the bank would then sell the home to investors.

 

Another factor that makes single-family homes an excellent investment in the current market is that they are becoming more commonly rented than ever before seen. In fact, roughly eighty percent of couples opt to rent single-family homes after getting married.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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