There are so many real estate articles out there — and so little time! For busy investors looking to take a quick reading break, look no further than our list of recommended reading for the week. From advice and investment tips to market reviews, we’re highlighting the stuff that’s really worth your time.
So sit back, and take a break. These were the 5 Must-Read Real Estate Articles of The Past Week:
By Michelle Higgins via The New York Times
After renting a one-bedroom for seven years, Catherine and Peter Bertazzoni had saved enough for a down payment and were ready to buy their first apartment together. They knew it would be a challenge to find a move-in-ready two-bedroom on the Upper West Side within their $1.5 million budget, but with a baby on the way, they needed more space. It wasn’t until they made their first offer, about $1.3 million for a two-bedroom one-bath listed for $1.25 million, that they realized just what they were up against. “We came in at what we thought was significantly above ask and ended up sixth out of 11 bids,” said Mrs. Bertazzoni, 31, a tax manager at an asset management company. “It was a real wake-up call.” Buying your first home in New York City is a daunting task. The median price for a Manhattan apartment recently reached nearly $1 million, with reports from major brokerage firms placing the price at $999,000 and $998,000, sums that would buy a mansion in many parts of the country.
By Chris Matthews via Fortune
Every business owner has her fair share of grievances. After all, it’s not easy staying in the black. But it’s also common for people to exaggerate the significance of their problems. And that’s why many economists have taken complaints from homebuilders about a shortage of qualified construction workers with a grain of salt. These analysts assumed that the homebuilding community had just gotten used to the glut of cheap labor that the great recession produced. But homebuilders may actually have a point. On Wednesday, the Census Bureau announced that new home construction fell 11% in October, suggesting there may indeed be a supply problem—in terms of labor and land—in the housing market, rather than just an issue of weak demand and a lack of available credit. Recoveries in home prices often come a bit ahead of a broader economic recovery. The real estate market rebound began in earnest in 2012, as investors anticipated that the eventual recovery of the labor market and continued population growth would justify higher home prices.
By Katie Roof via TechCrunch
Fundrise, the real estate crowdfunding site, is offering up to $50 million in shares to the public, for the launch of its online real estate investment trust. This REIT will be used to invest in a diverse portfolio of commercial real estate properties including offices, apartments and shopping centers. The idea is that it will generate cash flow and will be paid out to investors in regular dividends. “Today is a massively historic day for the Fundrise team the result of over four years of work!” said Ben Miller, cofounder and CEO, in a statement. “Soon anyone in the country will be able to access the same investments as billion dollar institutional funds but with roughly 1/10th of the fees, heightened transparency, and low investment minimums of $1,000.” Up until recently, only accredited investors, or high-net worth individuals, could buy shares in private companies or trusts. Dubbed a “mini IPO,” Regulation A+ opened up the doors to everyone, regardless of their income or assets.
By Brandon Weber via Forbes
Over the past 30 years, the commercial real estate industry has quietly transformed from a “mom-and-pop” industry to an institutional asset class where owners manage complex and global portfolios. Institutional investors rarely used to invest in real estate. But with the rise of new investment structures and global commercial real estate investors, real estate now represents nearly 10 percent of institutional investment portfolios, or $6.7 trillion. Yet the tools of our trade haven’t evolved to match. While much of the world has embraced technology innovations like the cloud, mobility and big data, commercial real estate (CRE) is still managed out of Excel spreadsheets and 20-year-old technology platforms. But that’s changing. As older systems break down, a wave of CRE tech companies that combine domain expertise with modern software expertise are building new tools for the industry. VCs have also taken notice: In the first half of 2015 over $90 million was invested in CRE tech companies.
By Sandy Gadow via The Washington Post
If you find a foreign buyer for your property, you may be concerned that selling to a non-U.S. citizen might complicate the closing process. Will additional paperwork be required? Will there be problems with clearing the buyer’s funds? Are there unusual challenges if the potential buyer intends to obtain a mortgage? What steps can you take — as the seller — to prevent a delay? Dan Forsman, one of the charter members of the International Multiple Listing Service and chief executive of Berkshire Hathaway Home Services Georgia Properties, advises sellers with foreign buyers to “prepare for the unexpected.” According to Forsman — who oversees 1,400 agents and promotes the marketing of properties worldwide — “international clients often negotiate a deal differently based on their culture or tradition. While buyers from one country may be accustomed to negotiate right up to closing, another group may take a more personal or emotional viewpoint and accept the sales price with little or no haggling.”
Did you like these articles? What were your favorite articles this week?