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 Julie Verhage via Bloomberg
The plunge in Chinese equities has grabbed all the attention in recent weeks, but a team at Barclays suggests we should be watching something else. Analysts led by Ajay Rajadhyaksha say that Chinese real estate is the sector to focus on,not Chinese stocks. Here’s their reasoning: Over the years, much attention has focused on the massive share that investment commands in China’s growth. At 48%, it is much greater than the investment/GDP ratio in other emerging markets such as India and Brazil, as well as developed economies such as the US. What is perhaps less known is that real estate accounts for most of this increase. A quick glance at Chinese statistics shows that investment as a share of GDP has grown from the mid-thirties to 48% since 2000. In that period, real estate has gone from below 4% of GDP to around 15%.
By Diana Olick via CNBC
Higher home prices are making house flipping harder, but more lucrative. Flipping, which is generally defined as buying and selling a home in the same calendar year, was popular during the housing boom, when investors could get easy mortgage financing. Now investors need cash, and as lower-priced, distressed homes dry up, they need more cash. Home flips made up just 4.5 percent of sales in the second quarter of this year, according to RealtyTrac, down from 4.9 percent a year ago. Flipping returns, however, the gross return on investment, increased to nearly 36 percent, up from 24 percent one year ago.
By Danielle Procopio via Inman.com
Have you heard that 2015 is “The Year of The First-Time Homebuyer”? They’re making a comeback, and builders are ramping up production of homes that they think first-time homebuyers and millennials will want. If that’s true, 2015 will be a great year. But there’s one problem: Buying a home is not an easy process. Our first-time homebuyer clients have no idea about what goes into the process from start to finish. They can and do make mistakes. Here are just a few that I’ve identified and some tips on how to help your clients avoid them…
By Chris Metinko via Main Street
With mortgage rates still near historic lows and rising home prices in the news nearly daily, more Americans are willing to forgo the stock market and invest in real estate. “Real estate is very popular as an investment because it is very easy to understand,” said Arvin Sahakian, vice president of mortgage site BeSmartee. “It is tangible, and therefore even the novice investor feels safe with such investments.” More than a quarter — 27% — of Americans who had money to invest for a decade said they would want to put the funds into real estate, according to the finance site Bankrate’s annual long-term investment study. Following close behind, 23% said they would invest in cash, and 17 percent picked the stock market. Interestingly, households headed by college graduates are the only group to prefer stocks.
By Linette Lopez via Business Insider
Dubai’s property market looks like it has hit a peak. Residential real-estate sales fell by 69% in the first half of 2015 compared to the same period the year before, according to a report released by the country’s Land Department. This after the IMF warned the Dubai government that it could be facing another property bubble due to “unsustainable price dynamics and an eventual correction” in May 2014. What worried the IMF? Property prices climbed 32% from the first quarter of 2013 to the first quarter of 2014. In response, the government tightened lending and doubled sales duties to discourage speculation.
Did you like these articles? What were your favorite articles this week?