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What should I look for in a property maintenance company?

Some of the things to consider when choosing a property maintenance company All kinds of buildings require maintenance. Whether residential or commercial, it is very important to take care of the property so that it is in shape for many years. Therefore, you need a professional service provider to always ensure quality. The company can perform routine cleanings, emergency repairs, etc. You must be careful when planning to avoid unnecessary damage. When making a choice, you need to make sure that you end up with the plan that suits you best. In many cases, you can enter a contract with the company in question. You must also choose between short and long-term contracts. In some cases, there are some benefits that can be associated with the long-term type of contracts and you may find that they are much easier on your pocket. A trustworthy company must eliminate your worry and do a satisfying job. Some of the things worth considering include: Experience It is important to check how long

Real Estate Industry Trends to Watch in 2020

2019 was such a happening year for the real estate industry of the United States! Housing prices underwent such a great hike touching the level $266,000 at one point of the year. Although real estate has always been the most lucrative investment avenue, yet in the past year, we witnessed a hike that was unprecedented in demand of capital from the private sector for investments in real estate and affiliated infrastructure building. Lesser mortgage rates and enhanced demand for affordable real estate fueled this enormous growth.

Real estate pundits are of the view that this trend of incremented demand is most likely to be continued moving into 2020. Definitely, housing real estate is the avenue investors should be focusing on because it is that section of the real estate industry that reaps enormous benefits even in murkier times. Accelerated growth would give rise to societal changes and more prominent economic activity; that would ultimately transform the overall real estate setting. Additionally, technology is likely to play a more significant role in reshaping the property market. The purpose of technology would not be confined to just the tangible aspects of the real estate industry. But, it would trickle down, altering the overall financial environment by slowly occupying the place left by financial institutions.

For the sake of perspective, PricewaterhouseCoopers predicts that the real estate inventory’s worth is likely to endure a rapid growth of more than 50%, causing institutionalized real estate reaching $ 45 trillion this year, from the earlier level of $ 29 trillion.

Can this year bring the results proportionate to the growth in investments? Would the real estate market be able to disrupt the existing environment? We have pondered deeply on these questions, and have come up with a rundown of emerging trends of the real estate industry:

SMALLER PROPERTY MARKETS WOULD BEAR LESSENED RISKS

The financial crisis of 2007–08 led to the recognition of the local economy’s vulnerability in smaller property markets. There was a crashing of real estate prices and massive unemployment all over. There exist individual pockets where property prices have bounced back, yet there is no substantial overall growth till now. The crisis of 2008 caused five percentage-point increments in the number of renters from being at 38.5% to 43.3%. Even at the height of the crisis, the rental property did not suffer much.

Even for rent earning, you have to be very vigilant before investing in the smaller property market. Smaller markets are still suffering from high levels of unemployment as these localities have few economic activities. It would be best if you judge the fortunes of the area before investing, even though the financial risk is not as significant as it is in the bigger property market.

In high-end property markets, investors need to keep away with credit risks, particularly when the investment is made at the lower price end. Investors cannot just rely on incrementing property values at high-end property markets to derive anticipated returns. The rental value of your investment would remain in your favor, and the investment shall not cost you exorbitant.

RESIDENTIAL PROPERTY PRICE GROWTH WILL BE SLOW

There has been a strong demand for housing avenues in more significant property markets. And we see that family houses’ prices have peaked in California, New York, and Massachusetts. Yet this doesn't signify that residential property prices can increment infinitely. It has started showing signs of slowing growth.

It is an apparent phenomenon that occurs whenever the prices of property outrun the net household incomes. Hence, price growth slows down until the point household earnings catch up. On an aggregated basis, the housing prices in the United States have gone up by just over 5% in the last year. This, along with the demonstration of residential prices slow growth, gives an expectation of 3% price growth in 2020. It can be interpreted differently by different prospective investors. If an investor was waiting for his property to be cashed, this is the right time. If the investor thinks that he should cash his property now to be invested in a higher-end booming market, he should be diligent that he is going to buy at the peak.

For remaining on the safer side, investment in multistory apartments would be a better bet than single-family houses. For this landlord software or rental property software could ease the things up. Another question that might come up is, what to do next? The answer is simple; booming property ends in busting. So, keep track of the local economy. If the economy sails along well, you could keep housing property for years.


VC FUNDS WILL FUEL NEW BUSINESS MODELS OF REAL ESTATE 

In the previous year, there has been a considerable investment in innovative models of real estate. Billions were poured for funding data visualization offerings and iBuyer startups. Perch, an internet-based platform for house selling and buying, had amassed $ 220 million in venture capital funding from FirstMark Capital, fueling its expansion. Real estate giants such as Zillow and Redfin, too, have launched their iBuyer platforms. iBuyer platforms enable consumers to remain in control of their digital transactions by simplifying their selling and buying procedures.

The trend of venture capital investment in new business models of real estate is expected to be continued in the year 2020 as well. There has been some controversy regarding such investments. For example, in the case of SoftBank’s investment in Katerra and WeWork, it was alleged that VC firm had forced layoffs. Despite all, there is sufficient robustness in the market that will drive further investment in mature real estate technology ideas such as property management software.

MILLENNIALS SHALL KEEP ON DOMINATING RESIDENTIAL PROPERTIES MARKET 

In the past year, we have seen that millennials have entirely dominated the home buyers’ market. This is one of the many trends of the real estate industry that we shall see keep on continuing. Many reasons could be ascribed to this phenomenon. As compared to the previous generation X, millennials earn better and have more secure jobs.

Moreover, they prefer to reside in the upper-middle-class or middle-class houses. Although the USA is running short of starter homes, yet millennials would account for more than 50% of new home buyers and shall top the pack of the mortgage. Sellers have many opportunities to take advantage of this real estate trend. They can utilize the power of the internet for marketing their properties on rental property software portals as millennials are more prone to researching a unit before deciding on a purchase. This generation of millennials is more creative than the previous, and they prefer houses with substantially more usable space for their creative pursuits.

WRAPPING UP

We foresee that the year 2020 shall witness strong growth in institutional-quality property's worth. It shall give birth to better opportunities and higher risks for property investors. However, it is a thrilling time as private capital is seeing significant demand for investment and development, yet it is causing prime assets to be intensely competitive. Venture capital firms have opened up new avenues for digital age real estate business models. Smarter people would turn away from luxury apartments to socially responsible, affordable housing programs. Millennials shall be driven by their intense desire to have a house of their own.

Happy Investing! Happy Buying!

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