Skip to main content

Flipping over renting by narrowing margin

Investors Continue to Favor Flipping Over Renting by Narrowing Margin

real-estate-onlineReal estate investors still prefer flipping as a strategy over renting, albeit by a narrowing margin, according Auction.com's April 2015 Real Estate Investor Activity Report released on Wednesday.
Whereas the data from Q1 showed that flipping was gaining momentum, the April monthly survey showed that the gap between the preference for renting and flipping was closing, according to Auction.com. The survey was collected from investors who bid on properties both online and at live events nationwide during April 2015.
Overall investor intent in April's survey showed that slightly more than half (50.4 percent) of investors preferred flipping as a strategy, while 48.3 percent of investors said they intended to employ a hold-to-rent strategy. This data compared with 53.5 percent and 44.8 percent, respectively, in Q1.
"Most of the country and most investor segments performed in a manner very consistent with what we’ve seen over the past year, but investment strategies in Texas appear to have shifted pretty dramatically," Auction.com EVP Rick Sharga said. "Investors probably realize that without oil fueling Texas’ growth, it’s unlikely that home prices will continue to appreciate rapidly, and it’s very likely that home purchase demand will weaken. Given those considerations, a buy-and-hold strategy may suddenly be much more attractive."
April's survey showed the gap was also closing between renting and flipping among real estate investors (52.4 percent said they preferred flipping, compared to 55 percent in Q1) while percentage of investors working on behalf of another investor who preferred flipping held steady from Q1 to April at 66.3 percent.  Nearly three-quarters of investors making a one-time purchase said they intended to rent (74.3 percent in April, up from 66.9 percent in Q1).
According to April's survey, investors who bid on properties at live auctions were more likely to flip the properties they purchased – in fact, a majority of survey respondents in eight of nine states where Auction.com conducted live events indicated a preference for flipping over renting. The outlier in the group was Texas, where 52.4 percent of respondents preferred renting compared to 47.6 percent who preferred renting. The majority of investors in Arizona, California, Georgia, Idaho, North Carolina, Nevada, Tennessee, and Washington all preferred flipping, with North Carolina gaining the highest percentage at 78.6. The nationwide average for investors who intended to flip was 58.3 percent, compared to 41.7 percent who intended to rent.
“It will be interesting to see if this trend spreads to other states where energy-related jobs have generated economic gains, or whether we’ll begin to see a boom in home purchases stimulated by these lower energy prices across the country,” Sharga said.
Investors who purchased properties online, however, were more likely to rent, according to the survey. Nationwide, 54.5 percent of investors who bought properties via online auctions said they preferred renting compared to 43 percent who said they intended to flip. Renting was the preferred strategy in three of the four geographic regions – the majority of investors in the Midwest, South, and Northeast said they intended to rent, while flipping beat out renting by a slim margin (49.6 percent compared to 48.7 percent) in the West.
Click here to see a video of Rick Sharga discussing the April 2015 Real Estate Investor Activity Report.

Comments

Popular posts from this blog

🔳🟥🔲🟩 The New Syrian Economy 🟩 🔲 🟥🔳

  2020   Int'l Golden Rule of Economy for  Syria Conflicts ~BY Christine Cerda 🌟 https://about.me/christine.cerda 🔳 🟥 🔲 🟩   $226B Loss in GDP Syria Conflicts 2016  🟩   🔲  🟥 🔳 (8) 24/7 🔳  EXPLORATION  🔳 Altruism 🔳 International Relations Reciprocity https://en.wikipedia.org/wiki/Reciprocity_(international_relations) Commoditization Solutions https://securitiesce.com/definitions/5756-interlocking-directorate/ 🔲  INNOVATION  🔲  Quantum Evolution*  In the  United States , the  Clayton Act   prohibits interlocking directorates by U.S. companies competing in the same industry, if those corporations would violate  antitrust laws  if combined into a single corporation. However, at least 1 in 8 of the interlocks in the United States are between corporations that are supposedly competitors   https://en.wikipedia.org/wiki/Interlocking_directorate ⬜️ AIR/ENVIRONMENT 🟫  Games, Experiment ⬜️ Reject Hate Speech and Dividing Expression   Histo

Short sales soar in California, U.S. - latimes.com

Short sales soar in California, U.S. - latimes.com The short sale phenomenon can only be as successful as the individuals who are attempting to work at them. Until we've educated our ourselves on the Benefits, Features and Outcomes of the positive nature of the Short Sale, the industry will never be strong enough to offset the political tension between the President and the Banks.

Obligation in the 💚 Sensation & FB Harmonisation

Harmonization is sensational for the love 💚 (philautia, storge, agape & pragma) of life creational. Empowering people to generational wealth! Business Development & Strategy Ombudsman Christine Cerda, MBA/GM California Realtor Lic 01702401 559-285-1999 Sandberg added that Facebook would be working to ensure that future advertisements do not run afoul of fair housing laws. “We’re building a tool so you can search for and view all current housing ads in the U.S. targeted to different places across the country, regardless of whether the ads are shown to you,” she continued. “Housing, employment and credit ads are crucial to helping people buy new homes, start great careers, and gain access to credit. They should never be used to exclude or harm people. Getting this right is deeply important to me and all of us at Facebook because inclusivity is a core value for our company.”  “This settlement positively impacts all of Facebook’s 210 million users in the U.S. si