Real Estate is better than the bull!
Where will real estate profit be in 2015? What is the right investment for me? Why should I care? What does everyone else think?
Yes, it is time to sell those stocks and start buying more real estate! Did you know that most Bull Stock Market trends only last 4 years? Did you know we are on year 6 of our current Bull Market? Bummer.
No worries, just sell some stock and buy some real estate.
Yes you can buy real estate with money in your 401K and not pay taxes! Read more on investing…
CHBO property owners believe their real estate rentals are Profitable, they want to Buy More, and they are watching Rental Rates Rise.
Outlook and Profitability
- Outlook for 2015. The outlook for the coming year is the strongest we’ve ever seen in our survey responses. 47% of respondents predict that 2015 will be better and more profitable than 2014. The number who say the future looks “much better than last year” rose to 23%, up 7%. Only 4% believe that 2015 will be less profitable.
- Profitability. 93% of respondents report that their corporate properties were profitable or break-even in 2014. In addition, respondents who say their properties are “very profitable” or “profitable” are on the rise, up 7% over 2013.
- Investment Real Estate Trends. 44% of respondents say, “Yes, I plan on buying more real estate,” rather than, “No, I’m done with real estate” at 13%. What’s interesting is that despite the positive outlook reflected above for 2015, 42% of respondents say they “don’t know” whether they’ll buy more investment real estate. One possible reason for this answer may be the lack of value-priced real estate available on the market today.
- Variance: Changes in Rates. 35% report having higher or much higher rates in 2014 – up slightly from the previous two years. 61% of respondents say they offered the same rental rates in 2014 as they did in 2013. Only 4% lowered their rates, and for the first time ever, no one reported offering “much lower” rates.
- Actual Rental Rates. In 2014, average rental rates went up for all property sizes, except four-bedroom units. (We believe the latter may reflect a variance in the sample size.) The largest increases in rental rates were for one-bedroom units and five+ bedroom units.
- Rental Discounts. Consistent with the past two years, two out of three of respondents say they offer discounts for longer-term leases. The majority of discounts range from less than 5% off rental rates, up to a 10% to 14% reduction in rental rates.