19/04/2016
What 2016 Hold for USA Real Estate?
Investors hoped that 2016 would bring new opportunities and good returns, but the start of the year
did not see the increases expected. When it comes to foreign investors, though, more are expected
to put money into US property this year than the previous year. Real estate crowdfunding is the
emerging trend for 2016.
Increases in Real Estate Investments
According to reports, 64 percent of foreign investors have said they plan to make investment
increases in US real estate. New York is still one of the world’s top markets. Another 31 percent said
that they would keep their holdings as they currently are, leaving just 5 percent looking to decrease
or not share their plans.
The strong response does suggest that the market will continue to grow. It continues to put the
United States in a strong position when it comes to ranking for this industry.
Foreign investment will also likely continue to grow due to the taxing on foreign pension funds has
eased. Government has realized that foreign investors continue to keep USA real estate in its
positive position.
Crowd Funding Real Estate on the Rise
2016 is expected to see a rise in real estate crowdfunding opportunities. More investors can get
onto the ladder because of this. Before it used to be about who you know and now it is just making
sure you have the capital.
This was only really possible from 2012, with the Jumpstart Our Business Startups Act being passed.
Businesses were able to market their offerings in a much more open way, and it has led to more
interest and more opportunities. From 2013 to 2015 there was an increase but crowd funding is still
in its early stages, let alone crowd funding real estate.
Crowdfunding allows new and veteran investors get to work. Investors just need $1,000 to get
started, which is another reason the real estate investment in the secondary market trend is
emerging as being one of the most popular options this year.
The Growth of Online Real Estate Platforms
There are now more online real estate platforms available, offering people a choice when it comes
to investing through crowdfunding. Most platforms offer the opportunity to invest as little as $1,000
and have an average of 6-12% return on that. They also offer 90% lower fees in many cases,
compared to the traditional methods of real estate investment.
Investment is expected to grow across the United States real estate in 2016. In summary, real estate
investment in the secondary market is expected to see a substantial growth. While it is still relatively
new compared to many other methods of investment, it is an affordable option.
The benefit for real estate investors is that the stock market saw a dip at the start of 2016. While
various industries are still struggling to recover, real estate continues to thrive and the experts
predict that this will continue for the rest of the year. Many agree that the fourth quarter of 2016
will see the biggest increase, especially in the residential market with single family home leading the
game.
