And Diego, CA (PRWEB) March 12, 2014
LoanLove.com is a borrower advice website that provides up to date and in depth information in a format that is valuable to the most experienced home owners while still being accessible to those who are just starting out with applying for their first home purchase loan. The website, which has quickly become a trusted destination for current news and expert loan advice, empowers homeowners with first class knowledge, valuable resources, and connections to top rated industry professionals. A recent article from the loan advice website takes a look at some of the best property investments in 2014.
The new article starts by explaining that while there are many investors who are still understandably cautious due to the real estate market meltdown in 2006, excitement over the faster pace of recovery in the market in the coming year is starting to outweigh these fears. The article says,
“Research conducted jointly by PricewaterhouseCoopers and Urban Land Institute bears this out. It showed clear winners among results of interviews and survey responses from over 1,000 participants regarding the best opportunities for real estate investments in the coming year. The researchers interviewed more than 377 respondents and compiled results from over 694 survey participants from among a broad range of industry experts, including property investors, fund managers, property companies, fund managers, brokers, advisers, lenders and other real estate industry consultants. The research results showed strong investment prospects, particularly in commercial properties.”
The article notes that activity in the real estate sector is expected to continue rising in 2014, with increasingly stronger signs of recovery in the months ahead. The article says, “Rather than economic recovery boasting 250,000 new jobs a month, the recovery has proceeded at a pace of about 100,000 jobs a month This slower pace often made it difficult to identify signs of improvement in the real estate market until they were in full swing. Some of the trends likely to occur in 2014 will be familiar to investors from prior years. However, because the market has progressed further in its economic recovery, the overall impact on today’s real estate market will be much more evident than in months past.”
Loan Love then looks at some of the key drivers in this recovery, such as improved opportunity for profitability and the increase in mortgage interest rates. Industrial and commercial growth are also taken into account. The article then talks about what is called the real estate “sweet spot”. It says,
“While gross domestic product (GDP) growth has not been earth-shaking, it has been steady and moderate, leaving experts in the industry to predict opportunities in commercial real estate across all property types. There has been sufficient growth in GDP to spark demand for space and improvement in rent, leaving a sweet spot for real estate investors as there is almost no new supply to meet this demand. That means investors have their choice of building new commercial properties or investing in existing commercial properties of all types to meet demand. With new construction still scarce in the post-recession era, leaving very little supply, landlords may find the opportunity to nudge rent a bit higher, feeding the prospects for profits.”
For more information on the best prospects for residential real estate investment and opportunities for developers, click here to read the full article at LoanLove.com.