Trend Change 1: Technology
Trend Change 2 Financing
Trend Change 3 Prices
Not only do investors have to be aware of the prices of real estate, and rental rates, they must be aware of the changes in pricing with labor, parts, and gas. Everything is going up. It seems what could be completed for $100 in 2006 now takes $220.00 to get completed. This trend not only effects the Real Estate investor but also effects the tenants. Damage charges are higher, Laclede gas bills are more, and the Housing Assistance programs are squeezing their assistance program budgets.
Trend Change 4 Laws
“A provision that would mandate the licensing of St. Louis County landlords moved closer to enactment Tuesday in a County Council vote that split along party lines. The bill, sponsored by Democratic Councilman Mike O'Mara, will likely gain final approval next week. The ordinance is meant to help the county monitor problem rental properties more effectively. O'Mara called the ordinance a "proactive way to maintain and stabilize neighborhoods." "We're finding a lot of landlords from out of state are hard to track down for property violations and they put people in the rentals without occupancy permits or bringing the property up to code," the councilman said. The bill, O'Mara added, is aimed primarily at the rental of single-family homes. Landlords will not pay a licensing fee but will be assessed fines for non-compliance. The amount of the fines have not been determined. Councilman Greg Quinn joined fellow Republican Colleen Wasinger in opposing the bill. Quinn called the measure "another layer of bureaucracy" that duplicates existing ordinances requiring the attainment of occupancy permits. O'Mara however said it can take the county up to three months to address the problems in rentals lacking occupancy permits. Rental licensing, he hopes, will give county inspectors the opportunity to identify and rectify potential problems prior to a move-in date” (Giegerich, 2014).
Follow-up : May 07--CLAYTON -- A controversial proposal to license St. Louis County landlords has been placed on indefinite hold by its sponsor, who claims critics misunderstand the intent of the measure.
Ordinance requiring rental licensing in St. Louis County moves ahead
Trend Change 5 Economics
While the American Economy continues to evolve, the economy of the 1970's, 1980's 1990's 2000's do not exist in 2014. The economy in 2014 is strange. The New York Stock Exchange and Dow Jones continue to sore while millions of Americans are out of work. Automation has eliminated a number of jobs. Inflation runs rampant and regulations are tighter that hey have ever been.“Today, real estate is an accepted part of many pension and other institutional investor portfolios -- and not just large asset pools. Thanks to the continuing development of the public real estate markets and the formation of pooled funds on the private side, institutional investors of all sizes can take advantage of the relatively high risk-adjusted returns that the asset class offers” (Real Estate Investing Roundtable, 2014).
The boom of real estate has come from a number of large institutional buyers and cash is king because banks do not provide the same high leveraged loans they used to in the past. Private money is funding this real estate economy. “Real estate investing is booming, and even considered a safe-haven investment, five years after the housing market bust, Reuters reported. Figures from Lipper show assets under management in property funds around the world increased by $29.8 billion in the first nine months of this year to $452.6 billion, a rise of 7 percent. Japan ($6.53 billion) has seen the biggest increase, followed by Europe ($5.15 billion), the United States ($4.87 billion) and Britain ($3.41 billion)” (Real Estate Investing Booming Again, 2013). As you can see this boom is not just in the USA.
People had this idea that the price of a house could only go up. Today, people don’t want to rush such an important decision, perhaps because of the fear of a decline in prices. Young households, in particular, are more reluctant to get into housing (Garriga, 2014).
In conclusion, things are changing. It is how you prepare and how your sail boat sets it sails that will ultimately propel you as a real estate investor in these choppy waters in St. Louis, Mo. As you can understand the technology, financing, prices, laws and economy effect this business. If you want to succeed it is important to make business decisions that allow you to take advantage of the changes
If you would like a great website with FREE podcasts you can visit: (EpicRealEstateInvesting.com). The interview on March 10, 2014 was with the popular investor Barbara Corcoran for the hit T.V show Shark Tank. She took a $1000 investment and turned it into a multimillion dollar real estate empire. "More than 100 podcasts are available on many aspects of successful real estate investing” (PRN, 2014).