Last week in my blog, Will Real Estate Outperform in the next cycle, I asked all if real estate would do better than other assets like Stocks, bonds, etc.. The response was pretty clear that real estate is considerably better than other investment options. The comments were insightful as to why.
What do real estate pros say about future real estate returns?
The response was pretty clear cut that real estate is a better investment than other alternatives with 70% agreeing and 30% feeling that other investments were better.
Key insights into what will happen to the economy in one year
Here are some of the key comments that were mentioned when answering the survey on the economy:
- High end will do well but it went be enough to carry the whole market. Entry to mid level will continue to lag due to affordability issues
- I believe there will be a correction in the greater public markets (stocks) and capital will flow back towards real estate which has benefitted from high inflation
- I like hard assets such as homes, small industrial and some retail. I also love that we are managing real estate assets for owners and get paid monthly. It is good to have continuous flow of property management fees!!!
- I think that unless the 10 year rates drop significantly, and prices stay high it precludes a RE outperform. What may increase sales is the rate of foreclosures and deals to be had. Overall hoping for the best but prepared for the worst, Cash is King
- Real estate will underperform because real estate is currently overvalued. Just because people aren’t selling doesn’t mean the value of assets haven’t dropped. Therefore, in the next cycle things will need to come into better alignment.
Why will real estate outperform other asset classes
Thank you everyone for your participation and insights in my survey. The insight in the comments from readers was amazing and as you can see there are very different/polarizing thoughts on the economy. My key takeaway from this survey is that most readers agree that a hard asset like real estate will outperform others especially in an inflationary environment. It is also important to note as readers mentioned in the comments, only select properties will outperform so it will not be a free for all like in the last cycle where everything went up. Thanks again and stay tuned for upcoming surveys
Additional Reading/Resources:
- https://www.fairviewlending.com/why-will-real-estate-will-outperform-in-the-next-cycle/
- https://www.fairviewlending.com/trucks-signal-a-recession-my-data-says-opposite/
- https://www.fairviewlending.com/fed-drops-rates-why-did-mortgage-rates-barely-budge/
- https://www.fairviewlending.com/phantom-debt-soars-what-does-this-mean-for-real-estate-2/
- https://www.fairviewlending.com/never-buy-a-residential-condo/
- https://www.fairviewlending.com/the-war-on-landlords/
- https://www.fairviewlending.com/house-prices-hit-another-record-should-you-even-care/
- https://www.fairviewlending.com/root-cause-of-real-estate-price-declines/
- https://www.fairviewlending.com/will-real-estate-fall-to-2020-values/
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Glen Weinberg personally writes these weekly real estate blogs based on his real estate experience as a lender and property owner. I’m not an armchair reporter/writer. We are an actual private lender, lending our own money. We service our own loans and own commercial and residential real estate throughout the country.
My day job is and continues to be private real estate lending/ hard money lending which enables me to have a unique perspective on the market. I don’t accept any paid sponsorships or ads on my blog to ensure accurate information. I’ve been writing this for almost 20 years and have over 30k subscribers. Please like and share my blogs on linkedin, twitter, facebook, and other social media and forward to your friends . I would greatly appreciate it.
Fairview is a hard money lender specializing in private money loans / non-bank real estate loans in Georgia, Colorado, and Florida. We are recognized in the industry as the leader in hard money lending/ Private Lending with no upfront fees or any other games. We fund our own loans and provide honest answers quickly. Learn more about Hard Money Lending through our free Hard Money Guide. To get started on a loan all we need is our simple one page application (no upfront fees or other games).
Written by Glen Weinberg, COO/ VP Fairview Commercial Lending. Glen has been published as an expert in hard money lending, real estate valuation, financing, and various other real estate topics in Bloomberg, Businessweek ,the Colorado Real Estate Journal, National Association of Realtors Magazine, The Real Deal real estate news, the CO Biz Magazine, The Denver Post, The Scotsman mortgage broker guide, Mortgage Professional America and various other national publications.
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