Follow the money and you follow the trend...
1) Back in 2011-2013 hedge funds (google "Blackstone") took their money away from the stock market and started to invest in rentals (low hanging fruit). A lot of the up tick in home prices in 2013-2014 have been caused by these hedge funds and international investors buying a buttload of homes with cash as evidence by non mortgaged properties statistics.
2) 2008 recession happens and people lose 40% of their portfolio. Baby boomers on the verge of retirement are forced to stick around at their jobs an extra 5 years to make up for their loss or let the market correct. Investor vigor is damaged and an attitude of "anxious money" syndrome takes over where people are investing in less volatile investments or bonds. Currently there are a lot of wealthy California's purchasing rentals in out of state locations. Turn key rental companies work for these Cali investors to find properties, do the rehab, find tenants, and the do the property management. Pretty slick operation and however there is a heavy cut that the turnkey company takes.
3) Fast forward to 2014 and we are seeing the first signs of the hedge funds moving out of buying properties (since they are over-valued) and into the lending world. See article: http://theinvestorinsights.
The future prediction
- New wave of stock market refugees taking money from their 401k/ira/savings and buying rentals with easier investor lending.
-higher property prices, lower rents, leading to the next bubble *2018-2020
1) Back in 2011-2013 hedge funds (google "Blackstone") took their money away from the stock market and started to invest in rentals (low hanging fruit). A lot of the up tick in home prices in 2013-2014 have been caused by these hedge funds and international investors buying a buttload of homes with cash as evidence by non mortgaged properties statistics.
2) 2008 recession happens and people lose 40% of their portfolio. Baby boomers on the verge of retirement are forced to stick around at their jobs an extra 5 years to make up for their loss or let the market correct. Investor vigor is damaged and an attitude of "anxious money" syndrome takes over where people are investing in less volatile investments or bonds. Currently there are a lot of wealthy California's purchasing rentals in out of state locations. Turn key rental companies work for these Cali investors to find properties, do the rehab, find tenants, and the do the property management. Pretty slick operation and however there is a heavy cut that the turnkey company takes.
3) Fast forward to 2014 and we are seeing the first signs of the hedge funds moving out of buying properties (since they are over-valued) and into the lending world. See article: http://theinvestorinsights.
The future prediction
- New wave of stock market refugees taking money from their 401k/ira/savings and buying rentals with easier investor lending.
-higher property prices, lower rents, leading to the next bubble *2018-2020
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