“The higher the climb, the better the view.” Bacotkeren.blogspot.com
Dayo Dekker began buying rental homes close to streets where houses were being revitalized and renovated. He did not buy on the same street where revitalization was actively taking place, but he bought ahead of the path where the revitalization was headed so he could still buy at a low enough price to get a good profit from his tenants, and yet he could see his values pop up quickly as more and more other investors started buying around him and fixing up houses. Dayo positioned himself with a rooftop view of his local real estate market and bought ahead of the curve for a quicker return on income and value.
Rent vs. Buy Decision
If you are a renter in Memphis, TN, rents have gone up 13.5% year over year. That means if you were paying $1,000/month in 2020, you are now paying $1,135/month to live in a place that belongs to someone else. If rents continue to trend upward at this pace, you will be paying almost $1,300 per month for the same space next year. If inflation continues to increase, food and gas, and other goods will be costing you more too. The advantage to buying your own home is so you can lock in a low fixed-rate mortgage. Your principal and interest portion of your mortgage payment will never increase.
Buying more investment real estate
Where are the neighborhoods that are starting to be revitalized? Where can you buy in established areas that have continued to go up in value with rents that have been steadily moving upward? When you lock in a fixed mortgage rate with a principal and interest payment that never increases, you give yourself a raise in pay every year when you raise the rents.
Refinance to Restructure For A Better Life
More homeowners are refinancing to lower their interest costs, get rid of their mortgage sooner, or combine other debt into one low fixed rate. Others are using a cash-out refinance to remodel their homes.
Telling Trends:
1. Home values will hit new highs and continue going up in 2021 and 2022 but at a slower pace.
2. Rents will continue to increase. However, builders completing newly built homes will ease housing inventory woes as labor comes back and lumber prices come down.
3. Millennials and Gen Z will continue to be the biggest number of homebuyers. People working from home will head for the suburbs.
4. Rents will continue to increase year over year.
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