How to Make Money and Be Part of the Local Housing Solution
The housing crisis is a complex issue with many factors that have led to the current situation. There are many solutions proposed, but what if there was an opportunity for you to make money and help solve the problem? That’s right, it’s possible! If you’re an investor looking to diversify your portfolio or a Homebuyer who wants in on the ground floor of this upcoming boom market – now is your time.
If you’re interested in buying a home, it’s worth your time to understand how the real estate market works. This blog post will teach you about financing and how to make money by investing in property and working with homeowners.
The housing market is primed to remove you from the economic instability of your situation, and it’s up to residential redevelopers to facilitate this sector. The role of a residential developer has never been more important than ever before – though there are some grossly inflated misconceptions about their work that need addressing first.
Investors have an immediate impact on communities they take over by providing jobs for those who would otherwise be out of work or underemployed. Investors also provide many social services in order to keep areas clean and safe while reducing crime rates as well as escalating property values across neighborhoods with their developments.
The Tremendous Power of Home Appreciation
A recent study found that real estate investment can greatly contribute to the appreciation of homes in a neighborhood. The acquisition and restoration of formerly rundown properties not only increase nearby property values but revitalizes communities as well. By renovating buildings, investors are able to increase their profit margins while simultaneously increasing home prices in neighboring areas due to increased demand for housing close to desirable neighborhoods where renovation is occurring.
By investing in the real estate market, you can increase home appreciation rates and grow your neighborhood. Investors are always looking for a bargain when they come across dilapidated properties that were once considered to drain on their neighborhoods. They renovate these houses with new paint jobs as well as energy-efficient appliances, so nearby property owners see an increased value of those assets right away! The addition of newly renovated structures serves to impose costs and benefits nearby – increasing not only local property values but also whole communities overall.
Home appreciation is a direct result of the neighboring homes’ comparables within one specific jurisdiction. Replacing dilapidated buildings with newly renovated houses will eliminate eyesores while increasing value for nearby properties. Improved curb appeal drives up consumer interest in your community, which leads to increased demand and higher home prices when supply cannot keep pace with that of housing demands from consumers.
Build Jobs While Rebuilding Houses
Real estate investors have given many people in the housing industry a chance to find their way back into jobs. With unemployment starting to drop down since the pandemics and some signs of improvement, it seems like things are looking up for most Americans who work with real estate investments.
The process of flipping a house is more than just the act of remodeling. It’s an opportunity to stimulate your local economy and provide jobs for people in need. Every step during rehabbing or flipping can be credited with opening doors that might have otherwise remained shut, from contractors to suppliers who are all eager and willing to participate in this economic cycle if they’re given a chance!
Stronger Financial Institutions, Stronger Economy, Stronger Country…
With such a high number of foreclosures, homeownership is becoming less and less attainable for the average American. The efforts by financial institutions to get these homes off their books will only make it harder for those who still have an opportunity to own property in America’s heartland.
The banks are trying really hard now so that they can start making money again instead of spending all this time working on worthless loans like mortgages and car payments- which seem unimportant when you look at how much profit was lost because people could no longer pay them back!
Foreclosed homes on a bank’s books can threaten the broader economy. Foreclosures force banks to sell off their properties at reduced rates, making it difficult for them to recoup losses. It has been estimated that foreclosures cost financial institutions about 25% of property value and have threatened us with economic uncertainty in recent years because they are one factor among many which contribute to how well our housing market is doing right now.
The local economy is significantly hindered by the lower amounts of capital available to start new businesses. This lack of funds leads financial institutions to charge higher interest rates when lending money, which can leave small-business owners with a difficult decision; take an insufficient loan and risk bankruptcy or stay in business without credit.
Divorce & Probate
Millions of people each year, for reasons out of their control, are looking to sell their property. Those that have received property through probate may be facing unexpected tax and interest charges. That added financial burden could prove too much for some individuals- they need to get rid of the newly acquired assets as soon as possible.
A similar thing occurs with those who are going through a divorce might want to sell off any recently obtained properties in order not to add extra stress during that difficult time.
Help Reduce Criminality
Homebuyers should keep in mind that the crime rate of a home’s location can affect its value and price. Studies show, nearly unanimously, that high rates of crime negatively affect property values. A nearby distressed asset could also cause restricted fair market prices for new homes or even make them unsellable at all costs on rare occasions.
The next time you come across a distressed property, beware of the possible delinquent individuals residing within. Besides being an eyesore to your neighborhood and potential cause for home depreciation, these delinquents can also contribute to higher crime rates in the area based on new research conducted by Atlanta Fed Bank. The study found that homes with seriously delinquent homeowners are susceptible to experiencing at least 1% price fall as close as 0.10 miles away from them due to this factor alone!
Reduce Carbon Footprint
As residential developers, we are tasked with reducing the carbon footprint of older and distressed properties. The process allows us to implement a “green” strategy that often maximizes energy efficiency and reduces negative effects on our environment brought about by aging homes.
Our most common strategies for achieving this goal include creating highly usable spaces while minimizing environmental impact through rendering environmentally-friendly materials such as bamboo flooring or building walls from recycled materials. An Energy Star rated appliance reduces energy costs, an insulated window installment limits heating and cooling cost. Ceiling fans can be installed for air conditioning savings. Low-flow toilets, faucets, and showerheads help save water consumption along with drought-tolerant landscaping that limits external water usage from moisture outside the house.
Bring Life to Impoverished Communities
When investors help low-income communities, the struggling economy can be revitalized. This is possible through programs such as NMTC that encourage investment in these areas by providing tax credits and other incentives to those who do so. In 2000, with the Community Renewal Tax Relief Act, legislation about – more commonly known as “The New Markets Tax Credit (NMTC)” – was designed specifically for this purpose: encouraging investments into places like rural towns or inner cities where there are high poverty rates but great potential for growth.
When we invest in people’s lives, it transforms them from being impoverished individuals living on a handout to productive members of society contributing their earnings back into our economy!
Keep the GDP High!
It’s been said many times that the American Dream is made possible because of our great nation. The economy here has had a significant impact on how well we all live, and real estate investment proves no different. When people invest in properties to rent out or resell at higher prices than they bought them for, it contributes positively to America’s GDP as a whole – which reflects just how important investing can be for everyone involved!
America’s Gross Domestic Product (GDP) takes into account goods and services provided by investors due to their contribution towards our country being more prosperous overall. Real Estate Investment shows this importance too.
There are several benefits investors bring to the local housing market, but now we wonder, what is your experience with local housing? Are you ready to make an investment to change people’s lives while making some profit?
If you loved the information above and want to learn how Voyager Pacific can help you contribute to the Local Housing Market, get in contact with us today! For more investment-related information, be sure to check out our blog regularly.