Real Estate Investing in 2024 (6 "Rules" You Can't Ignore)
Published: 2024-05-31
Status:
Analyzed
Published: 2024-05-31
Status:
Analyzed
Predictions from this Video
Incorrect: 1
Prediction
Topic
Status
Real estate values will likely remain flat for the next couple of years (2024-2026), rather than experiencing a significant drop like 2008, although a small softening is possible.
"I think it's a lot more likely that over the next couple years we see flat prices flat values while that inflation line kind of catches up to the real estate values so that that's my best guess at what's going to happen I don't think we're going to see a big drop we may see a softening we may see a small drop in values I wouldn't be surprised but I don't think it's going to be anything like 2008"
Correct
Real estate transactions are predicted to be low for the next couple of years (2024-2026).
"I think it's very unlikely that we're going to see a lot of transactions over the next couple years"
Correct
Rent growth is expected to be flat or very low (1-2%) for the next one to two years (2024-2026).
"these days I'm assuming that for the next year or two rank growth is going to be closer to 1% maybe 2% in some markets I'm I'm actually uh underwriting rank growth is flat for the next year or two"
Correct
Property insurance rates are not expected to continue increasing at 50-100% year-over-year for the next couple of years (2024-2026).
"do I expect that to continue no I don't expect that we're going to see 50 or 100% uh rate increases on insurance over the next couple years"
Incorrect
Property insurance rates are likely to increase by 4-7% year-over-year for the next couple of years (2024-2026), exceeding the general inflation rate.
"but I certainly think it's likely that we're going to see rate increases above inflation so personally when I'm underwriting Insurance increases on deals I'm assuming that we're going to see four five six even 7% Insurance increases year-over-year for the next couple years"
Correct
Interest rates are predicted to eventually drop, but the timing is uncertain (potentially one to two years away), with a possibility of a temporary increase before the decline (from May 2024).
"we are going to see rates drop um but the the big question is when are we going to see rates drop and I know a lot of people were expecting that it was going to happen early this year and then people were expecting it was going to happen in the summer of 2024 and now people are talking about it happening at the end of 2024 but the reality is we don't know and it could be a year away it could be two years away for all we know we could see rates actually increase before they eventually drop"
Correct
Interest rates are unlikely to drop within the next three to six months (from May 2024).
"I think it's unlikely that we're going to see rates drop in the next three to six months"
Correct
The stock market is predicted to experience more volatility than the real estate market over the next five years (2024-2029).
"I think there could be a lot more volatility in the stock market over the next 5 years than there could be in real estate"
Pending
Significantly fewer people are predicted to quit their jobs to become full-time real estate landlords over the next 10 years (2024-2034) compared to the previous decade.
"I think we're going to see a whole lot fewer people over the next 10 years quitting their jobs to become full-time real real estate landlords um than we've seen over the last 10 years"
Pending
Local governments are increasingly likely to implement tighter restrictions on short-term rentals, potentially impacting the long-term profitability of such investments.
"if you're a short-term rental owner definitely be cognizant of the fact that where you invest your local government may or may not be friendly towards you as as a short-term rental owner and that could impact your ability to make money longterm"
Correct
More states and cities are expected to implement rent control, disadvantaging landlords by restricting their ability to raise rents amidst rising operating expenses.
"a lot of states and a lot of cities are starting to implement rent control and basically impacting the the ability to raise rents which might be good for tenants but isn't good for us as landlords especially when we see operating expenses and insurance and property taxes going up as quickly as they are if we don't have control over our ability to raise rents and allow the uh the supply and demand the market forces uh to determine what our our rental increases are going to be we could be at a disadvantage"
Correct