Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Think Tiny When it Comes to 2016 Real Estate Investments

Housing-Market / UK Housing Jan 11, 2016 - 05:11 PM GMT

By: Submissions

Housing-Market

Larissa James writes: For years, homes have been getting bigger and bigger. As a result, real estate investors have tied their money up in massive properties and McMansions. And while there will always be a demand for large luxury homes, there’s a growing trend that’s evolving into a new real estate investment opportunity. They’re classified as “tiny homes,” but cash flow is anything but tiny for those willing to take on new risks.


The Tiny House Movement
 
“The tiny house movement has taken the suburban dream, flipped it, bent it, upended it and created a whole new approach to everyday living,”writes Rachael Hyde of Investopedia. “With that change in approach comes the emergence of a whole new financial model—altering the way income is apportioned and household priorities arranged for those who move into this type of home.”
 
While the tiny house movement currently involves just a small sub-segment of the market, it’s clear that there’s room for growth in the coming months. Along with that growth comes a new evolving investment market.
 
At the heart of the tiny house movement is the millennial generation, who is largely interested in sustainability and cost-efficiency. As Hyde points out, a tiny house generally costs somewhere between $10,000 and $40,000 to build. In fact, the average comes in right around $23,000.
 
With such a friendly price point, most tiny house owners have no mortgage. They own their homes free and clear. However, more than half rent the land their homes sit on because they can’t afford the initial down payment. That’s where much of the investment opportunity comes into play.
 
Finding a Profitable Market
 
“The tiny house market is burgeoning across the nation, but it’s becoming especially popular in Wisconsin, Florida, California, and Texas,”mentions Green Residential, a Houston-based property management company.
 
While real estate investors in these four states should actively pursue this investment strategy, investors in other states should also take note. “No matter where you live, there could still be reason to invest; due to their size, many tiny houses are mobile,” Green Residential continues. “They can be built in a low-cost area and, once complete, relocated to a permanent site.”
 
From an investor’s perspective, the key is to find land that tiny homeowners would want to live on. Generally speaking, they need flat land with some access to electricity and water. They also typically prefer quiet areas with access to nature. While it’s entirely possible that there will be a future demand for urban tiny homes, most of the current market is gravitating towards secluded real estate. This goes hand in hand with the desire to be sustainable.
 
It’s not just real estate that investors are profiting from, though. Savvy investors are making money from renting homes and even lending money for construction. One website is even connecting interested tiny home buyers with those willing to finance moneythrough peer-to-peer lending.
 
While the tiny home movement may not be large enough for seasoned real estate investors to get involved with yet, all of the signs indicate the future is bright. As soon as you see a sector of the marketplace move beyond recreational activity and evolve into a micro economy, it becomes apparent that something bigger is happening. This is certainly the case with the tiny house movement.
 
Think Tiny When it Comes to 2016 Real Estate Investments
 
“With tiny homes filling a market niche for communities, travelers, and the less fortunate, it is safe to assume that they are not just another fad in the real estate industry,”writes Terri Engels of Realtor Mag. “While the grass won’t always be greener in a smaller yard, investors would be wise to investigate tiny-home opportunities now, while the niche is still novel.” Will you seize the opportunity?

By Larissa James

© 2016 Copyright Larissa James - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in