Monday, June 9, 2014

Real Estate Trends: What Does the Next Few Decades Look Like?

People will still be talking about 2007 for many years to come.  They won't be forgetting and banking will still be wearing a scarlet letter "F" for Fraud for many years to come.

Republicans will do everything they can to repeal Dodd-Frank and will also try to revive more liberal lending - even if it means burning investors down the line.  Wall Street has no time for business ethics but does have time to make a profit - even if it isn't morally sound.

Real estate has spooked so many people in the past decade that many people thought it may never bounce back - even to be a "strong" market.

One of the most prolific and hopeful statements ever made in movie history was spoken by the chaos mathematician, Dr. Ian Malcolm who stated, "Life always finds a way."  That statement was not only one of cautious optimism, but for this story of Jurassic Park, it was one of foreboding.  Like life, the real estate industry seems to "always find a way" to survive and thrive - even after the darkest of times.

The Real Estate trends of the next decades may be rather exciting if things pan out the way much of the chatter is headed.

GLOBAL WARMING

Beach houses across the world may be abandoned to the sea if world sea levels continue to rise.  Many glaciers have disappeared and continue to do so.  As water lines rise, many people will be displaced and the need for housing will skyrocket.  Supply will surely outstrip demand.

ALTERNATIVE HOUSING

More and more people will be seeking housing in more affordable manners and methods.  These may include a skyrocketing demand for mobile homes.  Such homes can be "transported" to higher ground - especially if they are located by a beach.

TRADITIONAL LENDING

Lending standards will relax for many banks and this may include the lowering of FICO scoring in many instances.  But, because so many investors took a financial blood bath in 2007-08, the market to invest in mortgage backed securities will stay fairly diminished - never to make the rebound of the time preceding 2007.

ALTERNATIVE LENDING

Many homeowners will seek "alternative financing" through investor - related properties.  Investors will replace much of the mortgage lending institutions as the "new" lenders for affordable housing.

MULTI-PARTNERSHIP INVESTMENT GROUPS

These will be the new conglomerates as investors consider consolidating more real estate holdings into investment groups and companies who specialize in selling alternative and affordable housing alternatives to the traditional housing market.

MORE TRUST CENTERED TRANSACTION FUNDING

More people will start investing with investors who are already heavily invested in and who are engaged with affordable housing investment opportunities.  Rather than banks who are reselling investments on the secondary markets, these investors will be looking to "hold on" to their investments for long-term profitability and viability.  Many investors will be looking at investors who are already carefully underwriting their own investments and loans and who are interested in maintaining a solid course in maintaining those investments for long periods of time.

MORE TRAVEL RELATED INVESTING

As the economy jumps back to full recovery, more investors will be looking at the concurrent growth in travel-related real estate investments.  Time shares, hotels, motels, and other travel-related investment opportunities will continue to grow and prosper as the real estate industry comes to full recovery.

Contributor: Michael Hathman

Friday, June 6, 2014

Global Climate Change / Global Warming: Real Estate's Next Big Boom & Crisis


And you thought Noah's Flood was bad - well, this one might rival it.

Global warming and climate change may be posing the next great ecological threat to mankind and the civilized world.  Yes, those beach houses that now line the beach might still end up in the water.

Rising water worldwide would mean that most of the world's population will have to migrate to higher ground.  But, this isn't the half of it.

Rising waters would mean several trillions of dollars in lost wealth - wealth lost to rising seas.  With homes and businesses literally drowning in rising waves of water, this may lead to a housing crisis never before witnessed in human history.  In fact, a housing real estate boom may be on the way within just another few short decades and those who are holding the assets could stand to become very wealthy indeed. Unfortunately, such a boom will come at the loss of others who live by the water's edge.

Many cities that are not prepared for rising sea levels may see much of it's buildings and infrastructure fall claim to the sea.  As more and more people become displaced, housing demands will also increase and possibly at a furious pace.  Building may not be able to keep up with rising demand and pricing on affordable housing will skyrocket.

This means that anyone who has any link to real estate will stand to benefit from the market surge.  Indeed the winners will be the ones who are riding the wave of warmer climate.

Contributor:
Michael Hathman

Sources:

Climate News:
http://www.fastcoexist.com/1682519/the-climate-change-real-estate-boom-is-coming

The Atlantic:
http://www.theatlantic.com/magazine/archive/2007/04/global-warming-who-loses-and-who-wins/305698/