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

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