Best of the Week
Most Popular
1.UK House Prices BrExit Crash NOT Likely Despite London Property Market Weakness - Nadeem_Walayat
2.BrExit Morning - New Dawn for Britain, Independence Day! - Nadeem_Walayat
3.LEAVE Wins EU Referendum - Sterling and FTSE Hit Hard, Pollsters, Bookies and Markets All WRONG! - Nadeem_Walayat
4.BrExit Implications for UK Stock Market, Sterling GBP, House Prices and UK Politics... - Nadeem_Walayat
5.Trading BrExit - Stocks, Bonds, Sterling, Opinion Polls, Bookmaker Odds and My Forecast - Nadeem_Walayat
6.FTSE and Sterling Brexit Trading, Deconstruction of the EU Referendum Result - Nadeem_Walayat
7.UK Interest Rate Cut to 0.25% Imminent and More QE Money Printing - Nadeem_Walayat
8.Trading BrExit - British Pound Plunges, FTSE Stock Futures Slump on LEAVE Shock Referendum Win - Nadeem_Walayat
9.The Stock Market is Reading it Wrong! - Chris_Vermeulen
10.Breakouts Galore in Gold and Silver - Jordan_Roy_Byrne
Free Silver
Last 7 days
Silver Market COT Stuns: What's Going On Here? - 24th July 16
Gold Demand Remains Stable During Sector Weakness - 24th July 16
Sernova, Diabetes and Haemophilia - 24th July 16
Russia: Tensions, Turmoil, and Western Hubris - 24th July 16
Soybean Commodity Price to Soar Again - 23rd July 16
SPX Stock Market Uptrend Continues - 23rd July 16
Gold And Silver – Debt Addiction Will Carry Precious Metals Higher, Guaranteed - 23rd July 16
Pokemon Go - How to Play, First Use, Balls, Stops, Catching Pokemon's... Great Excercise! - 23rd July 16
7 Signs That the Gold Market Remains Resilient - 23rd July 16
Basic Income in The Time of Crisis - 23rd July 16
Silver Bull Faces Correction - 22nd July 16
The Serious Warning No One’s Talking About - 22nd July 16
Stock Market Insight from Greed, Volatility, and Put/Call Ratio - 22nd July 16
What Will Happen To the Stock Market When Interest Rates Rise? - 22nd July 16
How to Escape the World’s Biggest Ponzi Scheme - 22nd July 16
Addicted to Debt - We Can’t Borrow from the Future Anymore - 21st July 16
Not Everything Is Bullish for Gold - 21st July 16
Don’t Get Sucked Back Into the Stock Market - The Big Picture Hasn’t Changed - 21st July 16
Silver – Caught Inside - 21st July 16
Forex: "The Markets Are Getting Exciting!" - 20th July 16
China Economic Troubles - Is Kyle Bass Finally Getting His Revenge? - 20th July 16
Why Lithium Will See Another Price Spike This Fall - 20th July 16
The Peak Oil Paradox Revisited - 19th July 16
SPX Challenges the Upper Trendline - 19th July 16
Missing ’28 Pages’ of the 9/11 Report Released into Blitzkrieg of World Events - 19th July 16
Likelihood of Organized Disruption at GOP Convention - 19th July 16
More on the ‘Breadth Thrust’ and Stock Market Internals - 19th July 16
FX Traders: Get a Free Week of Forecasts (Details inside) - 19th July 16
Ups and Downs in Gold and Crude Oil Price - 19th July 16
Keep an Eye on ‘Bitcoin’ as the Next ‘Financial Crisis’ Starts! - 18th July 16
Erdogan Might Have Known about the Coup but Didn’t Prevent It on Purpose - 18th July 16
More Deflation Ahead: Silver, Gold And Their Mining Stocks A Must-Have - 18th July 16
Stock Market Minor Top? - 18th July 16
5 Best Gold and Silver Junior Mining Stocks in 2016 - 17th July 16
Gold And Silver – NWO-Created Tragedies Will Never End, Seek Truth - 16th July 16
How Long Can Buybacks Continue To Support A Market Which Is Standing On A Fundamentally Flawed Premise? - 16th July 16
Will They Come For Your IRA? - 15th July 16
Gold’s Record Selling Overhang - 15th July 16
Capitalism Has Entered a New Era—and Historic Stock Market Investing Returns Are Gone Forever - 15th July 16
Gold Price Could Hit $5,000 or Even $10,000 in a Few Years - 15th July 16
Junior Gold and Silver Mining Funds or Individual Gold and Silver Mining Stocks - 15th July 16
The Soaring Risk of Flying in Bernanke's Helicopter - 15th July 16
The Broad Stock Market, Helicopters and Gold - 15th July 16
The Curious Case of Vanishing Lady Liberty; Only Gold and Silver Remember Her - 15th July 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Forex Forecasts

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.


© 2005-2016 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

Catching a Falling Financial Knife