Posts Tagged ‘construction levels’

HomeVestors Focuses On Capitalizing On Regions With Low Construction Levels

Monday, June 8th, 2015

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Investors who purchase rental property in regions with economic improvements yet low construction levels should have less competition overall. 

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years.  The company knows that real estate construction has been on a downward trend throughout the United States real estate market.  Those investors who are interested in purchasing investment property should be able to capitalize on this decrease in inventory by being able to earn a greater profit potential.  When performing a market analysis, real estate investors should take low construction levels into consideration and look to invest in regions that are experiencing a drop off, if they are still profitable markets.

Real estate investors should take note of the low construction levels around the United States, as they have dropped off 1.7% over the last month.  This decrease, followed by a 4% decrease in construction levels from the month before, is quite significant.  If this trend continues, expect that construction levels to continue to fall, as uncertainty regarding the market escalates.  Either way, those who invest in rental property should be able to capitalize on the decreasing competition levels overall.

When analyzing low construction levels, real estate investors need to understand exactly why construction is falling off.  In markets that have a negative economical outlook, most construction companies simply abandon projects that are likely to end up losing money.  However, low construction levels in markets that are increasing in value are still a common theme nationwide.  Those investors who can find a market that is increasing in value, but has low construction levels should be able to take advantage of their lower level of competition over the next couple of years.

Investors who purchase rental property in regions with low construction levels, but have a high degree of profit potential should be able to capitalize in more ways than one.  Since the levels of inventory will be lower in these types of markets, investors can expect property values and rental rates to increase, if people are moving to these areas in numbers.  Those who are able to capitalize on these types of regions before construction companies begin to increase activity should be able to take advantage of their cash flow and watch as their property appreciates in value.

Investors who purchase rental property in regions with low construction levels should be able to capitalize on a greater cash flow, as they will experience lower levels of competition.

About HomeVestors of America Inc.

Dallas-based HomeVestors of America, Inc. is the largest buyer of houses in the U.S., with 50,000 houses bought since 1996. HomeVestors trains and supports its independently owned and operated franchisees that specialize in buying and rehabbing residential properties.  Most commonly known as the “We Buy Ugly Houses®” company, HomeVestors strives to make a positive impact in each community.  In 2012, for the seventh consecutive year, HomeVestors was among the prestigious Franchise Business Review’s “Top 50 Franchises,” a distinction awarded to franchisors with the highest level of franchisee satisfaction.  For more information, visit www.HomeVestors.com.