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How economists view the current housing market
How economists view the current housing market: what the experts think you should invest in
How economists view the current housing market
The current market situation has been carefully considered by economists and a recent conference found revealed that the general consensus is that slow sales have been caused by a tight inventory. The Miami event heard that the current volume amounts to a 5 month supply, whereas a balanced market typically has a supply of six to seven months.
How property investors can beat the trend
Home owners, according to the experts, are hampered by a persistent lack of equity with one in three suffering from the negative effects of the housing slump. Property investors building buy-to-let portfolios, however, are able to leverage existing assets to expand their interests, rather than focusing on the purchase of a personal residence. According to one report, over one third of home owners had 20-per-cent or less available in their homes in the first quarter of 2014, but this small cushion can be utilised by fledgling investors when making their first buy-to-let purchase.
New build buy-to-let investments
The pace of new construction has increased in 2015, although by May it was still only sitting at 75-per-cent of the annual average seen since 2000. There is debate amongst economists if this is due to the disproportionate favouritism towards high-valued construction in order to boost margins. Nevertheless, since 2006, investors have been steadily converting single-family dwellings to rental properties, proving the success of buy-to-let transactions.
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