- Post no. 2 in the series - ** Why is the investment in detached houses in the US so unique? ** Yes יש
- Post Tax. 2 Series -
Why is the investment in single-family homes in the US so unique?
There are a number of reasons that make the investment in ground-floor (CC) houses unique:
1. The US economy is based on households.
Most of the households live in detached houses. Admittedly, in certain areas such as New York and California, many people live in apartments or other types of properties rather than single-family homes, but with the exception of New York and similar cities in most areas of the US, people live in single-family homes.
2. A ground-floor home is still the "American Dream."
This means that people want to live in a house with land. This is a cliché but very correct and very anchored in reality.
3. Economy and single-family homes
Single-family homes tend to be the first to rise and most often when the economy is strong, and tend to go down last and less when the erosion is weakening.
4. Analysis of the CCC transaction
Analyzing a deal for a detached house is relatively easy and simple compared to other investments. It is relatively easy to diagnose the area, to understand the numbers and it is relatively simple to assess the feasibility of an investment, and most of the information is accessible and available and does not require a lot of hard work to obtain it.
5. Financing - meaning mortgages
Compared to other investments, Bechek financing is relatively simple. Although this point can be problematic for an investor who does not live in the US, it should be remembered that even an investor who buys in cash - the issue of financing is important on the day a buyer comes. The financing process is not complex, inexpensive and takes a relatively short time.
6. Sales of the CC
Detached houses are more popular among buyers, therefore when you want to sell the house attached to the ground, the potential number of buyers is large compared to the number of buyers of other types of properties.
The original responses to the post can be read at the bottom of the current post page on the site or in the link to a post on Facebook and of course you are invited to join the discussion
It's all true. Another important point that a single value goes up regardless of whether there is a tenant or not and regardless of Cash Flow. In addition, every major repair actually improves property. In another commercial property / multi-value is determined by flow and if for example there was a major repair such as replacing the air conditioner I hit the cash flow and consequently its value.
This is the investment that I think fits best when it's forgotten and forgotten.
The disadvantage is 0 or 1 in terms of Cash Flow but if you build a portfolio then everything is fine.
Danny Everything you wrote is true but Section 3 is light years away from reality… Singles are the first real estate product to be hit the hardest and repair not by product type but by the market in which it is located as a result of factors that help the local economy