Macroeconomics, real estate and the significant changes of recent years.

#יםמהשבוים Dor Goldstein #Post1
Hello everyone, my name is Dor, I have been doing projects and real estate investments in Israel and the USA since 2017, I will detail my experience
In relevant contexts in the following posts.
The posts will deal with several avenues within the industry, from the point of view of an entrepreneur and an investor, rentals, new construction, AIRBNB and all that implies, let's start with macro:
In recent years the changes happened quickly, in my opinion mainly as a result of cheap money and working from home,
In practice:
Great purchasing power and cheap credit equate to an increase in demand,
Example - at 3% interest an average buyer can buy a house for $400,000 compared to $300,000 at today's 7% interest rate.
Working from home means severing the connection between geographic location and career, consists of moving out of the city and moving between states, after Zum replaced Face To Face in New York who was used to paying 12% of his salary in taxes to the state and the city, he moved to Miami for a better climate without those taxes, in exchange for a difference in taxes An average home moving from California to Texas can easily have several tens of thousands a year.
When you add to that differences in living costs, migration to cheaper states or countries with less taxation becomes obvious (Florida, Texas IN, New York, California OUT).
At the moment there is a monetary policy change, which means money is getting more expensive,
In my unfounded opinion, the pessimism (prices are expected to drop) together with the increase in the prices of the execution (materials and mainly labor) and financing will cause less supply in the long term, meaning we will remain in low supply in the US.
In Israel, rapid growth in GDP and population means an increase in the number of applicants and the amount of money in their hands, and on the other hand, little supply, few reserves, lead to supply and low supply expectations.
The market is optimistic, and prices the investment in it accordingly, low risk and low return.
We'll get into that too in the next post.
My theory is that there is a built-in deflation, the technology makes services and products cheaper and more accessible, but not mixed or limited assets (land, collectibles, transaction costs)
An example is that an electrical device today is boringly good and cheaper than before compared to construction or land costs which are significantly higher than before.
I referred to the main factors affecting the market in the US and Israel,
In the next post we will go into how a story is translated into actions and what
The numbers say.
good week

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