Here live happily in rent... the millennials
# Initiated week Tal Boyman # Post 5
Hey friends.
This is my penultimate post as 'entrepreneur of the week'
And it is dedicated to the preferences of the "Millennials" generation
Emphasis on living in rent, and the effect that has
They chose us as real estate investors in the USA.
And it is dedicated to the preferences of the "Millennials" generation
Emphasis on living in rent, and the effect that has
They chose us as real estate investors in the USA.
'So... why do they prefer to live in a rental?'
Well, maybe it's more of a necessity than a preference,
But we live in an age that does not leave many choices
and 'pushing' for rental housing.
The increase in apartment prices, inflation and mortgage interest
The rising price makes it difficult for the 'Millennials' to buy a house - and they give up
In advance of the experience, reconcile with the evil of the decree, stay to live
in rent and increase the demand significantly.
The rising price makes it difficult for the 'Millennials' to buy a house - and they give up
In advance of the experience, reconcile with the evil of the decree, stay to live
in rent and increase the demand significantly.
Do you know where they like to live the most?
In 'multi-family' properties-
These are properties that are built in advance for the purpose of long-term rental.
Now, for those of you who don't know what my assets are 'Multi Family'
So the reference is to a building, neighborhood or complex that is one piece,
And you cannot buy or sell a single apartment in it.
So the reference is to a building, neighborhood or complex that is one piece,
And you cannot buy or sell a single apartment in it.
Multi-family properties are occupied by tenants only and are managed
by a management company, And the 'Millennials' like to live in them Because of several reasons.
by a management company, And the 'Millennials' like to live in them Because of several reasons.
A. There is a management company that takes care of everything for them - clogging in the sink,
A short circuit, a burnt out light bulb... all that is needed is to report it and the problem is taken care of.
A short circuit, a burnt out light bulb... all that is needed is to report it and the problem is taken care of.
B. There are convenient facilities in the complex such as laundries, shared work spaces,
Accommodation areas and everything for the well-being of the tenant whom I will give and will never leave
Accommodation areas and everything for the well-being of the tenant whom I will give and will never leave
third. Stability and security - imagine that you live in a rented apartment and know that as long as
You pay and want to stay, so there is no way to evict or evict you.
You pay and want to stay, so there is no way to evict or evict you.
d. The 'multi-family' properties provide the best value for money
that you can get and that's why they are so sought after.
that you can get and that's why they are so sought after.
And if the 'Millennials' like to live in the 'multi-family' complexes, then it should be
Very much that we will be the ones who build and provide them, and now is the time to present
Here are the advantages of the 'multi-family' complexes from our side, as investors
Real estate in the USA.
Very much that we will be the ones who build and provide them, and now is the time to present
Here are the advantages of the 'multi-family' complexes from our side, as investors
Real estate in the USA.
A. Cashflow – This is the type of transaction that generates the most cash flow
as rent that is paid monthly.
B. Risk diversification - If one apartment in the complex is not rented or rented at a price
low, so the other apartments make up for it.
low, so the other apartments make up for it.
ג. Getting the best financing terms – It happens because that the banks in the US really like the 'multi-family' transactions And they know that as entrepreneurs, we will have a way to pay and repay them the loan.
D. demand is high, Permanent and stable and the tenants renew the contract, stay to live for periods
long and give us peace, security and certainty that the property is rented and produces a regular flow.
long and give us peace, security and certainty that the property is rented and produces a regular flow.
ה. The rent is going up Between 2% and 3% every year, and you won't hear us complaining
About that forever
About that forever
To summarize briefly, then the 'Millennials' like to live in 'multi-family' complexes,
They migrate from the big cities to the suburbs to lower the cost of living -
And they enjoy a much higher quality of life.
They migrate from the big cities to the suburbs to lower the cost of living -
And they enjoy a much higher quality of life.
They are the productive force of today and that's why they have money! their size
Generates high demand in the areas to which they immigrate, and there is a high chance
to enjoy increases in property value and rental prices
Generates high demand in the areas to which they immigrate, and there is a high chance
to enjoy increases in property value and rental prices
So where is the best place to invest?
At this point, I want to 'shine a spotlight' on one of the cities that has become
A pilgrimage center for the 'Millennials', and enjoys a large number of tenants
who flock to it across the Hudson River.
A pilgrimage center for the 'Millennials', and enjoys a large number of tenants
who flock to it across the Hudson River.
I am of course talking about Newark, New Jersey - which offers opportunities
Good jobs, next to large apartments that fit the budget
and allowing Millennials to get away from the density of Manhattan.
Good jobs, next to large apartments that fit the budget
and allowing Millennials to get away from the density of Manhattan.
This is a large city in New Jersey, which is turning into a suburb before our eyes
significant of Manhattan and offers particularly high growth potential.
significant of Manhattan and offers particularly high growth potential.
Why Newark?
Because the city is enjoying the trend and it is growing in all indicators!
- Newark is 30 minutes away by train from Manhattan
- In the last decade Essex County (where the city is located) has benefited
Positive immigration at 10.2%
Positive immigration at 10.2%
- Property prices have increased since 2016 by 216% and the hand is still tilted!
- In 2022, rental prices increased by 14%!
- High demand and lack of supply keep prices stable
These are the reasons as a real estate investor in the USA I focus on the city of Newark.
**Disclaimer: The excess yield in 'multi-family' properties is found in new properties
that are built from scratch or those that are completely renovated as one piece, unlike properties
Ready-made that are not adapted to reality, and were built without taking into account future interest rate increases, and it is usually difficult to purchase them below market price (what is more, the new properties reach maximum rent and therefore maximum value)
that are built from scratch or those that are completely renovated as one piece, unlike properties
Ready-made that are not adapted to reality, and were built without taking into account future interest rate increases, and it is usually difficult to purchase them below market price (what is more, the new properties reach maximum rent and therefore maximum value)
In a short guide that will go live in the next few days, I am publishing the list
The 12 most sought-after cities for residential rental in the USA – and New Jersey
Takes a place of honor at the top.
The 12 most sought-after cities for residential rental in the USA – and New Jersey
Takes a place of honor at the top.
It is important to know the areas of high demand for rent, בגלל
These are the right places to invest and hold properties
And that is where we should all act.
Just before I publish the guide to my thousands of followers, I would love to
If you will be the first to read and enjoy it. (No registration required
or providing details).
If you will be the first to read and enjoy it. (No registration required
or providing details).
Download it with one click from here >>>
https://bit.ly/3XEdUsL
Have fun.
Tal.
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