New house sales surge, cold storage is also hot, a tale of NYC apartment buying, Seritage REIT ruminations, and some vacation rental owner advice.
In Today's News
The National Association of Home Builders (NAHB) says housing demand has increased so rapidly in recent months that there's now an unprecedented gap between the number of new single-family home sales and the pace of construction starts.
Why it matters: The NAHB says this kind of demand -- created by low interest rates, low supply, and demand from people seeking more space -- could go on for a while. That's of investor interest for spec houses and good deals if you can find them.
This piece from National Real Estate Investor lays out how with rising online grocery deliveries, developers and investors see an opportunity for a high-yielding bet.
Why it matters: COVID-19 has accelerated the desire for grocery shopping online, adding to the attractiveness of cold storage for e-commerce fulfillment and adding further fuel to the fire for this kind of industrial storage business. This is a segment to watch.
For this young professional living in Manhattan, it came down to a choice of three one-bedroom apartments in hundred-year-old buildings in good locations in one of the world's great cities. Which will she choose?
Why it matters: Interesting piece in The New York Times (subscription required). Her story's illustrative to me about how much things cost in the big city. In my midsize Southern town, you could buy my house -- 2,300 square feet , three bedrooms, 2.5 baths, attached garage, etc., in a good neighborhood -- three times over for that money. Location, location, location! Especially now.
Today on Millionacres
Millionacres' Reuben Gregg Brewer breaks down why this REIT, formed out of the wreckage of the Sears and Kmart retail business, could be in a fairly good position in the coming few years
Why it matters: Seritage (NYSE: SRG) has worked to shift its tenant base from Sears to companies that can pay more rent and have a better future, but the pandemic put the hurt on its redevelopment plans. But Warren Buffett's involved here, and that could give this REIT the breathing room to make it worth considering if you've got the time and risk appetite.
When it comes to spending money on a vacation rental, you need to consider different factors than when spending money on your primary residence.
Why it matters: Millionacres' Matt Frankel is a seasoned residential real estate investor. His tips on what to do and not do to maximize profit on a rental is worth considering if there's an investment property in your portfolio, too.
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