Traditional home buyers are set to be outnumbered three to one by property investors in the next couple of years, claims Move Inc., following a new survey.
Property investors are more than ready to compete with people buying family homes as prices hit record lows and thousands of great deals become available.
What’s more, with many first-time buyers experiencing problems obtaining mortgages and finance, investors claim that this will work out in their favor, allowing them to be more competitive when it comes to the choice properties on the market.
One out of five property investors say that they are in a position to buy suitable homes on a cash-only basis, while over 80% of them say that they expect to receive cash discounts on the properties that they purchase.
The survey, which focused on the growing segment of property investors, also found that 43% thought that finding bargains would become more difficult as more people get in on the act of snapping up cut-price real estate bargains.
Almost 50% of real estate investors said that they thought they would hold on to their investments for around five years before cashing in, with only 11% looking to sell within a year of buying, which suggests that most are coming into this game with a long term plan.
Interestingly, 56% of investors also said that they would rent their investment properties while waiting for prices to increase.
Perhaps the biggest surprise of all however, is that 60% of real estate investors claimed to be new to the game.
“The information shows that the current climate is red-hot for investors at the moment, and the opportunities are attracting a great many new people who don’t fit the property flipper stereotype,” said Move Inc’s chief executive Steve Berkowitz.
“Most of these people have an entrepreneurial spirit and are making vital contributions to their local community. By investing their own savings and hard work, they are improving and maintaining properties in their local areas.”
“In the long run, we hope that these efforts will help to increase property values, property stocks and property tax bases.”