Interesting article here. As a new investor this caught my eye. Why the drop in investors? Deals not as good or as fast as they have been in the recovery of the housing market? For me, this says less competition from fellow "new investors" which makes me smile a little.
First-time buyers have less competition from institutional investors, whose purchases dropped to a four-year low in the third quarter of last year, making up 4.3 percent of all residential sales, down from 5.3 percent a year earlier, according to data from RealtyTrac.
Full article here BLOOMBERG
I see it as the market for superior deals leveling off quite a bit. Investors should be on the move when everyone else is grim. They start unloading assets when the retail market is back. My dream would be to unload my homes to a retail buyer. They will pay premiums in good season, much more than an investor attached to a spreadsheet (which I aim to be, myself).
It is keen to note that a decrease in institutional activity will put some good property back on the market for the smaller investors. I would target properties that are being let go out of mismanagement, not because growth in an area has merely sloped.
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