The 3 Trends Dominating The
Market This Season
We are in what’s traditionally known as the year's peak mover and home
buyer season. So, what factors are influencing the market the most?
What does it mean for investors?
1. Banks In Distress
The most obvious big headline is the new banking crisis. We are being
told that everything is well under control and that the damage of several
recent big bank failures is contained.
Given historical data, and current monetary policy, that seems highly
unlikely. It seems more probable that more banks will have issues in the
near future.
That means hundreds of billions of dollars in assets going up for sale.
Real estate and mortgage debt are a large part of that. Either institution
are shedding assets for liquidity, or their new owners will have a lot of
inventory they obtained cheaply and will be attempting to liquidate as
well.
Access to these portfolios is limited. Though there are incredible
bargains popping up, with more likely to be made available, at least offmarket before the end of the year.
2. Rising Inflation
Regardless of official numbers being published, consumers are seeing
and feeling real inflation at the checkout. Gas prices recently went up
again, even the cheapest candy bars at your local gas station are likely
three to four times the price they used to be.
Some pockets of the population at the top and bottom of the market may
be somewhat insulated from this. It’s obvious though, that prices have
only been going up.
This certainly applies to real estate. Not just interest rates, but insurance,
utilities, and rents. In fact, even among rent-controlled apartments in
NYC, the rent control board has recommended a massive and historic
increase of almost 17%. A hike that is expected to impact around a
million households if passed.
This will of course only fuel more moving out of NY to NJ, and
southern states like GA as many more seek more affordable housing
options.
3. Investors Need A Haven For Their Money
It’s pretty easy to point out many places investors probably shouldn’t put
or keep their money right now.
Among those seem to be public stocks, municipal bonds, crypto, and
banks.
They need somewhere to diversify their holdings, without taking on
more risk. And, at the same time while being able to keep up with
inflation, having access to cash flow in case other sources dry up, and
solid downside protection.
This all clearly seems to converge in real estate. It is just a matter of how
you do it, who you do it with, and who you have to manage it.
Investment Opportunities
Find out more about investing in secured debt and real estate, go to
NNG Capital Fund.
If you are an Accredited investor and would like to learn more about
how to become a Capital Partner with NNG Capital Fund, Click here to
set up a discovery call today!
Photo by nappy
Article Source: https://nngcapitalfund.com/the-3-trends-dominatingthe-market-this-season/