Do You Plan on Buying More Investment Real Estate?
If you already offer corporate rentals by CHBO, you might be thinking about making the move into additional investment real estate. Those who are doing well offering furnished housing often choose to branch out and offer other locations to make even more money. Curious about whether other landlords are doing the same thing? We looked at the data in the 2019 Corporate Housing Real Estate Report to bring you the answers.
A Large Number of People Aren’t Sure
When individuals offering corporate housing talked about whether they would be buying additional real estate for investment, a surprising number weren’t sure about that. In fact, 37% of those who responded indicated that they did not know if they would take the plunge and purchase more property. This is actually the most common answer among those offering furnished housing, so if you are on the fence, you are in good company.
Some Are Happy with What They Have
Another 25% of the respondents in the survey indicated that they did not plan to buy additional investment real estate. These people offer corporate rentals by CHBO but are happy with the current level of property that they own for this purpose. This number has increased over time as it was 21% in the survey from 2017 and the one from 2016.
Plans to Purchase Additional Investment Real Estate
That leaves 39% of people who do have plans to buy additional real estate for the purpose of renting it out to corporate travelers. The data is broken down beyond that, however. There are no respondents who indicated they were waiting to buy until the banks would lend, as this is no longer a concern. 24% of people said they were looking to buy within two to three years, while 15% expected to purchase within the year.
Is it Time for You to Invest?
Fewer people are planning to invest in new real estate for investment in 2019 than in 2018, but that isn’t necessarily a bad thing. With a decline of 5%, for some people, it could be a positive if you want to invest anyway. There are likely to be more options available and fewer sellers trying to get their hands on them. Make sure to do your homework but consider that this might be the ideal moment to go forward.
