Unaffordable-Home-Prices

Unaffordable Home Prices, Investing Tax Benefits, and More: The Five

As we approach Memorial Day weekend, 2021’s trends that we have covered in depth are still staying strong. The seller’s market has led renters to renew their leases as the average sales price of homes has increased. There are unaffordable home prices for prospective homeowners who do not meet a certain income threshold—one that continues to rise. Prices on the high end are being seen in large metropolitan areas, leading to surging demand in suburbs still close to these areas. On a holistic level, the potential tax benefits of real estate investing are discussed along with a nice list of top books for investors interested in rental properties. Keep reading for insights into these topics and more.

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Priced Out of the Big City? Try These Nearby Affordable Alternatives (realtor.com)

Properties in the 11 most popular big cities don’t come cheap. If you’re looking for affordable alternatives in the suburbs that are still within striking distance, realtor.com has put together a comprehensive list with data points. The top cities and their alternatives include Houston, Dallas, New York, Miami, and more.

Apartment Renters Staying Put as Home Affordability Declines (Millionacres)

How has the seller’s market impacted the rental market? As the average price of homes continues to rise, affordability is becoming a real concern for a significant portion of the population. The median sales price has risen 16.9% year-over-year. With these dynamics in place, renters are staying in place. For landlords, higher renewal rates than usual mean lower turnover costs and fewer vacancies. On the flip side, if a landlord’s rental rates are below market rents, increasing rental rates becomes more difficult. As the red-hot housing market continues to burn, lease renewal rates are nearing all-time highs.

5 Steps to Creating Positive Thought Chains: The Foundation of Positive Thinking (CEOWORLD Magazine)

When the going gets tough, the tough get going.” This old adage rings true when it comes to entrepreneurship. Since you’re navigating your own ship, at times through uncharted or choppy waters, it’s important that you use positive thinking. A five-step process is offered to create positive thought chains. If you start incorporating these methods into your day-to-day, you will be surprised with how much of an impact your mindset makes on your success. 

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The 9 Best Books for Rental Property Investors in 2021 (Investopedia)

Looking for some summer reading? Investopedia has put together a list of nine top books if rental properties are of interest to you. They cover topics such as the BRRR method, how to create passive income, how to flip houses, and much, much more. A description of each book is provided.

Exploring the Tax Benefits of Real Estate Investing (Forbes)

Beyond being a path to #CreateYourFreedom, real estate investing offers ample tax benefits. For example, deductions are available for certain types of real estate investments. These deductions are covered in great detail along with the five primary investment strategies that have tax advantages.

Final Thoughts

The housing market continues to be red-hot which has impacted leasing renewals as they are nearing all-time highs. Prospective homeowners should look into affordable alternatives if they are trying to avoid sky-high prices in the 11 most popular cities nationwide. Beyond financial freedom, real estate investing also offers ample tax benefits that investors should be taking advantage of.

We hope this update serves you well as we are inching closer to summer every day. Be sure to check out our latest success story with Jeff. Read, watch, or listen to this deep dive into his investing strategies and how they’ve changed due to the current market conditions.

We’ll catch you next time for another selection of hand-picked resources to boost your real estate investing business.  

Stay safe, stay healthy, and happy (and profitable) investing.

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Posted on May 26, 2021

Author: Alex Farris Soares

Alex is President of MyHouseDeals. Since 2006, he’s worked with real estate investors to bring them the marketing services and training they need to elevate their businesses and reach their goals. Alex is an avid customer advocate, enjoys affecting change in the REI and digital marketing industries, and promotes the values of entrepreneurship and innovation.

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