RET Ventures’ Post

Removal of indexation may hasten Big Real Estate players' shift towards tokenization. With the recent removal of indexation benefits, long-term real estate investments are taking a hit. These investments were usually considered stable, but now, with higher capital gains tax, investors might look for options that are more liquid and flexible when it comes to Real Estate(which is not for residential purpose). Let me explain why I think this may happen Since there’s no more indexation benefits, holding real estate long-term isn’t as appealing. The traditional market is slow, but tokenization can speed things up and make it more attractive. Fewer people would want to invest a large amount of money in a single real estate asset if it's only for the purpose of investment. This could lead to a smaller investor base for certain property types. Here is why the big players would like tokenisation: Enhanced Liquidity: Tokenization allows fractional ownership, making it easier to trade on secondary markets, similar to stock investments. Broader Investor Base: Lower investment thresholds democratize access to high-value real estate, attracting retail investors and increasing capital inflow. Who among the big players may lead this transition? Traditional Real Estate Platforms: Platforms which already deal with fractional ownership, are well-positioned to adopt tokenization to enhance liquidity. PropTech Startups: Startups focused on innovative real estate investment solutions, are likely to embrace tokenization to offer more flexible investment options. Real Estate Developers: Large developers with significant commercial real estate holdings might explore tokenization to attract retail investors and enhance liquidity. Financial Institutions & REITs: REITs and financial institutions with substantial real estate portfolios could explore tokenization to offer new, innovative investment products appealing to modern investors. It may be too soon to predict the trend, but if the sector does not adapt and innovate soon, there will be an impact that will last for a generation. Tokenization offers a promising alternative, providing liquidity, broadening the investor base, and offering faster exit options, mitigating the impacts of the new tax regime. #RealEstate #Tokenization #Investment #PropTech #FractionalOwnership #Finance #Innovation #RealX

With such unpredictable economic ups and downs, how can investors tell whether now is a good time to flip properties? What factors should they consider before taking on projects? This new post by ATTOM CMO, Kara Taylor, shares how ATTOM’s extensive property data, along with its detailed home-flipping market analysis, provide the answers.

The silent disruptors: How lesser-known real asset classes are quietly shaping the investment landscape. Self-storage is one of our most resilient asset classes at Dr. Breathe Easy Capital. Here's a quick rundown of the pros and cons to help you make an informed decision. ✅ → 1 → Strong demand: Americans love to accumulate stuff! Plain and simple. People continue to move around due to jobs and divorce, to name a few. There is increasing demand for storage spaces, indicating a potentially lucrative market. ✅ → 2 → Stable Cash Flow: We see better cash flow from our self-storage. Self-storage investments often provide a consistent income stream, making them attractive for investors seeking financial stability. At peak efficiency, we run self-storage at 25% expenses versus 45 to 50% of multifamily. ✅ → 3 → Flexibility Wins: Self-storage investments offer flexibility. Adapting to changing market conditions and tenant needs can be a significant advantage. You can increase rent anytime and can offer concessions anytime since it's month to month. For example, we have a self-storage with 10x20 always packed, and 10x10 needs some concessions, so we continue to increase rent on the 10x20 till occupancy drops close to 85% . ….. ❌ → 1 → Property Management Challenges: Managing self-storage properties can come with its fair share of challenges. From security to maintenance, preparing for hands-on property management is crucial. The most important part of this is a solid "boot on the ground" people, which can be mitigated. ❌ → 2 → Competition Alert: The self-storage arena can get competitive. Be ready to face competition from other investors eyeing the same lucrative opportunities. In some of our markets, we are seeing many new constructions, and we are keeping a close eye on them. ❌ → 3 → Economic Sensitivity: Keep an eye on the economic landscape. Self-storage can be sensitive to economic downturns, affecting occupancy rates and profitability. I believe macroeconomics favors self-storage as more people move into apartments and cannot afford a home with an extra garage or storage space. What do you think about self-storage?

https://lnkd.in/gvhne74Y Navigating the Mirage: The Risk Behind Back-to-Back Builder Launches in a Bull Real Estate Market In the midst of a booming real estate market, the sight of builders launching new projects one after another can be both exhilarating and misleading for investors. The promise of high returns and the allure of being part of a seemingly unstoppable growth trajectory can cloud judgment, leading many to overlook the fundamental risks involved. However, it's crucial to recognize that not all that glitters in a bull market is gold, especially when it comes to back-to-back builder launches. The Illusion of Perpetual Growth At first glance, a bull real estate market peppered with frequent builder launches suggests a healthy demand and a robust investment opportunity. It paints a picture of a thriving sector where everyone, from developers to investors, is poised to reap significant benefits. The Cash-In-Today, Leave-Investor-for-Tomorrow Strategy This strategy hinges on capitalizing on current investor enthusiasm and liquidity in the market, encouraging investment in projects that might not be sustainable in the long term. The premise is simple: attract investment with the promise of high returns in a booming market, then move on to the next project, often before the first has been fully realized or delivered. The Exit Strategy Mirage For investors lured by the prospect of quick gains, the promise of an easy exit within four years or even sooner can be particularly enticing. However, this expectation overlooks the volatile nature of real estate markets and the potential for unforeseen economic shifts. When the market eventually cools off or corrects, those investments may not yield the anticipated returns, and exits could become increasingly difficult to secure. Navigating the Bull Market with Caution Investors must approach these opportunities with a critical eye and due diligence. Here are a few strategies to consider: Research and Due Diligence: Before investing, thoroughly research the project, the builder's track record, and the broader market trends. Understand the demand and supply dynamics of the area and the economic fundamentals supporting growth. Long-term Perspective: Adopt a long-term perspective when investing in real estate, recognizing that market cycles can shift and that true value appreciation often takes time. Diversification: Diversify your investment portfolio to mitigate risks associated with the volatility of real estate markets. Legal and Financial Advice: Seek professional legal and financial advice to understand the implications of your investment and to structure it in a way that protects your interests. #property #BullMarketMirage #BuilderLaunchCaution #InvestorAwareness #RealEstateBubbleAlert #SmartInvestingStrategies #MarketCycleInsights #ProtectYourPortfolio #DueDiligenceKey #RealEstateTrends2024 #InvestmentStrategyEssentials

Market Trends 2024. Ready for re-leveraging? Commercial Real Estate in 2025. Real estate investment markets have experienced significant shifts in the underlying drivers in recent years. Mostly these have been driven by macroeconomic conditions, including rising interest rates as a response to spiking inflation, and a general economic malaise that has permeated most markets. Confidence has been dented to levels not seen since 2011 or 2012, with the lack of available financing, at sensible pricing levels, being one of the primary issues. An oddity that has emerged in this cycle is that market rents have continued to climb, even for offices, while investor confidence remains on the floor. The turnaround, which is edging closer and closer, will be driven at least as much by debt, as by occupier demand. Our panel will discuss their outlook for 2025, outlining what will drive a market that is being shaped rather differently to other cycles in living memory. Further details and booking are via this link: https://lnkd.in/es2q2i7a

UNLOCKING WEALTH- FACTORS MAKING THE REAL ESTATE & INVESTMENTS INDUSTRY ATTRACTIVE FOR BOTH DEVELOPERS AND INVESTORS. The booming Kenyan Real Estate & Investments industry is not just about bricks and mortar - it's about assembling the right pieces of information (Due Diligence), engaging professionals and working with a reputable organization to create your future investments. The factors below have created a favorable environment for growth and investment opportunities where developers and investors can capitalize on: - Rise of the middle class and urban population driving demand. - Steady economic growth, stable political environment, and improved infrastructure. - Growth in real estate investment trusts (REITs). - Shift in customer preferences towards urban living and modern amenities. - Rising interest in sustainable and eco-friendly properties. - Increase in property prices and investments in the sector. - Integration of technology and Artificial Intelligence (AI) in identifying investment opportunities. - Emergence of mixed-use developments combining residential, commercial and recreational spaces. - Government initiatives to promote affordable housing and attract foreign investments - Low interest rates and favorable mortgage terms making homeownership more accessible These insights inspire/aid investors and developers to make decisions in the vibrant and lucrative Real Estate industry while freeing them from the fear of future financial shocks.

 A recent industry survey revealed that nearly 34% of NRIs are drawn to CRE investments due to higher returns, while about 48% cite various convenience factors as their motivation. Fractional ownership allows NRIs to invest from anywhere, enhancing its appeal. Read more #ETInsights #NRIs #CRE #Realestate #Investments #Industry Aankush Ahuja

The Future Property Report 2024 reveals a surge in developer confidence across nearly every asset class, with the Living sector showing the most promise. Despite high interest rates and inflationary pressures, private investors remain bullish on UK real estate. Notably, 64% of respondents believe capital values are near the bottom, signaling potential opportunities ahead. #UKRealEstate #SustainableInvestment #CRE #MarketTrends

The #GreenStreet team recently toured Bay Area markets of #SanJose, #SanFrancisco, and #Oakland. In an area that once served as the #technology epicenter of the U.S. and the world, it was a magnet for companies and individuals as well as substantial capital to back #startups. However, with a new work dynamic that enables employees to work from anywhere, the Bay Area is now clinging to its title as an innovation center with world-class Human Capital. Our recent report by Ryan Miller, CFA and Isabella Ierulli discusses how - now that #demand appears to be stabilizing with limited supply growth - there are most definitely multiple factors to consider when adjusting your Bay Area investment strategies. Check out which factors Green Street is calculating in this report (and others) to see how you can improve your #underwriting and #investments with more actionable and accurate data: https://hubs.la/Q02z1ycY0

Navigating Residential Real Estate Investment Strategies Residential real estate investment offers a variety of strategies that can yield significant returns. Whether you're a seasoned investor or just starting, understanding the different approaches can help you make informed decisions and achieve your financial goals. 1. Buy-and-Hold: • Strategy: Purchase properties to hold long-term and generate rental income. • Benefits: Steady cash flow, property appreciation, and tax advantages. • Considerations: Requires property management and maintenance. 2. Fix-and-Flip: • Strategy: Acquire properties in need of renovation, improve them, and sell quickly for a profit. • Benefits: Potential for high returns, short investment period. • Considerations: Requires renovation expertise and market knowledge. 3. Short-Term Rentals: • Strategy: Rent properties on a short-term basis through platforms like Airbnb or VRBO. • Benefits: Higher rental income compared to long-term leases. • Considerations: Requires active management and can be affected by local regulations. 4. Real Estate Investment Trusts (REITs): • Strategy: Invest in publicly traded companies that own, operate, or finance income-producing real estate • Benefits: Liquidity, diversification, and passive income. • Considerations: Subject to stock market volatility. 5. House Hacking: • Strategy: Live in part of a multi-family property while renting out the other units. • Benefits: Reduces housing costs, builds equity. • Considerations: Involves being a landlord to your neighbors. 6. Real Estate Crowdfunding: • Strategy: Contribute to a pool of funds used to invest in real estate projects. • Benefits: Lower capital requirement, diversification. • Considerations: Less control over investments, potential for lower liquidity. 7. New Construction: • Strategy: Invest in new developments or build properties from the ground up. • Benefits: Modern features, less initial maintenance. • Considerations: Higher upfront costs, longer time to generate income. Each residential real estate investment strategy has its own set of benefits and considerations. By understanding these strategies, we can choose the one that best aligns with our financial goals, risk tolerance, and market conditions. #RealEstateInvestment #BuyAndHold #FixAndFlip #ShortTermRentals #REITs #HouseHacking #Crowdfunding #NewConstruction