House Flipping In 2017: What Will Change?
Politics and a Public Works Administration
The political changes in this country are coming, and one thing that will truly help the housing market, in ways that are hardly quantifiable at this point, is putting federal money into fixing the infrastructure. This helps the housing market by creating new buyers, because this kind of large-scale infrastructure repair project would force the creation of new jobs. The more people that are working , the more money they have, and the more homes are needed to satisfy demand.
Along with economic changes that are politically driven, there are also current trends that indicate Millenials will be buyers in the next few years, and that they may well head out West when looking to buy. This makes sense as there are so many areas in this country, like the Northeast, where there is an abysmal shortage of land. Several markets in our country invariably have more buyers than homes to sell them, and these conditions are just flipping opportunities in disguise. In any case, wherever they buy, there will be flipping and rehab opportunities.
Next year promises to see a continuation of an overall reduction of housing inventory, coast-to-coast, and fix and flips make a lot of sense for those that are interested in capitalizing on some surprise factors in employment numbers in this country. The other huge trend is that baby boomers are selling, and this trend is projected to drive markets in the next decade. Much of what boomers own will likely need some updating, so the options continue to present themselves in what appears to be a very tight housing market. For those that flip, a housing market with not a lot of inventory, and with new buyers expected, is simply fraught with opportunities.
All of that said, for those that are interested in latching on to house flipping trends that are likely going to shape our country for the next 3 to 5 years, there is hardly a need to leverage your savings. In years past, the only option was going to a bank; now private lenders, including us at Orchard Funding can provide hard money, flip and fix loans to get existing homes remodeled and back on the market. Add to this that there are likely to be more buyers flooding into an already tight real estate market, and the possibility of a Roosevelt-type of Public Works Administration going, that fixing and flipping existing homes is a great way to create an alternative income in 2017.