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OwnAmerica.com CEO Greg Rand on how to invest in the economic and housing growth of Denver.
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-- -- looks -- -- another troubled sector of the economy that's the housing market seeing signs no other improvement in sales month over month bit of good news perhaps as well as year over year.
My next guest has his eye on in -- Making money op housing market Greg -- radio -- and CEO of real estate web -- hello America he's back with us now and and gives his take on where housing is headed next year as well as at -- Top city where there's all kinds of opportunity if you -- a resident of that city or if you are an investor in that city so it.
Is its Denver Colorado.
That's all -- there's not much wrong not that much from Israel would enable you if you live in Denver and nobody seems to you know the fundamentals there incredible that's what we focus on first strike are people moving there.
Why are they moving there.
We see migration going into Denver from all over the country.
OK so they're pulling out of the northeast of pulling out of southeast pulling out of California.
The average age is 31.
That's amazing that is such a young Citi yeah combined with the fact that you've got unemployment in Denver trend -- well below the national average and what's your rate is like.
In accordance your research like half -- a national the national average so what is driving all of this positive momentum.
Well the amazing thing about it is that it that comes down to.
The lifestyle you know if you go down and talk to people that live there they say things like a -- -- is all over the country I asked him in Denver why you like it here you know.
You hear things like I don't like -- I love it and you couldn't pay me enough to move back to New York or California or whatever.
It's simple things -- low cost -- living high quality of life fresh share all those outdoor sports the biking hiking skiing all that kind of stuff.
And like attracts like so you -- -- a vibrant lifestyle they're young people who are fit who are in shape -- join their lives in new tracks molecular.
Well I would love to.
Enjoy that kind quality of life in Denver obviously the financial market report kind of stats here in New York -- so I'd like -- -- -- of that and from an investment perspective.
What we're very big into the single -- home two to -- filming Condo market.
In every market that we look at and so what's great about it is it if you take all those fundamentals just talked about -- more.
And you see the way that actually plays out how to those fundamentals play out when it comes to home price is we have a chart that we can show.
That shows fifteen years carried out of the housing cycle.
In Denver Colorado this is the mid ninety's all the way till today you don't see -- housing collapse and that chart you see a correction but it bounced back again so that you know people who.
What I understand how to play the housing market.
Look at where people are going because when they get they they're gonna wanna live endorse OK it's real fundamental really simple.
And fairly obvious but if you can find a place a draws people like a magnet you're seeing support for housing prices and rental prices well to the future.
Big investment trend in housing -- new you're single family reits real address contrast now usually reits cover apartment buildings are.
Commercial real front property so why is a single family re coming into focus now.
Right normally -- who would buy if they were gonna play the residential market they'd buy up 250 unit apartment complex okay.
But what's happening today the reason why they're -- into housing is that homeownership rates are going down rental household demand is being increased by millions of new households every year.
And so rates are going up.
Normally they would buy apartment complexes that they saw that play but his only problem.
Apartment complexes values are going up along with the rats because their rents their values are based upon rental rates and and and and positive cash flow.
Single family home prices are still are -- valued based upon comparable sales -- to get downward pressure on prices upward pressure on rents simultaneously.
And only this asset class single family two to four family and Condo.
And so.
For the first time you're gonna see billions of dollars over the next five years coming in from publicly traded and non -- reached into single -- -- And a quick thing about the -- why it is.
A preferred investor strategies because it's got a lot of flexibility -- lot of liquidity so any of these properties become cash strapped there's somewhere ago.
Right we'll be you know if you're -- -- fund and you wanna get some liquidity pay a dividend to cover some expenses.
You can't sell to or five apartments -- -- a 250 apartment apartment complex you can shave off a few individual houses was very granular.
It's of their force attracted to that -- -- staff Greg thanks so much thank you.
