One important facet of REI to monitor is changes in the law. The SEC has approved a new set of rules that will allow non-accredited investors to participate in online real estate syndications. This has many implications, including where you can now invest your money. Read "New SEC Regulations
Open Online Syndications to More Real Estate Investors" for more.
Another important development is the opening of a new market. India has now changed its rules regarding increasing foreign investment in REITs. There is a great deal of capital in search of yield right now, and India has been relatively closed to foreign investment historically. As institutional money flows out of current investments into Indian investments, there could be ripple effects. Institutional investors are also buyers of single family rentals domestically, so some of this capital may be allocated to this new market, which possibly could reduce the amount of competition individual RE investors have to deal with. Read "India Eases Rules to Allow Foreign Investment
in REITs" for more.
An increase in oil and gas investments is also on its way, which could increase demand for real estate as high paying jobs are created. But we should be mindful that oil prices are likely to be volatile in the foreseeable future. One important thing to know about the oil and gas industry is that operators (the companies that own the wells) and service companies (that service the wells in many different ways) find ways to become more efficient during periods of downturn, which is what we are seeing again now, so they can continue to function in a lower commodity price environment. Please see "Oil Producers Cast Aside Gloom as Rally Spurs
Drilling Plans" for more.
For some interesting facts and figures about flipping/rehabbing houses in the US at the national level, you can read "RealtyTrac: Flippers were 4%
of all home sales in the first quarter."
And this is a good reminder for all of us: 4 Behaviors Highly
Successful People Have Mastered
