About this episode
Having a solid understanding of historical market stats is important for investing in real estate in Newport Beach.
This class is Module 2 of 46 in a series called Real Estate Investing Secrets.
Topics covered in this module include:
Should you try to “time the market” using data to increase profitability?
How much are properties selling for? Do property values always go up? How much have properties gone up per year since 1965? What would your annual ROI be on a property using that appreciation rate if you put 20% down as an investor or 5% down as a Nomad™ or house hacker?
If we adjust for inflation, how much have properties goes up in value per year? Why is this not a truly apples to apples comparison and what can we do about it?
What would a typical owner-occupant primary residence rent for? How has that changed since 1975? What is the rent equivalent appreciation rate over that period? And, why is that not a fair and valid comparison?
What’s one measure of housing affordability? And, does it prove houses are less affordable today than they were between now and 1980?
What are new construction properties selling for? How has that changed since 1960?
How many new single-family homes are for sale in the US now and going back to 1960? How many have sold? What can we determine from this?
What’s a stat that combines both the supply of properties for sale and the demand for properties into one powerful single number? How do we interpret that stat? How has it changed between 1960 and now?
How many properties are occupied by owner-occupants? How many by rents? How has this number changed between now and 2000?
What percentage of properties are vacant and for sale? What percentage are vacant and for rent? How has this number changed between 1960 and today? How does this relate to your estimated vacancy rate on my personal rental properties?
What have 30-year fixed rate mortgage interest rates done between 1960 and today? How does that impact you as investor today? Why is this a perfect example of desirably asymetric risk and how to utilize it as a real estate investor?
What have typical mortgage origination fees and discount points been since 1960 through recent times? How does this directly impact you as a real estate investor today?
What percentage of households in the US are homeowners? How has that changed since 1960 through today? What does that mean for us as real estate investor landlords?
What is the median household income in the US—adjusted for inflation? And, how has that changed since 1980?
What percentage of household disposable income is spent on debt service and, separately, how much is spent on mortgage debt? How to think about this? How does this strongly play into favor for real estate investors that hold properties and mortgages for long per
