BiggerPockets Daily

According to ATTOM Data’s latest Q1 2024 Single-Family Rental Market report, average gross rental yields on three-bedroom single-family homes are projected to rise by 7.55% this year. As ever, though, the devil is in the regional details. While some markets are offering landlords great rental margins—over 10% in some areas—others offer lackluster and/or declining returns. 

Let’s dive a little deeper into which markets the report identifies as hot—and which ones should give investors pause, based on their projected 2024 performance.

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This week’s headlines cover the recent Federal Reserve meeting that ended with Fed Chairman Jerome Powell announcing that rates would be higher for longer. Bond yields rose in response, sending mortgage rates back into the 7-8% rage. Meanwhile, Matt assesses whether the pandemic ever recovered from the pandemic by looking at prices, rates, and inventory.

https://www.biggerpockets.com/blog/why-the-housing-market-still-has-not-recovered-from-the-pandemic

https://www.bloomberg.com/news/articles/2024-04-16/powell-signals-high-rates-for-longer-due-to-persistent-inflation?srnd=economics-v2

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If you’ve ever dipped your toes into the world of personal finance, chances are you’ve heard of Dave Ramsey. He’s a household name in the realm of financial advice, known for his no-nonsense approach to getting out of debt and building wealth.

One of the cornerstones of Ramsey’s philosophy is cutting expenses to the bone, often focusing on small, everyday luxuries like coffee and dining out. While slashing these expenses can certainly free up some cash in the short term, I’m here to tell you that it’s not the path to true wealth. 

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Real estate and franchising are two popular investment options offering significant financial returns. Both allow you to earn passive income, enjoy tax benefits, and benefit from regular cash flow. However, a real estate franchise and real estate investing each have pros and cons to consider.

If you are considering investing in the housing market, which business model is best for you? Long-term wealth through property appreciation and regular rental income that real estate offers? Or the opportunity to own a tried-and-tested business model with instant brand recognition?

We’ll discuss whether investing in real estate or starting a franchise is best for your financial goals.

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Real estate investors accounted for 26.1% of low-priced home purchases in the U.S. during the fourth quarter of 2023, a record-high share, according to a new report from Redfin. Investors bought only 13.6% of mid-priced homes and 15.9% of high-priced homes sold during the same period. 

Redfin defined low-priced homes as falling into the bottom third of local sales prices. The median price investors paid for homes in the fourth quarter was $453,271, above the national median, according to Redfin data. That may be due to an increase in investor home purchases in several California cities, where many expensive homes fall into the low-priced tier relative to local prices. 

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2024 will be a crucial year for the U.S. economy, particularly around what the Fed will do with interest rates. But for the Fed to lower rates, they have to see signs of slowing growth.

What reliable signs are there that the economy is moving in either the recessionary or the growth direction? There has to be a better way to tell than using the Super Bowl Indicator (it doesn’t work, folks). 

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Disability benefits provide important lifelines to those who are unable to work due to various medical conditions. Although your ability to work while on disability will be limited, you may still be able to earn income from certain passive investments. Whether flipping houses while on disability will affect your benefits depends on your degree of involvement in your properties.

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Investing in forest land can be a great way to diversify your portfolio. Because tree growth doesn’t rely on economic factors, consistent biological growth can create more stable returns than other financial investments.

When you invest in forestry, you invest in a lower-risk asset that provides environmental benefits. This is often opposite what’s true for residential and commercial land, which is more prone to market disruptions and other market risks.

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Yes, many pundits are still warning about a recession in 2024. 

Here’s one example. Richard Duncan did a Macro Watch fourth-quarter update. He pointed out that between 1952 and 2009, all nine times total credit (adjusted for inflation) grew by less than 2%, and the economy went into a recession. 

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Last week, Realtor.com published another version of its ‘‘magic number’’ forecast. The number in question is the mortgage rate number low enough to ‘‘unfreeze’’ the real estate market. 

We know that the market has been in something of a gridlock for over a year now:

Something has to give. 

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