Ep 88 - 5 Trends Driving Real Estate in 2022

Hey, everybody. Flip and Danny here, founders of the Freedom Real Estate Group family of companies. And welcome to another episode of our podcast, which is called Freedom Through Passive Income. That's right. And today's episode is called Five Trends Driving Real Estate in 2022.

That's right. So we very often will tell you that we're not like the masters of studying economics or market shifts and data reports and things like that. We do look at them. We do read articles. Most importantly, we surround ourselves with the people who are the experts. And you are really good at predicting most certainly easier, the near future than the far future. But they've got some good knowledge and basics behind them to be able to more accurately have a good foundation of what's going to happen in the next two, three, four, five years. So we've been doing a lot of that. We've actually had another podcast episode where we were talking about that a little bit, but we thought we should speak on the things that are really impacting the market today and the future of real estate, which right now, real estate is the strongest investment vehicle that everybody's talking about, having conversations about so many different things. And another episode we're about to record is talking about the stock market versus real estate. And no, it's talking about. And we're talking. We're doing that one, too. So I'm starting to get ahead of myself. But we're talking about consistency and boring investments and why that is important, especially in a time like we're in right now. So, anyways, before I go off tangent and tell you five episodes ahead of time, get ahead of yourself, let's just talk about what's driving real estate right now in terms of the trends. The first one is obviously the pandemic. You know, a lot happened during the pandemic, and a lot of it has affected, you know, workforce, which is actually number two on here, which is the labor shortage. But even daily, I'm seeing articles about how Covid has affected people's even desire to better themselves, to have and hold a job, to keep the current employment, whether it be, I'm leaving because I want to be, you know, work from home because I have been, or I'm leaving because I don't want to work from home anymore near a virtual environment. I want to be back in the office with other people. There's just so many things that have changed and shifted because of COVID 19 and the effect that it had to all of us as humans. And so that's a big one. And just the effect that it has to us on humans doesn't even like go into the fact of how it affected real estate and everything that happened there. And you know, you had to be an essential worker. Right. To even keep on going. So so many things paused and got behind. And so therefore supply chain issues, which is number three. So to back back up, because I'm kind of rolling them all into one a little bit. COVID 19 the pandemic was number one, labor shortage as a. It had an effect. And we talked about that a little bit. Supply. Supply chain issues because of the labor shortage now had effect on that and the prices that are going up. And that was another episode. I think it was inflation, profit profiting that we talked about. Supply chain. And it's okay if it's costing more for you to produce something. If you in turn can raise the price to be able to get your same profit margin and you can pass on those extra added costs to the customer. But if you can't pass on those extra added costs, well, then you're in trouble. Right.

That's bad news.

Yeah. So all of these things are driving everything that's going on in the world today in different businesses as to why those are succeeding and why others are not succeeding. Real estate happens just to be at the top of the list that goes bam, bam. Everything is clicking. Even inflation right now. In fact, that might be number four. Here I go. Interest rates. Yeah. Number four is interest rates in response to inflation. Even inflation right now. Real estate is riding right along with it. As things get more expensive, rents can increase. So again, we're not hurting in the real estate world, whereas other businesses and other opportunities certainly are having a different type of effect. And then number five, this is something that necessarily, I don't want to say is a new trend. It's been a trend. We're just adding to it here because millennials and their desire or lack of desire to buy a home or now they cannot afford a home because prices are going up and it's hard for them to be able to get in. So they're starting to rent. And then the aging population and the need for things like senior housing, which we love. I love. I can't wait to buy our very first one. We almost did. We got so close to the finish line. But things like that, those are all things that are driving what is happening. Right. Even let's just talk about the short term rental space. Right? It is booming. We have so many friends in the short term rental space. I don't personally want to get into it because I'm a very conservative person. And that surprises people because I take big, big business risks. I will just go to the moon when it comes to business. But I know that I can rely on me. I know I can rely on you. Right. And so taking a big, big risk like that, knowing that we're the ones in control of the outcome is different than a short term rental where HOAs or, or cities regulations can change. We were just talking to, I've had multiple emails here even in Ohio saying boo, boo, boo, boo, boo. And they were trying to limit the amount of short term rentals. Somebody else that we were talking to recently was talking about the fact that this is the last one. They have put a line in the sand. No more short term rentals because they don't. And so I don't want to have a business that somebody else can control in terms of, I'm sorry, we're not going to allow these types of properties in this area anymore. And I underwrote and bought this deal based on the fact that I was going to do a short term rental. So I don't know, I'm sure there's ways to mitigate it. Have not researched it. Don't want to be in this space. But it's huge right now because all the things that we're talking about here.

Today, I mean it's another strategy. A lot of people don't want to be in the multifamily industry either. So it's to each their own.

Yes.

And they are wildly successful. And I'm just like, it's all you.

Yes. Yeah. And I love and support the, you know, the people because we'll probably vacation in their properties. So it's a good thing to have. It's just, it's, it's the things that are happening in today's world that are driving certain, you know, new ideas or booming ideas or causing some businesses to fail where others are rising. And now real estate, fortunately, why we wanted to talk about this today is because real estate is booming. It's strong. It's going to be strong for a very, very long time. We say two to three years. It's now, you know, being said supply and demand. It will last, you know that the height of it will last for another at least four years. So just it's pretty fun to learn and wanted to share it with you. Yeah, yeah, that's all.

You done?

Yeah, I got it. I'm done. Yeah.

Well, you said everything I was gonna say, so I'll just end it make sure you head over to our website freedomcapitalinvestments.com and make sure that you sign up for our investor club.

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But we always like to end all of our episodes with Invest Smart, Live Happy. Bye everybody. Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on this show are not guaranteed. All investment strategies have the potential for profit or loss, y'. All.

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