Given today’s changing market, it has become important to diversify your investment portfolio. By looking at more than just buying stocks and trading bonds, you can minimize the overall risk and benefit from maximum returns. Nowadays, many investors are turning to real estate, where they put their money directly into a property. This process usually follows two steps: Buy and flip the house, and either manage it as a rental or put it on the market.
However, if you are looking for a way to minimize your physical work then how about passive investing? Flipping and getting a quick return sounds too challenging but it is the true portfolio workhorse. The type of real estate investing we are talking about is multifamily housing that generates high returns.
This is where the workforce housing scheme comes in. A simple yet amazing project by professionals such as Maxwell Drever that is aimed at providing our workforce with affordable houses that are close to their workplace. This right here is one of the biggest benefits of investing in workforce housing.
Let’s take a look at a few others:
Increasing Millennial Demand
According to the Pew Research Center, 65% of millenials were renting houses and apartments in 2016. Since then, the demand has grown by a large margin. By 2018, only 8% of the millennial population was homeowners, as compared to the previous generation. However, back then, people had different preferences, which were concerned with renting, and delayed marriage and family planning.
Today, due to low inventory and high prices, Millenials are unable to afford to rent a house, let alone buy one. With so much going on, it makes sense to invest in workforce housing development projects as the ROI is high. Since Millenials prefer to live in luxurious houses, they often end up like those that are out of their price range. As a result, the demand for rentals increase and this is where workforce housing comes in.
Market Intangibles Promise a Successful Investment
The key to finding out in which area you should invest in is looking at the market tangibles. For example, search on factors such as proximity to offices and school districts, strong retail, convenient access to transit, and nearby dining and entertainment options. These are just some of the most in-demand amenities.
Short-Term Lease and Increase in Rent
Yes, workforce housing is affordable compared to standard options but that doesn’t mean owners cannot increase the rent. With the changing market, you can raise the rent steadily and still be able to attract new renters.
No Management Responsibilities
One of the best things about investing in workforce housing projects such as those by Maxwell Drever is that you are not responsible for managing the property. The person spearheading the project will take care of the daily issues and you can simply ask for a full report to make sure that you are in the know.
The reason why workforce housing is a worthy investment is that the market is expanding and jobs are diversifying. People from all over the world are looking for better job opportunities and there’s your opportunity to create a dream scenario for them where they can afford to rent a house close to their workplace and not face any commute problems.