Rising mortgage delinquencies, losing to insurers, trouble in student housing, hot spots for opportunity zone investing, and how to make your investment property a better investment.
In Today's News
Delinquencies Continue Climbing As Financial Pressures Build on Homeowners
CoreLogic (NYSE: CLGX) says the nation's serious delinquency rate more than doubled from May to June, reaching its highest level since February 2015. More than 7% of all U.S. mortgages are now in some stage of delinquency.
Why it matters: The analysts at CoreLogic say the data show that unless there's more government support, serious delinquencies could double again by early 2022. And that could put downward pressure on other market variables like home prices and equity.
Business Interruption Lawsuits are Not Going Tenants' Way
Retailers, restaurants, and other businesses have filed more than 1,000 lawsuits since March seeking courts' backing in their fight against insurance companies. Bisnow reports that It's not going well. Unless you're the insurance company.
Why it matters: Millionacres has been writing about these kinds of issues, too, which typically involve force majeure claims that the pandemic was an unforeseeable circumstance that prevented the tenant from fulfilling the terms of the lease. But when it comes to paying rent, that rarely works, and that's not good news for millions of small businesses or the landlords that host them.
COVID-19 Outbreaks Spell Trouble for Student-Housing Owners
The Wall Street Journal reported today what kind of hit student housing is taking as many colleges and universities go virtual in the wake of the pandemic.
Why it matters: Overbuilding already was a concern for this segment of the housing market, and now the pandemic is putting added pressure on investors hoping to make a return out of what used to look like a sure thing.
Today on Millionacres
11 Top Spots for Opportunity Zone Residential Investing
Eleven neighborhoods in seven states and the District of Columbia present the greatest ROI potential for residential developers interested in investing in opportunity zones, according to a new report from ATTOM Data Solutions and CityBldr.
Why it matters: By applying artificial intelligence techniques to sales data, these two number crunchers have teamed up to give potential investors some geographical guidance on where to go with their dough.
5 Ways to Improve Your Investment Property's Value
Millionacres' Aly Yale takes a look at some widely varied ways of making your investment property more valuable to lease and sell.
Why it matters: What raises property value also presumably should raise the rent and make the place more valuable when it comes time to sell.