Water woes are just warming up, Ventas buys senior-living REIT for $2.3B, Ginnie Mae goes long, Airbnb and VRBO take aim at party houses, adding some fun to your vacation rental.
In Today's News
New Water Wars Are Coming to the American West
The region's most severe drought yet signals a grim future of expanding battles over who gets the rights to the last drops, this Bloomberg Opinion piece says [subscription required].
The Millionacres takeaway: Real estate investors should start paying attention now to access to and supply of this most critical piece of infrastructure as they place their bets on a property's future.
REIT Buys REIT: Ventas to Acquire New Senior Investment Group for $2.3B
Ventas (NYSE: VTR) and New Senior Investment Group (NYSE: SNR) announced today they have entered into a definitive merger agreement pursuant to which Ventas will acquire New Senior in an all-stock transaction.
The Millionacres takeaway: This deal adds 103 private-pay senior-living communities across 36 states to a Ventas portfolio that holds a mix of about 1,200 properties that is heavily into senior housing, but also includes medical offices, rehab centers, and long-term care facilities. One of the nation's largest healthcare real estate companies just got bigger and more diverse.
Ginnie Mae Unveils 40-Year Mortgage Terms for Issuers
Only loans with terms greater than 361 months and less than or equal to 480 months will be accepted, but there will be no loan amount restriction, Ginnie Mae said. The mortgage bond giant said it expects the new pool to be available in October.
The Millionacres takeaway: Well, that's one way to address affordability issues: Stretch out the payments. Housing Wire says this new pool type will allow borrowers to make lower monthly payments but can still be sold on the secondary market.
Today on Millionacres
Airbnb, VRBO Uniting Against This Common Problem
To counter the problems posed by party houses, these two short-term rental leaders have launched their Community Integrity Program. As part of the program, both rental platforms will work with a third-party company to identify listings that have been banned from either site due to repeat party-related violations. And they're hoping that other rental platforms will join in that effort.
The Millionacres takeaway: Not only will the ability to weed out disruptive partiers be good for investors, but the industry itself could use this bit of vaccination against the viral spread of ordinances and other measures cities are taking to restrict or even ban such rentals in their jurisdictions.
Recreational Vehicles: Should Your Vacation Rental Come With Toys?
Many short-term rental investors are taking advantage of revived demand by raising their rates to help make up some of that revenue lost last year. But how about boosting demand by adding some fun stuff that gives your unit an edge?
The Millionacres takeaway: Our Nell McPherson points out the costs and other considerations of including boats, bikes, and more with your vacation property, but also how such gear can add glow to your online reviews and encourage even more stays.