Real estate investors may purchase more properties

Real estate investment may increase.

Active investors in the commercial property market plan to make more acquisitions over the next year compared to the previous 12 months, according to a report completed by ORC International for BiggerPockets.com. The news may be positive for commercial property managers, as continued investment could signal a growing market.

Nearly two-thirds of real estate investors considered active in the market noted they will purchase properties in the next year, the report showed. When splitting the figure up, nearly 40 percent will purchase more than the previous year's level, while one-quarter will increase the purchase level during that time. Less than one-third said they would lower the level of properties acquired.

"Though housing markets are changing across the nation, investors are still seeing great opportunities," said Joshua Dorkin, founder and CEO of BiggerPockets.com. "Hundreds of thousands of foreclosures and short sales are coming to market and rents are continuing to improve in most markets, creating a positive environment for the nation's 28.1 million residential real estate investors. They will certainly continue to be major players in the nation's housing economy for the foreseeable future."

Investors already spending toward market improvement
More investors have spent increased amounts in the commercial market, which much of it focused on housing market improvement, according to the report. The Neighborhood Stabilization Program was created to do the same thing, but investment from private investors jumped by close to four times the program's level. Overall, investors spent $7,500 per property in repairs, which was more than $9 billion.

Chris Clothier, a partner at Memphis Invest, explained in the report that investors have done a significant amount to deal with local housing issues, but these have also helped out the greater economy. Purchasing damaged or distressed homes and revitalizing them can help raise home prices in the neighborhood. Additionally, home repairs help employ local tradespeople, which creates jobs and helps further strengthen the economic structure of the area.

The report added that due to lower interest rates, more investors showed interest in purchasing property. Approximately seven in 10 explained that this would help convince them to purchase more, if it came with relaxed financing restrictions. Additionally, 54 percent noted that improved levels of tax incentives would be important to encourage further spending.

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