{"id":258,"date":"2022-08-19T09:12:54","date_gmt":"2022-08-19T14:12:54","guid":{"rendered":"https:\/\/33holdings.com\/learning-center\/?p=258"},"modified":"2022-08-19T09:12:54","modified_gmt":"2022-08-19T14:12:54","slug":"is-build-to-rent-emerging-as-a-more-sustainable-solution-for-stakeholders","status":"publish","type":"post","link":"https:\/\/33holdings.com\/learning-center\/2022\/08\/19\/is-build-to-rent-emerging-as-a-more-sustainable-solution-for-stakeholders\/","title":{"rendered":"Is Build-to-Rent Emerging as a More Sustainable Solution for Stakeholders"},"content":{"rendered":"

The most recent reports on the economic statistics in July indicate a mild drop in the <\/span>inflation numbers. <\/b>However, it has also highlighted a considerable drop in the <\/span>average income of US households<\/b>. Wages are falling, Inflation is rising, and Bills are soaring.\u00a0<\/span><\/p>\n

The soaring cost of living has precipitated a <\/span>housing crisis<\/b> in the United States as an increasing number of people are unable to buy a house outright, especially the Millennials and Gen Zs. This has led to a spike in the demand for <\/span>single family rental homes<\/b> as well as <\/span>multi-family rental homes<\/b>.<\/span><\/p>\n

At such times, <\/span>build-to-rent<\/b> real estate investments \u2013 be it <\/span>private equit<\/b>y funds <\/span><\/a>or an actual <\/span>build-to-rent<\/b> property itself,\u00a0 stand out as a <\/span>prudent investment<\/span><\/a>. For <\/span>new investors<\/b><\/a>, this asset class stands out as the most promising when it comes to <\/span>generating consistent yields<\/b> as long term <\/span>passive income<\/b>.\u00a0<\/span><\/p>\n

\u00a0Historically, quality investments in the real estate sector, be it <\/span>private equity real estate funds<\/b> or an actual <\/span>build-to-rent<\/b> property<\/span><\/a>, have always delivered good and consistent yields irrespective of the state of inflation, be it the <\/span>Southwest real estate<\/b> market or across all of the United States.\u00a0<\/span><\/p>\n

Why does it make sense to invest in build-to-rent?<\/b><\/p>\n

In the current scenario, <\/span>strategic investments<\/span><\/a> in the <\/span>real estate <\/b>sector are not a challenge. However, there is a <\/span>need for a paradigm shift<\/span><\/a> in how such investments are routed to the <\/span>right segment of real-investment infrastructure<\/span><\/a>.\u00a0<\/span><\/p>\n

One of the contemporary areas of infrastructure development, wherein quality investments can reap potential benefits is the \u201c<\/span>build-to-rent<\/b>\u201d. Technically \u201c<\/span>build-to-rent<\/b>\u201d can be defined as a systematic investment wherein the reputed property dealers and builders engage in property development that is exclusively available for the public to rent.<\/span><\/p>\n

How does build-to-rent address the US housing crisis?<\/b><\/p>\n

Be it <\/span>Bloomberg<\/span><\/a> or any other survey, everyone has declared there exists a <\/span>housing crisis<\/b> in the United States. <\/span>The United States is falling short of 1.5 million houses for people to stay in as of today, per a White House briefing<\/span><\/a>. The global figures are even more stark \u2013 the World Bank estimates that 1.6 billion people would be impacted by a housing shortage by 2025!<\/span><\/p>\n

When <\/span>build-to-rent<\/b> housing communities are developed, it provides a <\/span>ready solution for those engaged in house hunting<\/b>. They can move in quickly and have a place for themselves. It becomes even more attractive when a <\/span>real estate firm<\/b><\/a> makes a prudent decision to develop such an asset in a location which has good transport links, provides amenities and becomes a social connector.<\/span><\/p>\n

In the foreseeable future, the United States must be able to solve the housing crisis in hand and prevent it from becoming bigger than what it is.\u00a0<\/span><\/p>\n

The development of <\/span>build-to-rent<\/b> homes provides a <\/span>succor to people in need of houses<\/b> and <\/span>uplifts the entire community<\/b> in which they are developed. This is simply because small businesses can thrive when they have a readily available customer base to work with. A steadily improving business means more people get jobs.<\/span><\/p>\n

Build-to-rent is a win-win for tenants as well as owners of such properties. <\/span>Longer tenancies<\/b>, an <\/span>assured<\/b> rental income<\/b> which is a steady source of <\/span>passive income<\/b> and adds to <\/span>wealth generation<\/b> makes it an extremely prudent decision for those who want to invest their monies in a safe and <\/span>high class asset<\/b>.<\/span><\/p>\n

How do private equity real estate investment firms help?<\/b><\/p>\n

Often, <\/span>build-to-rent<\/b> properties are developed in strategic locations based on the demand from the salaried class and middle-class public are high. Ascertaining the <\/span>right areas to develop<\/span><\/a> build-to-rent <\/b>assets is only possible when <\/span>prudent investment decisions, strategic acquisition acumen and foresight of what could happen in the future<\/span><\/a> is contemplated by <\/span>private equity real estate investment<\/b> firms.<\/span><\/p>\n

33 Holdings <\/b>as a <\/span>private equity real estate<\/b> firm brings in the right mix of an <\/span>astute acquisition strategy<\/b>, property management and rehabilitation <\/span>(vertical integration capabilities<\/b>) backed with deep insights of judicious <\/span>financial asset management<\/b>.\u00a0<\/span><\/p>\n

For <\/span>potential investors<\/b>, the right set of investments in <\/span>build-to-rent<\/b> properties can be a long term, risk free, consistent source of <\/span>passive income<\/b>.\u00a0<\/span><\/p>\n

The 33 Holdings team can be reached via <\/span>email<\/b> (<\/span>ir@33holdings.com<\/span><\/a>) and <\/span>phone<\/b> (678.824.4508).<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The most recent reports on the economic statistics in July indicate a mild drop in the inflation numbers. However, it has also highlighted a considerable drop in the average income of US households. Wages are falling, Inflation is rising, and Bills are soaring.\u00a0 The soaring cost of living has precipitated a housing crisis in the […]<\/p>\n","protected":false},"author":2,"featured_media":259,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47,45,46],"tags":[],"class_list":["post-258","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-33-holdings","category-real-estate-hedge-funds","category-real-estate-investments"],"_links":{"self":[{"href":"https:\/\/33holdings.com\/learning-center\/wp-json\/wp\/v2\/posts\/258","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/33holdings.com\/learning-center\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/33holdings.com\/learning-center\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/33holdings.com\/learning-center\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/33holdings.com\/learning-center\/wp-json\/wp\/v2\/comments?post=258"}],"version-history":[{"count":1,"href":"https:\/\/33holdings.com\/learning-center\/wp-json\/wp\/v2\/posts\/258\/revisions"}],"predecessor-version":[{"id":260,"href":"https:\/\/33holdings.com\/learning-center\/wp-json\/wp\/v2\/posts\/258\/revisions\/260"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/33holdings.com\/learning-center\/wp-json\/wp\/v2\/media\/259"}],"wp:attachment":[{"href":"https:\/\/33holdings.com\/learning-center\/wp-json\/wp\/v2\/media?parent=258"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/33holdings.com\/learning-center\/wp-json\/wp\/v2\/categories?post=258"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/33holdings.com\/learning-center\/wp-json\/wp\/v2\/tags?post=258"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}