510 | Real Estate 2024 Update | Scott Trench

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Sep 16, 2024

Scott Trench, CEO of BiggerPockets and real estate expert, dives into the 2024 real estate landscape. He discusses the 'lock-in effect' of low-interest mortgages, making homeowners hesitant to sell. The debate between renting and buying is explored in-depth, reflecting today's financial realities. House hacking is revisited, assessing its viability in the current market. Scott examines the impacts of rising interest rates on both commercial and multifamily real estate, while also urging investors to stay vigilant and find opportunities in downturns.

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INSIGHT

Lock-In Effect

Rising interest rates create a "lock-in effect."
Homeowners with low mortgage rates are less likely to sell or refinance.

INSIGHT

Rent vs. Supply

Rent prices haven't risen consistently due to increased housing supply.
This effect is regional, with cities like Austin experiencing a surge in inventory.

ANECDOTE

Personal Home Purchase

Scott Trench recently bought a house despite acknowledging renting is often financially smarter.
He prioritized emotional factors like stability and family needs.

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In this episode: the lock in effect, renting vs buying, househacking in 2024, interest rate, and real estate investment.

In this episode, Scott Trench of BiggerPockets shares invaluable insights into the 2024 real estate market, breaking down everything from housing supply to interest rates, syndications, and investment strategies. Whether you’re a seasoned investor or just curious about real estate, this episode provides a window into the current state of real estate investing the FI way!

🔑 Key Themes Discussed:

The impact of rising interest rates on real estate markets in 2024
The “lock-in effect” and how low-interest mortgages affect housing supply
Rent vs. buy decisions in today’s market
The rise of multifamily and single-family housing supply, especially in regions like Austin
House hacking in 2024: Is it still viable?
The state of commercial real estate and multifamily investments
How interest rate trends impact real estate investors
Opportunities for investors in a downturn: Finding deals amidst crisis
Syndications: Potential pitfalls, bad actors, and lessons learned for 2024
Real estate investment strategies: What to do with your mortgage and how to balance risk

🕒 Chapters:

00:00 – Introduction: Welcoming Scott Trench
01:00 – Rising Interest Rates and Market Effects
03:00 – Housing Supply and the Lock-in Effect Explained
04:30 – Rent vs. Buy: How the Calculus Has Changed
09:00 – The Build-to-Rent Industry and Single-Family Rentals
12:00 – House Hacking in 2024: Is It Still Worth It?
16:00 – Multifamily Housing Supply and Regional Trends
17:00 – Commercial Real Estate: What’s Happening Now?
20:00 – How Interest Rates Are Crushing Commercial Investors
24:00 – Opportunities Amidst a Crisis: Where to Find Deals
27:00 – The Real State of Syndications: Risks and Rewards
33:00 – Evaluating Syndicators: How to Find Good Deals in 2024
36:00 – Real Estate Investment Strategies: Notes, Funds, and Lending
43:00 – Pay Off Your Mortgage or Invest?
50:00 – Long-Term Real Estate Bets and Holding Strategies
56:00 – Wrap-Up: Key Takeaways and Final Thoughts

🔗 Mentioned Links and Resources: