Ken McElroy Show
ChatGPT Predicts the top Real Estate Warnings for 2025
May 9, 2025
Robert Helms, from The Real Estate Guys, brings years of radio experience to the table, discussing pressing real estate challenges for 2025. They delve into the implications of rising interest rates and a staggering $9 trillion debt rollover. The conversation highlights the shift from homeownership to renting and the possible inventory shortages ahead. There's also a focus on the significance of strategic thinking in investments and the importance of networking, especially with the upcoming investor summit at sea.
34:54
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Quick takeaways
- Rising interest rates and the overall cost of capital are significantly impacting homebuyers and investors, leading many to reassess their investment strategies.
- A shift towards renting over homeownership is emerging due to affordability challenges, presenting unique opportunities for investors in the evolving housing market.
Deep dives
Interest Rates and Cost of Capital
The rise in interest rates and the cost of capital are major concerns in the current real estate market. Higher interest rates have led to a significant shock for potential homebuyers, discouraging many from moving or upgrading their homes due to the unattractive prospect of increasing their mortgage from a low rate to a significantly higher one. Investors must also consider the overall cost of capital, which encompasses both debt and equity, making sure the returns from potential investments exceed these costs. Consequently, many investors are opting to pass on deals if the numbers do not align with these heightened costs.
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