Evaluation of the real estate market is one of the most important factor that you have to consider if you are looking to get into this industry. Knowing who to sell to, how to sell and why you should sell what you have, are important tools for evaluation you have to consider.
Generally, the real estate market is very large, people who engage in this market understand that. You can’t lack some of the consumers who are looking for homes to buy or even business looking for a space to let. Knowing how to play in this market will help you a lot to escape the hands scammers looking for your cash.
When entering into the market, there are so many choices that you will be subjected to, you can choose to branch with the residential real estate, commercial real estate or even the industrial real estate. But divert your attention from the last two and focus on the first, residential real estate. This is a market that has been growing steadily. Comparing it with the commercial real estate and industrial real estate, residential is taking quite sharp maneuvers and still appearing on top of the chart in terms of investment opportunities.
Choose your communities
There are so many communities generally looking for a space to call a home. Making a smart choice here will help you emerge on the other end victoriously. One major focus is the Asian American. A community that has been predominant in most parts of the U.S. Dealing with the community is not that simple but at the same time, it is also not so hard. All you have to do is develop skills and the abilities to evaluate the size and the potential of growth, as far as investment in residential real estate is concerned, in the Asian American community.
Culture is a key element that as an investor you will have to consider. Asian American community has a smart culture that you will develop a liking to. Much more on a perpetual growth, you have to learn how to serve the clients from their own cultural dimension.
Asian community culture is one very simple both to understand and to take advantage of. Developing the kind of homes that meet the standards will help you maximize your performance on this market. Using the cultural context of the Asian American community, this could help you to effectively prosper in this market.
The AAPI in relation to Asian American homebuyers
The AAPI are the initials standing for the Asian American and Pacific Islander, you must understand the role of this body to maximize your gains in this industry.
This body comprises of the countries that make up the Asia islands- also called the Pacific islands. In total, the countries are 40. Currently, it is estimated that AAPI consists a population of not less than 19.5 million people. Here is the big fish that as an investor you must be willing to try and catch, by 2050, the general population of the AAPI is expected to rise by 134% meaning that, the population is growing creating a huge market for homes. The demand is rising.
Looking at the homeownership rates for the AAPI which the US Census Bureau began reporting as at July 2016, there is a sluggish growth rate compared to other communities such as the Non-Hispanic Whites. As at the second quarter of 2016, the AAPI had the second highest rate of homeownership of any segment of the population, standing at 53.7%
The total purchasing power for the AAPI
On a general note, this looks great, the Asian American produced 2 million in loans and for the mortgages, this averaged to about $600billion in originations. It is quite interesting because the average loan balance for this community is at about $300,000 making it one of the highest community.
By 2018, this community is expected to top $1 trillion making it the fourth largest state economy in the U.S after California, Texas and the New York. On the longer trend, this community has had its growth rate standing at 180% in a period of 14, 2000-2014. Proudly, this has almost tripled the Non-Hispanic Whites growth rate which is about 69%. If you look at the potential for business ownerships, there are about over 1.6 million Asian American owned business in the U.S. The data rose sharply between 2002-2007 by about 40%. This was according to the US Census Bureau Survey of Business Owners.
Why you need to consider this market a potential consumer
There are so many factors that will attract you to want to invest in a certain community but going with the cultural dimension, you are sure to be on the safer side. The Asian American community is known to be family oriented and non-confrontational in nature. The community highly values education and has a soft touch for fine arts. Basically they respect everyone and are guided by strong work ethic. The community is special in its own way and who wouldn’t want to sell his properties to such a community?
Homeownership constraints for the AAPI
Every good thing has a dark side and no matter how hard you try to disguise it; it will surely come out in the open. There are some constraints to homeownership for this community. One of them being the aversion to debt. Moreover, to buy a home, most of the Asian American people feel that it is best that they feel ready and financially stable, making the process an eternity.
The lack of understanding about the importance of the credit history and the credit score is another factor that hinders homeownership for this community and their unwillingness to share their personal information might deter you from investing in residential real estate with the Asian American community. These among many others, including language barrier are among the factors that real estate brokers do not want to deal with.
Working step to step with the AAPI community
You must be focused to work with the AAPI community on a longer term basis and when dealing with them, you must explain the information clearly and concisely. You must also be willing to demonstrate the fact that you have their best interest in mind.
Never make an assumption about ethnicity, language capabilities, income, national origin experience and knowledge, doing so, you might be toasting your long term chances with this community. Most of the real estate agent assume that affirmation means Yes. To this community it might mean something else.
All these are the factors that you will have to consider when investing with this community. Otherwise, it is one of the best consumers of the homes. In case you are wondering how to connect with them and become a part of them, the Asian Real Estate Association of America is one of the umbrella bodies that will help you become and agent and acquire deals for this community.