Investors are planning on buying up real estate in the US in order to sell it on at a later date or rent it out at a profit, claims Alternative Asset Analysis (AAA).
The alternative investment advocacy group made the remarks after the release of a study showing that real estate investors are planning to up their investments in the coming 12 months. This is despite the fact that house prices are rising and some insiders claimed that it was becoming harder to make a profit on the housing market.
The study, carried out by BiggerPockets.com, a website for real estate investors, found that 65 per cent of those already investing in real estate in the US were planning to considerably increase their investments over the coming year.
“These results show that investors are just as keen on alternative investments as ever and are confident that there is still plenty of money to be made in the real estate investment industry – especially through the buy-to-let angle,” claimed Anthony Johnson, AAA’s analysis partner. He added that investors may actually contribute towards the recovery of the US housing market.
The study also found that a large number of house owners are spending thousands on renovations. The recovery of the housing market and the popularity of undertaking home improvements is great news for the forestry sector, according to AAA. Mr Johnson said, “We predict that the recovery in the housing market in the US will mean more demand for timber, which will drive up lumber process and returns for forestry investors."
AAA advocates sustainable forestry investment, through plantation projects such as those run by firms like Greenwood Management in Brazil and Canada. “Investing in forestry through projects like these is a popular alternative investment choice for those who want to put their cash into something more tangible than stocks and shares,” added Mr Johnson.
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