AOL Real Estate – Natalia Angulo
Following the lackluster August outlook for U.S. housing starts, it would be appropriate to ask why investors should consider putting their money into new home construction. U.S. housing starts rose less than expected amid a slowdown in the multifamily segment. While starts for multi-family homes dropped 11.1 percent to an annual rate of 263,000 units, single-family home starts went up 7 percent to 628,000 units, according to the Commerce Department.
The spike in permits for single-family homes suggested a strengthening of overall housing market, analysts say. David St. Pierre and Mitchell Schneider, co-founders of real estate private equity firm Legacy Capital Partners, or LCP1, would add the housing market is both stronger, but also the next hot investment to add to your portfolio. "Real estate is a great place to put your money," Schneider, who is the firm’s CEO, says. "On a risk-adjusted basis, it has a relatively low risk and a relatively high yield in the spectrum of investments with an immediate return."