okay so for the last seven days i've pretty much locked myself in my room
and i've only emerged for you know like christmas stuff
now you might be asking why why why daniel did you lock yourself in a room
and what could you have been doing and no i wasn't playing starcraft like all the other korean guys
but what i was doing was research a lot of research i mean research report after
research report and article after article after article a lot of reading thinking searching and
listening and all really just to answer one simple question which is what is the best real estate to
invest into for the year 2022. now to say i spent hours on this is an understatement it feels like
it's been years so in the spirit of new year's resolutions i'm going to take all that time i
spend and condense it by sharing with you my top three real estate assets to invest into for 2022.
now before we get to the list let's talk about even more good news which is that according to
cbre's 2022 u.s investment outlook which is right here the investment volume which is the amount
of transactions that happen within a certain period of time is projected to increase five
to ten percent in this upcoming year and what that pretty much means is that what people are looking
to do more deals going into 2022 compared to even 2021 and this is being fueled by the projection
that more capital is going to enter the real estate industry more so than in 2021 and of course
with continued lower financing costs we also can't forget the fact that a lot of the capital that's
going to enter the real estate industry is from investors not only in the us but also outside
the us as well so long story short it's projected that not only more investors are going to enter
the real estate business but they're going to be even more trigger happy than they were in 2021
now of course before we move forward a little disclaimer this is not formal investment advice
guys these are just my personal opinions that i have formed with research i highly encourage you
guys all to do your own research and talk to your financial professionals on what's the best for you
now guys with that said let's move forward and don't forget to stick around to the end of the
video because i did save the best for last and that my friends is what brings us to the first
point which by the way okay granted a lot of assets performed really well in 2021 especially
real estate but if you're looking for who to give the award to for which asset performed the best
in the last 12 months well that award will go to self storage
as a matter of fact the five publicly traded reits that are oriented around the self storage
business well they've performed returns between 35.6 and 47.4 percent for the year of 2021 and
even looking at occupancy records well 2021 was a year full of broken records in terms
of how high occupancy rates got and how well they sustained which was around 95 percent
all throughout the year and according to a small local publication known as the new york times
self storage did so well in 2021 that blackrock took a huge bet on self storage and
was so optimistic that it purchased simply sell storage it acquired simply self storage for 1.2
billion dollars so with that said in my opinion here's the real reason as to why self storage
absolutely just crushed it in 2021 and it has a lot to do with this chart what this chart shows
is the home ownership rate in the united states and what i want you to focus on is quarter one
of 2020 which is right before this giant spike the home ownership rate there is 65.3 percent
but by quarter two of the exact same year which i cannot stress enough it's 67.9
that's almost a four percent increase within a span of three months i mean that is absolutely
unheard of that's insane and if you actually zoom out and look at this chart starting from
1965 which is when the feds started tracking this nothing comes even remotely close but
then we see this giant dip and as quickly as it rose it dipped almost just as fast
so at this point you might be asking well what does all this have to do with self storage well
let's actually look at what happened so you see you had a lot of people who bought homes
in the beginning of 2020 and whereas a lot of people thought that the pandemic was going to
destroy the housing market it actually set it on fire and every realtor in america
didn't matter where they were conducting business were saying oh my gosh the market
it's so hot right now and what did this have people do it had them start selling their home
i mean you had a wave of individuals in their 50s and 60s selling off their home knowing that
they'll get 20 to 30 000 above their asking price and of course this really motivated and triggered
the downsizing that they've been wanting to do for a couple years get out of my house
and well what do you think happens when people move from a four bedroom house to a two-bedroom
apartment you need a little bit of extra space and considering that most experts are saying
that 2022 is in many ways going to be a 2021 part 2 i would say that self storage is a pretty strong
and viable option for individuals to look into now 2023 that's a whole different story
as because the indicator for why it was so successful in 2021 isn't necessarily constant or
sustainable but what keeps me optimistic for the future is that millennials my generation and gen z
alike seem to be at least gravitating away from owning a home more towards
renting and that gives a pretty bright future for the business of self storage and also the great
reset because remember you will own nothing and you will be happy now speaking of the future this
is what brings us to point number two now with that said i don't think i need to regurgitate
or mention how popular cryptocurrencies and nfts have gotten in the last 18 to 24 months
i mean chances are if you're watching this video you have a pretty decent idea on what an nft is
and what different cryptocurrencies are available and out there however a lot of you may not know
what data centers are well according to million acres a data center is a facility that provides
a secure and reliable environment for customers to house servers and also other computing equipment
these facilities generally have a reliable and uninterruptible power sources along with cooling
equipment and a high level of security and well if you continue with the same source million acres
they actually predict and project that by 2025 artificial intelligence market will
grow from 11 billion to 90 billion which by the way is only three years from now
and also considering the amount of complementary businesses and activities that are surrounding
stuff like ai cryptocurrencies blockchain nfts the rapid growing future of a metaverse along
with other channels that i haven't even mentioned data centers from a brick and mortar standpoint
could be a great way to ride the wave of what's happening in terms of technology and look a lot
of investors i'm sure are skeptical they're saying that cryptocurrency will always remain a commodity
and the metaverse is just some silly trend but here's my question to you especially if you're
over the age of 40. 20 years ago did you ever think for one second that you'd be inputting in
your credit card information buying things off the internet and have it show up at your door
hours later let alone days later i mean we spent hours on this thing so why wouldn't we
spend hours in the metaverse just think about it that's all i'm saying because with this new wave
of technology there are certainly opportunities within the real estate space and that's one of my
favorite things about investing in real estate is that no matter what happens with technology
with mankind there's always going to be an opportunity and need associated with real estate
and people will always need a place to live that hasn't changed in the last thousand years and it
won't change the next thousand years which leads us to our last and final point which by the way
remember this chart yep the home ownership rate in the us well currently what's interesting is
that the average home ownership rate for the last 20 years was 65.4 percent and well guess where
we're at right now yep 65.4 we're exactly in the middle of the road when it comes to home ownership
in the u.s but guess what none of that might not even matter and here's why because according to
business insider we are still seven million homes short of solving our housing shortage
crisis and the best that congress can come up with in terms of a real plan to combat this
is to create one million homes with the plan that they signed which by the way would lead me
to say that i believe multi-family and apartment complex investing looks to be really solid for
2022. now at this point some may say hey man why don't we build just more homes man why can't we
just take all the shipping containers and make tiny homes man well first and foremost most of
those shipping containers are right now out at sea just sitting there and also now might be
a good time to mention that construction costs spiked year over year in the month of november
15.3 percent and by the way that spike is the highest that we've seen in over 50 years
we hear you millennials so not only do we have a massive shortage in housing but we also have
very little hope in homes actually being built without them costing an arm and a leg and at
the same time we have the millennial and the gen z generation the biggest in size one after
the other who are more so leaning towards renting than being burdened by the cost of home ownership
and all three of these things point towards apartment investing being great not only in 2022
but potentially for the next five to ten years and just to associate all of this with real data
according to globe street there were four times in 2021 where the vacancy rate for apartments
across the u.s hit record lows with the end of the third quarter in 2021 seeing a vacancy rate of 2.7
and within the same time period new lease demand went up 50.5 year over year and apartment resident
retention which is how many people are actually staying in their apartment is up 58 which by the
way is also a new record and according to apartment guide nationwide rent prices for
both one-bedroom and two-bedroom apartments have increased significantly year-over-year
21.3 and 16.7 respectively and last but not least corelogic also shared that the third quarter of
2021 we sell rents hit a 16 and a half year high with many experts saying that it will not slow
down in 2022. now guys if you want to do this yourself raise capital and create a real estate
business and learn how to do this i created a four part free course right here on our youtube channel
and you should be able to see that right there now if you're an accredited investor and you're
wanting to do this passively there's a link in the description for you as well so with that said
guys don't forget to subscribe to our youtube channel share this video and if you're feeling
extra so generous like this video as well so with that said guys i'll see you in the next one