Rising Rates and Insurance Costs: A Strategic Response to the Current Real Estate Landscape

Rising Rates and Insurance Costs: A Strategic Response to the Current Real Estate Landscape

In the whirlwind of today’s real estate market, it’s crucial for buyers and investors to understand the evolving landscape, especially with mortgage rates and insurance premiums on the rise. Recent updates indicate that mortgage rates have jumped significantly, with conventional loans hitting 7.25%, up from 7.00% just last week. This uptick is a stark reminder that waiting for rates to drop might leave potential buyers in a state of perpetual hesitation, especially with hints from the Federal Reserve that rate cuts could be postponed until after the presidential election in November.

The mantra in real estate investment has long been “Don’t wait to buy real estate; buy real estate and wait.” This holds particularly true in today’s volatile market. The potential for refinancing when rates eventually lower means that locking in at current rates could still be a wise decision, despite the upticks. This approach allows investors to “date the rate” while owning the asset, which can appreciate over time, proving beneficial in the long haul.

Don’t wait to buy real estate; buy real estate and wait

Moreover, the significant rise in insurance premiums, especially noted in states like Florida and California, adds another layer of complexity to real estate investment. In Florida, for instance, annual premiums for properties on the Intracoastal have skyrocketed from $12,000 to an astonishing $80,000. This surge is squeezing investors and homeowners alike, making it increasingly difficult to maintain profitable margins on properties, particularly those intended for rental or Airbnb purposes.

Risky Moves

The situation has become so dire that some homeowners are opting to go without insurance altogether—a risky move for anyone, especially those with mortgages that require insurance coverage. This trend highlights the need for potential investors to diligently check insurance rates before committing to any real estate purchases in high-premium areas. The concept of “catastrophe insurance” might offer some solace, allowing property owners to raise their deductibles significantly in exchange for lower monthly premiums, a strategy that could mitigate some financial strain while still providing coverage in extreme scenarios.

The Ripple Effect

The broader implications of these shifts are not confined to personal finance or property investment alone. They ripple out to affect various sectors, including tourism and agriculture. For instance, the requirement for advance reservations at several national parks across the U.S. can influence vacation planning, reflecting broader regulatory and environmental considerations. Similarly, the recent avian flu outbreaks have not only impacted poultry production but have also led to fluctuating egg prices, affecting consumers nationwide.

Fake Seafood?

Lastly, the evolving dietary landscape, with rising interest in plant-based foods including “fake seafood,” marks a shift in consumer preferences that could reshape food industries and investment opportunities therein. This trend towards vegetarian and vegan diets is creating new markets for innovative food products, which could have long-term implications for food production and sustainability practices.

In Summary

The current financial climate, characterized by rising rates and escalating insurance costs, demands a proactive approach to real estate investment and personal finance. For those pondering real estate investments or managing existing assets, the time to adapt strategies is now. Whether it’s exploring higher deductibles for insurance, seizing investment opportunities in emerging food markets, or simply understanding the broader economic indicators, the savvy investor or homeowner must stay informed and agile in response to these changing dynamics.

Learn how to take advantage of shifting market conditions using real estate to target stability and returns inside your portfolio.   Book a quick call with one of our Investor Relations team members to learn more today.  Book now!

NOT PROFESSIONAL ADVICE. Neither Secured Investment Corp. nor any of its affiliates are registered investment advisors or broker-dealers and do not provide investment or financial advice. No communication from Secured Investment Corp. or its affiliates through this email, its websites, or any other materials is intended to be or should be construed as investment, tax, financial, accounting or legal advice. While the data we use from third parties is believed to be reliable, we cannot ensure the accuracy or completeness of data provided by other third parties. As such, we do not make any representations as to the accuracy or completeness of the information contained in this email and undertake no obligation to update the information

NMLS #160709 • Please click here for the Secured Investment Corp NMLS Consumer Access Page

Secured Investment Corp and its members, officers, directors, owners,  employees, agents, representatives, suppliers and service providers provides this website for informational purposes only. By using this site, you are subject to our Terms of Use and our Privacy PolicyPlease read these carefully before proceeding. In exchange for using the site, you agree not to hold Secured Investment Corp, our affiliates or any third party service provider liable for any possible claim for damages arising from any decision you make based on information or other content made available to you through this site.

Neither Secured Investment Corp. nor any of its affiliates are registered investment advisors or broker-dealers, nor do they provide tax or financial advice and do not represent in any manner that the outcomes described herein will result in any particular tax or financial consequence.

The information on this website does not constitute an offer to sell the membership interests identified herein in any state or jurisdiction in which the issuer is not qualified to do so.


All investments contain risk and may lose value, and any investment with Secured Investment Corp is considered speculative. There are no guarantees of distributions or returns, and an investor may lose all or a part of their investment. Past performance is no guarantee of results, and any historical returns, target returns, expected returns, disclosed rates of return, disclosed earnings statements, or probability projections may not reflect actual future performance. Investors should not rely on forward-looking statements because such statements are inherently uncertain and involve risks. Any reliance on figures presented is done so at the investor’s own risk. Secured Investment Corp cannot guarantee that investors will achieve similar returns as prior investors.

Secured Investment Corp encourages investors to invest carefully. All investors are advised to fully understand all risk associated with any investment the investor may choose to make. Accordingly, you should consult with your own attorneys, accountants, and other professional advisors prior to making an investment. The Fund files audited annual and unaudited semiannual financial reports which are available for review here.

Circle of Wealth Fund III LLC has filed offering circulars and may additionally post-qualification amendments (including supplements to such filings) with the Securities and Exchange Commission (the “SEC”) covering the current offering of membership interests. An investment in membership interests entails risk of loss, and you may lose all or part of your investment. Each investor should carefully consider the risk factors and other information discussed in the qualified offering circulars/PQAs (and current supplements, if any) before purchasing membership interests. For more information on the Risk Factors and Cautionary Notes of investing with Circle of Wealth Fund III LLC, please click here: http://las.cogo.membership.site.s3.amazonaws.com/COW/COWIII-RISK-FACTORS.pdf

Offerings by Circle of Wealth Fund III LLC: The Offering Circular is available here: https://www.sec.gov/Archives/edgar/data/1762825/000173112220000349/e1852partiiandiii.htm

Generally, no sale may be made to you in this Offering if the aggregate purchase price you pay is more than Ten Percent (10%) of the greater of your annual income or net worth. Different rules apply to accredited investors and non-natural persons. Before making any representation that your investment does not exceed applicable thresholds, Investors are encouraged to review rule 251(d)(2)(i)(c) of Regulation A. For general information on investing, Investors are encouraged to refer to www.investor.gov.

A copy of these materials may also be obtained for free on the SEC’s website at: https://www.sec.gov

The information above presents a general summary of the business and the purpose and principal business terms of an investment in the Company. This summary does not purport to be complete and is qualified in its entirety by reference to the more detailed discussion contained in the Offering Circular.

Photos of real estate assets depicted are not part of this offering. These are representations of past transactions conducted and underwritten by the Secured Investment Corp. management team. These transactions are representative of the types of transactions and assets that the Fund will be participating in.

Articles or information from third-party sources outside of this domain may discuss Manager and/or Company (or its affiliates) or relate to information contained herein, but Manager and/or Company and its affiliates do not approve and are not responsible for such content, nor does Company make any representations as to the accuracy or completeness of the information contained on third-party websites. Hyperlinks to third-party sites, or reproduction of third-party content, do not constitute an approval or endorsement by Manager and/or Company or any of its affiliates of the linked or reproduced content.

Neither the SEC nor any state securities commission or regulatory authority approved, disapproved, endorsed, or recommended the merits of the offering described in the Offering Circular or reflected on this website.

Manager’s and/or Company’s services do not constitute “crowdfunding” as described in Title III of the Footer 3e Jumpstart Our Business Startups Act (“JOBS Act”).