Source:
Deaton Investment Real Estate & The Wake County Apartment Association
Thursday, June 28, 2007
Pete makes some good points...
So again, when your confident in your position to invest, go ahead and invest. Before someone else does.
Paralysis of Analysis
Monday, June 25, 2007
Saturday, June 23, 2007
If we've said it once...
This income increase can be attributed to the declining vacancy rates that have fallen below 8%. In fact, a local owner-operator we work closely with sent over 100 rent increase letters out to his tenants last month once he realized he had less than 1% vacancy in over 800 units. Not only are vacancies going down and rents going up but this movement is coming with a higher caliber tenant wanting (or needing) to rent.
With mortgage rates gradually climbing and even spiking over the last few weeks, people who were qualified to buy homes just six months ago are now being forced to rent just a little bit longer. This means higher income families are renting and the overall supply of renters in the area is increasing. We all know the law of supply and demand in a free marketplace and right now it is playing into the hands of investors. Who said you never use what you learned in school.
Don't believe us? Well, you might take some direction from Crosland, one the areas largest developers who planned to break ground on a downtown condo project in the coming months. However, just last week they announced they were refunding over 80 deposits and shifting the project to high-end apartments. So, if you have been thinking about investing in multi-family, you might want to think hard about jumping in now.
You can read more about the Crosland decision here. Or here in case that one doesn't work.
Wednesday, June 6, 2007
How about those Assets?
At a recent apartment market economic conference presented by the Triangle Apartment Association, a financial professional with Wharton, Gladden & Co. LLC. said that many investment professionals now consider real estate one of the four main investment assets that every healthy investment portfolio should include. The others are stocks, bonds and commodities.
Remember too, that there are several ways to analyze a real estate investment, and not everyone's method will return the same level of performance. Find one that works for you and stick with it. Remember that real estate valuation is not a math problem.