You have to live somewhere… One of the fundamentals to consider in real estate investments is that residential properties are less subject to economic forces than office and industrial. Even in recessionary cycles, residential rental properties tend to fare well. The risks of residential are the costs associated with re-tenanting and the shorter life cycle of tenants. But interim vacancy can also be much shorter than commercial properties.
We believe residential is a good bet. This article from National Real Estate Investor is worth a read.
Commercial Real Estate Is An Investment, and Here’s the Reality of Multifamily Investment
You may hear some misgivings about investing in multifamily property, and that’s par for the course. Some people have had bad experiences, and it’s instinct to warn people away from something that hasn’t worked for them in the past. If handled properly though, a multifamily investment can be profitable and even lucrative. It may not be as fast-growing or “booming” as it has been over the past, but there’s still some major evidence to conclude that it is still a sound investment.
“As for the economy, 2019 appears likely to be a transitional year that will serve as a bridge from the robust conditions observed this year to sluggish “new normal” growth in 2020. But little evidence exists that this slowdown will be a precursor of an imminent recession.Barring an overreach by the Fed our macro models indicate that GDP will rise about 2 percent; establishments will create an average of 125,000 payroll jobs per month (versus 200,000 in 2018); and nominal personal income will rise nearly 4 percent.” – National Real Estate Investor
So, if you’re finding yourself feeling a little distrust with the multifamily market for 2019, remember that the market has continuously seemed to deny the pessimistic views of a few, and continued to stay stable and keep value over time. “Growth along these lines will preserve the multifamily market rally” –NREI. With that in mind, you may find yourself with opportunities this year. We say it may be the perfect time to take that leap. And here at Piedmont Real Estate Group, we look forward to helping you on that investment journey.
At Piedmont, we are thinking. About you. And the world around us. Let us help guide you as you seek to make sound real estate decisions.
Stay well and stay tuned…