subject: Apartment Buildings - 3 Reason Why You Should Invest In This Niche [print this page] Is this the right time to buy apartment buildings? Well, the answer is yes! Most real estate experts agree that this year is the perfect time to start investing in commercial Real Estate, in specific, apartment buildings. In fact, the CEO of one of the major firms, Humphreys and Partners LP considers that 2010-2012 will be the best years ever for those who own apartment buildings. Yes, in the February issue of Multi Family Housing News, Mark Humphreys says that he believes that the outlook for this sector is going to get better and better beginning the last half of 2010.
Now, you may be wondering how the experts can say this with so much optimism. In short, the reason is that the supply is limited and the demand is increasing. There are three main reasons for this difference in the demand and supply of apartment buildings:
Limited Supply. The supply is limited because these days only around 60,000 units are being constructed annually. And if you are expecting this supply to pick up in the coming years, DON'T. This number is pretty small compared to the usually 350,000 units which were constructed averagely on an annual basis in previous years.
Increasing Demand. The demand is going to increase. Consider the 70 million graduates coming out of college in the next few years who will need apartments of their own.
No Easy Mortgage. Mortgage money is not going to be easily available. No mortgage money means that people are more likely to rent apartments than to buy a home.
All these three reasons will combine together to make these next 3 years the best years ever for anyone who owns an apartment building. So, this is the right time to put in your money in this lucrative Real Estate niche - because you are not going to get an opportunity like this for at least another 20 years!
There may be some of you who remember the Savings and Loan industry crash in the early 1980s. At that time the Federal Government formed the Resolution Trust Corporation or the RTC to liquidate the millions of dollars worth of properties. They were sold so cheaply during that time that many people like Robert Kiyosaki made a fortune by buying these properties at very cheap prices.
Here is another chance right here and right now. FDIC is selling millions of dollars worth properties at very cheap prices. Mortgage institutions are selling houses at less than the loan amount and real estate prices are any way at an all time low.
This means that you can buy some great properties at fantastic discounts and then wait for the apartment boom in the very near future. And you can also not forget about the ever increasing inflation that is making the prices of all hard assets hit their all time highest. So, is this the right time to invest your money in apartment buildings? Yes, in fact this is a once in a life-time opportunity to do so!
