Taking the multifamily plunge: the water’s fine!

With all the talk of a fiscal cliff it’s easy to forget another precarious situation that wrecked havoc in recent years: the investment gap. Financial markets rocked, the stock market roiled, and even ‘safe’ instruments became dangerously unpredictable, while more ‘creative’ funds proved to be totally worthless.

 

Interestingly, there is one time-worn investment that has remained stolid and strong. It’s multifamily property. 

Even in troubled times, everybody needs a place to live. And with the uncertain housing market convincing more families to rent, multifamily property is proving to be a powerful renewable investment.

 

 

Here’s why:

 

• Those who sat out the housing market have now accumulated cash. They have the means to acquire property and no end of reasonably-priced inventory available. Early movers can avoid the rush, and still negotiate great deals. But this could be a limited time offer.
• Having weathered the financial storm, NYC multifamily real estate offers an unusually desirable proposition; an ongoing and increasing rate of return. Not only does an apartment ownership bring in a reliable monthly income but it is one of the few investments that can actually increase in value, given even the smallest improvements. Stocks and bonds can’t be enhanced, they don’t amortize, and the investment has no control over their growth potential.
• Having been ultra-conservative in their lending policies to date, financial institutions are itching to reenter the mortgage market. Banks are becoming more confident about the economy, and are eager to serve qualified real estate buyers.
• Multifamily building ownership allows an investor to enter the real-estate field while getting paid; it’s the ultimate ‘on-the-job training’.
• Over the sweep of time, property value has climbed an average six per cent a year, while many stocks – and the companies they belong to – have lost value or vanished entirely. Long story short, buildings endure.

 

These arguments represent the very tip of a large iceberg; the many reasons multifamily property is a wise investment. My advice is to take the plunge now. Icebergs aside, the water is amazingly warm and clear!