Buying an apartment building may be a good investment in light of the current prices and hot rental market.
The vacancy rate for big apartment complexes recently hit an almost six-year low as of June 30, according to commercial broker Marcus & Millichap.
Despite Record low mortgage rates and affordable home prices. A recent Harris poll reported Four of Five Americans Unwilling to Buy a Home.
The Phoenix area rental market is as hot as ever, partially fueled by Phoenix-area homeowners that have lost their home to the Great Recession and the housing crash.
Good news for owners of apartment real estate is that, despite the housing crash, Great Recession and illegal immigrate exodus the population of the Phoenix area is actually increasing.
And still even more good news for apartment investors is the Phoenix Business Journal, Citing data from Moody’s Analytics, reported that Arizona ranked No. 2 in America for expected job growth
Sectors with the greatest percentage increase in employment are Transportation and warehousing, Construction, Professional and business services.
According to Harvard’ Joint Center for Housing Studies,by 2015 the number of renter households will increase by 1.8 million. The study went on to show that minorities will be responsible for much of the gain followed by the Echo Boomers.
It is important if considering apartment real estate for investment, that Hispanics tend to prefer larger apartments whereas Echo Boomers tend to want high-tech offerings like high-speed internet and prefer to be close to shopping and entertainment centers.
If you are interested in buying an apartment building, even if you are not an institutional investor there are many smaller apartment buildings available for sale. Let me know how I can help.
This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.