INVESTING IN PROPERTY

As you probably know if you have followed any of our blogs, we definitely feel it is important for the average American to be investing in property.  We are in the selling investment real estate business but we encourage our potential clients to properly analyze their retirement investment options before they buy anything.  It is even more important to have a good understanding of important personal goals so that those can be taken into account in building the best retirement plan to fit those goals.  All this should be done along with a program to give you a good understanding of all the basic principles of investing in income property.  Check our web site as we have many free publications that can help. Once you have the education and are feeling comfortable about the investment property business it will be time to get moving toward investing in property.  There are many types of property that you can buy as an investment but we believe the best real estate investments are apartment buildings.  When we say apartment buildings we are including even small properties like a duplex so don’t think you have to get started buying a 20 unit building.  Actually it is far better to start small to gain experience and work up to larger buildings over time. The primary reason we like the apartments is that in most locations of our country there are far more renters than people who can afford to purchase their own home or condo.  The problems we have gone thru over the last few years have done nothing to help the average person be more able to buy a home as opposed to rent.  Now, it appears that interest rates may be going up again making it even tougher in the future for the average person to buy a home.  I have attached a link below to an article in Forbes 6/5/2013 titled, “How Rising Mortgage Rates Could Affect The Housing Recovery” which you may want to read. http://www.forbes.com/sites/morganbrennan/2013/06/05/how-rising-mortgage-rates-could-affect-the-housing-recovery/ There is a lot of bad news in what I have discussed except, in my opinion, for those investing in apartments.  Everyone needs a place to live so if you choose not to buy your own home or can’t for various reasons you will need to rent.  More renters means fewer vacancies and a rising need for more rentals means increasing rents for the existing inventory.  All these are positives for apartment owners and why we believe apartments make good investments. Marty Stone