Manage episode 302174461 series 2198435
Is now really a good time to get started in multifamily?
COVID put real estate on a bit of a roller coaster ride. The market cooled for a bit but then came back even hotter!
So, is it too hot now? What should we be thinking about as we decide whether to invest now or wait until later?
On this solo episode of Financial Freedom with Real Estate Investing, I explain why there will never be a PERFECT time to get into multifamily and discuss how we adjust our tactics with ups and down in the market.
I offer insight on why real estate prices are going up right now and describe what soaring construction costs, ongoing demand for affordable housing and rising inflation means for multifamily.
Listen in to understand the relationship between rising rents and property values—and find out why investing in REAL assets is the best thing you can do right now!Key Takeaways
My insight on why now is the right time to get into multifamily
- There will never be a PERFECT time to get started
- If fundamentals are strong, stick with strategy but adjust tactics
- Don’t ask, ‘Should I get started?’ but ‘How can I get started?’
Why real estate prices are going up right now
- Low interest rates
- Increased demand
- Rising inflation
The impact of soaring construction costs
- Median price of house up from $286K to $326K
- Affordable housing shortage worse than ever
What the current inflationary environment means for multifamily
- Rising incomes and rents (in growing markets)
- Increasing NOI means value of building goes up
The case for investing in multifamily
- Ongoing high demand and limited supply
- Rising incomes + inflation = higher rents
- High rents + low interest rates = higher prices
Why it’s a good idea to invest in real assets right now
- Potential devaluation of dollar
- Hold things with intrinsic value