Which type of real estate would be a great investment now?

Let's see, interest rates have never been lower...EVER.  The experts predict that residential rentals will increase in epic proportion to drive up rental rates.  And sale prices for multifamily investment property (the very places where all those renters will live) is climbing from the cellar.

So, do you get the picture?

Perhaps the commercial real estate market may still be "soft" for office space, industrial, retail and even land but all indications are that now is the time to buy multifamily investment property because its value should skyrocket...just like commercial property did in the late 1980's.  Did you miss that opportunity then?

Well it's probably a good idea that you "catch the wave" this time.

So give us a call - your commercial real estate connection.


Bob Calongne, Broker / Attorney
Director, KW Commercial division
Keller Williams Capital Properties
Washington, DC
Bob@CommercialREConnection.com
http://CommercialREConnection.com

Why should you invest in real estate?

Perhaps you've been bombarded by media promotions urging you to invest in certain financial products and services but it's interesting that they rarely suggest that you invest in real estate.  Maybe that's not so surprising since "better investments" will automatically attract the capital with less promotional effort.  "Programming" aside, you would probably want to weigh your options and consider some real estate investment factors that can give you more bang for your bucks.

Appreciation on resale:  The real estate market is rebounding, prices are rising and "days on market" are declining.  The real property future is promising while most other investments are still a "crap shot".

Income potential:  Rents are firming up as the rental population booms.  Dividends?  Hmmm.

Tax benefits:  Sure there are some tax-free bonds to be had.  But depreciation on investment property means tax deductions without any cash outlay resulting in more cash for you.  And with a 1031 exchange you could avoid all the tax on your investment gains.

Improvements can be made to add value to the investment:  Try applying a bucket of paint to your Americatrade account.

Long-term financing:  You could buy stock on the margin but you won't get a 30-year loan with a 25% down payment.  Do the math - real estate means better leverage.

Use the investment:  Live in or run your business from your real estate investment.  You could even spend a couple of weeks in your investment rental home at the beach - run over there for the weekend to change the light bulbs.

Permanence:  I guess there's a chance your building could fall into a huge sink hole but you are not likely to misplace your rental property.

So take another look before you buy that stock.  Today's real estate market literally abounds in opportunity.

Bob Calongne, Broker / Attorney
Director, KW Commercial division
Keller Williams Capital Properties
Washington, DC
Bob@CommercialREConnection.com
http://CommercialREConnection.com

When will you invest in real estate?

When interest rates are low?  They have never been lower in history and certainly cannot drop to zero.

When the economy turns around?  Last year economists were concerned of the second phase of a "double-dip" recession but now virtually none of them expect that, even if the economy of Greece crashes.  One even said the Greek economy was like a beautiful woman with an ugly boyfriend - if he were to abandon her, there were many willing to take his place.  He opined that Germany was poised to take over the Greek market.

When the banks are lending?  The Federal Reserve recently reported a huge surplus in the money supply...

...so the banks that feigned making loans last year are now really doing so.

When the government cuts the deficit?  During a debate Rick Perry forgot one of the three federal departments he would eliminate.  I have news for you - if you eliminated all of them it would not make a dent in the deficit.  All the money that was printed was necessary to prevent a depression and to stimulate the economic growth that continues to steadily improve.  Inflation is certain to occur but the Fed announced that it would hold the low interest rates despite the inflation.

So is it likely that the value of your investments will crash?  Just the opposite - the fear of the falling knife has been averted.

Are you waiting for the upcoming presidential election?  Well, you tell me - like it or not, is the outcome of the election even really in doubt?

Please let me know of anyone interested in buying selling or leasing real estate for investment purposes and any real estate professionals interested in a rewarding career with the nation's largest commercial real estate marketing organization.

Bob Calongne, Broker / Attorney
Director, KW Commercial division
Keller Williams Capital Properties
Washington, DC
Bob@CommercialREConnection.com
http://CommercialREConnection.com