I am hearing from quite a few people about the losses that they have taken on many of their investments. Actually some of the losses have been in the world of real estate too so I know that real estate is NOT immune. Of course it always depends on what side of the fence you are sitting on, right? I mean if I was heavily into stocks I would probably be telling you to be in the stock market now, and so forth.
It is interesting though how many investment sectors have taken on losses AND how many investment sectors have actually gained money on investment over the last year or so.
For example, it is during times like these when the Gold Merchants come out of the woodwork and start selling or even buying Gold. I saw another ad in our local paper about a gold buyer that was in town “only for a few days” to buy your unwanted gold jewelry. You can be that these guys are doing well. Plus the are all over the TV, aren't they, and those ad dollars are not cheap!
Knowing this now and realizing where everything is at the mantra for many has become How do we quickly recover from wall streets losses in our regular accounts or retirement accounts?
You see it's not only getting you back to even it's also starting to make money isn't it? The one place where you will be able to recover fast from the Wall Street Mess is Well Located Apartment Properties!
I have been preaching about this for the last year and those that have listened have done extremely well. The good news is that the window of opportunity is still open, in my opinion.
The bottom line is that there will continue to be more demand than supply of well located apartment properties for tenants to live in. There will be pressure on demand. This will increase rents and therefore value. The current economy spells opportunity since even with government home buying assistance the waiting lists at our apartments grow longer every day.
I just got done inspecting almost all of our apartment property holdings over the last week and we are looking very good. The really interesting thing is I do not see the demand going down at all – especially here in the Heartland.
The main reason for the increase in apartment demand here is because of the conservative nature of most people. Right now it is considered among many of our tenants to be risky buying into any kind of real estate until the national economy improves. Locally the economy is doing just fine but that still does not make the news. It's the bad news that does. Result? Many tenants are happy to pay a higher rent with no risk than paying a loan payment on a home that can carry some risk.
So what this spells is fast appreciation due to rising income streams and rise in demand due to the higher returns these properties will be producing. The smart investor will look at this area as a source of recovering from the losses they have had on Wall Street. I have been recommending to my top clients to not try to wait it out but to take SOME of that capital and get it into high appreciating and cash flowing apartments that are in locations and areas that tenants like and will be in for a long time.