Affordable housing, It has always been an issue, and will probably always be one. You may be hesitant to invest in a lower profit property, but we believe that investing in a property that is affordable for the majority of the demographic in the area you are looking at is a smart move for many reasons. Here’s why!
With new housing developments, condos, and apartments buildings popping all over the place, we are finding less and less affordable housing on the market. Luxury housing is a buzz word, and amenities can cost a fortune. It simply isn’t cost effective. No one is going to build a brand new building with the intention of keeping rent low enough that average people with average incomes can afford it. They are going to do what is smart and invest in a property that will bring in large returns, quickly. Their investors are looking for a shiny building with impeccable reputation. But we believe that re-use and investing in add-value properties coupled with a great deal of hard work can also lend itself to an impeccable reputation, and a better environment for those who are not looking for luxury living.
Even though unemployment is down, the wealth gap continues to grow. As we have mentioned in many articles, one of the largest demographics of multifamily renters are millennials between the ages of 22 and 37. And unlike any other generation, they are renting far more than they are buying. Almost 40% of this age group is renting for many reasons including delayed marriage, student debt, and choosing to live in high-cost cities. Because while they may be able to afford the mortgage payment, they struggle to come up with the huge, up front financial investment of buying a house. Another thing to consider is that now more than ever, there is a large number of self employed, contracted, entrepreneurs. It has become much more commonplace for people to work for themselves. And while this is an incredible professional transition, it means that more people have a less steady income than ever before.
If you are interested in investing in multi-family real estate that focuses on add-value property in the South Eastern United States, head to our home page and tell us a little about yourself. We are always looking for new accredited investors to join us in our acquisitions of new properties. Here at Magnolia Design, we are accredited investors who are always looking for new acquisitions and partnership opportunities, so join us as we take a look at commercial multi-family properties.