21 September 2008
Multi-Family is the best investment NOW!!
Multi-Family Apartment Buildings are the best investment now. This is true here in Los Angeles, CA as we see rents increasing 5% year over year. Rents have risen in each of the past 24 Quarters partly due to the Sub-Prime fallout which is forcing many to rent since they can't qualify for the loan.
Prices are down 30% for many of the Multi-Family Buildings in the "Hot Zones" or emerging areas in Mid-Wilshire, Downtown, Koreatown, and even Southwest Los Angeles.
Here are the facts:
The L.A.Times has predicted there will be a Rental Shortage by 2011.
• High and Increasing Renter Demand / Low Supply – since 2001, at least 12,000+ units
have been demolished or converted into condos.
• Increasing Rents - Up 8.8% from 2006, up 5.7% in 2007 and forecasted to continue to
increase in 2008.
• Low Vacancy – stabilized around 3% in 2007.
• Population Growth - 10.2 million Los Angeles residents, 550,000+ new residents over
the next 5 years.
• Immigration Growth – over 300 people arriving per day.
• Target Demographics - “Echo Boomers,”the prime renter group aged 20-34 constitutes
22.1% of the local population and is on the rise.
• Affordable Housing Crisis – only 11% of people living in Los Angeles County were
able to afford a median priced home in 2007.
• Affordability Gap – The median home price in Los Angeles is $458,000. Potential
buyers cannot afford to buy and must rent increasing the renter demand.
• Higher Home Down Payments and Monthly Payments have priced people out of the
home buying market and must rent.
• Softening Housing Market – sales are down 50.1% from 2007.
• The Sub-Prime Lending Fallout and Tighter Lending Standards – continues to fuel
the “affordability gap”increasing the renter pool.
• Steady Interest Rates in the face of rising inflation.
• Solid Economic Fundamentals and Employment Growth – trending from 2006 into
2007 and 2008 favorable economic industry growth and employment.
• 13.2 Billion Dollars of new development and re-development projects.
These attractive investment fundamentals will continue to support Investor returns, rent increases,
property appreciation, tax advantages
The National Multi Housing Council projects the number of "households that rent" will increase by four million over the next 10 years, with half of them renting apartments in properties with five or more units.
Looking back at 2007, the group said the number of renters in professionally managed apartments increased by its largest annual amount since 2000.
Demand is being fueled mainly by a reduction in home ownership levels caused by the housing slump that began last year.
As this Graph shows, Now is the time to Buy an Apartment Building in Los Angeles California.
To learn more about Investing in Multi-Family Units and Apartment Buildings please view my Site: LAexclusiveProperty.com
These attractive investment fundamentals will continue to support Investor returns, rent increases,
