Last month, the Jansen Multifamily Team polled Puget Sound apartment investors about their impressions of the current market. That poll data, coupled with our own observations form the basis for a three-part series on the “Why’s” of today’s Puget Sound apartment market. This week’s post, number one of three, discusses why to buy in today’s market.
In last month’s JMT poll, 50% of respondents indicated they are an active buyer in this market. It seems likely that those active buyers are beginning to see the same things we see: opportunities to achieve positive financial leverage, acquire quality assets in historically strong locations, and hedge against oncoming inflation. These three reasons are the most compelling rationale for acquiring multifamily properties in the Puget Sound region in today’s market.










Why to Sell in Today’s Market
Published March 8, 2010 Commentary Leave a CommentTags: apartments, bottom, bush, buying, cap rates, capital, capital gains, cash flow, commercial real estate market, current market conditions, dupre + scott, economy, equity, fannie mae, Financing, freddie mac, hit, inflation, interest rates, jansen, liquidity, market, multifamily, multifamily lending, obama, positive financial leverage, power, price appreciation, property values, puget sound, rate, relative, seattle, sell, Team, to, today's, value, why
Last month, the Jansen Multifamily Team polled Puget Sound apartment investors about their impressions of the current market. That poll data, coupled with our own observations form the basis for a three-part series on the “Why’s” of today’s Puget Sound apartment market. This week’s post, number two of three, discusses why to sell in today’s market.
Generally speaking, nobody wants to sell in a market like today’s. Values have come down 15-20% off their market peaks, significantly eroding many investors’ equity in their assets, and the prospective buyer pool has shrunk as many investors wait on the sidelines until the market clearly “hits bottom.” For many Puget Sound apartment investors, now may seem like the wrong time to sell. However, the situation is not completely dire, as there are still strong reasons to sell today, including the opportunity to re-leverage, the availability of cheap debt, and a historically low capital gains rate.
Continue reading ‘Why to Sell in Today’s Market’