Beginning last Friday June 6, some markets such as the Nasdaq have shown increases not seen in months. This could signal the beginning of a much needed economic recovery.
With 30 and 15 year mortgage rates continuing to trend very low at 3.5 and 2.83 respectively, the recent positive market activity may be just what investors need to make the plunge into their next project. Unfortunately COVID-19 is still affecting the global markets, and the ripple effect will be felt for months and possibly years. It is next to impossible to firmly determine when we will exit the current downturn.
However, there is bound to be more market activity like we’ve seen in the last week as ingenuity, continued low Federal Reserve rates and government subsidies are reinforcing the economy.
Investors looking for short, mid and long term returns may want to look at purchasing a rental apartment.
Low mortgage rates allow for more purchasing flexibility as well as higher monthly net gain. Location choice will be more important than normal as every area is going to recover from the coronavirus and the current recession at different rates.
We suggest that investors take the time for a stringent analysis of each of the property locations on their list.
Keep in mind the 5 factors that make property values appreciate:
• Supply and demand.
• Population growth.
• Cost of borrowing.
• Fiscal inflation.
• Market drivers.
Fulfilling these criteria ensures that not only will you see attractive ROI’s now, but also well into the future.
One of the most interesting upcoming projects in the realty sector is Archer Place, on the University of Florida Campus, Gainesville Florida.
This project offers rental income, equity partnership returns, as well as property ownership. AND the opportunity for foreigners to use this project as a way to petition for their US Green Card via the EB5 program.
A representative at BAI Capital is ready to answer any of your questions regarding realty investments.