January brought in the new year with a lot of movement and change in the US investment world.
The main takeaways:
- Stock market slide, volatility, plus inflation/ interest rate fears
- Property as go-to attractive and competitive investment alternative
- Re-affirmation of minimum EB-5 Visa Program investment amounts
Let’s look back at the biggest investment stories from January, to help you add the most to your portfolio in 2022.
Stock Market Slide
Stocks slide as bruising January comes to a close. Since we reported last week, the market fell even further, with the VIX volatility index still high and showing over 25. What this means for investors moving forward is a reevaluation of where to best grow their holdings. We all have our strategies and preferences, yet we believe we can agree that a diversified portfolio can serve us best.
Florida Properties to Invest In
A few weeks ago we profiled Gainesville of Alachua County Florida. Gainesville, the medical and college hub of the Sunshine State, is home to numerous one of kind medical facilities, Santa Fe College, along with the University of Florida.
Investing in property is generally a longer-term endeavor, click here to discover why Gainesville provides the stability and growth that investors look for when choosing for the long haul.
BAI Capital enters 2022
At BAI Capital are proud to enter 2022 -and our 13th year- by continuing to offer our personalized service to our growing group of distinguished clients worldwide.
Over the last 12 years, BAI Capital has become a boutique firm specializing in raising, investing, and managing private capital for investments in a range of real estate development projects. Specializing in the real estate sector, BAI is regionally active in the States of Florida, Texas, and New York.
Click here to discover more about our professional management in fixed-return real estate, related supply-constrained properties + the EB-5 immigrant investor program.
Re-affirmed EB-5 Visa Investment Amounts
In the world of EB-5 Visa investments, there was some VERY good news amidst the continued lapse in re-authorization. The raised $900,000 USD TEA area investment amount came about in November 2019, almost doubling the $500,000 amount used since the inception of the EB-5 Program. A ruling from last June concluded that Former Acting Homeland Security Secretary Kevin McAleenan was not appointed under a proper procedure and therefore exceeded his statutory authority in issuing the 2019 EB-5 Immigrant Investor Program Modernization Rule. On January 5th, the DEA removed their appeal of the newly lowered/ original amount. This means once the program is renewed, the investment amount will remain at $500,000 USD.
COVID | Investing in US properties during Omnicron
The coronavirus pandemic entered its third year with the newest variant, Omnicron, and significant sectors of the economy are still depressed. Florida took a business-first approach to manage the pandemic and stayed open for investors from within the nation and abroad.
Click here to learn how you can invest in Florida real estate while remaining in your home country, or state, as well as looking at travel options to Florida at the current time.
Inflation and Rising Interest Rates
In January 2022, inflation hits a 4-decade high, with consumer prices soaring 7 percent.
It is anticipated that Federal Reserve will raise the Fed interest rate up to four times this year, starting in March. Investors are apprehensive that raising the interest rates too high or too fast could invite an economic slowdown or worse a recession.
Last week we outlined how property investments can often outpace inflation and can be a good strategy for both this year and the long term.
Click this link to read about what you can expect from the housing market now that the feds have signaled a rate hike.
What can we take away from these important investment markers from January 2022?
- 2022 is here with its unique opportunities and challenges for investors, with market volatility and inflation/ higher interest rates set the tone.
- Property investments are becoming more and more attractive as an investment hedge against inflation.
- EB-5 investments look set to stay at $500,000 USD in TEA-approved areas, once the program is reauthorized in the next months.
Our extensive experience managing capital investments in a range of multi-use American properties allows us to offer risk-managed opportunities for investors all over the world.
Many of these investments are very limited in nature and offer competitive returns by leveraging reduced supply against growing demand.