Apartment Building Investment in 2014, opportunities among interesting times

Wrapping up in the office on this last day of 2013 and wanted to share some things that have been twitching my antennae lately:

How will the taper affect apartment builiding investment?
The Taper, actually a Malayan Tapir
Source: www.konicaminolta.com

While there’s been a lot of ink/bits spilled over a slight and possibly temporary ‘taper’ in the Fed’s bond buying spree known as QE to Infinity! the one thing they have been unequivocal about is their intention to hold interest rates low (read: near zero) for an extended period that has now been stretched out as far as 2017. Meanwhile ‘everyone knows’ interest rates are going up.

Which will prevail? The Fed has been pretty successful at forcing them down and holding them there for years, going on 14 if you start counting from the dot com crash. On the other hand if everyone knows rates are going up they will act accordingly and that will tend to push rates up, at least long rates which the Fed has less control over. For a very interesting take on how to deal with what ‘everyone knows that everyone knows’ see Ben Hunt on Epsilon Theory.

What does it mean for us as apartment investors? If ‘everyone’ is right Continue reading Apartment Building Investment in 2014, opportunities among interesting times

The most important thing growing online sales means to Commercial Real Estate and Apartment Building Investors

If/when the day comes that we’re buying everything online and even offices disappear so we all end up working online in our sweats from the couch, we’ll still need a place to put the couch. That’s why apartment building investments make the most sense to me.