The word is that the year ahead is ideal for real estate investments because many investors are searching for safe havens for their capital. Real estate offers stable returns compared to other investments making it the “right” choice. However, there are several areas to watch as we approach the New Year. It is important to remember to diversify your real estate investments when navigating both certain and uncertain times. The Center for Real Estate Studies can help you do that with our monthly research reports and quarterly research report MARKET CYCLES.
The past year has been filled with various forms of uncertainty. The one thing that seems certain is that companies are less likely to make growth plans and
capital investments in the face of such uncertainty. With presidential elections in 2020 and banks willing to accommodate, we expect a softening of economic activity.
The driving force remains domestic demand, especially private consumption, based on our strong labor market, which is operating close to full employment. The path for economic activity and risks has become unusually dependent on the ability of our administration to avoid an outright trade war with China. We believe the bank’s easing of interest rates will be strong enough to avert a slowdown in economic growth, prolonging the current economic expansion and supporting earnings growth.
We believe that the best way to hedge against the uncertainty in the year ahead is to invest in midsize apartments in “Pockets of Opportunity’ as reported in our quarterly research report Market Cycles.
ABOUT THE AUTHOR: Eugene E. Vollucci, is considered to be one of the foremost authorities on real estate taxation and investing and has authored books in these fields published by John Wiley & Sons of New York. He is the Director of the Center for RE Studies, an educational and research organization. To learn more about the Center, please visit our web site at http://www.calstatecompanies.com
