Wednesday, August 01, 2007
Great Time To Buy An Apartment Building
The National Multi Housing Council NMHC spring survey found that consumer demand for apartments grew for the 15th consecutive quarter. The survey's Market Tightness Index was up to 56. A reading over 50 indicates that conditions in occupancy and rent rates are improving. The only index that was below 50 was the Sales Volume Index. That means that the sale of apartment buildings has slowed. Now that condo conversion purchases are down there is less competion for buyers looking for a good apartment building. Not only are there fewer buyers for apartment buildings but there are fewer buyers for all homes. With tightening restrictions on mortgages, more potential buyers are deciding to rent instead of own. Meanwhile there are fewer apartments to rent since a large number of buildings have been converted into condos. In a nutshell rents and occupancy rates are up, sales are slowing down, and interest rates are still at historic lows. Now is the time to consider investing in an apartment building, whether it is a owner-occupied three-flat or a 24-unit investment this is your chance to take advantage of the rising rents in Chicago.