Real Estate Investments in 2008

For those of you who are considering purchasing income property, it is still a good time to buy. And if you are serious about investing in apartment buildings, it is best to focus on a return to fundamentals, and to take a mid to long term view, according to Lee Kiser, of the Kiser Group and Doug Imber, of the Essex Realty Group, speaking to the Edgewater Uptown Builders Group.  You should plan to hold your property for 4, 6 or even 8 years, depending on the income and expense profile of the building and how soon it can be improved. It is all about reducing expenses and increasing rental income.  Location is important, and buildings in strong locations such as Lincoln Park or Andersonville, generally have more leeway in raising rents than those in tertiary locations. There are opportunities for property owners planning to leverage up from smaller to larger properties, using the exchange programs such as 1031/Starker exchange.  

Although some of the apartment building investors are back in the market, and the demand for investment properties is improving, there is a long way to go. The number of transactions (purchases) of apartment buildings in 2007 had declined to 2001-02 levels. There is added competition as condo converters are starting to return to the market.   Developer appetite is back for the north side neighborhoods. In Lakeview and Ravenswood, 14 units of a 22 unit condo building were sold in January.   Downtown will continue to feel some pain for awhile. For more information on purchasing in north side neighborhoods of Chicago, such as in Lakeview, Andersonville, Edgewater, Ravenswood,
Lincoln Square, Albany Park or Rogers Park, visit  our team website.

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