Planning for your Portfolio….

Everything Else is Irrelevant
January 16, 2018
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Planning for your Portfolio….

This might make your local politicians a bit uncomfortable…and if you own expensive apartments in urban areas, your tummy might be queasy, too.

I’ve heard all kinds of justifications about Millennials housing choices and the plans needed to accomodate these choices from Directors of Economic Development, elected officials, private developers, non-profit organizations….and they always left me scratching my head, generating more questions than answers.

“Millenials ARE NOT behaving like past generations in their housing preference!!!”

“If we don’t have urban mass transit, fancy apartments, Kool-Hip restaurants serving avacado toast for $13.99, they WON’T MOVE TO OUR CITY!!!”

“We’ll lose out on all their tax revenue!”

“We HAVE TO INVEST MILLIONS to attract them to the urban areas!”

Funny thing about “trends”.  Trends always have a starting point.  For the Millenials, this was in the early 2010’s.  More DANGEROUS thing about “trends” is they ALWAYS have a stopping point, too.  And just like musical chairs, you don’t want to be the investor without a chair when the music stops.

Check out this article describing precisely this issue.  The music is about ready to stop.  Millenials are beginning to behave like past generations have behaved…..SHOCKER, Right???

http://www.nreionline.com/multifamily/those-shiny-apartments-arent-what-millennials-need-conor-sen

Take Away’s for you to noodle over:

  1. Is your portfolio of rental properties prepared to deal with the new market dynamics involved with this new “trend”?
  2. If you are in an Acquisition Mode, how can you take advantage of this upcoming supply and demand shift?
  3. If you are in a Divesting Mode, how can you take advantage of this shift?
  4. If you are in a long term hold position on your properties, how will this shift impact your operating costs such as property taxes, insurance, occupancy levels, and vacancy levels?
  5. How will this affect/impact politicians desire to reach deeper into your wallet for more tax referendums to backstop public school budgets?

As always, I’m here to help you find the answers to these questions since they can increase your speed to reaching your Financial Freedom.

Not knowing the answers, however, will always lead to your Financial Freedom getting crushed.

Enjoy your week!

 

Dan Baldini

 

 

 

 

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