Hi guys. I recently discovered a new construction of aprtments in my town. It’s 2 buildings with a total of about 20 units. They’re being built in a lower income section that has seen a bit of "revitalization in the past 2 years. Most of the existing rental properties are 2 and 4 family “older” construction. Is this new construction a good or bad sign for the rental market? What kind of issues will this bring? I’d appreciate any insight. Thanx.
Alot of guys are still building, espeically in my area in Ft Lauderdale, Fl but the rental market is horrible so I can not figure out why. One developer is building 100s of apartment homes where the rents will probably be about 1500 a month for a 2.2 which will sit vacant till they go to 1200 a month…
It could be a good time to get into rentals, but don’t let speculation make your decisions. Your investments should be made on the deal that you have today, not what it might be worth tomorrow.
Just at thought…
Now is the best time to get into a construction project - because building materials are cheeeeeeap when purchased in large volume. I’ve heard commercial construction is faring far better than residential (including apartment/condo/SFH/etc) right now. Funding is tougher now, so cash is king. I know a guy with MMs in cash (not myself unfortunately, LOL) who is building all kinds of stuff right now around Dallas.