With a new year arriving, the time to begin looking into investment expansion has come. Look into what real estate investment choices are worth looking into according to recent expert analysis. Consider your capital allocation process with these quick tips in mind.
A recent report from analysts expect that overall real estate investing in 2017 to enter a somewhat defensive mode. Because of the perceived threat of a potential economic downturn (whether real or not), many are advocating a more conservative approach to weather any possible storms. Historically, industrial space has been known as a great defensive investment option at such times. Moreover, with the continued growth of e-commerce and its need for both fulfillment centers and warehouse storage space, putting money into an industrial real estate of this nature is not a bad idea right now.
Medical Office Space
Another market segment worth considering, if you have not done so previously, is medical office space. As Baby Boomers begin to reach retirement age and the Affordable Care Act (whichever variation may remain) provides previously uninsured people access to the healthcare system through mandated insurance, the need for quality medical facilities is growing fast. The healthcare industry, as a whole, continues to increase at a furious pace, meaning that facilities that aid and service its needs will become particularly valuable fast. For those looking for long-term sustainable revenue growth, taking the plunge into this space is worthwhile.
Multi-Family Housing Units
With millennials owning only a small market share of current homes, the trend in residential growth has been identified in multi-family units. Millennials are currently more prone to renting rather than purchasing living space, and as they continue to develop their careers and income potential, the time to tap into them as a resource has arrived. Furthermore, two additional areas of residential housing worth noting are student housing and retirement communities, given the specialization and population sizes.
While retail itself continues to rebuild and sustain itself after the last economic crisis, taking a look at investing in retail space is a viable option according to market analysts. Opportunities in urban population areas and shopping centers are worth a look because even with e-commerce’s continued growth, brick and mortar stores continue commanding a steady share of the retail market business. However, as with any investment, careful research is required to make sure the area, local economy, tax regulations, and other variables are studied to ensure an investment makes sense in the long and short terms.
Gearing up for investment expansion takes time and due diligence, both in selecting potential properties as well as investigating the potential factors that will make or break them financially. You need to take the time though to turn that focus on your current business to make sure it is properly structured and optimized to take on additional investments. A lack of attention to such matters could lead not only to potential liability issues but also open you up to overpaying taxes instead of reaping profits.
Avoid those problems before they even occur; contact us for a FREE 30-minute strategy session with one of our expert advisors. Check to see if your business is properly structured for what your goals are, not simply what you may have been told by a regular CPA or lawyer. We have years of experience working specifically with real estate investors; we understand your business and how to make it work best for you. Contact us today and get ready for a successful year.