Edified Equity Podcast Episode 47: Why Workforce Housing CAN Hold off the Blitz of a Recession

Show Notes:
Welcome to the Edified Equity Podcast!
My Name’s Dino and Here we will focus on all of the unique Benefits associated with being a Passive Equity Investor in an Apartment Syndication.

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Edified Equity Podcast Episode 47: Why Workforce Housing CAN Hold off the Blitz of a Recession
Workforce Housing CAN Hold off the Blitz of a Recession
With the abundance of #Recession buzz going around there’s no doubt, as Workforce Apartment Community Investors/Syndicators, we are ultraconservative, patient, and playing a serious game of defense when acquiring assets. We’re doing our due diligence, running the asset through a stress test, & confidently pressing forward with acquisitions that pass the exam.
The high scoring offense (market appreciation) may be on borrowed time; however, Workforce Housing CAN withstand the blitz of a #Recession as we have an asset that’s pretty resilient.
We’re buying defensively based on location, cash flow, conservative underwriting, management, and debt.
We’re NOT alone on our predictions…
Bendix Anderson, writer for The National Real Estate Investor notes… “The apartment sector is likely to hold up, according to industry experts!”
Further, Andrew Rybczynski, senior consultant for CoStar Group Portfolio Strategy stated “Apartments are still resilient against a possible recession,” he says Demand is outpacing supply and “There’s no reason why the homeownership rate won’t fall further”.
A downturn in the economy is more likely to drive people to affordable apartment communities (B & C Class) vs. buying a condo or house.
To top it off, and make our choice of asset even more valuable and desirable, in December of 2018, CBRE reported only a small amount of workforce housing has been developed over the past 10yrs.
Further, “many older apartment communities have been demolished to make way for high-end multifamily developments.”
CBRE, notes “the multifamily industry removes more than 100,000 housing units each year. These are usually workforce and affordable units.”
If you, like me, love ❤ this asset class, for a multitude of reasons, - it appears as if we’re in possession &/or pursuit of highly desirable, valuable, cash flowing, tax sheltered/deferred, & appreciating asset/investment.
In conclusion, no investment is guaranteed; however, done correctly - historically speaking - this alternative investment carries a low risk profile, several unique tax benefits, and the ability to weather the storm.
References:
1) https://www.nreionline.com/multifamily/us-apartment-sector-would-continue-remain-strong-even-recession
2) https://www.rejournals.com/workforce-housing-a-new-darling-of-investors-20181203
#Defense #FillANeed #Supply&Demand #Impact #CapitalPreservation #FiduciaryResponsibilities
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