My normal day consists of reading four newspapers such as the Wall Street Journal, New York Times, USA Today and, of course, the local St. Louis Post-Dispatch. In addition, Bloomberg magazine and Forbes are in the mix in order to keep up with the latest trends, not only in real estate but in the economic cycles that affect the economies of the world.
Middle-Class Type Properties Vs. Trophy Properties
Just as an example of today, I was reading that the Chinese investor is now more interested in the middle-class type properties outside of the major cities instead of trophy properties. They’re finding that properties like student housing and assisted-living projects give steady returns and are more conservative than the trophy properties they found in Manhattan, San Francisco and in Miami.
Apartments, Malls And Fast Foods
In addition, apartments have been a very hot commodity for several years but they’re starting to slow down because of the possible oversupply of new projects coming on board all at once.
Both malls and retail strip centers are starting to get hurt due to anchors going out of business, Amazon taking increase market share of the customer base and small independent strip centers can’t compete with the Amazons of the world.
Fast foods that don’t change their menus and begin to cater a little more to health-conscious customers are beginning to fail. As seen in the past with electronic stores, bookstores, and exercise gyms you must be careful in today’s economic climate and change with the times. What was trendy a few years ago could be the dog of today.
Suburbia Vs. Urban City
Suburbia versus the urban city is also a concern, for many investors it seems the trend of young people are moving more towards the urban areas and not expanding out in the suburbs as fast as they were. Office space has weakened due to the fact that many people are working out of their homes and have elected to go into a warehouse settings, cheaper than suburbia office that creates open space with no confined walls that separate the office workers.
Unless you keep up with the population trends, both age and cities that people are flocking to, you could easily make a poor decision of purchasing an investment property in the wrong area.
Smart Real Estate Investor
A true professional, smart real estate investor is up-to-date with all the stats and can help guide the normal investor into the right investment opportunity instead of guessing on their own.
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