Five Reasons to Invest in Real Estate Now!

1. High Net Worth Investors are Bullish on Real Estate! A recent survey of over 2,000 high net worth investors found that more than half are actively purchasing real estate or planning to do so within the next two years. Over 1 of every 4 agreed with the proposition that residential and commercial real estate “provides better long term prospects than any other asset class” in terms of returns. In fact, not only are the majority of high net worth individuals purchasing real estate but 40 percent of responders had more than half their investments in the real estate market with an average of at least $50 million dollars in assets. On an even stronger note, the number one geographic location for most investments was the United States.

2. REIT’s are making a move toward real estate. Not only are many still buying real estate but they are also raising funds despite the overwhelmingly tight market. For example, Simon Property Group recently issued over $600 million of 5 year notes at 7% despite several other public REIT’s simultaneously raising large amounts.

3. Special Servicers are Ramping Up Distress Sales. Opportunity investors – including short sale investors – will finally get a chance to jump on distressed sales that have been sitting on the side lines for months. Special servicer’s such as Trepp have finally decided to ramp up sales of CMBS loans. With over 100,000 properties representing more than $800 Billion in assets this is no small feat. Opportunity investors would do well to keep an eye out for once in a lifetime bargains.

4. Increased Incentives. The Obama administration continues to encourage short sales via increased incentive programs aimed at reducing the time for lenders to accept a bid and providing additional financial support for relocating homeowners. Although too early to count on, there is also discussion about tax credits or incentives for repairing and renovating homes for increased energy efficiency or other needed work.