Page 35 - AMM-JAN2022-1

Continued from page CS-10
increase returns. Yet getting market timing exactly right is never easy unless you happen to be a fortune teller. Right now, the length of the current economic expansion has many people suspecting that we are close to a peak market cycle. However, others suggest current slow and steady growth may be sustainable, and there doesn’t appear to be anything imminent that could derail that pattern. The peak could very well turn out to be more of a plateau than the beginning of the end. Even if there is a contraction or trough ahead, it could be a slight downturn rather than a sharp drop off a cliff. There are numerous variables that contribute to the shape of market cycles that range from Fed monetary policy to market bubbles that pop, such as the housing and Dot.com booms that caused the last two recessions.
But real estate experts point to several macro real estate trends that suggest it might be a good time for investment property owners to consider selling their buildings and consider DST 1031 investments. Even if we cannot know if we are currently experiencing a peak in the real estate market cycle, many real estate investors have seen their properties appreciate significantly and recognize an opportunity to sell and potentially unlock trapped equity.
SOME MACRO REAL ESTATE TRENDS THAT COULD BENEFIT DST INVESTORS
Macro Real Estate Trend #1: Low Inventory
According to the National Association of Realtors, inventory of available homes was down nearly 30% in 2021 compared to a year ago, multifamily buildings are attracting institutional real estate investors, and according to real estate firm CBRE in is first quarter 2021 report on the industrial and logistics market, demand for this type of asset is through the roof, after nearly 100 million square feet was absorbed during the first quarter – the third highest absorption rate on record.
How This Could Benefit DST Investors? Whether you are talking about a multifamily apartment building or a single-family home, low inventory means higher selling prices and shorter sales cycle – all good news for the seller’s position. However, this low inventory could also cause trouble for a seller who will find it hard to purchase a replacement property to avoid a large capital gains tax bill at the end of their sale. The DST marketplace allows sellers to easily find
Please turn to page CS-14
CHUNG ROOFING COMPANY
HONEST CONSTRUCTION
chungsroofing
45 Years Experience FULLY BONDED & INSURED
FREE ESTIMATES
ALL APPLICATIONS ACCORDING TO CITY AND COUNTY BUILDING CODES. PRICES ARE GOOD FOR ALL ROOFS RANGING 30 SQ. OR MORE
Lic. No. 1032338.C39
NEW ROOFS & REROOFS
EXPERT ROOF REPAIR
ALL TYPES OF ROOFS
SCOPE OF WORK MATERIALS PRICE/Sq. Ft.
WARRANTY LABOR MATERIALS
SCOPE OF WORK MATERIALS PRICE/Sq. Ft.
WARRANTY LABOR MATERIALS
FLAT OVERLAY
4 PLY 28lbs. 11 lbs. 11lbs. 75lbs.
$3.00
5 YEARS
10 YEARS
SHINGLE 30 YEARS OVERLAY
30 lb. 30 YEARS SHINGLE
$3.20
10 YEARS
30 YEARS
FLAT REMOVE
4 PLY 28lbs. 11 lbs. 11lbs. 75lbs.
$3.60
5 YEARS
10 YEARS
SHINGLE 30 YEARS REMOVE
30 lb. 30 YEARS SHINGLE
$4.00
10 YEARS
30 YEARS
WOOD SHINGLE REMOVE
30 lb. WOOD SHINGLE
$4.00
10 YEARS
30 YEARS
SILICON OVERLAY
50 YEARS SILICON
$4.00
20 YEARS
50 YEARS
(Text Only)
chungsroofingcompany@gmail.com
1467 W. WASHINGTON BLVD., LOS ANGELES, CA 90007
213-259-0243 • 213-259-0258 • 323-863-3114
Fax: 213-745-8997
APARTMENT MANAGEMENT MAGAZINE - JANUARY 2022 CS-13
FLAT ROOF SPECIALIST