If you have been mulling rebalancing your investment property assets, now is the time to seriously consider making the move toward a planned exit from your multifamily property ownership.
According to a recent article by Jaime Lackey in the March/April edition of Northeast Real Estate Business, the New England multifamily housing market has experienced continued improvement over the past two years and in metro markets demand for multifamily units is nearing an all time high. Continued low interest rates and competitive financing are driving the increased activity in the market for these properties.
The article quotes Tim Thompson, senior associate with Marcus & Millichap:
“In the metro Boston market, vacancies are at historic lows and rental rates are continuing to rise…. Strong fundamentals in the apartment sector are the driving force behind investors looking to multifamily assets for yield and appreciation.”
He goes on to say:
“[These factors] are also driving the increased values of multifamily properties. Pricing on most multifamily assets in primary markets and prime assets in secondary and tertiary markets [in Massachusetts] are at the highest levels we’ve seen in the past five years.”
So, with values back at pre-recession levels, low vacancy and low cost of capital (and lots of it) we are witnessing the best market in years for multifamily properties. To make things even sweeter, utilizing Section 1031 to exchange out of actively managed properties into passive ownership properties is completely allowable.
Is it time for you to rebalance assets to meet your lifestyle objectives? Give us a call and we can discuss the possibilities.
For more information you can visit www.section1031.com or call 603-444-0020.