According to experts, U.S. investors may want to consider keeping their money at home in multi-family real estate projects. “Buying real estate is better done on a direct basis,” said Eric Jones, chief investment officer of an important Real Estate firm. “Public REITs are too correlated to the public market and interest rates in particular.
Jones said higher income suburban locations in major metropolitan areas will outperform urban core for apartment investment. In his view, new supply in urban core areas with slowing growth coupled with investors currently paying too low of cap rate is a recipe to lose money, even in multi-family apartments.
He prefers to focus on regions with above-average growth in prime renter demographics and regional economies with strong economic vitality. Jones said his favorite locations right now include North Miami Beach, Orlando, Dallas and Denver.
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