There are a lot of great opportunities for investors to consider in real estate now. Personally, I think it is probably a good idea not to listen to CNBC, CNN or any other newscast for awhile. We are not going into a double dip recession, we are in the expansion phase of the real estate cycle and understanding this must realize, it is not always easy to snap back into place like a rubber band. In Phase I, there is very little new construction and vacancy is decreasing. So looking around the neighborhood, my neighborhood and yours, you will find that retailers and small business is becoming a little more adventurous and vacancy is decreasing. Rents may not be as robust as we like, however at least there is activity and business professionals are willing to take a certain amount of risks. In residential real estate, there are no specs under construction; however there is a limited amount of custom work and with jobs this area of the market will eventually improve.
In South Central Indiana, Cummins Engine has announced many new jobs nearly a thousand between Columbus and Seymour, Honda in Greensburg is hiring a thousand new workers, and companies like Valeo-Sylvania and Schwartz Pharma has also announced new job openings. So rather than spend all our time glaring at the television allowing our nervous system to develop acute panic, it is time to realize, this is happening throughout our country.
This recession and change in the global economy will also produce a change in the way employers do business. We have seen changes for a long period of time with increased automation and the need for a more sophisticated workforce. This is not all that bad and part of growth to make our nation smarter and stronger to compete and grow. So rather than resist growth, it appears to me, we should embrace it and realize this is part of our evolution as a country, not only economically, but socially.
Good things are happening in America, it should not be all gloom and doom. If anybody wants to beat anyone up, let’s beat up congress because they do need to reform themselves. But, no matter how disparaged we may think we are, truthfully compared to many places in the world, we are alright!
Now is a great time to consider the following property types: multi-family and truthfully retail. There are going to be many renters for awhile as many people have credit issues leaving them to this alternative versus home ownership. The vacancy rates are low and there are great opportunities in the marketplace. Retail has a bright spot, I realize many reports suggest consumer confidence is down and yes Black Friday is soon approaching and CBNC and CNN are going to report the pendulum of our economy looks one way or the other based upon how many people shop in one day… good grief! However, our economy is improving and spending is going to increase, it may not be at an all time high on Black Friday, however it is not like every American is going to weave their own clothes, grow their own food, and milk a cow or goat every day. So, investing in retail is a good long term strategy.
I always enjoy listening to the many viewpoints of my investors, as there is always something to be learned from others. Most everyone is positive, so thank you and based upon your optimism and my own viewpoint, let’s keep our personal economies moving forward with a little faith and belief. And by the way, I am proud to be a capitalist and hope you are too!
