How Wealth Management Trends Are Shifting
The latest study from Campden Wealth and RBC, as discussed in this CNBC article, reveals an intriguing trend: family offices are increasingly reallocating their investments from traditional stocks to private markets. The article states: "Their stock allocation has come down from 31% the year before, while their private investments increased from 27%. The remaining assets were invested in cash, bonds, alternatives, hedge funds, commodities, real estate, and other investments." This change is noteworthy because, for the first time, investments in private markets have exceeded those in public stocks among these entities. The article, "Family Offices Move Money Out of Stocks ...
Are U.S Treasury Bonds Better Than Real Estate?
Many online and financial publications are advocating investment in short-term U.S. Treasury bonds. It's not surprising, as many of them are offering around a 5% yield, depending on the duration. 5% isn't bad for just putting your money in a safe place! But is it better than investing in real estate? We don't think it's a case of 'better' because most financial analysts and experts suggest you should have a balanced portfolio with a mix of investments. While the current short-term bond market is an interesting option, there are a couple of things to consider: Term When the term is ...
The Multi-family Investment Landscape: A Glimpse into Potential Future By Looking Into the Past
It seems like almost every day, a new article predicts doom and gloom for commercial real estate. If you open any News app on your phone and search for commercial real estate, that is pretty much the message you will get. Is there any tangible basis for this negative view? The simple answer is maybe, but it's not that straightforward.There are lots of different types of real estate, from residential to retail, storage, office, hospitality, light commercial (manufacturing etc), multi-family, and the list goes on. There are also classes such as A, B, and C. You can classify it further as ...
Why is ‘value add’ so important when real estate investing during a recession or downturn?
When a recession hits, and interest rates rise, the cost of goods and services go up, and over time, this reduces the value of money. So you can buy less for the same money. Real estate is often considered one smart way to offset the effects of inflation. Here are a few reasons why: 1. Rental Income Growth: Inflation is often accompanied by rising rent growth, which works in favor of multi-family investors and owners. As the general price level increases, property owners can adjust their rental prices accordingly, boosting their cash flow and overall returns for investors. 2. Fixed-Rate ...
Multi-Family Real Estate as a ‘Hedge’ Against Inflation?
As we are all aware, inflation can erode the purchasing power of money over time, leading to a decrease in the value of traditional investments like stocks and bonds. There is no perfect way around inflation; however, multi-family real estate has shown over the years to be a comparatively resilient asset class in times of rising prices. Here are a few reasons why: Rental Income Growth: Inflation is often accompanied by rising rent growth, which works in favor of multi-family investors and owners. As the general price level increases, property owners can adjust their rental prices accordingly, boosting their cash ...
Is Wall Street Gearing up for Real Estate Bargains?
In this week’s financial news, an article from The Wall Street Journal* titled “Wall Street Is Ready to Scoop Up Commercial Real Estate on the Cheap” struck a chord with us. That’s a bold statement, but it’s a telling one also. The article mentioned that many funds and institutions on Wall Street are raising capital now to the tune of $Billions in preparation to purchase quality real estate at discounted prices. But this isn't the first time Wall Street has prepared in this way. Remember, in 2008, according to this SeekingAlpha article, most commercial real estate value was down by ...
