FALL 07/VOL 5

Issue: 5

Is Now a Good Time To Invest?

Should you be investing in the real estate market when appreciation is low and inventories are high? Or is the only safe time when the market is hot and appreciation is rising?

The simple answer to these questions is that any time is a good time to invest; providing you understand investment cycles and your markets. In many markets, if appreciation is flat or low you can expect real estate rents (and cash flow) to increase. Also vacancies decline and as housing prices increase high quality tenants will choose to rent. At the other end of the spectrum you'll find increasing vacancies and lower quality tenants, cutting into your cash flow, but your investment grows exponentially.

	High Appreciation Cycle	Low/Flat Appreciation Cycle
Interest Rates	Low	High
Market Rents	Flat/Decline	Increasing
Inventory	Low	High
Vacancies	High	Low

We are currently experiencing a general market shift toward a buyer's market. The key to investing during this kind of cycle is understanding market values. More inventory means better leverage to negotiate lower prices, if you know the market. Right now, even though we're in a flat appreciation cycle, it is an exceptionally good time to invest. Lower interest rates, set by the Fed in order to encourage consumer confidence, mean that even the cost to invest is less!
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We at SIFF Investment Services, LLC understand the market, it's cycles, and how best to work within those cycles to create the best real estate investment portfolio for each individual investor.

Give us a call today to discuss how we can help you optimize your investment in the current market!

Scott Fong,
President, SIFF Investment Services, LLC

SIFF's Third Anniversary Party