Inflation and interest rates impact virtually every aspect of our lives. We have seen that firsthand as the combination has driven up costs on everything from consumer goods to borrowing. Beyond the impact on consumers, the double whammy of higher prices and escalating interest rates has directly impacted new construction
Stock market and crypto crashes have become commonplace and are only expected to worsen. According to the Federal Reserve Bank in New York, nearly 70% of consumers and 84% of CEOs expect a recession in 2024. Anticipating a recession often leads to behavior changes even before a market downward occurs.
September 5, 2023, will be a day of infamy for thousands of real estate investors in New York City. It is the day the city effectively banned rentals under 30 days. The current law allows only primary homes to be rented by the room because property owners can accept a
Whether you own and manage properties independently or have multiple partners in commercial real estate projects, investing in real estate is a proven method for building wealth. Part of the appeal is the tax benefits, including the ability to deduct depreciation lowering your annual taxable income. However, when you take
As of September 2023, the average 30-year mortgage for a home purchase reached 7.62% for the first time in 23 years. Refinance rates rose to 7.78%, 13 basis points above the week before. A year ago, mortgages were closer to 5%, and 18 months ago, they sat below 3%. The
Tax savings are one of the many advantages of holding real estate assets in your portfolio. Real estate investments function as small businesses, qualifying for deductions to offset revenue. In addition to subtracting business expenses, you can depreciate the asset (along with investments in capital improvements) to further reduce the
In the face of rising interest rates and economic uncertainty, commercial real estate investments have seen both wins and losses in the first half of 2023. Multifamily, industrial, and local retail assets have delivered stable performances. However office space continues to struggle due to falling demand and a sharp increase
After a short pause in rate hikes, the Federal Reserve once again raised interest rates by 0.25% at their July meeting. This makes 11 increases in the last 12 meetings. Increasing interest rates slows economic growth, reducing inflation. It also raises the cost of debt. Unfortunately, the speed and volume
Multifamily has been the Darling of Commercial Real Estate for the past several years. In 2012, the JOBS Act enabled more people to access crowdfunding investments, like commercial real estate syndications. Something previously reserved for the ultra-wealthy and institutional investors. In addition to more access to opportunities, investors capitalized on
Last year the Federal Reserve began an unprecedented drive to reduce high inflation levels through interest rate hikes. Inflation spiked from 1.4% in 2020 to 7% in 2021. When it failed to correct itself in 2022, the Federal Reserve took action. After 10 consecutive increases, May numbers delivered promising news.
