Page 19 - Venture - State of the Market 2019

What would your advice be What real estate asset What has been your
on investing in real estate in classes would you experience in the real
2019? recommend avoiding in estate market in the past
2019? 3-5 years?
Great terms cannot overcome a poor loca-
tion. I think the four main classes are all good I am a mortgage broker so I deal mainly with
depending on the deal. investments and home buyers.
My recommendation is to be a little bit more
cautious. Retail… Retail… Retail… Frenzied activity and incredibly strong
growth breeds poor decision-making and a
Look for good deals, don’t chase! Short term lease spaces. low bar for success entry. We’ve observed
individuals who’ve seen success despite
poor decision-making.
Wait and see, there may be some shifting,
motivated sellers etc. That it’s been a good return on investment.
What areas/neighborhoods
The Eastside appears to be a focus for our in the Greater Seattle Area HOT! Seen some great results in both busi-
clients, whereas a couple of years ago it was ness and personal investments.
South Lake Union and downtown Seattle. would you invest in during
the upcoming year? Steady rent growth and escalating prices.
Invest now! It’s a great time to grow your
wealth over the next couple of years. Once Capitol Hill, West Seattle and Ballard. It is undergone a large expansion.
we come out of the foreseeable recession,
your money will grow exponentially. Excellent! Been very blessed to have had a
Tacoma, Everett and hot spots! great few years.
Inflated, hard to find positives…
Bellevue, Redmond and definitely
Issaquah.
Be careful leveraging up too high and Do you foresee a correction in the
relying and continued cap rate Georgetown. market in the next 3-5 years? If
compression to increase value on low so, how do you think the market
margin transactions - keep a look out for With the buildup of the new light rail I’d r
the good opportunities and be prepared to ecommend investing in something close will be affected? Please provide
move fast as they will have lots of to mass transit. People will be willing to pay details.
competition.
more if they have to drive less.
I don’t have a crystal ball, but the cycle can’t
Fremont, Wallingford, Queen Anne. go on forever…
What real estate asset
classes would you Correction is happening now and will
continue for 18-24 months. Flat apartment
recommend in 2019? What areas/neighborhoods rental prices and slightly higher CAP rates.
in the Greater Seattle Area Flat, maybe a dip then roaring into the next
Apartments and single family homes would you avoid cycle.
purchased at the right price are still my pre- investing in during the
ferred investments. Probably, but not sure how sharp.
upcoming year?
I’d recommend investing in Storage! With so Yes, of course. We anticipate a reduction
many people moving into apartments and Lake City, U-District. the developers who have the financing to
downsizing in space, they need a place to move projects forward as construction costs
put all stuff…one thing people have a hard South Lake Union all the way. Highly and available workforce become further
getting rid of is STUFF! caution that area. strained.
I think there will be a recession. But it will
Apartments. People are wanting to South Lake Union and Pioneer Square. not be a big one.
downsize.
South Lake Union… The market tends to correct itself every so
Stick to fundamental plays, Not a time to take often. I predict a self correction is on
big risks. its way.
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VENTURE | 2019 STATE OF THE MARKET 17
16 VENTURE | 2019 STATE OF THE MARKET