The next 10 – 20 years may be the best time in history to invest in apartments. The market will have an increasing demand from the 75 + million Echo-Boomers and the Baby Boomers down sizing to smaller units. Supply-side Economics has been affected with “housing start” reductions over the last several years. The capital and credit crunch will affect supply for years to come. The future forecast is a pent-up demand for apartments.
Those renters have changing housing preferences. Immigrant, young (Echo-Boomers) and aging populations (Baby Boomers) tend to be renters. Housing preferences are also changing to urban living as commute times increase and “quality of life” factors drive people to live closer to work. Federal and state housing policies, e.g. mortgage and safety regulations, fees, taxes, inflation, etc. increase the costs of housing. These factors will drive an increasing demand for apartments in the next decades.
PMHDC forms partnerships to acquire multifamily residential communities to take advantage of the long term trends for apartments.
The business plan is to purchase apartment buildings in markets with high barriers to entry and at prices substantially below the cost to construct a new, similar building. The partnership will then take a value added approach to improve the building through renovation, enhanced curb appeal and professional management. This also includes reducing on-going operational expenses to maximize rental income from the building.
The company serves as the general partner, asset manager and co-investor. With more than 25 years experience in the real estate business, we are active mangers through all aspects of the property investment cycle: purchase, renovation, management and subsequent sale of the property.
PMHDC allows a passive investor access to participate in a professionally managed apartment investment not available to most investors.
The apartment partnership pays you monthly income. The cash flow is mostly sheltered from income taxes due to depreciation expenditures. The gain from the principal pay down and property appreciation is tax differed until the sale of the property. Apartment ownership will not make you rich quickly, but there is no better investment.