Multifamily Assets Class and Its Future

We all know that nowadays innovation is instrumental to growth and success in every field, and this is particularly true for the real estate sector which is currently one of the most competitive ones. In order to ensure that his work will bear fruits, Luther Ragsdale, a real estate agent and coach located in Atlanta, Georgia, equipped himself with the knowledge to make informed investment decisions. In this article, Ragsdale, who has his own real estate agency, provides an overview with the essential information of multifamily asset development. In doing so he will point the main demand drivers and conclude with the factors that make the multifamily real estate a widely held and strategic real estate asset class.

The multifamily real estate sector currently accounts for the second -largest share of institutional investors' real estate holdings, with approximately 25% of the U.S commercial real estate stock. For a long time, multifamily was considered as a strictly residential asset, but over the last few years, things have changed to a degree that multifamily has become one of the four primary commercial real estate asset classes. This asset class spans a wide spectrum of residential properties. In general, the real estate industry classifies multifamily properties as Class A, B or C, depending on important factors like quality, age, location, rent, and amenities, among others. Mr. Ragsdale, with his team of real estate agents, has been working with multifamily assets for a long time now, which has helped him achieved outstanding performance.

One way of analyzing the multifamily demand drivers in the United States is by considering that households are mostly made of either owners or renters. Ragsdale reports that according to the latest statistics from the U.S. Census Bureau, homeownership stands at 62.9%, which is the lowest level the last 25 years. That means that there are around 117.4 million households in total. Population growth is one of the biggest drivers. As the population grows, so does the number of households. Multifamily assets may be the solution to the growing problem of metropolitan overcrowding. For Luther , this could also be one of the reasons why it becomes so popular in recent time.

Multifamily and mixed-use developments have many merits, like residents having access to living facilities, as well as facilities for working and playing. As an expert with global expertise spanning more than 15 years, Ragsdale is convinced that the one things that make multifamily real estate so appealing, is the obvious fact that it offers convenience which usually can't be found in the gated stand-alone condominiums.

Multifamily assets in key urban areas can stimulate the growth of the local economy by bringing business activities. This could create a more dynamic business environment and thus provide more employment opportunities. As Ragsdale writes in his blog posts on Bigger Pockets, the economic benefits of it are yet to be felt, but he is strongly convinced that in the years to come, this will cause a more dynamic and less centralized economic landscape, and the whole thing is, in fact, a matter of time.

All You Need to Know About The New Real Estate Tax

Tax payment is not required for property owned by the local government and religious buildings in which are to be performed religious rites

All municipalities and cities in Georgia began to prepare for the introduction of a unified real estate tax, which will be from next year instead of paying municipal fees, taxes on houses and levies. According to the last census, Georgia has a large housing stock - 2.2 million flats and houses which will be subject to taxation. The law, which was adopted at the end of last year laid down a series of criteria by which to pay taxes, but the government says that for the vast majority of citizens tax liability will be the same or less than the existing benefits.

Now is The Time to Invest in Real Estate

Now's a good time to invest in real estate and the best example can bee seen in Atlanta: a project that has not yet received a building permit sold more than 50 percent of its apartments!
Even before the Tax Administration processed all the data on the real estate transfer tax, Luther Ragsdale declared 2016 as a year of upheaval in the Atlanta real estate market. According to available data, a perennial crisis was finally overcome, but confirmation should arrive this year. Ragsdale expects a further strengthening of the positive trend.

Investing in real estate: Building profit

Due to the construction "boom" in Atlanta, investment in real estate market can not be a bad proposition. The projections, however, to domestic investment funds able to make a profit for their investors that annually was double digits, with the first digit is greater than one, will be the exception rather than the rule.

Luther Ragsdale and others familiar with the local real estate market say that Atlanta is lagging behind neighboring countries in the number of square meters of residential and office space ten to twenty times, which is for investors who invest in real estate Mecca for earnings because the return on invested capital can be a 30 or more percent.