January 13, 2008. For over 25 years Keith Pratt has specialized in income producing properties, with emphasis on student housing. He has witnessed and participated in the evolution of the industry with respect to management, city codes, leasing practices, rents, financing and tax benefits.
In the 70’s and 80’s interest rates were high on non-owner occupied real estate. Willing lenders were few and unfamiliar with the product. Today, there are more participating lenders, interest rates are quite reasonable, have just dropped to the high sixes and properties having four units or less can be financed with conventional residential mortgages.
The product quality is up, as many city rental inspection programs have over the past 40 years or so brought the rental housing inventory up to code and required high levels of maintenance.
At the voting booth, several times over the years the good citizens of Ann Arbor have defeated efforts to impose rent control, allowing competition and a free market to work. We must always monitor the politicians to ensure that this destructive practice is kept out of any community where rental property exists.
Another major impact on the benefit of investment property ownership has been the ease and simplification of moving up through 1031 tax deferred exchanges. The brokerage industry has learned and matured using this important tool to help clients and customers create equity and increase return on investment through the ownership of quality income producing real estate.
To discuss Ann Arbor income-producing real estate; residential, office or commercial, give our office a call and ask for Keith Pratt.
