Choosing the “right” multi-family apartment complex to acquire is a critical aspect of Moneil Investments Group, LLC’s (MIG’s) investment strategy. That is why we are diligent in our exploration and focus on opportunities in Emerging Markets, where jobs and local economies are expanding. We follow jobs!!
Emerging markets are characterized by:
- People migrating in, rather than leaving a geographic area
- Jobs being created rather than lost
- Rents and property values quickly rising
- Strong, local government leadership dedicated to attracting jobs
- Markets beginning to absorb oversupply
There are many indicators and a lot of research that goes into identifying an emerging market in the US. We start out by performing thorough market research that includes the following areas:
- Job Growth Report (local & regional)
- Population Growth
- Path of Progress Reports
- Local Economic Reports & Trends
- Chamber of Commerce Reports
Property owners who have suffered through years of a contracting buyers’ market frequently don’t recognize early signs of recovery. As investors, they are still feeling the pain of the previous cycle, characterized by decreasing rental rates, oversupply, and rising vacancies and unemployment. It can take local investors as much as a year or more to realize that their market has begun to turnaround. That is the prime buying window.
MIG monitors indicators of emergence.
When national attention is focused on a particular market, smart investors are already selling their properties. A common investing mistake is to jump into ‘hot’ areas reported on by the press. At any given time – regardless of what the national economy is doing – certain cities are in a local expanding cycle, not a ‘hot’ cycle.
Jobs bring markets back to life.
For a city to move to the next phase of the market cycle, it must take action to grow jobs. When jobs are finally created, people begin to migrate back into a community, population grows, vacant properties start being filled and rents start to increase over supply stalls markets and triggers the decline of emerging markets.
MIG tracks job growth and shrinking supply.y.