American Consequences - August 2020

REAL ESTATE IN COVID-19 TIMES

properties at good values from struggling landlords. Regardless of the short-term struggles facing multifamily housing, the long-term outlook remains positive. Rental demand is likely to remain strong in the future, making multifamily housing a continually attractive investment. According to a new report from RentCafe , 43% of renters who had been preparing to buy a home have now changed their plans due to COVID-19. And 23% of the renters surveyed for the report said that they now believe they will never buy a home. For millennials in particular, renting appears to remain the lifestyle of choice for the foreseeable future. TAKE ADVANTAGE OF STRUGGLING REAL ESTATE SECTORS The big real estate loser over the short term is inarguably commercial retail. Retailers have been battered by the pandemic, and many have shuttered their doors permanently and filed for bankruptcy. Pier 1 Imports is going out of business. And in April, Gap announced it was no longer able to pay rent at its North American locations, which amounts to a rental loss totaling $115 million per month. Not to mention the countless small businesses who have closed for good, leaving mom-and-pop retail landlords stuck with record-high vacancies and no prospects for new tenants.

Those opportunistic investors who have a high-risk threshold might find some great deals in the retail sector, but over the long term, as more and more businesses transition to online operations, the jury is still out as to whether retail properties will ever recover all the value they’ve lost. People will always need a place to live... When invested in wisely, real estate generates year- round income, appreciates over time, provides attractive tax breaks, and is a bankable asset you can leverage to grow your portfolio. There’s also the added bonus that market shifts are usually predictable at least six months out, so you can plan entry and exit strategies with ample warning. It’s an incredible asset class that will help you build a legacy of passive income for future generations of your family over time. As esteemed real estate investor Louis Glickman said, “The best investment on Earth is Earth.” Kendra Todd is a nationally recognized real estate expert, TV personality, author, and motivational speaker. She was the first woman, as well as the youngest competitor, to win Donald Trump's popular NBC show The Apprentice . Kendra hosted the critically acclaimed HGTV series My House Is Worth What? and is co-founder of The Kendra Todd Group, a real estate company based in Seattle, WA. She was also named of the Top 30 Realtors Under 30 in the nation by the National Association of Realtors. Kendra also wrote the best-selling book Risk & Grow Rich: How To Make Millions in Real Estate .

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August 2020

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