Fannie Mae's recent policy overhaul significantly slashes down payment requirements for multifamily homes, dropping them from the previous 15-25% range to just 5%, effective after November 18, 2023. This broadened policy encompasses various loan types, enabling larger loans up to $1,396,800 for these properties. This aims to make owning multifamily properties more accessible, especially for first-time buyers or those looking...
A 1031 exchange, named after Section 1031 of the Internal Revenue Code (IRC), allows real estate investors to defer capital gains taxes by swapping one investment property for another. However, understanding the rules and implications is crucial before attempting a 1031 exchange. Here is a breakdown of key points to look out for: What does it do? A 1031 exchange enables investors...
San Diego has recently enacted stricter tenant protection laws that surpass the state's AB 1482 regulations. These new laws impose greater responsibilities on landlords and limit tenant evictions. This article provides an overview of the key aspects of the new tenant protection ordinance and its impact on landlords and renters in San Diego.Stricter Regulations:The San Diego City Council approved new...
Rents have increased, showing a 0.5% improvement through a T3 basis from April, as seen in the graph below. The San Diego metro average is $2,699, while the average in the U.S. is at $1,709. Year over year San Diego saw a 6.3% increase in rates while the U.S. saw an increase of 3.2%.San Diego’s unemployment rate has continued to...
The City of National City is undergoing a Focused General Plan Update (FGPU) and Climate Action Plan (CAP) Update. The update includes the implementation of a new residential density bonus program called House National City, which is based on the floor area ratio (FAR). The General Plan serves as the guiding document for the city's future development, and the last...
The Federal Reserve's policy-making committee has voted to raise its target rate by 25 basis points, marking the 10th consecutive rate increase and bringing the policy rate to between 5% and 5.25%. The decision was unanimous, but the statement removed language suggesting that ongoing increases would be appropriate, indicating that a pause in further rate hikes may be coming. The...
The average multifamily asking rent in the US went up $3 in March to $1,706. The national asking rent growth turned positive for the first time in 4 months. With this being said, nationally the year-over-year growth actually dropped to 4%. With the collapse of several banks making the financial markets unpredictable at the moment, the multifamily market has remained relatively...
According to CoStar data, property prices in the US are falling at the fastest rate since the Great Recession, partly due to the Federal Reserve's decision to raise interest rates eight times in the 12 months through February. The decline stems from commercial real estate investors closely watching economic developments, causing a ripple effect that is flattening the growth of...
Commercial property insurance prices have been on the rise everywhere, especially in the climate-affected states. These are the states that deal with frequent extreme weather events such as wildfires, hurricanes, or blizzards. Because of these larger increases in insurance price, it is starting to become an issue for commercial property owners to both start new developments or to try to...
Throughout the pandemic multifamily owners in California saw a 2-year delay in physical and economic terms. With situations like this, this can play into why SB721 was put into place. Through SB721 California multifamily owners must have their balconies inspected and there are now deadlines for this. The first deadline is to have balconies inspected before or by January 1,...