February 22, 2012

Is 2012 the Year?


We all know that it is difficult to time the peaks and valleys of markets; whether it be the stock market, the real estate market or the Seniors Housing market, but there are several factors that create a credible argument that 2012 is the peak of the Seniors Housing market.   Interest rates are at historically low levels giving buyers the ability to secure very inexpensive debt, allowing them to pay a higher price.  There has been a tremendous amount of equity on the sidelines in the last 3 years.  Buyers were hesitant to do any deals with so much uncertainty in the economy, this equity is active and aggressively looking for seniors housing deals.   Lastly, capital gains taxes are at approximately 15%.  This allows a seller the ability to sell and walk away with the highest net proceeds, there are numerous tax advisers that are predicting capital gains tax will drastically increase in the next few years.     

Is 2012 the top of the market?

If you don’t know the precise value of your seniors housing community, please call us.  We can complete a confidential, free analysis of you community so you know what your exit is today.

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