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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