Expect Market Weakness in September
On September 16th, the U.S. corporate tax deadline hits, along with non-withheld personal taxes due mid-September. September is typically a seasonally weak month in the markets, and with potential tax-related liquidity drains of up to $500M, we can expect some market weakness this month. It is prudent to think long-term during this period and look for value when you see it.
Meanwhile - we can expect a Fed rate cut in September. I personally hope that we see a 75 bps cut; it's clear that the Fed has been slow to react.
Forward indicators have rates declining up to 200bps in 2025!
I like to use www.truflation.com for a real inflation guide. According to their data, inflation is currently under control - whether this sticks, we will have to see.
Is the Euro the next carry-trade?
I participated in a fascinating webinar with Vincent Veluard, Director of Global Macro Strategy at Stone-X, arguing the Euro could be the next carry trade. I have to agree with Vincent on the long-term weakness of the Euro. I just checked and the current borrowing rate in Euro is about 3%.
[Insight] Currently, gross rental yields in many sun-belt and midwest U.S. states are well over 10% per annum. Borrowing Euro at 3% and earning over 10% in USD is an appealing and prudent "carry trade" I am happy to discuss property options that meet these criteria.
New Listings
Newly-constructed multi-family unit in Los Angeles with a 6.8% cap rate!
4 Units x 5 bedrooms + 5 bathrooms + attached garage (total 20 bedrooms!). Approximate Lot Size: 7,499 sq. ft. Year Built: 2024
The property will be delivered with a 5-year master lease with government-assisted transitional housing organization.
Located just 0.2 miles from the University of Southern California's Health Sciences Campus and offers easy commutes to Downtown Los Angeles, Mid-City, and the Westside.
The 2024 construction ensures no deferred maintenance and strong in-place income. The property will be delivered fully occupied through 2024-2029, providing investors with immediate stabilized cash flow greater than 6.8% cap rate on current income.
Projected Monthly Rent: Y1 $23,000; Y2 $23,690; Y3 $24,400; Y4 $25,132; Y5 $25,886
Contact me directly for pricing and financing options.
Hotel101 Investment Opportunity
Hotel101 offers a unique opportunity to invest in 'hotel' rooms as freehold condo titles, along with a share of the gross room revenues—without any expenses or operational and maintenance responsibilities. Positioned as a 3-star hotel with 5-star amenities, they are located in top destinations like Niseko and Madrid. Plus, owners enjoy free nights each year at the hotels!
Watch our recent webinar with Hotel101 to learn more, or contact us here!
