So the sound premise it's a good idea to buy a house this
year because it will
probably cost more
next year and you're going to want a home and the fact that you can finance it gets distorted
over time if housing prices are going up 10 % a
year and inflation is a
couple of percent a
year.
Justin Palmer — Definitely, it's something that is tough for us to go and get scale, because we have also stepped up in deal size, our first
couple of deals were in the five to 10 million range, and now we're doing 30 to 100 million, and we'd like to stay above 30, but we are going out looking at other markets, particularly in the multi family and senior housing space, we think there's still a lot
of opportunity in housing and urban markets around the country, there's a lot
of urban markets well they're are seeing tremendous growth, and I think that's more
of a structural shift in where people want to live and work, and I think like you said, you're
probably not going to see the rent growths you've seen around the country in the past four or five
years, but there are still opportunities to go buy a B asset and turn it into a B +
over the
next 3 to 5
years and make good value there.
«If we were setting the betting line on asset value appreciation
over the
next couple of years, we would
probably put it at zero, with NOI growth roughly offsetting a little bit
of a backup in cap rates,» says McCulloch.