We’re now going to talk about apartments rents.
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker
Marcia Edwards: Well, the good news is, Bob, that we’re in the businesses of shelter and people all want shelter right now. But the challenge is the dynamics in multifamily, where we’ve got some people able to pay their rent, some mortgage holders that are concerned that multifamily is not going to be able to pay their rent. What do you see out there?
Bob Nelson: Well, it’s interesting. I wish you have would ask me that question three months from now. By then it will have defined itself in several regards. Have we had by immersion of the people are reforming of the herd, have we sprung another virus, a wave, et cetera?
And if that happens to do the small businesses have to shut down and the small businesses in a number of instances provide the employment and the income for the residential tenant that rents an apartment complex, a unit in an apartment complex. And we’re going to know an awful lot in about three months, but there’s a huge amount of uncertainty at this point. And if you use the crystal ball and you’re in the blue chip with a crystal ball, it’s interesting.
Bob Nelson: But what’s going to happen, apartments will retain their importance because the older folks are potentially selling their homes and going to an apartment and doing traveling and so forth, freeing up equity and using it personally for the rest of their lives. The younger generation is having to use an apartment because they can’t afford to buy a house.
So the demand for apartments will stay strong. The only question is while there’s a need for the residential tenant to have a place to nest, an apartment unit, will they be able to pay the rent and will that uncertainty of paying of rent causes enough uncertainty for those who own it, that they may not be able to make their mortgage payment? It’s a tough situation.
Marcia Edwards: Is this an example of the long-term commitment to an investment will pay off in real estate in the short term may be a challenge for everybody?
Bob Nelson: Yes, it will be. It absolutely will be. I like the fact that I own my stuff free and clear, takes a certain burden away from me.
Marcia Edwards: That’s good planning on your part, Bob. I’ll do that, too. It’s a good concept. That’s the safest place to be, just hunker down and have some endurance in this situation.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30pm on KPNW for the “Real Estate Today” radio show.