South Bend 2019 Outlook

10 Replies

Hello Investors!! First I want to wish everyone a merry chrismas and happy new year. I wanted to start a discussion about where you feel real estate prices are headed in 2019 in South Bend? What are you plans for investment? Buy and Hold? Flip? How do you feel the recent rise in interest rates will effect the investment outlook in our city? What trends do you feel will effect real estate prices? What zipcodes or parts of the city do you think are or will become the best areas for investment and why? Lets talk. If anyone is up for a meetup lets set one up. 

Not selling my 8 unit near the fairgrounds. The goal is to hold that thing for a very long time. Overall very confident in that particular submarket long term. Would love to pick up some additional multifamily properties if the price, location and style makes sense. 

I think properties near the fairgrounds are way over-priced right now, and they will come back down to where they should be in the next year or two. In another 10 years though who knows. Hopefully they will do some expanding and get businesses south of Kern.

@Joel Florek when you say the fairgrounds do you mean where the 4h fair is held? I also would love to buy a multi family but it seems that there is not a ton of product in the area. Why do you like the fairgrounds area?

Originally posted by @Stephen Sokolow :

@Joel Florek when you say the fairgrounds do you mean where the 4h fair is held? I also would love to buy a multi family but it seems that there is not a ton of product in the area. Why do you like the fairgrounds area?

 Yeah, just south of highway 20. There isn't much product in the area which is one reason why I like owning down there. Not ideal for trying to buy into it though. 

The retail scene is very strong and you see a lot of small business investment. Menards is moving out of their small location to build a much larger store which will add additional jobs to the area. Overall there are safe neighborhoods with convenient highway and shopping nearby. 

I have been researching the opportunity zones and have the zipcodes and maps but I am not understanding how individual investors can benefit. I could be wrong but it seems that REITS would benefit the most from the zones. As an small investor it seems that the 1031 is still the best tool to use in terms of tax benefits. I could be wrong though. 

At a high level, my understanding is the Opportunity Zones program provides a tax incentive for investors to re-invest capital gains into low income communities through an Opportunity Fund. There is a permanent exclusion from capital gains from the sale of an investment in an Opportunity Fund if the investment is held for at least 10 years. If held for 5 years or 7 years, you can obtain deferral of 5% and 10% respectively.  

HI @Stephen Sokolow and @Joel Florek

I struggled with the same issue. As an investor, we can defer capital gains with a 1031 exchange. I would have to compare and contrast the criteria to see if there is a significant benefit and haven't really had a chance to do that yet.

Perhaps the real opportunity is to appreciation. If there are other businesses investing in these zones, then there may be a chance to change the fundamental economics of the area and improve house values long term.

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