Would you say it is a good time to invest in commercial Real Estate or should we wait?
I've been interested in Real Estate for quite a while but never got off the fence due to the unsteady market. I'd love to hear an opinion of where this market is going whether residential or commercial.
The theory is buy low and prices are about as low as you might expect. Land usually always rises in value.
The future looks risky and could completely collapse. But then money would be worthless anyway and one can't really allow for that except by buying gold, stocking up on weapons and food.
Land well selected has always been a good investment over time, just don't get in over your head with short term low interest mortgages.
Not a recommendation just an opinion. I'll answer your question with another. Would you rather pay a discount or premium when buying property?
There's a well known saying in the financial world and I paraphrase "Buy stocks when all the Brokers are jumping out the windows & Sell stocks when everyone thinks the NYSE or Nasdaq will never correct." A little different than the RE Market but in a sense the same concept.
I think we all like to buy anything for a discount and right now even though the RE market is coming back with a vengeance, especially here in California, it's still considered undervalued.
The market wil continue to go down as sales are still significantly trailing new homes under construction. I would stay on the sidelines until we start seeing signs of bottoming out of the housing market. In terms of specific geography, hard hit areas like Florida and Las Vegas are predicted to continue their fall but there are better oportunities in California.
Keep in mind that while related, the residential and commercial real estate markets are entirely different animals. For one thing, supply and demand factors can be quite different for the two real estate catagories. For two, commercial real estate buyers have deep pockets, unlike many home purchasers, so the potential is there to support commercial real estate in markets where there is sufficient demand, even in slow growth times.
I would say given the low interest rates, it is a good time to buy commercial real estate, as long as you are buying in a market that is not overloaded with empty commercial real estate.
I do think it is a good time, with a few reservations. Prices are generally lower than I have seen them in a long time. Many properties are stable and well-performing. Lenders in most areas have money to lend at historic low rates, but their lending criteria are more stringent than they have been in the past. Alternative investments that offer yield without outrageous risk and volatility are very hard to come by.
That said, I think there are types of commercial property investments that continue to be dangerous. Some markets are still highly challenged (Las Vegas, Detroit), and likely to remain so. Some property types have been hit harder than others, and will continue to echo the uncertainty of the economy (hospitality). Leasing is still a challenge, so properties with high vacancy can linger with that vacancy for a long time. It's still a tenant's market in many areas.
by TheMiz7 9 years ago
Smoke and mirrors or does the means justify the ends??The reason I happen to bring up this topic is I was able to attend a workshop by The Institute of Commercial Real Estate by Cherif Medawar. After a lil more digging around I did find mixed reviews regarding his workshops. Despite the mixed...
by PiaC 6 years ago
Is it a good time to invest in real estate now? or is the market still falling?
by websclubs 7 years ago
What’ the best way to invest in real estate?
by Kelly Kline Burnett 7 years ago
I think the next 3 months will be the best time ever to purchase a home. Your thoughts?One agent felt that there would be another dip.I asked this question the other night and an established owner of a plumbing company felt homes over $2 million in the US were a stable value - everything...
by Jyoti Kothari 5 years ago
How to invest in real estate?
by ngureco 8 years ago
Why Should One Invest In Real Estate And Not In Stocks?
Copyright © 2018 HubPages Inc. and respective owners. Other product and company names shown may be trademarks of their respective owners. HubPages® is a registered Service Mark of HubPages, Inc. HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.
|HubPages Device ID||This is used to identify particular browsers or devices when the access the service, and is used for security reasons.|
|Login||This is necessary to sign in to the HubPages Service.|
|HubPages Traffic Pixel||This is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.|
|Remarketing Pixels||We may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.|
|Conversion Tracking Pixels||We may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.|