Posted by: admin in Untagged on Jan 28, 2009
Is commercial real estate still a viable option? How low will it go? Those questions are just the tip of the ice burg that some investors and many speculators are asking themselves. With all the negative press regarding the overall economy, mortgage markets, and lack of liquidity, it's easy to see why. While all the news regarding the economy and the government bail out is warranted and is worth being informed on.
Commercial real estate fundamentals are still strong and has many advantages over other financial instruments like stocks, bonds, and Cd's. While most some investors and speculators are waiting on the sideline, experienced investors are being quite aggressive in the market place. Currently they see the next 18 months as a huge opportunity to purchase performing or non-performing assets, in a declining market, with the potential to finance these assets at historically low interest rates. Experienced investors realize the importance of a clearly defined holding period, knowing if a property purchased has the right fundamentals, they can weather the current storm of declining asset values, uncertainty in the economy, and falling US dollar.