Friends overseas are asking, as investments. What kind of prices are you seeing in your area? How much have prices gone down from the top?
Yeah, if you have 20% down and are willing to pay 7%+ interest rate (you’re not getting a 5.875% FHA SFH loan rate–you’ll be getting the investment rate) and want to be a land lord from overseas, then by all means. Real estate is about information–unless you have done your research and know an area well, you’ll probably get burned. It’s also a highly illiquid asset right now. Basically, if you think real estate will be increasing at greater than 5% (yeah, Euro is strong right now) annually over the next 5 to 10 years and you are fairly confident the Euro keeps its strength to the dollar over that time, then yeah, it’s a good time. Over all, I think it’s a terrible idea–lack of information, illiquidity, high investor interest rate, need a lot of money down, overseas land lord status, currency exchange risk. I also think you’d have difficulty getting an investment loan lower than 9%. To answer your direct question–prices in my area are down about 20% and are still far more expensive than in 2000 when compared to the area median income.
Why not buy REITs, if intent on it?
take a look at O, NNN, FR, AMB, and PLD
mz, not a lot of individuals can afford to directly invest in commercial real estate. Overwhelming amount of sales volume in commercial comes in the from institutions such as ING Clarion.
It is time to buy my old apartment in Manhattan! The open house is tomorrow. I lowered the price by $50k. You can rent it out for $2750/month and be a genuine landlord. http://www.corcoran.com/property/listing.aspx?Region=NYC&ListingID=1330529
kkent, I’m a tad bit confused about your message. While I agree that few individualscan afford to directly comercial real estate, many can afford REITS. O, NNN, FR, AMB, and PLD are all REITS. One cold buy 1 share or 10,000 shares so not really sure where you are going kkent Wrote: ------------------------------------------------------- > mz, not a lot of individuals can afford to > directly invest in commercial real estate. > Overwhelming amount of sales volume in commercial > comes in the from institutions such as ING > Clarion.
Nice place but 679k was like last year. With NYC raising property taxes 10%, NYS & NYC increasing income taxes, and low bonuses if any this year. it’s prob going to go for 600k… How long have you had it? virginCFAhooker Wrote: ------------------------------------------------------- > It is time to buy my old apartment in Manhattan! > > > The open house is tomorrow. I lowered the price > by $50k. You can rent it out for $2750/month and > be a genuine landlord. > > http://www.corcoran.com/property/listing.aspx?Regi > on=NYC&ListingID=1330529
I bought it in 1996 because it was cheaper than renting. I lived there a few years then started renting it out. I did the math and I’ve been paid back over twice my purchase price in just rental income. I’m going to keep lowering the price but at the same time the realtor says I’m already pricing it below market. I’m also offering owner financing, so that should help in this market. (and for the record, $825k was last year)
mz, fair enough, didn’t realize you were talking about REITs–thought you meant buying individual commercial rather than buying individual SF houses. No harm no foul.
kkent Wrote: ------------------------------------------------------- > mz, fair enough, didn’t realize you were talking > about REITs–thought you meant buying individual > commercial rather than buying individual SF > houses. No harm no foul. No worries