Again, It Is A Great Time for Office Condo Purchase
From the look of January statistics, commercial real estate is starting to make slow move in a positive direction. Call volume in our office, during January 2013 tripled from December. More importantly, the calls were inquiries "for purchase" rather than "for lease." During the "good" times it has generally made sense to purchase rather than lease. If you are going to be in business for 10 to 20 years, the amount that you give to a landlord in rent can be instead be converted to equity. 

That principle worked very well until the bottom fell out of the market. Those individuals that bought at the peak of the market were hurt, because they paid more for their property than it is work in today's market. Those who had purchased in the early 2000's have still done well and can sell their units at or above what they paid for them, and can enjoy the rewards.

Most of the callers "want a bargain!". They want to cash in on the foreclosure market.  Interestingly, the majority of those properties have already been snatched up by investment groups and REIT's and is being remarketed at or near the new "market rate." That will cause a somewhat slower start, but it does not appear to be stopping inidividuals who have already made the decision to purchase.

Thanks for the SBA and the CDC's that are offering the 504 SBA loans, there is money for mortgages of owner occupied properties at really attractive rates. The rates and the availability of units is going to be a short term condition as the distressed asseets start selling. There will be a very narrow purchase window to get a good deal. Now is the time! Just do it!
Posted - 2 days ago

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