Blog

investment (46)

What Does the Stock Market Have to Say About Housing

Posted by Howard Bell on March 17, 2010 at 11:35am


Real Estate Investment Trusts
REITs are investment vehicles that trade like stocks or bonds.

Looking at the REITs and the various real estate sectors can help understand the underlying real estate trends we work with.

REITs have spent the past year raising money. All the sectors have been seriously damaged and therein lies the

opportunity. REITs that have been able to raise money are positioned for opportunistic buys. Cash heavy REITs wont have to rely on banks for loans and are waiting for banks have to unload non performing loans.These are going to be the winners here as some banks can no longer hold back on foreclosures. Stock market investors will often try to pre position themselves, to buy before the rest and hope to reap greater profits. They arent always right and they can certainly be too early.


REIT Sector Performance

1. Regional Shopping Malls: Up 11.9% in February
2. Shopping Centers: Up 8.9%
3. Apartment Sector: Up 8.4%

Given that many of these same sectors dropped 20-25% this time last year, its another sign that investors are beginning to think the worst may be over. According to the recent Price Waterhouse survey: many commercial real estate investors who held investments, overleveraged, or bought late in the cycle now face struggles because 2010 is expected to present many challenges as capital remains limited, rents continue to decline, and vacancies. But even with these snags, the firm says next year will be a great time to buy commercial real estate assets.

The Price Waterhouse survey goes on to note that Next year should open the gates on distressed properties as more community and regional banks fail and the Federal Deposit Insurance Corp. sells their assets. Surviving banks will keep their best performing commercial real estate loans alive but foreclose on the rest as their loan-loss cushions allow. Sounds like bottoming to me...

REsourced from www.yourpropertypath.com

You may republish this article, as long as you do not edit and you agree to preserve all links to the author and www.yourpropertypath.com

Related Articles

Home Trends Price Stability
Case Shiller: Slowly Getting Better
Small Banks In Trouble



Read more…

Commercial Property: Money Becoming Available

Posted by Howard Bell on February 23, 2010 at 2:28pm


Lenders may be beginning to open up as they see some signs of an economy that is stabilizing. Data released by the Mortgage Bankers Association (MBA) notes commercial and multifamily mortgage originations rose 12% in the fourth quarter year over year. Loan originations in the fourth quarter also were 15% higher than in the third quarter. see chart

life insurance companies posted 112% increase in loan originations in 4Q of 2009 compared with the fourth quarter of 2008, reports MBA. if you look to the chart, you can see relative stabilization in the last five quarters.

To be sure, commercial and multifamily originations remain at low levels. The Commercial/Multifamily Mortgage Bankers Originations Index, fell 79% over the last two years.The Commercial/Multifamily Mortgage Bankers Originations Index, for example, fell 79% over a two-year period ending in the third quarter of 2009.

And more to come: According to Foresight Analytics. For banks with $100 million in assets to $100 billion, commercial real estate is the largest part of their loan portfolio. Relatively little single-family. The regional banks are the sweet spot for bad commercial paper, with most small and midsized regional banks about to take the brunt of the storm.

Most of the problem loans were made between 2003 and 2007 and will be looking to refi or face possible default. They are expected to face the markets and the default rate should level off around 2011, Foresight Analytics
thinks we are about 60% through the loss process.

Money from large insurers and REITs seem to be picking up the slack as the banks still remain on the sidelines, preferring to rebuild their balance sheets rather than lend into a recession. Wherever the money is coming from, it is looking up

What it means for buyers and sellers of small properties and residential homes is that loan availability may be more likely from larger banks rather than the regionals as they brace
for the onslaught of bad paper expected to crest in late 2010 or 2011.

REsourced from www.yourpropertypath.com
You may republish this article, as long as you do not edit and you
agree to preserve all links to the author and www.yourpropertypath.com

Related Articles
FHA Financing Now Available For REO Properties
Fannie and Freddie Mae Get a Blank Check For Christmas
FHA and Fannie Mae Propose Rule Change


Read more…

REITs: Where Are The Good Deals

Posted by Howard Bell on February 23, 2010 at 2:00pm


Real-estate investment trusts sold $24 billion in new stock last year, raising to profit from commercial-property distress by picking up high-quality real estate at bargain prices. But they are having trouble finding deals. Tishman Spier, recently handed the keys back to the banks. Peter Cooper village and Stuyvesant Town comprise 56,000 units. Another 2.6 billion dollar deal was handed back to Barclays and they have no intention of putting these properties up at bargain basement prices. They are looking past the problem waiting for better days. see chart

So, REITs bought only $4.6 billion of property in 2009, a 67% decline from the previous year, according to research firm Real Capital Analytics. They cant get prime properties on the cheap. After dumping so much residential property on the market, driving prices down and gathering much evil eye for doing that, they learned a lesson.

Why

Commercial property prices some 35% to 50% off their peaks, most banks are keeping their best assets off the market. Many REIT expected the number of distressed buildings forced to market to surge as owners defaulted and lenders foreclosed. But while the number of problem loans has been growing, so far this hasn't translated into many fire sales. Finally there are some signs of an end to the equity drubbing taken by commercial real-estate owners.

From a cash-flow perspective, REITs still face declining rents and occupancy levels and equity evaporation. The REITs raised so much money waiting for the banks to hand off quality properties on the cheap and instead, they are going to manage and hold property. This may not be the generational opportunity the REITs expected. but I think it speaks volumes about how the world has changed for the better. Suddenly, there is a view that better times are coming.

REsourced from www.yourpropertypath.com
You may republish this article, as long as you do not edit and you agree to preserve all links to the author and www.yourpropertypath.com

Related Articles
Case Shiller And Housing Markets
REITs: The Other Big Lenders
Multifamily Apartments: Get Higher Rents and Lower Your Vacancy
Read more…

Foreign Real Estate Investors Return To The Market

Posted by Howard Bell on November 28, 2009 at 5:05pm
The 17th annual survey shows strong Interest In US Real Estate.1. Foreign real estate lenders say they plan to increase lending by 58% in the U.S. in 2009.2. Equity investors plan to increase investment activity by 40 percent globally and by 73% in the U.S. according to the results of the 17th annual AFIRE surveyPreferencesD.C. trumps New York as the top global city for foreign investment. London and New York were second and third position for foreign investment interest. Five of the top ten cities were American and the U.S. was ranked as the country with the most opportunity for capital appreciation.US Real Estate TrendsOur system certainly can surprise, but politically, we are very stable. There is a great deal of faith in our ability to adjust and change. AFIRE members surveyed find the U.S. continues to provide both the most stable and secure real estate investment environment and the best opportunity for capital appreciation. see chart hereThis year, foreign investors are eying the multi family sector, followed by offices, industrial, retail, and hotel properties. US property is showing signs of an approaching price equilibrium and the dollars decline has made real estate even cheaper for foreign investors. Fed assurances that interest rates will remain low until a full blown recovery virtually assures an inexpensive dollar and once in a generation opportunity for foreign investment.NAR reports International investors bought 154,000 homes and condos in the 12-month period ending in May, down nearly 10% from 170,000 for the same period a year earlier.But Since June, the dollar has tumbled by 9 to 11% against currencies like the Japanese yen, the Euro and the Canadian dollar. Florida leads the country accounting for 25% of foreign purchases, followed by California, Texas, and Arizona.(via AFIRE)Green MattersWhen asked to what extent a buildings green attributes influenced their decision to purchase a property, 11 percent said significantly so, and 60 percent said somewhat so. In almost the exact same percentages, investors said that green attributes were worth a greater rental premium. This was the first survey in which these two questions were asked. (Via AFIRE)Thanks for Readingwww.yourpropertypath.com" target="_blank">www.yourpropertypath.comRecent ArticlesNAR Report Third QuarterThe official figures indicate recession has ended
Read more…

Network To Succeed And Tap Global Markets!

Posted by Carlos H. Silva Sr. on March 1, 2009 at 2:48pm
In my opinion networking is one of the best and inexpensive way to establish business relationships which can be a source of additional business via referrals. The internet has made it possible to reach across countries and oceans to tap into global markets. Many foreign investors are investing in the residential and commercial markets where in the past it was mainly large corporate transactions. Our group has worked on transactions with institutional investors and private capital entities from Latin America, Europe, Asia, Middle East and our Canadian neighbors. Given this turbulent economic times you have to use all networking means at your disposal to tap into global markets and succeed!Our company, the largest REO brokerage in NV and home of NRBA President, specializes in Las Vegas commercial/residential Bank Owned (REO) and distressed real estate. However, due to our extensive networking and business relationships, we also have access to bank owned, distressed or off market commercial offerings worldwide.PsBelow you will find our Foreign Investment Group Marketing presentation. You are welcomed to customize and use to your specific needs:

Foreign Investment Group Marketing Presentation

Investment Broker Profiles
Read more…

REO Assignments To Double In 2nd Quarter, More Foreign Investment and........Shortage Of Inventory!?

Posted by Carlos H. Silva Sr. on February 12, 2009 at 7:30pm
Heard this morning from a very reliable source that REO assignments are going to double for the 2nd quarter (Apr/May) of the year. Also, we should be seeing even more investment, foreign and domestic, in tangible assets such as real estate due to the oversupply of money and lack of confidence in financial markets. Would not be surprised if we see a shortage of inventory towards the end of the year. Especially since the latest policy of rental leases in lieu of foreclosure, recent short sale appeal and more foreign and local real estate investment due to oversupply of money.
Read more…
Liberty House Realty | Online Montessori Preschool | Digital Marketing Agency