Commercial Real Estate Market On It's Way Down!
I know we have all been gossiping on the "bubble bursting" soon. Today I have pretty much seen first hand that it's about to start sliding...
Just about to close on a commercial office building and went over all the deals on the table for financing with my broker Ian. He mentioned that we are one of the last deals that will go through at the 15% down deal, all of the new deals in the future will need 25% down. He said that all the lenders are backing off on the commercial and will need 25% down in the future. Please keep in mind this pretty much this only deals with COMMERCIAL not residential.
He also mentioned house appraisals are coming in way under the proper appraisals they need. He said this is happening all over the place now and you really have to watch yourself or at closing time you might get stuck having to kick in some serious cash to close a deal.
Anyways don't want to sound like the sky is falling but watch what happens in the next 6 months in the canadian real estate market it could be very interesting. My bet is higher rates to lend money, house appraisals getting more and more out of wack and people will simply not be able to buy what they want at the price they want and sell what they want at the price they want.
Personally I hope the market goes to complete hell in a handbag so I can pick up some great deals, but only time will tell
DH
Just about to close on a commercial office building and went over all the deals on the table for financing with my broker Ian. He mentioned that we are one of the last deals that will go through at the 15% down deal, all of the new deals in the future will need 25% down. He said that all the lenders are backing off on the commercial and will need 25% down in the future. Please keep in mind this pretty much this only deals with COMMERCIAL not residential.
He also mentioned house appraisals are coming in way under the proper appraisals they need. He said this is happening all over the place now and you really have to watch yourself or at closing time you might get stuck having to kick in some serious cash to close a deal.
Anyways don't want to sound like the sky is falling but watch what happens in the next 6 months in the canadian real estate market it could be very interesting. My bet is higher rates to lend money, house appraisals getting more and more out of wack and people will simply not be able to buy what they want at the price they want and sell what they want at the price they want.
Personally I hope the market goes to complete hell in a handbag so I can pick up some great deals, but only time will tell
DH
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