Commercial Real Estate Market On It's Way Down! - GoFuckYourself.com

GTS Mark · 05-13-2005, 09:59 AM

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

JFK · 05-13-2005, 10:03 AM

Real Estate goes in apx 5 yr cycles , perhaps its time for the downcycle. You are lucky you were able to get in with 15% down , around here they all want 25.

simple simon · 05-13-2005, 10:05 AM

not worried 1 bit

KRL · 05-13-2005, 10:06 AM

This is a great pic of the real estate industry.

The title is "Up, Down, Up, Down, Up, Down."

simple simon · 05-13-2005, 10:07 AM

Quote:

Originally Posted by KRL

This is a great pic of the real estate industry.

The title is "Up, Down, Up, Down, Up, Down."

and the end result is profit, profit, profit

slapass · 05-13-2005, 10:53 AM

commercial real estate is much more volatile then residential.

Shooter · 05-13-2005, 10:55 AM

Are you buying it for new office space or is it another investment property?

05-13-2005, 09:59 AM	#1
GTS Mark Vrume Mark Industry Role: Join Date: Jan 2001 Location: Toronto, Canada Posts: 20,912	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

05-13-2005, 10:03 AM	#2
JFK FUBAR the ORIGINATOR Industry Role: Join Date: Jan 2002 Location: FUBARLAND Posts: 67,374	Real Estate goes in apx 5 yr cycles , perhaps its time for the downcycle. You are lucky you were able to get in with 15% down , around here they all want 25. __________________ FUBAR Webmasters - The FUBAR Times - FUBAR Webmasters Mobile - FUBARTV.XXX For promo opps contact jfk at fubarwebmasters dot com

05-13-2005, 10:05 AM	#3
simple simon Confirmed User Join Date: Jan 2005 Posts: 854	not worried 1 bit __________________ SIG TOO BIG! Maximum 120x60 button and no more than 3 text lines of DEFAULT SIZE and COLOR. Unless your sig is for a GFY top banner sponsor, you may use a 624x80 instead of a 120x60. Let me repeat... A 120 x 60 button and no more that 3 lines of DEFAULT SIZE AND COLOR text.

05-13-2005, 10:06 AM	#4
KRL Entrepreneur Join Date: Oct 2002 Location: USA Posts: 31,429	This is a great pic of the real estate industry. The title is "Up, Down, Up, Down, Up, Down." __________________ If you would like to develop your domains, you can lease inexpensive foreign labor from the leaders in the field at iWebmasters.com TO LOWER YOUR COSTS AND INCREASE YOUR PRODUCTION! * * * * * * * * * * * * Domains Adult News KRL's Newsletter Biz Tips Just Listed Domains

05-13-2005, 10:53 AM	#6
slapass Too lazy to set a custom title Join Date: Nov 2002 Location: Earth Posts: 14,622	commercial real estate is much more volatile then residential.

05-13-2005, 10:55 AM	#7
Shooter Confirmed User Join Date: Apr 2001 Posts: 2,842	Are you buying it for new office space or is it another investment property?