NAFTA- What does it mean to Mexico market and others??
Mexico City and Resort Markets :
How Will NAFTA Affect...
... Mexican Real Estate?
Demand for all types of commercial properties will increase as U.S. and Canadian companies open Mexican branches and outlets.
The retail market will grow as franchises open new outlets and large discount dealers (fast food, discount, department stores, clothing, home repair, and auto parts) open stores.
The ability to finance real estate will be enhanced with the advent of continental norms in loan underwriting and the introduction of North American-style title insurance.
Land use patterns will change as a result of infrastructure construction (regional airports, national interstate highways, sewer and water projects) and loosened restrictions on foreign ownership of real property.
Mexican Real Estate Brokers?
Professionalism will increase as a result of the proposed introduction of mandatory licensing on a state level, subject to a nationally based standards; the growth of the Mexican Association of Real Estate Professionals (AMPI); and AMPI-sponsored joint ventures for professional educational courses with CREA and NAR and associations like CIREI.
Competition will increase due to the introduction and growth of professionally managed real estate brokerage organizations and franchises. For example, RE/MAX, Grubb & Ellis, Century 21, and Cushman & Wakefield have already expanded into Mexico.
Increased opportunity for co-operative brokerage with American and Canadian real estate professionals and for serving expanding Mexican firms and American and Canadian companies entering the market.
Sunday, March 16, 2008
Monday, March 3, 2008
Investors are Flocking to Commercial Investments.
“Real estate offers tax advantages and leverage advantages that are not easy to obtain with routine stock and bond investments,” Moore says. “The [Internal Revenue Service] allows you to write down the value of improvements over 271/2 years for apartments and 39 years for other commercial properties.”
An investor also can take depreciation of a property as a tax-deductible expense to shelter other income, he adds.
Further, Moore continues, investors can leverage their investment by making a low down payment and borrowing against the property when its value increases to make additional real estate purchases.
“Nowhere else can one borrow upward of 80 percent of the value of an asset to benefit from an increase in 100 percent of the asset,” Randall says. “If a property increases in value by 10 percent, the investor actually receives a 50 percent increase in that 20 percent down payment.”
Also, by using a tax-deferred exchange, investors can invest the full proceeds from the sale of one or more buildings that have appreciated in value into the purchase of one or more other buildings without paying capital gains taxes, Sturm says.
However, tax benefits should not be the only reason for investing in commercial real estate. Investors also can take emotional satisfaction in pointing to the commercial property that they own. “Real estate allows you to see, touch, and feel your investment,” Randall says.
“With real estate, you own something tangible,” Brown agrees. “You can go out and knock on the walls. That makes people feel comfortable. There's not the fear of losing everything.
“Another reason people feel comfortable with real estate investments is you can take an active role,” Brown continues. “You have more control of your destiny than you do with a stock or a bond or a mutual fund.”
Core Real Estate Investments Perform Well
During the past three years, “core” real estate investments have significantly outperformed all major asset classes on a risk-adjusted basis, according to a recent Lend Lease Real Estate Investments report.
Two basic characteristics define a core style of investing, the report states: income from core holdings is stable, predictable, and constitutes a significant proportion of total return, generally 70 percent to 80 percent over the holding period; and core investments are readily marketable, enabling an efficient exit and minimizing liquidity risk.
The complete report is available at http://www.lendleaserei.com/.
Story by Jerry Demuth, CIRE Magazine.
An investor also can take depreciation of a property as a tax-deductible expense to shelter other income, he adds.
Further, Moore continues, investors can leverage their investment by making a low down payment and borrowing against the property when its value increases to make additional real estate purchases.
“Nowhere else can one borrow upward of 80 percent of the value of an asset to benefit from an increase in 100 percent of the asset,” Randall says. “If a property increases in value by 10 percent, the investor actually receives a 50 percent increase in that 20 percent down payment.”
Also, by using a tax-deferred exchange, investors can invest the full proceeds from the sale of one or more buildings that have appreciated in value into the purchase of one or more other buildings without paying capital gains taxes, Sturm says.
However, tax benefits should not be the only reason for investing in commercial real estate. Investors also can take emotional satisfaction in pointing to the commercial property that they own. “Real estate allows you to see, touch, and feel your investment,” Randall says.
“With real estate, you own something tangible,” Brown agrees. “You can go out and knock on the walls. That makes people feel comfortable. There's not the fear of losing everything.
“Another reason people feel comfortable with real estate investments is you can take an active role,” Brown continues. “You have more control of your destiny than you do with a stock or a bond or a mutual fund.”
Core Real Estate Investments Perform Well
During the past three years, “core” real estate investments have significantly outperformed all major asset classes on a risk-adjusted basis, according to a recent Lend Lease Real Estate Investments report.
Two basic characteristics define a core style of investing, the report states: income from core holdings is stable, predictable, and constitutes a significant proportion of total return, generally 70 percent to 80 percent over the holding period; and core investments are readily marketable, enabling an efficient exit and minimizing liquidity risk.
The complete report is available at http://www.lendleaserei.com/.
Story by Jerry Demuth, CIRE Magazine.
Wednesday, February 20, 2008
Commercial Real Estate: Safe Haven Investment
While economic uncertainty and the credit crunch have led to investor anxiety in many markets, commercial real estate remains comparatively attractive, according to Deloitte LLP’s recently released report, 2008 Real Estate Capital Markets Industry Outlook.
"In prior boom cycles, commercial real estate has responded by overbuilding. The industry has clearly learned its lesson because this time commercial real estate is enduring a credit crunch, not a crisis, partially because it resisted this urge,” said Dennis Yeskey of Deloitte’s Real Estate Capital Markets practice.
"No doubt the industry is in a strong position to withstand a recession, should one occur, and commercial real estate remains a viable investment option for those seeking to diversify and insulate their portfolios from market volatility.”
The Deloitte report discloses that commercial real estate (CRE) has "evolved from an asset class characterized by steadfast returns and low volatility to a ‘Best in Show’ asset class providing investors with both high yield and high stability . . .
"Despite several stock market run-ups in the last few years, CRE has shined, outpacing stocks and bonds on a 1-year, 5-year and 10-year basis.”
According to the report from Deloitte’s Real Estate Group, which has offices across the U.S. and in Europe and Asia, CRE "has been a clear winner in terms of performance and stability, in addition to offering diversification for investors.
"In prior boom cycles, commercial real estate has responded by overbuilding. The industry has clearly learned its lesson because this time commercial real estate is enduring a credit crunch, not a crisis, partially because it resisted this urge,” said Dennis Yeskey of Deloitte’s Real Estate Capital Markets practice.
"No doubt the industry is in a strong position to withstand a recession, should one occur, and commercial real estate remains a viable investment option for those seeking to diversify and insulate their portfolios from market volatility.”
The Deloitte report discloses that commercial real estate (CRE) has "evolved from an asset class characterized by steadfast returns and low volatility to a ‘Best in Show’ asset class providing investors with both high yield and high stability . . .
"Despite several stock market run-ups in the last few years, CRE has shined, outpacing stocks and bonds on a 1-year, 5-year and 10-year basis.”
According to the report from Deloitte’s Real Estate Group, which has offices across the U.S. and in Europe and Asia, CRE "has been a clear winner in terms of performance and stability, in addition to offering diversification for investors.
"Early in 2007, the story that appeared to be developing was the emergence of asset class parity, as rebounding stocks as well as private equity and hedge funds emerged as more significant competition. During the first three quarters of 2007, however, private CRE returns held steady as stocks endured significant and repeated volatility.”
The report makes a number of positive observations regarding commercial real estate, including:
- Over the 3-year period from 2004 to 2006, core private commercial real estate had annual returns of more than 17 percent, while the S&P had an average annual return of 10.44 percent over that period, NASDAQ returned less than 7 percent, and bonds returned less than 5 percent.
- Due to the weak U.S. dollar, commercial real estate in the U.S. is relatively attractive to foreign investors compared to other international markets.
- Overall vacancies in commercial real estate remains stable, and rent continues to increase.
The "Bottom Line,” according to the report: "Going forward, investors would do well to stop comparing commercial real estate returns to the previous few years’ performance, and to take a closer look at how these returns fit into the big picture.
". . . when compared to other investment categories (stocks, bonds, etc.), commercial real estate remains an attractive investment vehicle due to its stability and opportunity for diversification.”
this article was provided by money source.
Monday, February 11, 2008
Funding shouldn't be difficult
The process of funding a commerical project can be smooth or it may never fund after delay after delay. Ever have that happen with your lender??
It won't with us, Cascade Financial. We review your file and we will be honest with you if we are not the right consultant for your project.
If we tell you yes, we cna fund this, then we commit to a smooth process which we stay on top of all the way from LOI to closing. We are direct to our hedge fund and to our private lenders. We consult with you, the principals, to obtain the very best terms for your project. Email your projects to WendyAbner@msn.com to have it reviewed in confidence.
It won't with us, Cascade Financial. We review your file and we will be honest with you if we are not the right consultant for your project.
If we tell you yes, we cna fund this, then we commit to a smooth process which we stay on top of all the way from LOI to closing. We are direct to our hedge fund and to our private lenders. We consult with you, the principals, to obtain the very best terms for your project. Email your projects to WendyAbner@msn.com to have it reviewed in confidence.
Tuesday, February 5, 2008
Commerical Lending in the Islands
Our private Hedge Fund is ready to fund your resort/ airport/5 star hotel deal now! Up to 100% funding, acquisition, construction, takedown strategies all available. We specialize in island projects in the Atlantic and Caribbean, Costa Rica, as well as Pacific Islands and Mexico. We are direct to the lender and have very competitive pricing. As consultants, we respresent you, the borrower, throughtout the process, negotiating and overseeing all of the transactional details. Don't just use a broker who will pass you off to a lender rep and you won't hear from them again, and possibly not close your deal. Call a professional company you can count on. http://www.callcascade.com/ and www. Gobigcommercial.com
Wendy Abner, M Ed
Financial Consultant
941-756-4750 US
WendyAbner@msn.com
Sunday, January 27, 2008
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