State of the market: Around the block
State of the market: Around the block
At present it is a buyers market and it will be the purchasers that are prepared to act now that will reap the rewards. By acting now before the general market begins to move again you are able to negotiate quite commonly one on one with a vendor which was unheard of only a year ago. As a result the advantage rests with you, the purchaser and sharp buys will be a dime a dozen.
You need to view the fluctuations in the property market as a natural phenomena and look at it from the bigger picture. Short term profit is always great, but long term forecasting and planning is better.
At present the commercial / industrial property market is something of an enigma. Whilst most pundits had predicted that it will follow the residential market and decline further the market has been seemingly rejuvenated by the recent swathe of cuts to the OCR, which in turn are lowering interest rates.
However it's not all smooth sailing. Whilst at the same time the banks have been reducing their interest rates (with a notable lag behind the OCR) they have been increasing the penalty / breakage fees for renegotiating set interest rates on loans. More importantly they have also been demanding up to 40% deposits on commercial / industrial property in some cases. This has obviously provided sufficient reasoning for a number of would be buyers to hesitate.
With interest rates dropping like a stone a flurry of would - be investors / develops have come out of the woodwork, however the majority of them have little to no knowledge of the hoops the banks have waiting for them to jump through. It pays to talk to the bank / financial lender beforehand to get a good idea of your parameters that you can work / purchase within.
Putting all this aside I genuinely believe now is the great time of opportunity as with change comes reward and loss, and it is the smart players that will be rewarded. Individuals who understand that they can sell their property right now for less than they want but use this capital to purchase other properties at a similar reduced price but with a greater potential upside - these will be the people who make the most of this market.
This market epitomizes the iconic saying of 'fortune favours the brave.' Will it favour you?
State of the market Around the block - To learn more about this author, visit Benjamin Jones's Website.
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First of all the property cycle is a natural and necessary phenomenon. You need to understand that it mirrors the natural cycles of life and is constantly in motion. As in life there are periods of growth, stagnation, decline and rapid volatile movements but it is the individuals who understand the cycle who will adapt faster the fastest and prosper as a result.
At present it is a buyers market and it will be the purchasers that are prepared to act now that will reap the rewards. By acting now before the general market begins to move again you are able to negotiate quite commonly one on one with a vendor which was unheard of only a year ago. As a result the advantage rests with you, the purchaser and sharp buys will be a dime a dozen.
You need to view the fluctuations in the property market as a natural phenomena and look at it from the bigger picture. Short term profit is always great, but long term forecasting and planning is better.
At present the commercial / industrial property market is something of an enigma. Whilst most pundits had predicted that it will follow the residential market and decline further the market has been seemingly rejuvenated by the recent swathe of cuts to the OCR, which in turn are lowering interest rates.
However it's not all smooth sailing. Whilst at the same time the banks have been reducing their interest rates (with a notable lag behind the OCR) they have been increasing the penalty / breakage fees for renegotiating set interest rates on loans. More importantly they have also been demanding up to 40% deposits on commercial / industrial property in some cases. This has obviously provided sufficient reasoning for a number of would be buyers to hesitate.
With interest rates dropping like a stone a flurry of would - be investors / develops have come out of the woodwork, however the majority of them have little to no knowledge of the hoops the banks have waiting for them to jump through. It pays to talk to the bank / financial lender beforehand to get a good idea of your parameters that you can work / purchase within.
Putting all this aside I genuinely believe now is the great time of opportunity as with change comes reward and loss, and it is the smart players that will be rewarded. Individuals who understand that they can sell their property right now for less than they want but use this capital to purchase other properties at a similar reduced price but with a greater potential upside - these will be the people who make the most of this market.
This market epitomizes the iconic saying of 'fortune favours the brave.' Will it favour you?
State of the market Around the block - To learn more about this author, visit Benjamin Jones's Website.
Like this article? Share it with your friends
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
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