Is Now A Good Time To Buy Real Estate?
Is Now A Good Time To Buy Real Estate?
Current market conditions put great doubt in the minds of many business owners as to how to handle office space requirements. Is leasing a better solution? Is purchasing a property realistic? Many factors can affect the decision and outcome of purchasing property in a down economy. There are still options for property purchases that can afford the opportunity to invest in your company right now, and capitalize on lower payments as time inflates rental rates.
Purchase price is the primary consideration over all, in any market. It will determine the success or failure of the investment, whether it is an owner occupied investment, or an income producing multi-tenant building. The property needs fit well into your financial model, considering factors like current revenue, anticipated growth, projected expansion of work force, and the appreciation and tax benefits a purchase could provide.
That being said, the market is currently full of distressed properties. Prices are anywhere from 20% to, in some cases, 70% down from the highs of 2007. Foreclosures, short sales and bank owned real estate, are creating some of the best opportunities to invest in real estate since the early 1990’s.
The other critical piece of the puzzle is financing. The media is full of bad news about the lack of funding or the difficulty of being qualified for loans. Yes, qualification has become much more stringent. Gone are the days of no doc, and stated income loans. There are still alternatives for lending though. The SBA is offering terms at 10% down, with interest rates in the hi 5% to Low 6% range, and additional money may be available to do repairs, or operate your business, for those that do qualify. They are also waiving some of their application fees, though that program may be ending soon. Some banks are beginning to underwrite loans again too; consult your lender to see if they are willing to assist you, and of course, consult with your tax advisor for all tax related advice.
The bottom line is that it may actually be a great time to look for a property to purchase. The search is not simple and requires the help of a professional real estate advisor to locate and negotiate terms, but you can find some extremely good properties for outstanding terms.
If purchasing a property is an avenue you’d like to look into pursuing, let the advisors at Sperry Van Ness help you. Olivia Czyzynski and Kevin Baran specialize in the suburban Chicago market and would be happy to help you with any questions you may have.
Below, please find a sample of some of the current suburban properties we have available for sale.
1600 Colonial Parkway, Inverness
4,300sq. ft. Private Office Building
38 N. Broadway, Des Plaines
2,000sq. ft. Newly Remodled Office Building
1300 E. Irving Park Road, Hanover Park
2,000sq. ft. Freestanding Retail Building with 20,000sq. ft. Pave Lot
Located On High Trafficked Road
For information on these properties, or to see more of our listings, please visit our corporate website: www.svn.com, or our office website: www.svn112.com
Filed under: Real Estate
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