When Is The Best Time To Purchase Investment Real Estate In The Eugene and Springfield Area?
Good Monday Morning!
If you have not been to an Oregon Duck baseball game at the brand new PK Park you need to do so. What a fantastic facility this is and how much fun is it to watch a college baseball game? This is a great addition to the Eugene and Springfield area!
Most of the Real Estate news over the past several years has focused on the residential Real Estate market and it's continual slide both nationally and locally. The situation with the residential market has certainly had an effect on the lives of most. Now coming on the scene is a situation with commercial Real Estate that is going to also have a significant impact on most of us. Loans for commercial Real Estate are typically much shorter in term than those made for residential Real Estate. Most commercial loans have a duration of seven years. What we are seeing in both the local and national commercial Real Estate market is that lease rates are declining sharply. The value for commercial property is determined primarily by what the lease value is. As a result of the lower lease rates, the value of most commercial property has dropped significantly. Over the next 3 years hundreds of thousands of commercial notes are going to be coming due all over the country. As these notes come due the commercial property owners are going to have to find new financing. Due to the lower lease rates, many of these commercial properties values will be less than what is currently owed on them. The problem will come from the fact that the banks will not be able to loan on the buildings for the amount the owners need and historic numbers of commercial Real Estate owners will now go into default. This has the potential for a huge economic disaster as thousands of commercial property investors lose their money. The investor groups are broad as many of the nations largest insurance company's etc. are invested heavily in commercial Real Estate.
Have An Awesome Week!
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THIS WEEKS HOT HOME LISTING!
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