The global credit crisis continues to affect investment into the commercial properties sector. Commercial property returns over the last twelve month period are looking to be close to the worst twelve month real return on record which occurred in 1974. RICS are predicting that over the next two years things are going to get even worse with the decline in capital values far outstripping the slumps of the 70′s and 90′s. >
Investors are pulling out of commercial property fast and in doing so are leaving a very much tenant driven market behind. These are unstable economic times and tenants are looking to landlords to help them out with their commercial property lease agreements. As a result landlords are offering better value inducements, incentives, lettings agreements and rents than ever before in order to ensure their buildings do not become empty.
Despite the huge downturn in commercial property investment there are still some areas within the commercial real estate sector that are deemed viable investments. Student accommodation investors are still hoping for a successful new year and are counting on the fact that in times of recession many people put off entering an uninviting job market that is often only looking for experienced employees and look instead to improve their long-term professional prospects through training, qualifications and academic achievement. This combined with the fact that there is a shortfall in modern halls of residence and you get a potentially great investment formula in spite of the recession. Many commercial buildings are emptying fast, already standing vacant or are nowhere near full occupancy however, this formula is likely to mean that any commercial property investment into student accommodation is likely to see almost full occupancy even if some of the students drop out, which inevitably happens every year with a small percentage.
Even though many commercial property investors are looking to decrease their commercial properties portfolios in the long-run the UK commercial property market is beginning to be hailed as the best value for investment in the World, according to the annual strategy for review by global property fund manager La Salle Investment Management. The UK has fallen fastest and hardest across all of the global property markets and is therefore now looking like one of the most appealing areas for long-term investment. This combined with the fact that many universities simply do not have the available funds for revamping ageing halls means that student accommodation could be a great commercial property investment that is likely to remain buoyant throughout the recession.
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Gerald Celente predicts “Commercial Real Estate Collapse” in ’09. Today I drove around town and filmed all the vacancies. All film was shot in one city! It looks like this in neighboring areas as well. I didn’t even go to the mall or the industrial areas. That will be later. Check out Gerald at wwww.trendsresearch.com
Help answer the question about commercial property
Do you get taxed on sales of commercial property inherited through a will?If a person inherits a Commercial property through a WILL and sells it after 1 year are you taxed on the money? What is the tax rate if yes? I know that if you own a house and sell it you are taxed on that money unless you buy another house. Does that hold true for commercial property and property inherited through a will?
how did the Assessor come to assess the garage as "commercial". They would have had to have some reason. Did you ever claim the garage as a deduction on your income taxes for business purposes. We need more info from you. The Assessor wouldn't just out of the blue claim a garage as commercial, unless they had a good reason.
The city of Dallas will have a property map showing the zoning for all properties in the city. You can give them a particular address and they will give you the zoning guidelines for that property.
The National Association of REALTORS (NAR) has a website with all the REALTORS and if they have been the subject of any indiscretions. They won't have any public listing of income ranking etc. because that is against privacy laws.
Properties on Yahoo are normally take from other places/sites. If you list the property with a brokerage/company it should go onto local the local MLS, sites local real estate sites, REALTOR.com and then will show on other sites like yahoo, msn, homes etc. Sometimes when you list FSBO (for sale by owner) and put it on certain FSBO websites it will also post on Yahoo.
On the website http://www.findacareerhere.com there is a salary calculator that tells you salary and also gives you a job description. Hope this helps.
Yes you should refinance if you have the income to support it. It sounds like a good plan, good luck.
My company specializes in providing the SmartChoice Commercial Loan Program. What I feel makes it the best type of loan for business owners like yourself looking to buy real estate for their businesses, is that with it you will have to put as little as 10% down to buy your property making it the least expensive capital out there. We also provide below-market fixed interest rates and terms of up to 25 years.
It’s a good idea to put down as little cash as possible for your commercial property, and there are a couple of reasons for this. First, you free up more capital that can be re-invested in your business. Second, this is a long-term investment in your commercial property. You’re probably counting on this as a retirement vehicle (at least, you should, if you’re not already).
First things first.
You are already paying all of the interest, so any additional payments would be principal reductions, which offer no tax benefit to you.
Unless you are a real estate licensee, your rental business constitutes passive income, and you are limited to a maximum of $3,000 in deductions against earned income. All passive income sources are aggregated, so you can deduct a maximum of $3,000 per year, regardless the number of different businesses or properties or activities that count as passive income.
Additional losses may be carried back up to three years or forward up to seven years, but are lost forever after that.
Paying down principal is probably not in your best financial interest, as it will lower your rate of return on your investments. See a tax planner or financial planner to find ways to maximize your investment returns on an after-tax basis.
I would recommend that you use the extra money to fund a tax-deferred retirement vehicle, rather than reducing principal. If set-up properly, you can use your retirement account as a business partner for your real estate investing and gain a whole host of tax benefits. Again, see a professional in your area.
Good luck to you!
You can get a loan, but a commercial one, not residential.
i would go with a conventional loan only because you don`t know what the market will be like in 2-5 years