May 2008 (EBITDA) Is that a good time TO INVEST in R.E. ?
Groups | Search | About
User Password
Register Now! Lost Password?

Financial Planning - Financial planning in general. (Moderated) 

get this group's latest topics as an RSS feed add this group's latest topics to your My MSN content add this group's latest topics to your My Yahoo content  add this group's latest topics to your Google content  YahooMyWeb Yahoo!  Google Google  Windows Live Favorites Windows Live  del.icio.us del.icio.us  digg digg  Add to Netscape Netscape
Subject Author Date
May 2008 (EBITDA) Is that a good time TO INVEST in R.E. ? Pseudonyme 05-20-2008
Posted by Pseudonyme on May 20, 2008, 3:08 pm
20 MAY 2008

Is that a good time to invest in the U.S. in Commercial Real Estate ?

001 : 10Y Interest rates have declined in the past 2 years.

002 : US Real estate, in my opinion, cannot decline further more
because the Price for used houses are now 20% under the Price of
construction (USD 350/SF w/o land).
Real Estate do not include any speculation margin.

003 : Price of houses has declined but Rental Prices remained flat :
so the Return on Investment grew automatically.

004 : Buying a commercial business of 2.000 SF for USD 600.000 with 5
offices and 5 lease contract with cool US entrepreneurs.
Each Office is paying USD 10.000/Year.
A normal price for rentals in the Miami targeted market (USD 2/SF/
Month)
As a consequence : You have a 50.000/600.000 = 8.33%
EBITDA 8.33% is not enough, but the idea there.

005 Problem : Many Constructions in the US are light constructions
unlike in Europe (old big walls houses). Cotages and Brown-stone
building are rare.

006 Problem : A non-republican president in the US might have a
negative tax-effect, and a negative growth rate-effect on the US
economy.

007 Problem : Finding the Building with EBITDA 10 to 12%.

Many thanks for your reply from your knowledge and experience in R.E.

cougloff
misc.invest.financial-plan
http://groups.google.fr/group/misc.invest.financial-plan/post?hl=fr

--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.


Posted by catalpa on May 20, 2008, 7:08 pm

>
> 002 : US Real estate, in my opinion, cannot decline further more
> because the Price for used houses are now 20% under the Price of
> construction (USD 350/SF w/o land).

Where did you get the $350 per sq foot number? In most of the USA you can
build a house for less than $150 per sq foot.

--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.


Posted by Douglas Johnson on May 20, 2008, 7:56 pm

>20 MAY 2008
>
>Is that a good time to invest in the U.S. in Commercial Real Estate ?

All real estate is local The US is a big place and there is a huge in real
estate in say Detroit vs. Dallas. In Detroit, you are doing serious bottom
fishing, hoping for a turn around. In Dallas, you are buying into a market that
is only slightly soft.


>002 : US Real estate, in my opinion, cannot decline further more
>because the Price for used houses are now 20% under the Price of
>construction (USD 350/SF w/o land).

Any investment can decline further. In fact, one of the surest ways for it to
decline further is to say it can't. $350/SF w/o land is a very, very fancy
house.

>003 : Price of houses has declined but Rental Prices remained flat :
>so the Return on Investment grew automatically.

But the price/rent ratio has been badly out of line for the last three or four
years. It has some catching up to do.



Are you in Europe? Do you really want to be an absentee landlord?

-- Doug

--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.


Similar ThreadsPosted
Is now a good time to invest in Bond Funds? July 4, 2007, 8:36 am
good time to roll over 401Ks? June 11, 2008, 3:11 pm
2008 IRA contribution limits? December 18, 2006, 2:45 pm
Re: Question about 2008 rollover from 401(k) to IRA October 9, 2008, 1:35 pm
china debt servicing may end 2008 June 12, 2007, 5:11 am
Emergency Economic Stabilization Act of 2008 October 5, 2008, 12:32 am
whether to buy a tax time IRA April 6, 2007, 5:03 am
one-time IRA to HSA April 28, 2007, 2:10 pm
What to do with time shares? February 8, 2007, 1:01 pm
One-time rollover from IRA to HSA June 3, 2008, 5:30 pm

other essential online resources:
United States Treasury
US Securities and Exchange Commission
New York Stock Exchange
Tokyo Stock Exchange
Accounting and Tax Software Forums
Contact Us | Privacy Policy   XML SitemapXML Sitemap