Here are the pros and cons.
Pros:
1. Selection of available properties (inventory) is up.
2. Interest rates are low
3. Many properties now make economic sense – that is, incomes are greater than expenses
4. Current prices favor long term appreciation and equity creation through mortgage reduction
5. Sellers are becoming more realistic about market prices
Cons:
1. Prices (values) are still falling in many markets. This is spooking cash buyers.
2. Uncertainty in credit markets
3. Commercial properties are finding refinancing basically unavailable at reasonable costs
4. Occupancy rates continuing to fall during our jobless recovery
5. Difficult workout situations on commercial properties becoming more common.
There; glad I was able to clear that up for you so you could see the logical answer!
Pssst! Hey buddy….want to buy some REIT stocks? Look at these dividends!