Most commercial real estate investors in Florida and around the country had a good year in 2016. A Mortgage Bankers Association report reveals that the financial sector provided more than $500 billion in commercial real estate loans in 2016, and both values and rents grew steadily in most markets. While the outlook for 2017 is generally positive among industry experts, an uncertain political landscape and a recent interest rate increase have raised some concerns.
People who want to make smart Florida commercial real estate investments must be able to understand the difference between price and value. Value is the return that investors receive when they cash in. Purchasing a property at a high price is not a good value because it will usually not lead to a high return.
Home buyers in Florida are facing higher interest rates than last year, yet financing costs remain low by historical comparison. Following the election of Republican Donald Trump, investors began trading in their U.S. Treasury bonds for other investments in expectation of rising inflation rates, according to CBS MoneyWatch. The increase in Treasury yields has driven the increase in mortgage rates, but analysts expect this trend to lose momentum in 2017. The article cites lack of residential development sufficient to meet demand as a primary reason to expect stability. The author also provides money saving tactics for home buyers.
For many people, selling and buying residential real estate can be quite challenging. From the negotiations, inspections and financing to ending the deal at the closing, the process is often fraught with many unexpected details that could threaten the sale of the home. Florida buyers and sellers may want to be aware of some typical derailments before they embark on a property transaction.