Archive for December, 2010
Dec
31
UK Hoteliers Facing Commercial Property Decline
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Reports show that hotel transactions in the UK during the first three quarters of 2008 have declined by 69%. The credit crunch has directly impacted the hotel transactional market and commercial property transactions within the hotelier market are notably down. One of the biggest transactions so far this year has been the sale of a 50% stake in the Jurys Inn Chain, showing that during these hard times it is the budget sector that continues to generate interest from commercial property investors, especially those from the Middle East. This is backed up by news from Travelodge who are seeing a continuous shift of customers moving towards budget accommodation, especially amongst business travellers. This has led them to buy several more properties and to plan a joint venture with budget supermarket chain Aldi.
Good economic conditions and favourable credit options meant that 2005 to mid 2007 were extremely good years for the hotel transactional market. However, over the last year or so the lack of available debt and increased costs has seen a sharp decline of transactions within this marketplace. The current economic climate is not a healthy one for the UK hotelier commercial property market but, there are still opportunities for financially strong real estate buyers to make some extremely clever investments. Commercial properties that come on the market as a result of the credit crunch could be snapped up at bargain prices and could prove to be valuable long-term investments.
UK hotel owners have seen declines in room rates, occupancy and room yield throughout 2008. As a result hoteliers have been providing increasingly discounted rates in order to entice more customers and stop customers from transferring over to the budget hotel market. Despite this the PKF Hotel Consultancy services latest report showed that room rate, occupancy and room yield were down in London and throughout the UK.
The US hotel market is seeing similar if not stronger declines over this same period. Understandably it seems to be the tourist areas such as warm weather, leisure-orientated and seasonal markets that have been and are predicted to be worst affected. The PKF report shows that five of the top seven forecast city declines in revenue per available room are expected to occur within the state of Florida. So far most US hoteliers have stood their ground and have not been providing discounted rates despite the declining demand, in fact room rates actually increased in some areas in 2008. However, in 2009 a decline in room rates is expected as a result of the current demand decline. As a direct result further decreases in hotel commercial property and commercial real estate transactions are forecast throughout the US.
Repossession
Dec
30
South Florida and Miami Commercial Real Estate Outlook 2009
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South Florida’s residential and commercial real estate markets suffered in 2008, and the New Year doesn’t figure to offer much relief. Continued foreclosures and weak economy will continue having an impact on prices and number of properties available with only aggressive sellers disposing of properties.
Although home sales started picking up this summer, the beleaguered housing market has been hammered by foreclosures and falling prices. Meanwhile, the sputtering economy has local businesses retrenching and cutting jobs, dealing a blow to the retail, office and industrial sectors. All this carnage creates an opportunity for those positioned to take advantage of the adjustment in prices, and higher expected returns.
What follows is an outlook of the region’s commercial real estate markets as 2009 approaches:
Commercial Real Estate
As far as commercial real estate goes, retail, office and industrial markets in South Florida started 2008 fresh off a historic run-up in prices that saw signature properties fetch top dollar.
However this year businesses have cut jobs, leading to more office, retail and industrial vacancies. Ultimately, landlords will be forced to reduce rents, which will mean a decline in property values. As fewer tenants look for new digs more commercial projects are expected to stall. Some observers believe that building sales will increase in 2009, but only because bargains will be plentiful.
On the retail front, small and large merchants are struggling to stay in business. General Growth Properties, the nation’s second-largest mall owner, warned in November that it could file for bankruptcy protection. Foreclosures of Commercial properties such as hotels, offices etc. are expected to rise because building owners don’t have the cash flow to pay their mortgages as tenants struggle to pay the rent.
Paralyzed by the credit crisis, the commercial real estate industry is the latest to seek a government bailout of sorts. In November, a dozen real estate development groups banded together to ask Uncle Sam for help avoiding looming defaults, foreclosures and bankruptcies.
Some of the country’s biggest developers have asked Treasury Secretary Henry Paulson to be included in a $200 billion loan program recently created by the government. The program, the Term Asset-Backed Securities Loan Facility, was intended to support the market for car loans, student loans and credit card debt.
In a letter to Paulson, commercial property leaders warned that thousands of properties are in danger of foreclosure because current financing is coming due and new financing is hard to come by.
Unlike residential mortgages, which can have up to 30-year repayment schedules, commercial mortgages are repaid over five-, seven- or 10-year terms, with balloon payments at the end of the term. If refinancing is unavailable, an owner would be faced with a distress sale or losing the property in foreclosure.
In commercial real estate’s most recent heyday, the commercial mortgage-backed securities (CMBS) market provided easy money for purchases and refinancing. That market disappeared in the summer of 2007.
Rent Back
Dec
29
Dec
28
where is the best place to advertise as a commercial mortgage broker?
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Dec
27
Whats the best way for a Commercial Loan Officer to become established?
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I work for a mortgage company that primarily gives home loans to families and individuals, but we also broker out Commercial Loans. So, what’s the best way to pick up Commercial Leads?
Quick Property Sale
Dec
26
Commercial Mortgage: Your Questions Answered
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Understanding commercial mortgages is important if you plan on being a successful investor of wealth.
What is a commercial mortgage?
A commercial mortgage is a business credit using real estate (i.e. commercial building or other industrial property) as collateral to ensure settlement within an agreed period of time. This is a type of mortgage employed usually by business entities and not private individuals. By business entities, we refer to incorporated businesses, partnerships or limited companies.
Why do businesses avail of commercial mortgages?
The most common reasons for applying for a commercial mortgage are:
- Increase or expansion of current facilities
- Purchase or acquisition of land or industrial assets
- Commercial or residential investment
- Development of properties
Who qualifies for commercial mortgages?
There are several criteria to qualify for a commercial mortgage.
1. “Debt service coverage ratio” – this refers to the proportion of availability of cash to the needed loan settlements. Although many lenders may accommodate some applicants with some unfavorable credit records, most will expect a personal investment on the part of the borrower into the acquisition.
2. Feasibility of the business plan and current business standing – the lenders will want to see where the business is headed to and within what timelines these goals are expected to be achieved.
3. Type of business and type of land – risk factors that affect the business in relation to the nature of the industry and intended use of the premise is likewise considered
What are the general terms for commercial mortgages?
Most U.S. commercial mortgages call for monthly payments that have been scaled small enough to be able to settle the loan within a 20 or 30 year credit period span, with a total payoff within a lesser period of time. In other words, there are two basic elements to the commercial mortgage term. First is the period of time permitted before the total payoff? This can range from 5 to 30 years and can also be referred to as the ‘term’. The second is the amortization. If the term of the mortgage is 10 years, with a 30-year amortization timetable, the commercial mortgage will be referred to as a 10/30.
What about interest rates?
One thing to remember is that interest rates for commercial mortgages are definitely higher compared to interest rates in residential mortgages.
The basic type of commercial mortgage is the ‘fixed rate commercial mortgage’. As the name implies, it facilitates a fixed interest rate and payment for a full term loan. It is, shall we say, friendlier to the business budget as its rates do not sway along with fluctuating factors in the business market. This type of commercial mortgage makes planning easier.
Another type of commercial mortgage is the adjustable commercial mortgage funding. In this type, interest rates fluctuate depending in relation to an index that is chosen at the time of the mortgage issuance. The advantage of and ARM (Adjustable Rate Mortgage) is that probability for getting a higher loan amount and the potential savings compared to a fixed rate in the long run. With the ARM, interest rates are changed periodically. This gives the borrower a chance to avail of lower interest rates if the rates go down.
Sell House Quick
Dec
25
Rescue your Credit Rating With a Fast Property Sale
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If you have problems with credit, then you may need a fast property sale. Bills can easily get out of hand. When you have loans, store cards and a mortgage, it’s easy to let a payment slip here and there. Now that lenders have tightened up on bad debt, some people may end up in court with the risk of having their home repossessed. If this is happening to you, don’t be afraid. A fast house sale can repair your credit rating and put an end to repossession.
It’s a good idea to do this so you can get mortgages and loans when you need them. With a sound financial history you can get these products easily, but if your financial circumstances are patchy then your application for a mortgage, store card or loan may be refused. You may find it more difficult to manage your finances and it may be impossible to spend on large items.
We buy houses for cash fast, so we can help you recover if you have problems with:
Loan arrears or defaults
Unpaid balances on cards
Repossession
County court judgements
Mortgage arrears
Unpaid utility bills
The Solution To Your Financial Problems
If you want to save your credit history then you may need a fast property sale to help you with financial recover. Be sure to protect your credit rating, because it’s hard to repair it once it’s poor. When thinking about fast cash loans UK property owners should consider a fast property sale. With a fast cash loan you can repay your debts.
If you’re wondering how a quick house sale can help, think of it this way. You will be taking positive steps to sort out your financial problems. Your creditors who are trying to take your home will be happy if you try to repay them, and that’s a major benefit of a fast property sale.
As a homeowner, you probably have lots of equity in your home. If you unlock it, then you can fix your finances quickly. At St Genix Fast House Buyers, we have assisted many property owners by purchasing their home. It’s a quick process, with sales completing in around four weeks. That’s just a month till you have cash in hand. When you agree to a fast property sale you say goodbye to:
The costly process of getting your home ready for sale
Legal and estate agents’ fees
repossession
Repossession
Dec
24
I am looking for clients who have airplane notes, mortgage notes, mobilehome notes, boat notes, car notes, land notes, commercial notes, business notes. I have a website that they can post their items on for free that will get them immediate response. How can I reach these types of people?
Quick House Sale
Dec
23
what happnes when a shop lease runs out?
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Ive found a shop but lease ends march 2009. Does the lease then renew can rent rise drematically and catch me out? Ive had a lease before but was 999year lease so never had to worry- that though was on my flat not a commercial property which id imagne all have short leases. Unlikely but what would happen if I left early before the lease ended. I wont own the shop just rent
2nd question
My sister owns her shop but has a lease of 7 years or something if she sells when a lease only has say 2 years less would the shop value go down. She bought it for 80,000 just last year but would like to relocate?
Sorry I dont understand it all!! Please could make it obvious what question you are answering, cat xx
Quick Property Sale
Dec
22
Buying an Almeria Spanish Property For Sale
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There are different reasons why you need to buy an Almeria property for sale. Spain, especially in Almeria, is filled with long stretches of beach and sand. When it comes to Almeria, its coast is considered as its greatest asset. This is because thousands of tourists flock to the city each year to soak in the sun and waters of Costa de Almeria. The eastern part of the province presents Cabo de Gata. This is one of the most splendid beaches within Almeria. The best thing about the beaches here is that these are always pristine and quiet.
When you want to have the chance to enjoy all the leisure activities in Almeria; purchase a Spanish property for sale. The evenings in the city are entertaining, what with the scatter of music bars, discos, and nightclubs. Almeria club music differs from contemporary music, to the more wholesome family entertainment. Most of the clubs are located within the center of the city. If you want a late-night dinner with your friends, you can check out seafood restaurants and Tapas bars. While you can go clubbing during the night, there are plenty of activities to engage in during the morning. These include shopping for wool or wooden handcrafts, pottery, and going to museums, art galleries, and exhibition rooms. Or else, you can explore the most stunning landmark of the province, which is Alcazaba.
One of the most common reasons why there are more and more people purchasing Almeria property for sale. Spain experiences a great weather condition all throughout the year. This goes especially in Almeria, which has long hours of yearly sunshine. The climate of the province is subtropical Mediterranean, with mostly warm and dry days. When it comes to the dishes in Almeria, the locals use spices and olive oil with their foods. Among the most commonly used spices here are garlic, paprika, chili, ginger, and turmeric. The usual dishes are comprised of the “trigo”, which fennel and wheat; meat seasoned with spices; wheat paste; and vegetables and chickpeas.
There hundreds more interesting things that you will discover about Almeria. A weekend visit to this beautiful province is not enough to explore all the wonders that it has to offer. In order for you to fully understand and take in the beauty of Almeria, buy a Spanish property for sale. The best method to search for the most appropriate property is online, where there are lots of real estate agencies ready to cater to your needs. There are real estate companies on the Internet that specializes on property sale in Almeria.
An online business and property advertising directory for the province of Almeria Spain where you can find listings of Almeria property for sale and Almeria businesses including bars, restaurants, trades and other services.
Passive Income
