This issue of Global Perspectives takes a closer look at a new breed of British buyers coming into the global real estate marketplace. Their property search is primarily driven by the challenges they currently face in the U.K. market and changes in the global economic climate. Young, financially savvy urban-dwellers who are interested in investing for growth are looking abroad for good returns.
On Jan. 30, 2013, the Federal Housing Administration’s (FHA) Commissioner Carol Galante announced a series of changes to be issued this week that manage risk and further strengthen the heath of FHA’s Mutual Mortgage Insurance Fund (MMI Fund).
With credit sources hard to access, it seems that more businesses would turn to the Small Business Administration (SBA) and its loan programs for building acquisitions. In spite of today’s sub five-percent, 20-year, fixed loan rates however, the program battles some misperceptions and does little to promote its loans. In a typical SBA 504-loan, a bank provides the first mortgage at 50 percent loan-to-value.
By Julie M. Mcintosh, CRE
Although the economy is showing signs of new life, the reality is that commercial real estate continues to operate in a very challenging environment. The vast majority of current commercial transactions are distressed debt assets, with banks and the FDIC selling both portfolios and individual loans.While everyone is being cautious when it comes to usual financing, there are some opportunities being directly created by the built-up inventory of distressed assets.
This month, Sam Chandan, PhD, Global Chief Economist of Real Capital Analytics, provides a 2011 forecast for the industry. He cites sales that are double those of 2009 with stronger equity and debt markets, but acknowledges the unevenness of the recovery. Here’s his perspective on the credit markets.
Trillions in Commercial Loans Come Due
Access to credit remains the number one challenge for commercial real estate. You’ve no doubt heard that approximately $1.4 trillion in commercial real estate loans will come due by 2014, and roughly 65 percent these borrowers will encounter significant trouble refinancing. Troubling as this is, credit availability for the fragile industry would be further reduced, if the Financial Accounting Standards Board (FASB) finalizes its proposal to expand mark-to-market accounting for all loans on banks’ balance sheets.