Aginsky Capital | Why US Real Estate
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Why US Real Estate

 

 

The real estate market in the U.S. has been on a roller coaster ride for the last decade. Property prices saw an incredible gain from 2000 to 2007, and then an equally precipitous drop in almost every region of the country from 2007 to 2009. After falling as much as 60% in many parts of the U.S., the real estate market in most states has reached its bottom and has been in recovery mode.   According to several AFIRE surveys, the U.S. real estate leads international markets in countries providing the best opportunities for capital appreciation as well as the country providing the most stable and secure real estate investments.

Country providing the best opportunity for capital appreciation

Country providing the most stable and secure real estate investment

The report issued by Moody’s REAL Commercial Property Index indicates that commercial real estate market is strong and increasing at a healthy rate; prices for commercial real estate increased by 16% in 2013.  Please click here for the latest Moody’s report.

 

The statistics indicate that the current situation of the U.S. real estate market is extremely favorable for the acquisition of undervalued assets. Limited availability of credit and restricted activity in the commercial mortgage backed securities markets has put additional strain on real estate properties, forcing continued defaults, foreclosures and bankruptcies.

 

Given this murky environment, many property owners and banks are actively looking to sell their investments at values far below market rates. In the world of real estate the atmosphere described above is not considered to be a distressed market, but rather a buyer’s market. Based on historical trends, macro economic indicators, and on-going market conditions, we strongly believe that along with stable rental yields, U.S. commercial properties present a very lucrative capital appreciation opportunity.

 

The question is which buyers will be savvy and resourceful enough to take advantage of this unique economic climate. The real estate market now is growing and is forecasted to continue in this trajectory. There are several types of properties that are especially attractive for investors in current conditions. See the section Recommended Property Types for additional information.