GLG News in Real Estate

Upping mortgage interest rate gives hardship to home buyers. This burden of high borrowing costs reduces the demand for apartment. High priced home apartment buyers who can not afford for increasing mortgage payment went bankrupt. In addition, apartment price is somewhat falling in even Gangnam area. Do these economic turmoil means the end of residential real estate market and will affect office and...

Discount sales are just that. Cheap is still money. Sunk costs are sunk. If Uncle will give a little money back, that's even better.

In this latest news article, the Philippines travel, leisure/gaming and medical tourism industries has grown 6% from a year ago.

With Unemployment on the way up this can mean only one thing, office and retail vacancies will be on the rise. As this writer has often written over the past 18 months, commercial real estate is a lagging indicator. The lag is over and the market has finally started to catch up to the reality of what has been going on in the credit and housing markets. Those that either pretended there was not going...

The basic problem with prices is deflation. The reason is that problem loans are stressing lenders' capital. To reinforce capital lenders are selling assets in unusually large numbers. The catch is that the problems frequently swallowed up cash. So, when the asset sale comes along, the markets are not only having to cope with large volumes, but also little liquidity. Deflation is the opposite of inflation;...

If this writer is correct there is very little to worry about for holders of stock in mall and strip shopping center REITs. While I am not an expert in other types of equity REITs, my experience tells me that they generally move in tandem to the shopping center REITs. It is my firm belief that this writer has overlooked several key elements that must be factored into any analysis of the near...

In these turbulent financial times how will Main St. survive with no liquidity, bad credit and an over leveraged home?  The answer is simple they will not!  However if congress were to look at this from the bottom up the answer would become fairly simply.  Over the past several years home owners were put into hybrid mortgages.  These mortgages are now in default. ...

With the current economic fluctuations in the United States and around the world, land investors may worry about an upward return on their investment.   There are still many places in the United States that appeal to the land investors. 

To some extent foreign investment drove up and will pull down values. There are other factors. Loose lending standards by Japanese banks of 80-90% LTV are now 50-70%. Mezzanine lending was generally provided by foreign institutions. After sub-prime started in the USA, intermediate finance seized-up in Japan from late 2007. Land Aggregators, Developers, Funds and REITS lost site of yield and focussed...

This isn't the first time that the income approach has been proposed, even attempted, in single family valuation. There are several problems. 1 - if your discount rate follows the market, then income approach values will follow the market. 2 - if it doesn't, then the result is artificial and needs artificial support. 3 - the underlying assumption of the income approach is that the property is being...