Investors in South Florida with US dollars in hand have an interesting opportunity in the commercial real estate market right now. If you are one of those folks, get your money ready.
With the US elections only three months away, international buyers are both nervous and unsure as to how to proceed with their ongoing investment in American real estate, and Florida is one of their favorite places to send their international country's currency. While the political atmosphere in the US remains charged with anger, accusations of incompetence, and political intrigue, investors inside the US have a fantastic opportunity to make money. Here's why.
Since international money is currently uncertain regarding how things will go in the election, and, added to that problem, their currencies are worth significantly less in US dollars than two years ago, US investors with a willingness to take a risk, have an opportunity to buy commercial real estate now at good prices, and wait for the election to come and pass. After the Presidential winner is chosen, the world's investors will come to their senses, and realize that America is still one of the safest and best places to invest in the World. They will also see the US dollar begin to decline in value against their currencies, as business in South America, Europe and the Far East picks up. Interest rates there will rise, and the US dollar will weaken. As this natural market phenomenon takes place, guess what will happen to prices of property here in Florida? Demand for good quality real estate will go up, and so will prices.
Another related factor to this coming opportunity is that US banks are now loosening their still stringent requirements for commercial investor loans. As interest rates rise around the world, the banks and other commercial lenders, will see that the world market is safer, and more liquid. This will produce a new effort on the part of bank loan committees to satisfy their customers, clamoring for more loans to buy investment real estate in Florida. Some of those customers will be international buyers too, men and women who understand the value of leverage both against their own currencies and their properties in the cities of Florida.
For the last eight months, Florida has seen a general slow down in commercial market activity, as foreign buyers left the market because of their currencies depreciating against the dollar. Now we have the politicians to thank for another season of fear, coming into the US real estate market. Whenever fear takes hold in any market, it spells opportunity for buyers, and this period of time we are in now is no different.
So get your dollars ready, and start shopping for a good quality commercial property with a decent tenant income somewhere in Florida. There's plenty of opportunity for everyone to make money over the next two years. All you have to do is be willing to take some risk. Are you ready?
John K Brackett, Ph.D.
725 North A1A
Suite A 103
Jupiter, Florida 33477