March 20, 2019
Quick lesson for Buyers and Real Estate Investors by Jim Turano/Broker
Whether your father has accumulated properties over the years, or you just began a decade ago, one thing is perfectly clear to everyone. You can negotiate all you want on a piece of property, and apply at a half dozen banks to get 1/10 % less in mortgage rates, but your not buying a piece of fruit.
People/Investors/Buyers feel that they got where they are because they are so smart, that nobody can tell them any different. You as a Broker can try to assist all you want, but I have learned the first five years of my career that the so called smart ones missed out on so many properties to date, because of either the mortgage rate, or because they wouldn’t go up just a little to make the deal.
There are more people who lost properties for $5,000 dollars to $100,000 dollars over the years and today the same properties are worth from $1 million dollars to $20 million dollars. Another words it’s all relevant.
Successful people earning a million dollars per year, can be the most nit picking, stingy type, or cheap person when it comes to purchasing investment property. I have heard over the decades the same thing more times than a broken record. It’s too much money. They will never sell that property at that price. The mortgage rates is just a little to high.
Ergo the Two families from 1979 for $85,000 dollars is worth a Million dollars today. The mixed use building that was $125,000 dollars is worth $2 million today. Rates go up and down, Property prices fluctuate, but the end result is Buy with both hands today and see where prices will be 5 years to 10 years from now. Either pull the trigger and buy today or be one of the many who have their own stories about I should have bought back when.
Existing Commercial buildings in an area only become more valuable as the years go by. An empty store with two rented apartments existed for 10 years like that. Hardly an income then but now today it is worth $4 million dollars fully rented.
Finally look what has happened over the years in Greenpoint, Williamsburg, Bushwick, Ridgewood and now Maspeth and Middle Village. Driving many to our communities like Middle Village renting and buying homes, opening businesses and renting stores. This is good for the Community for House prices, Rents, Retail rents, and Commercial properties.