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August 2, 2022

As Values Drop, Here’s How To Catch A Falling Knife Without Getting Cut

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Timing is everything.

As real estate values start to fall in the wake of rising interest rates and an economic slowdown, investors with cash to spend have opportunities.

Yet knowing when to buy in a falling market is one of the trickiest skills in real estate investing: Go too early, and possibly endure a period of further value falls that erodes returns. Go too late, and miss the opportunity to buy at low values.

As Values Drop, Here’s How To Catch A Falling Knife Without Getting Cut

Get it right, though, and be almost guaranteed strong returns when the market rebounds.Bisnow spoke to six veteran investors about gauging when to buy, how to avoid going too early and, as the old saying goes, the proper way to catch a falling knife.Here’s how, in their own words, lightly…

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PODCAST: Recession Fears And Where Global Uncertainty Is Putting Deals On Ice

 

Last week, the threat of a U.S. recession came into sharper focus, as new data showed the country's gross domestic product had shrunk for the second quarter in a row, and the Federal Reserve once again hiked interest rates to curb inflation.

On this episode of Bisnow Reports, we are talking about the real estate fallout of what may be a recession — or may not, depending on who you ask — but what is certainly a shift in economic conditions that is having real consequences in the market. Bisnow UK Editor Mike Phillips discusses how international real estate investors are behaving amid global uncertainty, where deals have been put on ice or stalled as a result of the market, and what it may take for the standoff between buyers and sellers to end. 

“There will be a point, if you own a property in a fund that is coming to the end of its life, at some point you will have to sell and give money back to investors,” Phillips said. "There will be issues with refinancing.”

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£100M Down, £4.4B To Go For Intu Creditors

£100M Down, £4.4B To Go For Intu Creditors  

Unsecured creditors to collapsed shopping centre giant Intu collected their first payout earlier this year, receiving £103M from administrators in May and leaving £4.4B still to be paid.  Partners at KPMG, who were appointed administrators to some of the companies in…

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SURVEY: What A Recession Means For CRE

SURVEY: What A Recession Means For CRE  

After the U.S. posted a second consecutive quarter of negative growth, "recession" is the word of the day. But with a job market still churning along, record-high rents in multifamily and industrial properties, and a strong dollar, the question of whether the economy is in a recession is an open one.…

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