As an investor you need to understand what the drivers of
real estate return fundamentals, leverage, currency, equity and debt are?
Not exact matches
A prudent
real estate investor will look at an investment not only with regard to its sector
fundamentals, but also with regard to the currency in which the transaction is done, especially if the repatriation of
returns (such as rental income or refinancing proceeds or sales proceeds) occurs into a currency other than sterling.
Real estate has been a star performer over the last five years, delivering high
returns on the back of strong and improving
fundamentals and a gradually recovering economy.
That flatness in total
returns comes as the industry
fundamentals remain quite healthy, says David Loeb, senior
real estate analyst for Robert W. Baird & Co., an investment bank in Milwaukee.
«Compared to six months ago,
real estate researchers are predicting slower economic growth, slipping
real estate fundamentals and lower
returns from both the public and the private markets,» he said.
As
real estate market
fundamentals are kept in balance, investors should expect
returns of investment to remain low to moderate.
With the strengthening U.S. economy helping to ease trepidation over the direction of commercial
real estate fundamentals, industrial investors are in the market for the outsized
returns that can come from increased risk and alternative investments.