In Case You Missed It: Good news proves a double-edged sword and business schools are seeing renewed interest in real estate
Feb 4, 2013
In this week’s roundup, we find that good news for property owners isn’t necessarily good news for investors, and that real estate is growing in popularity among college business students. Here’s all the news you might have missed last week:
Wall Street Journal: “When Good News for Real Estate is Bad”
Investors who bought up commercial mortgage-backed securities (CMBS) may not see the returns on their investment that they expected. After continually rising in value for months, these bonds suddenly reversed the trend as property owners begin repaying their distressed loans. Read more about this double-edged sword at The Wall Street Journal.
DNAinfo.com: “Bronx Commercial Real Estate Sales Boomed in 2012, a New Report Shows”
Real estate sales rose by more than 60% in the Bronx, New York City’s poorest borough, due to an influx of multifamily investors targeting the Bronx as a low-cost, high-value market. More than a billion dollars was spent on real estate, with most of the money focused on larger properties valued at $1 million or more. Rising prices in the other boroughs have made the Bronx appealing to experienced investors looking to make big returns. Find out more about this new gold mine at DNAinfo.com.
U.S. News: “At Business Schools, Renewed Interest in Real Estate”
Business students are specializing in real estate at rates nearly matching pre-recession levels, colleges and universities report. These students may be well-positioned to graduate into a strengthening real estate market. Check out why students are eager to jump into the field at U.S. News.
New York Times: “Appraising High-End Homes”
Appraisers involved in the sale of multimillion-dollar homes are producing reports that are surprising to some buyers and sellers. These reports have been complicating some sales by valuing the homes below the price agreed upon by the buyer and seller. As a result, wealthy buyers are opting to take advantage of low interest rates and cover the cost of a home through a loan rather than paying the cost up front. Find out more about how this complicates housing deals for wealthy buyers at The New York Times.
Author: Raymond T. Cirz