Forecast: Slow economy and a Democratic White House
By Matt Hudgins

How's this for a bold prediction? Not only should investors brace for a sluggish economy next year, but 2009 will see a Democrat president into office, economists predict.

The financial outlook for 2008 dimmed two days before Thanksgiving when the Federal Reserve projected GDP growth of 1.8% to 2.5% for next year, down from the previous forecast of 2.5% to 2.75%. For commercial real estate investors, that expected decline from the third quarter's 3.9% GDP growth foretells that many companies will grow reluctant to sign long-term leases in 2008. These firms could also gain the upper hand in negotiating rent, limiting the potential to grow property incomes.

Longer term, the slowing economy suggests investors should prepare to do business under a Democrat-controlled presidency, some economists predict. In election years when businesses are flourishing, the nation tends to elect Republican presidents. But when the economy is suffering, the trend is to elect a Democrat, explains Dr. James Smith, chief economist at Parsec Financial in Asheville, N.C.Read full story here.

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"Investment Opportunities"...for real?

Does the rent match the debt service + taxes? if not, where is the "opportunity" in a negative appreciation market?

Are there "real" real estate opportunities in Miami-Dade/Broward County? or they are about to appear? what's the purchase price level to define a prospect transaction as a "real investment opportunity", is it its reposition cost? comments?

 

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