Another factor in commercial is the empty spaces, which is climbing significantly in downtown locations in most cities. Then even if you want to sell the building you can't because nobody wants it.

Commercial landlords, at least where I am, haven't clued in and are still keeping their rents high while people are moving out and downsizing in droves. Don't know when we will see a change there. I have one office in a building with about twelve office spaces and currently four of them are empty and mine and my neighbours are up beginning of next year.

One of our neighbors has been warning everyone in the neighborhood with many people not returning to offices, commercial real-estate is going down. Home prices around here seem to be holding steady. People are still moving to Florida.

Got it - thanks

The working-from-home shift made a lot of families realise that their houses aren’t really big enough to accomodate two home offices plus room for kids to learn remotely if required (and outdoor space)

Apparently people looking to upsize post-pandemic was one of the main drivers for house price increases in Oz

Is that tru for commercial rentals?

I know quite a few people and have heard stories of many more where their commercial rents tripled in the last few years...so they moved out and all the buildings have been sitting empty...for years now??

Buddy of mine owns a successful subway franchise, the building he was leasing tripled their rent, he moved out, bought a space down the street and his previous space has been empty for 5+ years now.

How long until I can just buy a massive office building to live in on the cheap cheap?

It's about time. Real estate needed a correction in a big way. Way too overpriced.

Even in rural areas I am seeing huge drops in the listing prices.

You don’t need to buy it to live in it

It’s not like they’re going to be paying security guards to keep you out

This is what I don't get, although if the building is paid for then there really isn't a lot of overhead. I know property taxes for commercial buildings are far bigger than residential, but without tenants you have a massive asset regardless of income. Maybe even having one or two tenants out of six spaces pays for that so owners don't really care?

1st off LMAOOOOOOO @ 8K HOA in fuking Naperville.

2nd hoa fees don't come out of your mortgage. So you're still wrong.

Lots of commercial buildings have been owned by the same people for many years and are paid off or have very low balances. They're way more likely to be owned free and clear than homes.

Of course commercial real estate is crashing. A majority of white collar works from home now and it’s not going anywhere.

A lot of that commercial real estate will be converted to residential.

That doesn’t mean residential is going to crash but there will be downward pressure on price with the increase of supply.

It’ll be gradual though since commercial leases are 5 to 10 years locked in. it’s been 3 years since the start of the pandemic.

Buying opportunity... cash is king. Rentcels are just going to have to pay more to offset the owners higher interest rate. Fuking lmao at your view on economics. Most owners have secured super low rates, so the current market isnt an issue... its only an issue if you're poor, have no cash, and finance 50% or more of the deal. If i buy a property for 100,000 dollars less than i could have a year ago with 20-50% down, the interest rate means very little. Smart investors let the poorcel renters pay the full wack, and pocket a few hundred a month on top of that. Poor people think about interest rates, while wealthy people focus on the actual price. SAME as going to a car dealer.... brb carsales scammer will ask you what your PAYMENT needs to be, taking your focus off of the actual price. That's why you see so many astronauts driving SCATS and hellcats. They have 84 month loans on a depreciating asset. Just lmao

I'm chilling on the side lines in a moderately priced new apartment in the good end of town, paying about $900 less a month than a mortgage people took on in 2020. They have to renew rates up here in Canada every 5 years so I'm waiting for the blood bath that is people who bid $50,000-$70,000 over and bought $400,000 houses on combined $100,000 salaries.

When their rates go from 2.5% to 6.5% and their payments hit $2900/month and I'm still paying $1600 on a new build apartment in the good end of town vs their shack in the ghetto I'm gonna LOL. Maybe I'll toss them an offer on their underwater properties. Maybe I'll just live stress free without a worry or care. The reason you always see these people making these threads is they need reassurance that their YUGE life purchase made sense.My rent (split with my girl(I don't have to worry about divorce rape cuz no home)) is less than 25% of my salary. I never stress about a payment. My cars paid off. Computer paid off. I literally live in a world filled with disposable income and zero stress. Have fun with your 25 year mortgage, maintenance, and upkeep. I literally don't care if a single thing in my apt breaks. No lawn care. No furnace issues, plumbing, roofing etc. My bill is the same always (small and insignificant).

Only poor ppl think about interest rates must be why private equity firms aren’t doing deals at the moment.

Potato tier post.

Someone who is renewing today would have been stress tested at 5%+ when they bought/renewed five years ago and likely has seen some decent wage growth since then

My industry is securing big wage increases left right and center for the first time in like a decade

I’m so sick of our economy and the doom talk about crashes

The country is fuccked

If you aren’t worth millions already just rope

I know of people who purchased at the absolute max they were approved for. I dont think it was wise. I know a guy who isn't allowed to stop for coffee at Tim's because his wife will yell at him because they're stretched so thin and the rates for them haven't even began climbing yet. We had a strike and two employees (2020 home owners) had to work through it because if they went on strike they'd miss a payment. These guys are set to be demolished in a few years.

Those mortgages get packaged and sold, the bank wanted to sell as many mortgages as they could.. And with those raises also comes general inflation thats eating up most of it. In my line of work we are about to get 10%, but inflation is also 10%.

I pay $800 (girl pays half) for granite counter tops, an apt with a gym and pool. My life is as stress free as could be. Home ownership is a bit of a boomer concept. I'm stacking money and if I have kids I'll pull the trigger in a few years. Til then I'm experience maxxing and saving 25% of my income.

Sounds like other things are consuming their $$$ and those things will be first to go before they miss mortgage payments

Doesn’t make sense that someone who bought in the last five years would be struggling because of their mortgage payment as the stress tests have effectively throttled buying power below what people could actually afford at their real interest rates.

So you had people who were approved for mortgage amounts based on 5%+ stress tests but then we’re getting <2% rates on those mortgages in reality, they should have extra money not less.

Keeping up with the Joneses is a hell of a drug. Satisfying a screeching harpy of a wife is a nightmare I guess. Gotta fill their boring lives with consumption. Just because YOU are responsible (most body builders have discipline) doesn't mean the rest of society arent spending how they live. Gluttonously.

A lot of weak willed people took on cc debt during the pandemic. A lot of weak willed people gained weight during the pandemic. Did those stress tests factor in 10% inflation in a single year? Many peoples comfort window has decreased by 10% and have taken on debt.

Not all people with big mortgages are seeing great wage growth. Sometimes its two people with dead end 45k/year job combining for 90 who went in on 350k properties. Sprinkle in 10% inflation and rates increasing by 4% and its doom. God help them if they bought a used car at max prices as well in the past few years. They are a furnace or water heater away from ruin.

I live in Illinois. I actually hate the house appreciation atm because they are taxing me at market value. im paying over $18k in property tax
maybe you love it if you live in a low tax state, but for us that have no plans to sell it's just extra money we need to dish out

Nipsy Hustle spitting rare truth here.

I'm in the same position as you but WTF do you plan on doing with your $4million dollar home? If you sell it you have to have a place to live and there aren't any cheap properties available. Also you'll be getting taxed on a property worth $4million instead of 400k. Rentcels may be regarded but that doesn't make this a good thing

Huh who would have guessed that interest rates doubling would slow down growth

You’ve got a girl paying half and you’re only saving 25%? Fukkin lmaoooo