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Why Market Health Matters
Commercial and residential real estate investors in the U.S. are well aware of the disastrous condition of the market in the U.S. – and the reasons why:
· The credit bubble, which led to the unavailability of credit
· Rapid appreciation of assets followed by a massive crash
· High unemployment rates, which at one time topped 10%, which reduced demand
· Many others
Norway is Different
Norway doesn’t face the same problems as the United States, nor is the market as challenged. In Norway, the employment situation couldn’t get much better. As of July 2011, the unemployment rate hovered around 2.8% — lower than that of the United States during the Clinton years.
While commercial real estate prices in Norway are 2% more than they were at the height of the market in 2007, inflation has mildly impacted property values. What does this mean to commercial property buyers? Norway real estate is about 6% less expensive than it was at the height of the market, once inflation is factored into the overall pricing models.
Market Health Matters
Because Norway doesn’t have the same crushing national debt load that the United States currently carries, the market isn’t subject to the same negative forces that currently weigh on the American market. This means that now is the time for savvy investors to take advantage of current market conditions with strategic commercial real estate purchases.
Why The Future is Bright
There are many reasons why the future of commercial real estate in Norway is so rosy, but here are a few of the most important:
· National debt
· Employment outlook
· Chance for equity appreciation
· Possibility of increases rents
Investing in Norway’s real estate market is a lucrative way of reaping the financial rewards available in today’s market. The health of the market matters, but so does the way you choose to invest. Before investing in any foreign market, consider the benefits of carefree investing… the act of investing your cash, receiving monthly income, current equity and a stake in the proceeds of the future sale of the apartment building.
“If you want to learn more about how to make money in the Norwegian Real Estate Market, visit www.bloomshire.com“