Foreign Property News | Posted by Aye Myat Thu
Get ready for a historic slump in property values that will throw up bargains for brave buyers, Grant Cardone says.
"We're entering the greatest real estate correction in my lifetime," the veteran investor told Fox Business in a recent interview.
"It will not include single-family homes, but it will include office where we're already seeing that damage, and we're going to see it across the entire apartment complex," he continued.
"It's going to be a great opportunity for individuals — regular, everyday people — to actually grab trophy real estate from institutions," he continued.
"This has never happened in this country. It's going to be at epic levels."
Cardone is the founder and CEO of Cardone Capital, a private equity real estate investment firm with over $4 billion in assets under management.
Its portfolio includes more than 12,000 apartment units and 500,000 square feet of commercial office space, according to the firm's website.
Commercial real estate has come under severe pressure this year.
Developers rely heavily on credit from smaller banks, which have pulled back from lending since the regional-banking crisis this spring, as they're wary of further waves of deposit withdrawals.
The Federal Reserve has also hiked interest rates from nearly zero to north of 5% since last spring, which has made borrowing more expensive and pulled down commercial-property values.
It's notable that Cardone is predicting sharp declines in both office and apartment prices, given he's heavily invested in both types of real estate.
Ref: Elite investor Grant Cardone predicts a historic real-estate slump will slash office and apartment values to bargain levels (businessinsider)
