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Strategies & Market Trends : Commercial Real Estate tic.............tic,,,

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To: Perspective who wrote (195)3/16/2009 10:28:58 AM
From: Smiling Bob   of 442
 
Sorry
I'm not invested enough to warrant the time necessary to research
The choice cuts have been consumed. Elroy, who seems to be better versed in RE accounting, has answered somewhat

From a tax/logic standpoint, I have to agree with his actual vs tax depreciation conclusion. So I would think depreciation would have little relevance in the actual market value, which is what I'd be concerned with. The clock starts ticking every time it changes hands

The property would have to have far greater residual value than what the govt says over 39 years. I would think over that time period even under a worse case scenario actual appreciation would offset recognized allowable depreciation. Assessing whether a REIT paid too much for property is another story.
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