Viewpoints: Laurence Fink on Real Estate Sector.

Laurence Fink, the chairman and CEO of BlackRock inc. gives his opinion on the crisis in the real estate or real property sector. He said that everybody who bought real property in 2006 or 2007 made a bad investment. In 2006 and 2007 everything went well and the real property companies received a lot of money. The most of those investments are bad today. They lost a lot of their value.


The company of Laurence Fink made a mistake, but they aren’t the only one, a lot of people made the same mistake. Mister Fink sais that now it’s a perfect time to buy real estate, because the prices are low. BlackRock inc. lost a lot of money because of the crisis, and now they have a big refinancing risk in the next few years. Now the market is growing again and new clients want to buy real estate. Laurence Fink thinks that if the US economy will increase again, the real estate sector will heal and the real estate market will grow again. It will be difficult in the first few years, your property might even have a lower value, but after a few years the value of your property will increase. Nobody knows how long the economic crisis will last, so it’s hard to tell when the real estate market will heal.


I think that the people must find their confidence back in the economy. If they find their confidence, they will invest again in the economy and in the real estate sector. Today the people don’t want to invest their money because they are afraid to lose it again. So it will be difficult to win the confidence of the people, but once they are confident that they will earn money instead of losing it, they will invest again and the economy will grow. When the economy increases, the real estate market will recover itself.


Jonas Hillemans 2RP2

Source: http://online.wsj.com/video/viewpoints-laurence-fink-on-real-estate-sector/12FF512D-98F6-46BA-834E-98C1351F83F4.html