Chiarello: The time for selling property is now.

Interest rates are at virtually historic lows. "Why sell when money is so cheap?" is what we hear from many property owners. The answer is obvious to us. That is the fact that interest rates are at virtually historic lows. Sounds funny? Not at all. The super high prices are supported by one overriding factor, the low cost of money.

Does any one remember mid-1998 when the Commercial Mortgage Backed Security market (CMBS) dried up? We do. Deals fell off the table, and office building and single tenant property prices dropped 15-20% in two months. As banks are becoming more conservative with underwriting (partly due to Enron, K-Mart and other major corporate and foreign government loan defaults) prices will drift downward. If the economy continues its current downward trend (plenty of layoffs), rent collections will drop, personal and corporate bankruptcies will rise, and the cost of money will rise, and we believe the result will be a drop in prices.

We believe the current lack of product and low cost of money provides an unprecedented opportunity to sell investment property at a top price, now is the time to "bank" the cash, and buy again when prices drop. Even if you have to pay income tax on the sale, taxes will undoubtedly go up in the long run to pay for all the "extras" the government is going to hand out as it tries to jump start the economy.

Our expectation is that prices will drop during the next six to eighteen months as rent collections drop, taxes and insurance rise (who do you think is paying the financial cost of the World Trade tab?) and as the cost of money increases (who do you think is paying for the bad banks loans and bankruptcies?)

If you are ready to sell at the top of the market, today is your lucky day.

Regarding the World Trade Tower incident and the attack on America, everyone at WRA Properties, ex tends its' sincerest sympathies to all who were affected by this most tragic event.