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Green Building in the Dallas Real Estate Market

November 30th, 2009 CheapFlatsInLondon No comments

Real estate standards are lower than they were five years ago. When homes sold well, when property was developed at a rapid pace, and most important—when money was plentiful—real estate seemed to have unlimited growth potential.Such success inspired builders, architects, and property managers to use innovative design concepts to pave the way toward a more environmentally sound future. Green design was suddenly the rage. Builders used smarter methods, architects focused on sustainability, and owners and renters sought alternative ways to heat, cool, and keep their properties clean.The green trend is not limited to real estate. Everyday products, food and water supplies, and automobiles began rolling out cleaner, smarter products. A wonderful new trend was now a thriving reality. Or so we thought. The one thing, the one secret people knew but did not want to address, was that going green was expensive.By working with green technology, companies and organizations put to good use their increased budgets. That was fine when things were good. But now, well, things aren’t so good. And that has stalled green technology and the movement it inspired. The real estate market is especially vulnerable to the ups and downs of the economy. Unable to sell homes, builders and realtors must find ways to produce cheaper properties. Thus green building is abandoned for techniques that are considerably more affordable.Despite the current slowdown, green technology and green building is not going to disappear. It is undoubtedly taking a hit. It is difficult to justify spending more when money is tight. But the benefits and necessity of it is undeniable. Green building and green technology is the future, and businesses must understand this. It will be interesting to see the creative ways realtors and builders implement new ways to build sustainable properties while at the same time conserve money.The Dallas Morning News ran an article that discussed green trends in real estate.While some developers might view green building as just a marketing gimmick, industry studies show that these construction techniques will explode during the coming years.Green building has already risen by five times since 2005 and totals close to $50 billion annually, according to a recent report by McGraw-Hill Construction.And the outlook is for green construction starts to triple by 2013.While that news is promising, the article delivers a knock out blow in the next paragraph.The credit crunch and economic recession have put the brakes on commercial construction starts around the country.And residential building has plummeted more than 50 percent.So that means fewer projects – green or otherwise – will be coming out of the ground.This demonstrates the need to be creative, to employ foresight, and use resourceful materials—the very things green technology is based on—to find our way out of our current economic doldrums.It is also a good time to be a renter. Apartments in Dallas have remained affordable. The city’s numerous neighborhoods and cultural diversity lend the area a rewarding cosmopolitan attitude. Until the economy revives, and green technology once again becomes the chief approach to building, renting an apartment might be the best choice to make.

Asia Property Investment – Hot Market in Asian Countries

November 30th, 2009 CheapFlatsInLondon No comments

Asia is currently going through what is widely known as a “Property Boom”. Real estate is a highly recommended area for investment in Asia. Almost all countries in Asia are flourishing in the real estate sector. China is going through a revolutionary phase in the real estate sector. Rural homes and paddy fields are transformed into roads and shopping attractions. However some parts of the country the foreign investment and job opportunities have not created a real flutter. Costs of real estate are steadily increasing and anybody who is investing in the region could make handsome profit.
China has begun a huge drive towards urbanization. It is understood that they are relocating about 20 million people each year from country border to the cities. Very much the same is happening in the whole of East Asia as this half of the continent undergoes a strong urbanization drive. Asian governments are doing everything in their power to woo foreign buyers and investors. However supply hasn’t kept pace with demand which has boosted rents and capital values.
Malaysia has a favorable government in terms of property investment as the interest rates are only 6.75%, which is lower when compared to interest rates imposed by other countries like Vietnam and Indonesia. Prices of different kinds of properties continue to be cheap, particularly in comparison with other countries in Asia.
However this situation may not remain the same for a long time as at the close of 2006, the government dispensed with the requirement that foreign buyers should have the permission from a foreign-investment panel. This move is expected to have a positive bearing on the property market, especially on the mid-to-high end property segment.
Hong Kong is also getting increasingly cheap. This is clearly shown by the fact that rental rates for office space staying at $1,105 in 2006, lower than $1,237 in 1994. Because of mortgage competition between the banks and the steady decline of apartments city’s residential prices are predicted to rise more than 50% by the end of 2007. Considering the case of The Zurich and Monaco the potential threat is the vulnerability that has plagued the US economy. Many East Asian countries, whose economies depend heavily on exporting goods to America, will be affected quite badly by the state of the US economy.
Keeping this in mind, Singapore has the most attractive property investment opportunities in this part of Asia over the next two to three years. The Chinese manufacturing boom has been a real eye opener for the Singapore government. The various governments have started to redistribute their resources with the aim to make their respective cities as financially viable as possible. Singapore offers the lowest tax rate in the world for beginning companies, while 80% of firms spent an effective tax rate of less than 10%. Singapore is also very popular among tourists and this makes it even more compelling for potential investors. Unemployment has come down to a floor of 2.5% and as a result immigration is given an active encouragement.
About half of the 176,000 new jobs created last year were taken up by foreigners. The government expects that another 450,000 jobs will be created over the course of the next five years. This has given a real boost to the property market, which was hardly affected by the Asian financial crisis of 1997. The Singapore government has ended restrictions on borrowing limits in 2005 and as a result purchasing among Singaporeans has become active again.
Even after all these alterations the prices have remained relatively cheap. In comparison with equal cities in the Western world cities like London or New York, Singapore is cheaper. Property is considered a safer bet when you take the equity markets into consideration because of its lack of stability to a US downturn.
If you are interested in property investments, there may not be so many better choices than the Asian property market. There could be some problems in the future though like the possible lack of availability of homes when foreign workers searching for homes could create a scarcity. However, at least for the time being, Asia is among the most lucrative property markets available. Always be alive to it at the time of investing because you could commit on a healthy investment.

Relocating to Vancouver: A Guide to Vancouver’s Economy & Real Estate Market

November 30th, 2009 CheapFlatsInLondon No comments

Vancouver, BC has been named several times over as the “Best City in the Americas” by Condé Nast Traveler’s annual Readers’ Choice Awards. The city also ranked #1 on The Economist’s survey of the “World’s Most Livable Cities” for six years running, and in 2008 was voted one of the best places to live by Mercer Consulting in their “Quality of Living Survey 2008.”Clearly, Vancouver is a very special city. It offers residents breathtaking views of the mountains, inviting beaches, and ample green space. Vancouver has become a premier destination for real estate buyers from around the world. For both personal home buyers and real estate investors, an area’s economy plays a critical role in the decision to buy. They’re looking for an area that can provide a solid base for many years to come. Vancouver has a strong and varied economy that has proven to be resilient in tough times, leaving residents feeling secure today, and hopeful for the future. From major Hollywood film productions to international trade, Vancouver offers its residents employment prospects in every sector.Port Metro Vancouver is the nation’s largest port, and trades more than $75 billion in goods with international partners each year. Such a vibrant trade operation has led to thousands of jobs being created (the number of port-related jobs that have been created across Canada is estimated to be nearly 130,000). In addition, the port also welcomes more than half a million visitors each year who are embarking on cruises to Alaska. These visitors spend their dollars at local shops and eateries, and pour a great deal of money into Vancouver’s economy.Cruise ships are just one way that visitors come to the Greater Vancouver area. With the distinguished Vancouver International Airport located about an hour’s drive from Downtown, tourists from every part of the globe find it easy to get to and from the city. There’s also highway access to/from other parts of the province, as well as border crossings to the United States. With so many visitors travelling to Vancouver, the tourism and hospitality industry continues to be one of the area’s largest employment sectors.Vancouver has also become a well-known destination for Hollywood film and television productions. The city is lauded for its chameleon-like ability to resemble other locales. “Hollywood North” as the city is known, is right behind Los Angeles and New York in terms of film production, which makes this a great place to live if you’re employed in the creative arts.High tech firms love Vancouver because of the availability of highly skilled graduates and the city’s overall livability. Construction also continues to employ a large number of people, thanks to the steady demand for commercial and residential space in the metro area, and also due to the upcoming Olympics.In addition to the city’s excellent economic health, Vancouver is also known for its profusion of educational opportunities. Vancouver is home to two of the country’s top universities, Simon Fraser University and the University of British Columbia. A number of colleges are also located in the area, as well as the Vancouver Film School and the Emily Carr University of Art + Design.For younger students, there are 18 secondary schools, more than 70 elementary schools, and several private schools in the region.In terms of housing, the Vancouver real estate market continues to be strong despite a slump in many other markets around North America.Vancouver is home to some of the most expensive housing in Canada, though prices have been dropping in recent months. While the struggling international economy does play a role in the slowing down of Vancouver’s housing market, property values are dropping more as a result of an inevitable price correction. Housing prices had been increasing at an incredible pace for several years, making real estate in Vancouver inaccessible to a large number of people. According to the Real Estate Board of Greater Vancouver, the price of detached homes increased by almost 70% between 2003 and 2008, while condo prices increased by approximately 82%. Over the past several months, real estate prices have decreased by about 12%. Properties are still holding onto much of their value, which is good news for sellers, yet the market is becoming more affordable, which is great news for buyers.To learn about the unique lifestyle that Vancouver can provide, check out the continuation of this article: “Relocating to Vancouver: Fresh Urban Living.”

Real Estate Investment in UK

November 30th, 2009 CheapFlatsInLondon No comments

Our search begins in Liverpool where real estate investment properties are forecasted to see substantial returns over the next five years. As the European City of Culture in 2008, Liverpool has been undergoing regeneration over the past few years. Much work has gone in to revitalising the Duke Street area, resulting in a fashionable new shopping and arts district. Liverpool’s China Town has also seen serious development with many modern warehouse apartments. A thriving business centre with an international airport and an expanding University population, Liverpool has obvious benefits for rental income.Real estate investment properties currently for sale include a number of trendy one-bedroom warehouse flats in Cornwallis Street L1, marketed from £120,000 to £140,000 on the NorthwoodUK.com website. Estate agent King Sturge has numerous one-bedroom flats available in the L3 university district starting from £119,950. And if you are looking for a spectacular penthouse apartment in a stunning development look no further than Alexandra Tower in Princess Dock where a 2-bedroom unit is available for £375,000 from BrightSale.com.Leeds is another area under regeneration where real estate investment properties are expected to see significant price increases . Leeds is the UK’s second financial centre after London and has a large university population. Holbeck to the south of Leeds is the latest focus for regeneration where prices of attractive, traditional Victorian terraces are expected to appreciate dramatically over the next five years. Holbeck benefits from good transport links with a local train station and is walking distance from the city’s theatre district. Your Move is currently listing a five-bedroom terrace in the area for £149,995.If you would prefer to select real estate investment properties in Leeds city centre, property consultants Sanderson Weatherall have over 50 one and two-bedroom apartments ranging from £95,000 to £400,000. These include several £130,000 units in a modern development built by the international design group Yoo.One of the most affordable places for real estate investment properties is Scotland where prices are almost one-third less than the national UK average. Scotland is also seeing higher-than-average growth due to economic prosperity from high oil prices. Head to the thriving university regions of Dundee, Aberdeen, Edinburgh or Stirling and you’ll find some good buy-to-let prospects.In Dundee, Your Move is currently marketing a spacious three-bedroom flat in a converted mill close to the city centre for £137,950. If you prefer a brand-new development, Construction and Property Marketing are launching Discovery Wharf with two and three bedroom apartments from £161,000 and £187,750.Boasting an international airport and a great history, Aberdeen is full of potential for real estate investment properties. Gavin Bain & Co currently holds a wide range of properties in Aberdeen from £68,500 to £450,000, including a two-bedroom apartment in Candlemakers Lane for £165,000. For the same price, Andersonbain & Co is marketing a three-bedroom semi-detached family home in the popular Sheddocksley area.Taking advantage of a buyer’s market means that investors will be looking to the long term for significant returns on their property price. However, in the current property climate, forecasters are expecting Scotland to top the list of property price growth in the UK over the coming year. If you are buying to let, the university towns have obvious attraction and whether you are looking to renovate a character property or buy into a brand-new development there is much to be found.

Weak Dollar Is a Huge Draw for Foreign Investors in US Real Estate

November 29th, 2009 CheapFlatsInLondon No comments

The weak US dollar has been good news for real estate. Taking
advantage of the favorable conversion rates, foreign investors
are eagerly picking up real estate in major cities across the
US. Who is buying and where are they investing?

WHO IS INVESTING?

In recent years the US real estate market has seen the highest
amount of investing from foreign investors in Germany, Britain,
Canada, Japan and the Netherlands. Germany was the strongest
player in 2004 reporting over $4 billion in investments for that
year.

Where are they buying? In the past Europeans were drawn to East
Coast properties and Asians to the West Coast. Now, because of
the lower interest mortgages and a weak dollar, foreign
investors are picking up property, commercial and residential,
in all major US cities, including Chicago and Las Vegas.

CANADIANS AND AUSTRALIANS BENEFITING TOO

Even neighbors north of the border in Canada are seeing the
benefits. Although the Canadian dollar has been weaker than the
US dollar for years, many Canadians own vacation homes in the
US, particularly in Arizona. They are one of the highest volume
investors in the US real estate market. Whether buying or
selling, Canadians are enjoying stronger purchasing power while
the US dollar remains low.

Some Canadians, instead of buying, are following the lead of
foreign investors who are selling current US properties in
preparation for buying at an even better rate if the US dollar
continues to fall.

While Germans are slowing down in the volume of investments due
to recent caps, Australians are picking things up. Australia,
with one of the largest pension funds in the world, must look
beyond their own real estate market for investment
opportunities. Investing in US real estate permits them to
invest their huge national pension funds into diversified
holdings.

HOW LONG WILL IT LAST?

Although the current mortgage rates are an appealing draw, they
will not remain low indefinitely. However, lower priced
properties such as foreclosures would make the financial
investment potentially lucrative for foreign investors despite
the interest rates as long as the dollar remains low.

Foreign investors looking for long run profits anticipate an
increase in the US dollar as an incentive to buy. Investing
while the euro is strong and the US dollar is weak means they
can pick up real estate for a relatively low investment. Already
some countries are seeing up to a 35% discount based on the
favorable exchange rates. However, the aim is to hold the
property until the US dollar is strong and then the conversion
to euro would be highly profitable.

With the availability of properties online it is easier than
ever for investors to find properties without crossing an ocean.
Some of the best deals, such as foreclosures, can be researched
and purchased without coming to the US. This makes investing in
US real estate a great opportunity for investors no matter where
they live.

Copyright (C) 2005 A1-Foreclosure.com

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Real Estate Investment Property

November 29th, 2009 CheapFlatsInLondon No comments

Land is a tangible investment – you can see what you are getting – but in addition you have the chance to enjoy it for its own sake, with the potential for considerable returns. Land as real estate investment property has risen in value by nearly 30% in the last 12 months and is up by 130% since the early 1990s.Land compares favourably as an investment when compared with high risk stock market picks, making it an excellent real estate investment property opportunity.Land which can be bought affordably can be turned into a real money-spinner if you get the right permissions subsequently. As an example, a plot of land in the South East, bought for £15,000, could gain planning permission for a four bedroom detached house. A builder could buy this land for £200,000 to sell a £600,000 house. This represents an excellent real estate investment property investment.Land has some great advantages:1. There is a finite amount of land2. Land can increase in value in two ways * By increasing property values, as demand outstrips supply * By gaining planning permissions3. There are strong possibilities of exceptional short to medium term returns4. Any nationality can buy UK landRecent government activity with regard to housing has made this a good time to own land. The government wants more green belt land to be built upon to increase the house-building programme over the next ten years. As other investment markets are feeling the squeeze, it is inevitable that land prices will continue to rise in the coming years. Real estate investment property such as land will shoot up in value.The price of land has gone up by a multiple of eight in the last 20 years, with the most expensive land to be found in London and the South East. Prices here have been forced up by a shortage of residential land and an increased need for more housing.In the medium to long term land can be a good investment, but you can make really big money if you buy land without planning permission and subsequently get permissions for that land.So far, since it came to power, this Labour Government has approved 162 different schemes of development of green belt land. Still the shortage of housing continues to increase, with the shortfall predicted to be one million homes by 2022, unless there is a dramatic pick up in development. There is also a shortage of land suitable for development. A recent report said that an additional 70,000 to 120,000 houses per year would have to be built to keep pace with demands.  These facts make land an attractive investment, and prices for land are expected to keep rising as demand for new housing continues to increase.The largest gains can be made when buying land without planning permission, as the land can be purchased at relatively low cost and if the land is later granted planning permission large profits can be made.There are obviously some things to look out for when buying land and such things as access rights, road infrastructure and many other things need to be checked out.Land as real estate investment property has the potential to make big money if you do you homework, and it is also recommended that you use a solicitor when investing in land, to ensure that everything is in order.

Interested in investing in buying property? Look for great opportunities at http://www.buyproperty4less.com/

 

Real Estate Rebound Of 2007 – Has It Already Started?

November 29th, 2009 CheapFlatsInLondon No comments

As we head into the first month of spring, there is no doubt — real estate activity has increased significantly in many parts of the country. This leaves many to wonder: is this the beginning of the end of the real estate market downturn? The spring market is looming — the big question is, what type of market will it be? 2006 is no longer new news for anyone. We hit a market downturn — after 5 years of hot growth, it was bound to happen. But more important is how long will the downturn last? This factor is vital for anyone thinking of putting their home up for sale in 2007.
This fall, we saw prices drop in many places around the country off of strong values in 2005. This isn’t a fact that homeowners are thrilled about. But it also has to be tempered by the exceptionally strong housing market of the previous 4 or 5 years. In many parts of the country, the depreciation of 2006 only erased a small portion of the equity that had been building.
The market didn’t just affect pre-existing home sales. Builders faced similar difficulties in 2006. Many responded by slashing prices and offering increased incentives to entice buyers. In several cases, builders even chose to cancel planned developments to wait out the market downturn.
This fall, there were two trends that were apparent: 1. homes had to be priced competitively and in top condition to sell and 2. buyers tended to be very choosy and spent time shopping around. This second trend contributed to the longer-than-usual market times of many homes. It wasn’t unusual for well-priced homes to be on the market a long time before selling.
There were several main factors that contributed to the market conditions we all experienced in 2006. Many experts feel that the Federal Reserve (Fed) was too aggressive with interest rate hikes. Often, changes in the interest rates take a while to reverberate throughout the economy. Instead of letting the market react to small interest rate changes, the Fed pursued an aggressive series of hikes.
Also, people are discovering that the media itself was largely responsible for a good deal of buyer uncertainty in 2006. For years, every “pundit” out there had been predicting a market crash and for the past 5 years or so, the market held strong. Then, the Fed started raising the rates and things started to cool. Of course, everyone with a microphone started piling on the idea of a “market bubble”. Unfortunately what happened was “Chicken Little Syndrome” — suddenly everyone thought the sky was falling and the market began its downturn – all while interest rates stayed reasonable and housing prices good.
The result was 2006. The next question is obvious: what’s next? Here’s where we have some good news. The general feeling among the true real estate experts — the REALTORS who are out in the field in your local market day after day working — is that 2007 will be the end of the downturn for many areas of the country. We are already seeing signs of this all over the United States. Here in the Midwest — particularly the Fox Valley area west of Chicago, things have already started to pick up — phones are ringing, buyers are buying and sellers have a very optimistic attitude about the next few months. In fact, many REALTORS are predicting a hotter-than-normal spring in 2007 that should end the downturn, signal a soft landing and return us to balanced growth in our local real estate market.
The biggest factor that should influence the spring market is the current pause (or end) in interest rate hikes. If the Fed holds steady to this policy going into spring, buyers should take it as a sign that the market is leveling out. Combine this with the fact that many buyers most likely held out towards the end of 2006 and we’re looking at a larger-than-normal pool of buyers that should commit to a purchase this spring. Also, consider the fact that we are still sitting on a large inventory of unsold homes, some of which are priced very attractively. Basically we have a convergence of a large pool of eager buyers and a large pool of unsold homes at great prices — the outcome should be a lot of activity this spring. So, how should all of this affect buyers, sellers and homeowners?
If you are a homeowner, 2007 should return us to a steady rate of appreciation. It probably won’t be as great as from 2002-2005, but we should return to a fairly modest, yet sustainable rate of appreciation. Sellers should be particularly interested in a rebound this spring. What was a very difficult and trying 2006 market should turn into a much better time to put a home up for sale. The most important thing for sellers to understand is that the inventory of unsold homes should still be high this spring-but buyers should be buying. This points to several factors: sellers need to make sure their homes stand out of the crowd-both in condition and price. If this is done correctly and your REALTOR works hard at marketing your home, its time on market should be greatly reduced from 2006 levels.
Buyers should see the rebound as a last call of sorts. If you’ve held off buying-for whatever reason, it’s time to commit to a purchase. In fact, buyers should really consider making a purchase in the next month or two in order to gain full advantage of the 2006 market conditions before they level out. Those that wait until summer or fall might miss the current buyer’s market and find more competition and higher prices. Another benefit to buying in the short term is that interest rates are still relatively low and there are some great programs out there for buyers. While we all expect the Fed to hold steady with rates, we don’t expect them to drop anytime soon. So the current rates might represent the lowest they’ll be for the foreseeable future.
2006 will go into the books as one of the most difficult years for real estate in the past decade. Looking forward to 2007, we can expect the market to level out to a sustainable pace. Whatever your real estate plans are in the coming year, it will be important to keep track of current market conditions. If buying or selling is in your near future, it’s important that you seek professional assistance to help you make the decisions that will benefit you the most.

Investing in UK Property â?? a Wise Decision for High Return

November 29th, 2009 CheapFlatsInLondon No comments

The price of land in UK has been increased by almost 92% in the past 20 years. Thus investment in UK land has proved to be highly rewarding as returns on investment in land have outperformed the returns from stock market. Investing in UK land for long term capital growth has returned stunning rates of growth. In addition to the potential returns from a speculative UK land investment the land owner can actually utilize and enjoy the actual amenity value of the land whilst they wait for planning permission to be granted or for their land to be re-zoned. In addition, the actual land is likely to increase in value in real terms. This is because even agricultural land is currently increasing in value at a greater rate than real estate.

 

UK Land Investments Group one of the specialists at investing in land, source and purchase the very best strategic land, with real development potential. This highly professional team believes in offering the very best land to clients and help to improve standards in rapidly growing land investments industry. UK Land Investments always work hard to ensure that their clients feel well informed at every stage of the way. UK Land Investments believe in researching the development sites that they offer to clients very thoroughly before offering them to clients to invest in.

 

Investing in a UK property would act as a hedge against the falling US Dollar. This mean that one’s monthly rental would allow him to take advantage of the falling US Dollar against the British pound. This would result in more rentals even if the monthly rental does not increase due to currency gains. A good idea would be to analyze one’s global investment property portfolio and do some portfolio analysis and examine how the currency movements might affect his returns on investment and make some corresponding changes in portfolio allocation.

 

Investing in the UK is good as there is a strong rental culture in the various parts of the city. This will let one earn more for his buck as compared to investing in some other areas in the world. UK is a strong magnet for education like some parts of the US, one has lots of opportunity to rent out his property to overseas students. If one has decided to migrate to the UK, for settling, renting the property or guesthouse might be something interesting for him to consider doing.

 

In conclusion, investing in the UK is a good move, as it would enable anyone from the USA to take advantage of the rising pound against the dollar. One can take advantage of strong rental yields and increased rental from areas such as London, the tourist areas and university towns. As with most investments option one should spend some time talking to real estate brokers and agents and spend some time learning about the particular area of his interest and in which he is intended to invest. It will help one to do better in the UK investment property.

 

Lake Tahoe Real Estate – an Investor’s Gem

November 28th, 2009 CheapFlatsInLondon No comments

You may know that South Lake Tahoe has become one of the country’s most popular resort destinations. But have you thought about it as an investment opportunity? Even in a challenging real estate market, South Lake Tahoe reigns as one of California’s top-advised real estate investment areas.

In Lake Tahoe’s vibrant real estate market, inventory is approximately twice that of 2005. Median home prices are slightly lower and sellers are negotiating more than ever. It’s a buyer’s market!

Adding to the lure of the area, word is spreading that South Lake Tahoe’s next redevelopment phase is underway and gaining national attention. Most important, though, is the enthusiasm following Vail’s purchase of South Tahoe’s Heavenly Mountain Ski Resort. It’s almost certain that today’s lower values will not last long.

The following reasons are why Lake Tahoe real estate is primed for investors.1) Large Inventory = More Buyer Options. As of August 26, 2007, there were 586 single family residences for sale with 56 currently in escrow. This inventory is considerably higher than the 366/96 reported in August, 2005 (although slightly less than the 594/46 reported August 31, 2006). 2) Affordable Prices. Affordability is South Lake Tahoe’s charm. When compared to other international resort areas, South Lake Tahoe’s median home price of $463,000 is a fraction of those found in Aspen, Colorado ($1,199,700), Vail, Colorado ($791,000) Park City, Utah ($605,000), and our neighbor Tahoe City ($1,001,500.) Likewise, when compared to California’s median home price of $586,030, South Lake Tahoe’s property values are absolute bargains—with the lake, mountains, blue sky and pristine seasons as bonuses.3) Buyer’s Market = Negotiation Leverage. Supply, demand, and consumer confidence have played an immense role in buyer negotiating strength. As is common in the South Lake Tahoe real estate market, when summer begins to wane, sellers become more anxious to sell. In a nutshell, they want to close escrow prior to the first snowfall. As long as inventory is up (more homes for sale), there’s more room for buyers to negotiate the sales price and other accommodations. As an example of this type of leverage, during 2005, the average home sold for approximately 98.5% of the list price. Today, the average home is selling for 95.8% of the original list price. 4) Expansive Redevelopment. Following many years of planning, dreaming and hoping, the next phase of South Lake Tahoe’s redevelopment phase is underway. Rundown motels, shops and similar structures have been demolished to make way for future developments. Some examples of future developments include a 71,000 square foot convention center and two hotel-condominiums featuring boutique shops, entertainment and proximity to nearly all that the South Lake Tahoe Stateline area. Developers are anticipating this project to bring in approximately 180,000 visitors a year.The Time Is Right to Invest In South Lake Tahoe Realty

South Lake Tahoe’s real estate values have generally escaped the dramatic declines that have so adversely impacted various regions of the state throughout the years. According to Leslie Appleton-Young, chief economist for the California Association of Realtors®, “With credit drying up in recent weeks, we expect further weakness in sales over the next few months”. She continued by adding that the sales declines will be driven by both tighter underwriting standards due to the sub-prime mortgage crises and the adverse psychological impact of news and information regarding increases in foreclosures and mortgage defaults.

At the same time, a door seems to have been opened in South Lake Tahoe. According to a recent article in Inman News, one in five economists surveyed predicted a “meaningful” recovery in U.S. housing markets before the second half of 2008. About 38 percent expected a recovery in the second half of 2008, while 42 percent said housing markets won’t turn around until 2009 or later. Our recommendation is to take advantage of the opportunities that will be presented within the coming months.

For us personally as well as professionally, we have found that owning Lake Tahoe real estate is a far more enjoyable way in which to watch your investments grow when compared to other options. When given the choice of sitting on a lake beach and swishing down world-class ski slopes vs. pulling out our hair out watching the stock market, our choice is clear.

Brazil – a Property Investor’s Dream?

November 28th, 2009 CheapFlatsInLondon No comments

With a relatively stable political structure and an enviably healthy economy derived largely from foreign investment into residential real estate and oil reserves, the Latin American giant Brazil is, it seems, bucking the global downturn that is affecting many markets around the world and emerging something of an investors’ dream. In fact, it was named the world’s most significant emerging market in the respected Morgan Stanley’s Emerging Market Index just recently. Beleaguered global financial markets are looking at Brazil’s economy with admiration it seems. 

“Brazil’s central bank believes that it has underestimated the strength of its economy and has moved its previous forecast of 4.5 per cent GDP growth for 2008 up to 4.8 per cent,” says Samantha Gore of uv10, a Brazil property specialist company based in Spain. “Having studied figures just released, which show Brazil’s current GDP to be £749 billion in 2007, up 5.4 per cent on 2006, the official number-crunchers decided that they’d been too cautious.

Brazil does seem to be resilient to the turbulence in the northern half of the Americas, a turbulence which has sent shockwaves across Europe. And, while the Spanish property market is currently down on its luck, Brazil has the very same to thank for making a major contribution to its current fortune.”

Its property market is still very much in its infancy, however. Prices are still well below the £80k mark in most areas and are expected to yield a good rate of capital growth over the next few years as current demand way outstrips supply.

Estimates suggest capital growth could be as much as 20 per cent year-on-year. Nearly eight million new homes are needed to cater for the country’s growing population, but while its cities like Sao Paulo and Rio de Janeiro may be home to the largest number of its residents, it is the north-east region that is seeing a surge in investment property.

Much of the current real estate development is focused on the Rio Grande do Norte region on the north-east coast, and more specifically around Natal, the region’s capital. The city is widely regarded as having some of the finest palm tree-lined beaches and lagoons in the world that stretch for 400 or more miles. The coastline is characterised by a chain of sand dunes, including the Genipabu and Tibau do Sul dunes that have bars and restaurants dotted along their length, and the bays of Pipa and Pirangi. Small resorts are springing up, although the whole area is still new in terms of real estate development.

Uv10 is currently marketing a number of developments in the north-east. Among them, the Quinta da Lagoa resort of 83 high-spec studio, townhouses and bungalows that the company says is ideal for rentals. Located in Tibau do Sul, near Natal, the development guarantees five per cent gross per annum for three years from delivery. “Judging by the figures from its sister resort, Pousada dos Girassois in Pipa, which enjoys 80 per cent occupancy per year, you could stand to make a lot more,” says Gore. “Girassois is one of the most successful developments in Pipa and the value of property for sale in Pipa has doubled in just two years.” Prices at Quinta da Lagoa start from around £45,200.

Around 80,000 new houses and apartments are earmarked for the north-eastern region, especially around Natal, to cater for the region’s growing population and the demand from foreigners for second residences. While this appears a large figure the area is vast however, and development is controlled by the government to protect the environment, adding to the area’s appeal as an investment hotspot. Combine this with the potential for some good rental returns from the region’s increasingly buoyant tourism sector that has seen significant investment in sports and leisure centres in recent years, and you have an area of Brazil that is becoming more and more appealing.

“The property market in Natal is in its relative infancy and the coastline is almost development-free; supply currently lags way below demand,” says Trevor Byrne, GEM Estates’ Brazil expert. “New development is springing up alongside sporting and leisure facilities but the authorities are paying great attention to the environment before granting licenses – aesthetics and stability are of greater importance to them than squeezing every last penny out of every last square metre.”

GEM Estates is currently offering spacious beachside apartments and villas in Tibau do Sul for as little as £75,200 and village apartments in nearby Maracajaú from £45,000. Its Lago Azul development in Tibau do Sul has a frontline beach position with ocean views. There are many on-site amenities, such as pools and tennis courts. So confident is the company in the project that it is offering all clients a seven per cent guaranteed rental return for three years from completion. The company also has Ma-Noa Park in the village of Maracajau, near Natal, which is famed for its on-site aqua park and extensive sports facilities, including a golf course and football pitch. Prices are low and capital growth expected to be high.

“Prices of property for sale in Natal are incredibly low right now but outside investment in infrastructure such as golf courses and a new airport will increase demand for property and inevitably trigger natural price hikes,” adds Byrne. “Being the closest part of Brazil to Europe, thus drastically cutting down flying times to between seven and nine hours from most European cities, Natal has phenomenal beaches, a permanent summer and with year-round rental potential suits both audiences – the pure investor and the holiday-home hunter.”

The whole area, which enjoys a glorious climate, has attracted government funding to protect the natural heritage as well as enhancing the tourist infrastructure. Development work is closely monitored so as not to detract from the area’s natural wonders. Its towns, villages and small resorts are connected by the coastal highway that winds its way through countryside overlooking the bays and dunes, while Natal’s Augusto Severo International Airport has regular flights to and from Europe. A brand new multimillion-pound airport is under construction and is due to be completed by 2010. It will be the largest airport in Latin America. 

Further investment has come though the likes of international sports stars Rubens Barrichello, who is building a motor sports facility in the region, and David Beckham, the force behind a football academy in Natal. The project is timely for when Brazil hosts the 2014 World Cup. The region around Natal is also earmarked for several large golf courses. Projects such as these increase the region’s potential for tourism, and thereby rental income and capital growth on real estate investment significantly.

“The investment in the general infrastructure and tourism in the north-east of Brazil has been significant over the past few years, and is set to continue for the foreseeable future,” says Deanne DuKhan, portfolio strategist with specialist property company Experience International in London. The company is currently marketing a number of new high specification projects, including the Jacuma Beach Resort in Natal where prices start from just £63,700, the nearby luxury beachside resort of Praia Bonita, where studios and apartments start from £39,070 and the gated community of Pipa Paradise, which comprises 128 sizable apartments and villas that offer good value at prices from £61,899.

“The government is committed to developing the area and with the new airport just a couple of years away we feel that property in the Natal area and along this coastline of Brazil offer some of the most exciting investment opportunities we have seen in a long time.”