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Real Estate Briefing 05.Apr 2013

Posted on 05 April 2013 by Laxman |  Email |Print

Economic recoveries usually begin at home. Even though the housing construction has historically only accounted for roughly 5% of America’s economic activity, that number tends to rise following recessions, placing a disproportionate burden on the housing sector to lead the economy to recovery.
Why is this? There are several reasons. First of all, since a new home is usually the biggest purchase any of us will make, we tend not to do it during recessions. Recessions cause housing demand to become pent up and then released once a recovery begins. Secondly, investment in a new home usually necessitates many other big ticket purchases like furnishing and appliances. ……………………………………….Full Article: Source

Posted on 05 April 2013 by Laxman |  Email |Print

The real estate recovery has yet to lift the property tax revenues of many U.S. cities, a worrying sign for municipalities that rely on the taxes as their chief sources of income, according to a report released on Thursday.
In a survey of local economic conditions, the National League of Cities found that residential property vacancies and values are “still a problem” for more than half of U.S. cities. Officials in 65 percent of the cities consider commercial property vacancies a problem, and those in 57 percent say commercial property values are still a concern………………………………………..Full Article: Source

Posted on 05 April 2013 by Laxman |  Email |Print

Landlords seeking the highest returns for single-family homes should hit the road as rental rates weaken in Atlanta, Phoenix and Las Vegas, where institutional investors have flooded the market.
The best deals, measured by leases and the cost of becoming a landlord, are in Memphis, Tennessee, Saginaw, Michigan and Toledo, Ohio, according to a report today by RealtyTrac, a real estate data provider………………………………………..Full Article: Source

Posted on 05 April 2013 by Laxman |  Email |Print

If it does not reform Fannie Mae and Freddie Mac, the state-backed lenders that guarantee mortgages and were implicated by economists in the financial crisis, the US may face another housing crash, former Treasury secretary Hank Paulson said.
“Today, the government is guaranteeing 90 per cent of the mortgages,” Paulson will say. “If the government keeps doing this, and markets aren’t allowed to work, we’ll be right back where we were in 2007 and 2008.” Paulson called for reform, saying that the fact Fannie and Freddie have swung into profit should not blind policymakers to the dangers of a lender not restricted by market rigour………………………………………..Full Article: Source

Posted on 05 April 2013 by Laxman |  Email |Print

More than half of Americans do not believe the country’s housing crisis is over, according to new research sponsored by the MacArthur Foundation. Nearly 20% believe that the worst is yet to come. These conclusions appear to fly in the face of recent hopefulness among analysts, home builders and market watchers that the U.S. housing market is recovering.
The foundation’s survey also found that nearly two-thirds of those surveyed think that national housing policy should not promote home ownership over renting, but that owning and renting should receive equal emphasis………………………………………..Full Article: Source

Posted on 05 April 2013 by Laxman |  Email |Print

Opportunities, like good ideas, require action to become reality. Without action, opportunities are just pipe dreams. Today’s historic low housing prices and mortgage interest rates signify a rare opportunity that middle-class families seldom get: The chance to build wealth for the long term.
But the current supply and demand imbalance in the housing market of a glut of mortgage-ready buyers and not enough housing to go around makes this era of “opportunity” a long shot for most. Even worse, the dynamic of low supply will soon inflate housing prices and put them beyond the reach of working-class families, closing the window of opportunity for a generation………………………………………..Full Article: Source

Posted on 05 April 2013 by Laxman |  Email |Print

Where there’s smoke there’s fire. When it comes to rising home prices, the question is whether the on-fire price increases are a healthy sign of a housing recovery or a smoke screen masking another investor-led real estate bubble. The answer is it’s both.
So, the real question is: are the two compatible and is the trend sustainable. The answer to that compound question is “yes” and “no,” in that order. On the surface, everything is coming up roses. According to closely followed real estate data provider CoreLogic, U.S. home prices jumped in February by the largest amount in seven years. They rose 10.2% compared to a year ago, and were up 0.5% from January to February………………………………………..Full Article: Source

Posted on 05 April 2013 by Laxman |  Email |Print

An unusual combination of factors is fueling house price increases despite a downturn in sales, a new housing survey finds. Toronto house prices are likely to continue to soften into next year, but will avoid a hotly anticipated major downturn, as “2013 finds the Canadian housing industry in a highly unusual place,” according to a new quarterly housing survey by Royal LePage.
The rare combination of low interest rates, flattening house prices and an improving economy “is not something we’ve seen before,” says Royal LePage president Phil Soper. “Typically, one of these variables is moving hard in an opposite direction.”……………………………………….Full Article: Source

Posted on 05 April 2013 by Laxman |  Email |Print

UK commercial property, with its attractive yield profile, continues to provide investors with solid levels of rental income and steady returns. It has historically performed differently from other asset classes, such as equities and bonds, and brings diversification benefits. Below are four tips for effective property investment.
A strong tenant base is vital. Favour prime tenants on long leases. Established names offer confidence in terms of income security. Prime tenants include B&Q, Centrica, Co-Op and Tesco. Bear in mind economic growth will be strongest in the South East of England………………………………………..Full Article: Source

Posted on 05 April 2013 by Laxman |  Email |Print

Greece sold four properties outside the country, including the U.K. consul’s residence in London, as the government raises money to pay its debts.
The townhouse in London’s Holland Park neighborhood was sold for 23.3 million pounds ($35.2 million), the Hellenic Republic Asset Development Fund said in an e-mailed statement late yesterday. A property in Nicosia, Cyprus, fetched 8.3 million euros and real estate in Brussels and Belgrade was sold for a combined 5.3 million euros………………………………………..Full Article: Source

Posted on 05 April 2013 by Laxman |  Email |Print

Uncertainty over the path of Swiss property prices has increased over the last year, however, Fitch Ratings maintains its view that the market as a whole is still not experiencing a bubble. To reflect the increased uncertainty, we have introduced a buffer in our house price decline assumptions (HPD).
House prices have risen faster than general income levels since 2000, and the decoupling of house prices and real income growth to the point where price rises start to outstrip affordability is now comparable with that seen before the previous Swiss property crisis in the early 1990s. In our view some regions, such as Lake Geneva, Zug, Zurich, and some southern cantons, where price rises have been particularly pronounced, have overheated. (Press Release)

Posted on 05 April 2013 by Laxman |  Email |Print

The Government wants the property market to become sustainable, Economy Minister Chris Cardona said yesterday during a meeting with the Malta Developers Association. He listed a number of Labour electoral proposals aimed at achieving this, such as extending from seven to 12 years the period within which a property owner can pay capital gains tax or 12 per cent sales tax.
He mentioned the reduction of stamp duty for first-time buyers and the removal of the five per cent tax on the transfer of the first residential property acquired by inheritance or donation from the parents………………………………………..Full Article: Source

Posted on 05 April 2013 by Laxman |  Email |Print

In contrast to the case with residential property, Israel’s commercial real estate inventory is very much the domain of tightly-held conglomerates and listed entities firmly under the control of their founders or key investors.
While the widespread Israeli penchant for apartment ownership as an investment is seen, by regulators and commentators, as a contributing factor in the continuing rise in house prices, mainstream ‘retail’ investment in housing is not mirrored in the commercial sector. In this piece, we look at the existing state of investment in commercial property in Israel, specifically the publicly-traded sector, and at the role played, or which could be played, by the REIT - real estate investment trust………………………………………..Full Article: Source

Posted on 05 April 2013 by Laxman |  Email |Print

All residential developments in Dubai, especially those with quality buildings or those in prime areas, have continued where they ended 2012 with a strong Q1 2013 performance. Apartment sale prices grew on average by 12% in the three months to the end of March 2013, standing at 27% year-on-year growth. In comparison, although average villa sales prices only climbed 5% in Q1 2013, growth averaged 24% over the past 12 months.
The performance of rental rates was also impressive, average apartment and villa rents grew by 3 and 4% compared to Q4 2012, but still managed to climb 19 and 21% respectively over the past year………………………………………..Full Article: Source

Posted on 05 April 2013 by Laxman |  Email |Print

Indian expatriates are among the top investors in Dubai’s property market, which is expected to grow 10-12 per cent this year, company officials and analysts say.
“Expatriates, mainly from India, Russia and Saudi Arabia, are leading the growth. Indians are among the top five investors in Dubai’s property market,” Ziad El Chaar, managing director of Dubai-based Damac Properties, said. He said Dubai’s real estate sector witnessed around 10 per cent growth in 2012 and this was likely to further accelerate this year………………………………………..Full Article: Source

Posted on 05 April 2013 by Laxman |  Email |Print

“Save lakhs by buying a pre-launch flat…excellent location, reputed builder, metro connectivity”… “Holi offer: Plot in just Rs 12 lakh before Holi, rate revising soon”… “Last chance to grab personal suites, pay 15 per cent now, no EMI till 18 months”… “Most awaited project launching at Rs 6,550 per sq ft, next rate Rs 7,550 after this week, book profit”.
These are among the hundreds of promotional messages which have flooded the inbox of mobile phones over the past few months, more so since the beginning of 2013, after a longish lull. But even as developers are on a spree to launch residential projects, it may not mean the end of trouble for the sector………………………………………..Full Article: Source

Posted on 05 April 2013 by Laxman |  Email |Print

With China’s rampant economic expansion stalling, institutional investors are shifting their attention to the country with Asia’s second-fastest growing economy, Indonesia.
Several sovereign wealth funds, some of the largest Asia-based developers and a handful of real estate investment trusts have all been sniffing around for opportunities. Though only established international players have so far announced new projects, property brokers expect significant deal-front activity over the next year………………………………………..Full Article: Source

Posted on 05 April 2013 by Laxman |  Email |Print

The number of dwelling approvals increased by 3.1% in February, according to ABS figures released yesterday, but one industry spokesgroup says this only goes to show Australia’s housing market remains on a ‘knife’s edge’.
Master Builders Australia chief economist, Peter Jones, says the headline increase in dwelling approvals gives a false picture of a housing recovery, despite the fact private sector houses rose 0.5%………………………………………..Full Article: Source

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