India demands affordable houses

The Indian Real Estate Sector had till recently been focusing on catering to the high demand for luxury living. Small house segment was ignored completely. High consumer confidence, low interest rates and a belief that the prices will only one-way, led to this euphoria. Several construction companies raised large sums of money through IPOs. After the January 2008 crash, the real estate stocks are among the worst affected. Whereas, the stocks were down, the prices of houses and real estate have not seen any appreciable corrections. Business World reports that in Mumbai recently, Bandra Kurla complex, a piece of commercial estate got only Rs 15,000 per square feet against Rs. 40,000 for a similar property in 2007.

With rising prices and interest rates, the demand for luxury flats (Above Rs 50 lakh per apartment) has dramatically come down. In India, housing if priced correctly has an enormous demand and given the huge housing shortage, it is unlikely that there will be any saturation in the market for a long time to come. This is a win-win situation for both, the buyer and developer. The attraction for developers in the affordable housing segment is assured sales and upfront cash flows. While margins may be lower compared to high-end projects, they make up in terms of volumes.

Cheers!

Viva Las Vegas

Hi guys! Have you ever been to Las Vegas? Oh my goodness! If the answer is NO, My answer is: GO!

Do not doubt, go to Nevada and enjoy this amazing world built for you and your dreams.

I didnt ask there about investment there, but I think it really worth it.

Buying a couple of flats or a whole building its not a bad idea… Lets go guys! its AWSOME!

Cheers!

Visitors, keep going!

The number of people choosing to visit Spain for their holidays has increased, according to new figures.

Statistics from the country’s ministry of industry, commerce and tourism showed that 6.1 million visitors arrived in the country last month.

This is 1.8 per cent higher than during September 2006.

Meanwhile, an increase in tourist numbers was also recorded for the whole of 2007 to date.

Figures showed that 47.6 million people took a holiday in Spain between January and September this year – 2.2 per cent more than during the same period of 2006.

These figures are likely to be welcomed by investors in the Spanish property market, especially those who own rental accommodation to let out to tourists. (holiday flats and houses)

Earlier this month, Clickair announced that it would launch new flights between Edinburgh and Barcelona, further highlighting the continuing popularity of Spain as a holiday destination.

Cheers mates!

Invest in Spain guys!

Foreign investors are able to work in an established legal framework with experienced specialists in the property market.

Although emerging markets may have many noteworthy attributes, most would be hard-pressed to match these claims.

However, the perceived costs and benefits of a Spanish investment depend on why people want to enter the market.

Capital appreciation is less of an issue to holiday flats buyers or expats, while those who want to get short-term returns from a surge in the property’s value may find that Spain is not for them.

UK newspaper the Telegraph recently commented: “Spain is largely a lifestyle destination anyway – you don’t buy there to make a fortune overnight.”

However, investors can still get high returns from rental income, as it is popular with holidaymakers for 12 months of the year.

Spain has the virtues of being familiar, accessible and established, and with something as potentially risky or as complicated as a property purchase, these traits are highly appealing to British buyers.

Since it offers both lifestyle benefits and financial safety nets, it is easy to see why Spain has held on to its status as the most popular foreign market for British buyers.

Cheers! Do not give up!

Australia: up in arms!

When fines were slapped on 11 Sydney real estate agencies last weekend for allegedly underquoting on property to prospective buyers, the uproar was loud and long. The industry’s regulator, the Office of Fair Trading, was damning about their conduct and consumers were outraged – but many of the agents were even more incensed.

“We’re now in the ludicrous position where getting good results for vendors can jeopardise our careers,” says McGrath Inner West agent Simon Pilcher, whose office is one of those being fined. “We’re sometimes in the situation where five people turn up for an auction and bid and they’re all determined to get it and the price goes haywire.

“How can you accurately predict the price in those circumstances? But unfortunately, now, that could be a career-threatening result.”

Michael Finger, Ray White Double Bay director, whose agency was also fined, was similarly infuriated by the accusations that a price had been quoted too low to hopeful purchasers.

“It’s such a changeable market at the moment, it’s absolutely impossible to accurately predict what’s going to happen from flats to flats or houses to houses,” he says.

“It isn’t an exact science. We had one property recently that went 15 to 30 per cent over the price of the property next door that had sold just weeks earlier. I’m a valuer and there’s no way in the world I can appraise a property with complete accuracy in the current market.”

Cheers mates! Take care..

The lasting jewels in Melbourne’s crown

They’re the stalwarts; locales that have historically risen above the vicissitudes of the property market and where – provided you buy wisely – you should be able to ride out any downturn.

Property experts say such blue-chip suburbs are typically located close to the CBD – generally within 15 kilometres – and offer good and consistent quality housing stock, often period homes or flats, in wide, tree-lined streets.

Other factors that set blue-chip suburbs apart include their access to public transport and shopping. And the schools, the prestigious schools.

The reason certain suburbs hold their value well comes back to the fundamentals of the economic laws of supply and demand.

There’s limited supply – that equals high prices or increasing prices.

It is vital to make the “right property choice” even within blue-chip suburbs.

This is critical and this is where a lot of people come unstuck; they might choose the right suburb but they make the wrong choice of property.

Cheers!!!

Half-term holidaymakers visit Spain

Most people travelling abroad during the school half-term chose to visit Spain, according to new figures.

Gatwick Airport stated that between Friday 19th to Monday 22nd October, almost 500,000 people passed through its terminals to enjoy a foreign holiday.

The facility added that four of the ten most popular destinations for families were in Spain.

Research showed that Malaga attracted the largest proportion of visitors from Gatwick Airport, followed by Alicante and Palma de Mallorca.

The Canary Islands, Tenerife in particular, also saw a surge in tourism for the half-term holidays.

This highlights the continuing appeal of established holiday destinations among British leisure travellers, which in turn can make it a good option for overseas flats & houses buyers.

14 per cent of those who were thinking of buying a second home abroad had considered the Spanish market.

Cheerio!

Brits go abroad 4 Christmas shopping

Many Britons are to travel overseas to carry out some of their Christmas shopping, according to experts.

The Association of British Travel Agents (ABTA) stated that each November, there was a surge of bookings for foreign holidays, largely from people hoping to buy presents for the festive season.

Sean Tipton, spokesperson for the organisation, said that Christmas markets were especially popular destinations, as they offered a taste of local culture and a different way of shopping.

He commented: “Christmas markets are getting more and more popular, partly for the Christmas experience as much as what people buy when they get there.”

ABTA recently said that sunny destinations such as Spain were also highly popular getaways during the festive season, along with skiing resorts in Italy.

This could mean that home and flats investors in rental property could benefit from increased occupancy towards the end of the year.

Cheers buddies, take care!

Everyone want Spanish property

Spain is still one of the most popular overseas property markets among Britons, a new poll has found.

14 per cent of those who were thinking of buying a second home abroad had considered the Spanish market.

Meanwhile, more than a quarter of those who already had a second property abroad were found to own a home in Spain.

Most of these were bought for investment purposes, although the study showed that some were using it as part of their retirement plan.

The accessibility of Spain from the UK was one of its major attributes, along with its stable economy.

Most buyers have a simple desire to enjoy spending time in holiday homes & flats in a country that offers an excellent climate and attractive lifestyle.

According to research by Yorkshire Bank, the Costa Blanca and the Costa del Sol are the two most popular parts of Spain with British buyers.

Cheers! INVEST, INVEST, INVEST!!!

The Mortgage Monster

The combination of the highest relative property values in the world with the highest official interest rates naturally produce high home loan repayments.

Just how high and how painful is now becoming more than obvious. Anecdotal reports of rising repossessions and a huge increase in forced sales are now spreading from so-called blue collar suburbs to properties in the $1 million to $5 million valuation range.

Mortgage stress is spreading across all cities, suburbs and demographics.

Overgeared families are obviously the most vulnerable but wealthier Australians are now being caught as they liquidate assets to meet margin calls on highly leveraged share portfolios caught in the equities downturn.

The latest research from Fujitsu Consulting claims more than 900,000 Australians will suffer mortgage stress by September, 400,000 of those will be in severe stress and 80,000 could lose their flats because they can’t meet the loan repayments.

Severe stress is defined as being unable to meet repayments without refinancing, with many having to put repayments on their credit card.

They are sobering figures. Yet probably the scariest finding from the Fujitsu report is that once someone is in severe stress there is a 20 per cent chance of being forced to sell the property and there is only a 50 per cent chance of getting out of mortgage stress altogether.

Cheers!