Saturday, July 23, 2011
An American Default?
Thursday, July 21, 2011
Commercial Property in Europe Improving, mostly!
Wednesday, July 20, 2011
Home Buyer Stat's for the USA
Weak sales following the expiration of the federal homebuyer tax credits, an excess supply of unsold homes, and the impact of sales of distressed homes is driving home prices down. A national, repeat-sales home-price index compiled by the company was down 5.1 percent in November from a year ago.
If that trend continues, national home prices will probably be down 10 percent year-over-year by spring.
There's been consolidation among MLSs since then and a decline in the number of for-sale-by-owner sales outside the MLS and brokerage process. That means NAR is now capturing a greater percentage of existing-home sales and doesn't need to make so large an adjustment when extrapolating its results.
The benchmarking of existing-home sales will result in "no notable changes" to NAR's previous characterizations of monthly sales changes, and no impact on price data records data captures all sales, whether they involve a mortgage or are all-cash purchases, and regardless of whether a home was listed in an MLS or not.
If that trend continues, national home prices will probably be down 10 percent year-over-year by spring.
The benchmarking of existing-home sales will result in "no notable changes" to NAR's previous characterizations of monthly sales changes, and no impact on price data records data captures all sales, whether they involve a mortgage or are all-cash purchases, and regardless of whether a home was listed in an MLS or not.
Some Fun Realtor Terminology!
Some euphemisms Realtors use in the listings:
Park-Like Setting means the lawn hasn't been mowed in years and the place is run over with weeds and overgrown shrubs
Needs Some TLC - Is a tear-me down at best; at worst, on the Municipal Cleanup list
Bring your Imagination and Ideas, hey the kitchen has orange counters with aqua appliance from the 70s; the bathroom is pink and grey 50's tiles
Idyllic Setting on Country Lane is when the property backs up to box store off a busy interstate
Winter Waterview is if you lean all the way of the attic window in January, you see a bit of water
House Full of Charm, yes, I guess at one time knotty pine paneling was considered charming
Owner Willing to Hear All Offers means the RE agent was unsucessful at convincing the owner his split ranch is not Mar-A-Lago and that the property is way over-priced
Motivated Seller is when the owner is desperate to get rid of this white elephant
Needs Some TLC - Is a tear-me down at best; at worst, on the Municipal Cleanup list
Bring your Imagination and Ideas, hey the kitchen has orange counters with aqua appliance from the 70s; the bathroom is pink and grey 50's tiles
Idyllic Setting on Country Lane is when the property backs up to box store off a busy interstate
Winter Waterview is if you lean all the way of the attic window in January, you see a bit of water
House Full of Charm, yes, I guess at one time knotty pine paneling was considered charming
Owner Willing to Hear All Offers means the RE agent was unsucessful at convincing the owner his split ranch is not Mar-A-Lago and that the property is way over-priced
Motivated Seller is when the owner is desperate to get rid of this white elephant
Monday, July 18, 2011
Not Peanuts for this House for Sale.
The cartoonist Charles Schulz, creator of the iconic "Peanuts" cartoon, purchased this Santa Rosa, Calif., spread from the Roman Catholic church and immediately set about using the on-site chapel -- he married his second wife there in 1973. That chapel has been converted into a combination media room and gym, but the six-bedroom home still bears evidence of Schulz's presence. His office, complete with typewriter, aging television, and "Peanuts" art, has been left as a sort of shrine to the famed funny pages master. The rest of the property is pretty plush, with two sizable homes totaling 8,000 square feet, two acres of well-landscaped grounds, and broad outdoor entertaining spaces, including a swimming pool.
Features List • Library Media Room • Backyard Lawn Area • Sub Zero Appliances • Solar Heated Pool • Gated Entry • Granite Counter Tops • Cabana • Security System • Fenced Play Area • Outdoor Fireplace • First Floor Master • Outdoor Dining • terraced Gardens • 1000 sq ft 2nd Home • Office Study Area • Chapel • Panoramic Views • Workout Area • Game Room • Chefs' Kitchen • Add. 2+ Acres Available for only in the low $2 Millions, in California of course!
China to Expand Real Estate Restrictions.
Jul. 18 – Following the release of statistics on the first half of 2011 which show house prices are still growing in most surveyed cities, China’s State Council said on July 12 that it will continue to implement tightening policies on its property market and expand the home-purchase restrictions to second and third-tier cities.
Seeing surging property prices as one of the major contributors to China’s high inflation, the government has already been implementing a variety of restrictive measures on the country’s property market including home purchase limits, bank interest rate increases, and even a property tax in Shanghai and Chongqing. However, the most recently-released first-half statistics show investment in property development has still witnessed a year-on-year increase of 32.9 percent and commercial and residential property sales have also surged by 24 percent from a year earlier. As such, the Chinese government has decided to make further attempts to rein in the housing bubble.
China’s Ministry of Housing and Urban-Rural Development has embarked on drafting a new city list where home-purchase limits will be implemented. Centaline Property Agency Limited, one of the largest property agencies based in Hong Kong, predicted the new list may push the enforcement of restrictive policies to over 100 second and third-tier cities, compared to the current 40 first-tier cities.
Although only 3 out of 70 surveyed first and second-tier cities have seen a y-o-y decline in newly-built residential property prices over the past six months, Centaline’s analysis says the home-purchase restrictions – which are currently only practiced in first-tier cities – are having an effect. The y-o-y price growth rate in cities with restrictions is considerably lower at 4.04 percent, compared to the price increase pace of 4.89 percent in those restriction-free cities.
The unequally imposed restrictions may have even accelerated the property price increases in many second and third-tier cities, as a more relaxed policy environment there likely attracted more speculative investors from the first-tier cities. Data from the National Bureau of Statistics reveal that, between January and May, every city among the 70 surveyed that has reported a y-o-y property price increase of more than 5 percent is a second or third-tier city.
The real estate price surge in second and third-tier cities may bring a negative impact on government’s effort to control property prices on a national level. The government – which is still under high inflationary pressure – will very likely take the restrictions to smaller cities to curb investors’ speculation.
Seeing surging property prices as one of the major contributors to China’s high inflation, the government has already been implementing a variety of restrictive measures on the country’s property market including home purchase limits, bank interest rate increases, and even a property tax in Shanghai and Chongqing. However, the most recently-released first-half statistics show investment in property development has still witnessed a year-on-year increase of 32.9 percent and commercial and residential property sales have also surged by 24 percent from a year earlier. As such, the Chinese government has decided to make further attempts to rein in the housing bubble.
Although only 3 out of 70 surveyed first and second-tier cities have seen a y-o-y decline in newly-built residential property prices over the past six months, Centaline’s analysis says the home-purchase restrictions – which are currently only practiced in first-tier cities – are having an effect. The y-o-y price growth rate in cities with restrictions is considerably lower at 4.04 percent, compared to the price increase pace of 4.89 percent in those restriction-free cities.
The unequally imposed restrictions may have even accelerated the property price increases in many second and third-tier cities, as a more relaxed policy environment there likely attracted more speculative investors from the first-tier cities. Data from the National Bureau of Statistics reveal that, between January and May, every city among the 70 surveyed that has reported a y-o-y property price increase of more than 5 percent is a second or third-tier city.
The real estate price surge in second and third-tier cities may bring a negative impact on government’s effort to control property prices on a national level. The government – which is still under high inflationary pressure – will very likely take the restrictions to smaller cities to curb investors’ speculation.
Sunday, July 17, 2011
UK Housing Sales Down Dramatically!
Almost one in three house sales collapsed in the first six months of 2011, according to data from the UK's largest conveyancer 1st Property Lawyers. The firm said the rising number of sales falling through was due to buyers and sellers getting cold feet, the elimination of Home Information Packs and economic uncertainty.
The 29% of abandoned transactions were chiefly the result of sellers withdrawing properties from the market (39% of the sales that fell through).
HM Revenue & Customs figures show that there were 173,000 house sales in the UK in the first three months of the year, well down on the 459,000 recorded in the last quarter of 2006 when the housing market was nearing its peak.
Buyers pulling out of the purchase is the second most common reason (23%) for abandoned sales, driven by nervousness in the marketplace about house prices and fueled by fears over finances, general economic uncertainty and job security.
The 29% of abandoned transactions were chiefly the result of sellers withdrawing properties from the market (39% of the sales that fell through).
HM Revenue & Customs figures show that there were 173,000 house sales in the UK in the first three months of the year, well down on the 459,000 recorded in the last quarter of 2006 when the housing market was nearing its peak.
Friday, July 15, 2011
Is this politics, or is it strategy or stupidity?
As the whole world knows, America’s government is in danger of defaulting after August 2nd unless Congress raises the federal debt ceiling so that it can keep borrowing enough to pay its bills. For a while the markets assumed that because a default would be so scary, Republicans and Democrats would have in the end to agree on the spending cuts the Republican-controlled House demanded as its price for raising the ceiling. The Theory of Inevitable Compromise was that each party would have to give a bit because voters will punish whichever proves too stubborn. But here are eight reasons to wonder whether the theory is true.
First, for the theory to work, both parties need to believe that failing to raise the ceiling will trigger a default and the “huge financial calamity” Ben Bernanke, the chairman of the Fed, gave warning of this week. Not all Republicans do believe that. John Boehner, the House speaker, is a believer, but the freshmen who bobbed into Congress last November on a tidal wave of tea are not. Some say that the government could keep paying foreign creditors by slashing domestic spending, and that this would be just fine—even though Mr Obama refuses to guarantee even that Social Security (pension) cheques would go out without a deal.
Second, the Republicans are divided among themselves. The party’s leader in the Senate, Mitch McConnell, has aired a convoluted last-ditch plan that would avert a default by letting Mr Obama increase the ceiling even without a spending agreement between the parties, provided he makes cuts of the same size. Senior Democrats have welcomed the idea, but Eric Cantor, the Republican majority leader in the House, has not. Mr Cantor had already rejected Mr Boehner’s secretive attempt to negotiate what could have been an historic bargain with Mr Obama embracing a higher tax take (anathema to Republicans) as well as vast reductions in entitlement spending (music to their ears).
Noises off are the third problem. Outside Congress, the Republicans’ presidential wannabes are taking up their starting positions for 2012. Craving power but not yet possessing it, these hopefuls are not constrained by responsibility. Indeed, further economic trouble on Mr Obama’s watch might suit them nicely. Whether for this reason or from conviction, most profess themselves unfazed by the prospect of a failure to raise the debt ceiling. Newt Gingrich called Mr McConnell’s last resort “an irresponsible surrender to big government”. Michele Bachmann says she is proud never to have voted for raising the debt ceiling in the past.
Fourth, the Theory of Inevitable Compromise holds that fear of the voters will push the parties together. But which voters? Candidates in the general election of November 2012 would not want to be thought reckless. That election, however, is an age away. Republican candidates and the new House members are now fixated not on voters in general, who want the parties to co-operate, but on the more ideological ones who will vote in the primaries. Many of these do not want the debt ceiling to rise.
Why not? In part because, fifth, the theory assumes that voters understand what the debt ceiling is. This assumption is almost certainly false. Many are under the misapprehension that it is a vote to authorise new spending, not permission to pay the bills that this and earlier Congresses have already run up. According to Gallup, 60% of Republicans, 46% of independents and 21% of Democrats oppose increasing the debt ceiling at all.
Couldn’t politicians explain things better? Dream on. The sixth argument against the Theory of Inevitable Compromise is the virtual impossibility in today’s polarised America of shaping a consensus. In the 1930s Franklin Roosevelt delivered soothing chats explaining the theory of banking. But the president’s bully pulpit is not what it was before the rise of partisan cable television and the cacophony of the blogosphere empowered the obfuscators. For every commentator wringing his hands over the danger of default, another accuses the “liberals” of crying wolf.
Seventh, the listless state of the economy makes it hard for politicians of both parties to do the hard things that are needed to reduce the deficit. The Republicans say rightly that increasing the tax burden would damage jobs and growth. Democrats are right to retort that so would the spending cuts the Republicans want.
Last, but not least and most important, both sides have made a stand on principles that will be hard to abandon without losing face. The Republicans’ is that there can be no increase in tax revenues, because that is how public spending ratchets ever higher. The Democrats’ is that a deal that reduces the deficit by spending cuts alone would fall too heavily on the most vulnerable Americans.
First, for the theory to work, both parties need to believe that failing to raise the ceiling will trigger a default and the “huge financial calamity” Ben Bernanke, the chairman of the Fed, gave warning of this week. Not all Republicans do believe that. John Boehner, the House speaker, is a believer, but the freshmen who bobbed into Congress last November on a tidal wave of tea are not. Some say that the government could keep paying foreign creditors by slashing domestic spending, and that this would be just fine—even though Mr Obama refuses to guarantee even that Social Security (pension) cheques would go out without a deal.
Second, the Republicans are divided among themselves. The party’s leader in the Senate, Mitch McConnell, has aired a convoluted last-ditch plan that would avert a default by letting Mr Obama increase the ceiling even without a spending agreement between the parties, provided he makes cuts of the same size. Senior Democrats have welcomed the idea, but Eric Cantor, the Republican majority leader in the House, has not. Mr Cantor had already rejected Mr Boehner’s secretive attempt to negotiate what could have been an historic bargain with Mr Obama embracing a higher tax take (anathema to Republicans) as well as vast reductions in entitlement spending (music to their ears).
Noises off are the third problem. Outside Congress, the Republicans’ presidential wannabes are taking up their starting positions for 2012. Craving power but not yet possessing it, these hopefuls are not constrained by responsibility. Indeed, further economic trouble on Mr Obama’s watch might suit them nicely. Whether for this reason or from conviction, most profess themselves unfazed by the prospect of a failure to raise the debt ceiling. Newt Gingrich called Mr McConnell’s last resort “an irresponsible surrender to big government”. Michele Bachmann says she is proud never to have voted for raising the debt ceiling in the past.
Fourth, the Theory of Inevitable Compromise holds that fear of the voters will push the parties together. But which voters? Candidates in the general election of November 2012 would not want to be thought reckless. That election, however, is an age away. Republican candidates and the new House members are now fixated not on voters in general, who want the parties to co-operate, but on the more ideological ones who will vote in the primaries. Many of these do not want the debt ceiling to rise.
Why not? In part because, fifth, the theory assumes that voters understand what the debt ceiling is. This assumption is almost certainly false. Many are under the misapprehension that it is a vote to authorise new spending, not permission to pay the bills that this and earlier Congresses have already run up. According to Gallup, 60% of Republicans, 46% of independents and 21% of Democrats oppose increasing the debt ceiling at all.
Couldn’t politicians explain things better? Dream on. The sixth argument against the Theory of Inevitable Compromise is the virtual impossibility in today’s polarised America of shaping a consensus. In the 1930s Franklin Roosevelt delivered soothing chats explaining the theory of banking. But the president’s bully pulpit is not what it was before the rise of partisan cable television and the cacophony of the blogosphere empowered the obfuscators. For every commentator wringing his hands over the danger of default, another accuses the “liberals” of crying wolf.
Seventh, the listless state of the economy makes it hard for politicians of both parties to do the hard things that are needed to reduce the deficit. The Republicans say rightly that increasing the tax burden would damage jobs and growth. Democrats are right to retort that so would the spending cuts the Republicans want.
Last, but not least and most important, both sides have made a stand on principles that will be hard to abandon without losing face. The Republicans’ is that there can be no increase in tax revenues, because that is how public spending ratchets ever higher. The Democrats’ is that a deal that reduces the deficit by spending cuts alone would fall too heavily on the most vulnerable Americans.
Thursday, July 14, 2011
Some Canadian cities Real Estate prices to drop next year!
Winnipeggers are about to witness something one local housing official says they haven't seen in more than two decades -- a drop in housing prices.
In a special report issued Wednesday, one chartered bank says Canada's resale-homes market is poised for a moderate correction in 2012 and 2013, and Winnipeg won't be spared.
It predicts Winnipeg's average selling price will peak in the third quarter of this year at $245,000, drop by 7.8 per cent over the course of 2012 and the first half of 2013 to bottom out at $231,000, then level off.
Although that might shock homeowners used to seeing double-digit price increases for much of the last decade, prices will basically return to 2010 levels.
Cities like Vancouver (-14.8 per cent), Toronto (-11.7 per cent), Saskatoon (-11.1 per cent) and Ottawa (-8.3 per cent) will see even bigger price drops over the next two years. Winnipeg's declines will be well below the national average decrease of 10.2 per cent in sales and 15.2 per cent in prices.
In a special report issued Wednesday, one chartered bank says Canada's resale-homes market is poised for a moderate correction in 2012 and 2013, and Winnipeg won't be spared.
It predicts Winnipeg's average selling price will peak in the third quarter of this year at $245,000, drop by 7.8 per cent over the course of 2012 and the first half of 2013 to bottom out at $231,000, then level off.
Although that might shock homeowners used to seeing double-digit price increases for much of the last decade, prices will basically return to 2010 levels.
Tuesday, July 12, 2011
The coming USA housing boom!
Housing starts in the USA have been at an unprecedentedly low level for a strikingly long period of time. And during that period, America's population has continued to grow. Eventually, whatever the economy is doing, Americans require new houses, new houses mean new construction, and new construction means new employment. Rising rents were one of the factors pushing core inflation higher last month, and increasing rents will soon translate into construction.
America doesn't simply face a situation in which housing has failed to keep pace with the growth in population. Since the onset of recession, household growth has fallen short of population growth as families doubled- and tripled-up on housing to economise. There are now nearly 2m fewer households than one would expect given growth in population. As economic conditions improve, many individuals and families now living with others in order to save money will seek their own homes. That should spark a period of catch-up household growth, which should in turn spark a large rise in rents and new construction. A recovering construction industry would help soak up unemployed workers, continuing a virtuous cycle of recovery. After five long years, housing may finally start pulling its economic weight again, or so many Americans must hope.
Monday, July 11, 2011
Southwest Florida Real Estate Trends
Although property on Southwest Florida’s world famous barrier islands are always in high demand, great values are available in the Naples/Bonita Springs/Ft. Myers market, noted for both spectacular beaches and exclusive gated, world-class golf and country club communities.
All waterfront properties are in great demand. In particular, homes on saltwater canals with direct boating access. All properties with large water views and cottages, near but not directly Gulf front, are in high demand. Condos and Old Florida style cottages in tropical settings are also popular.
All waterfront properties are in great demand. In particular, homes on saltwater canals with direct boating access. All properties with large water views and cottages, near but not directly Gulf front, are in high demand. Condos and Old Florida style cottages in tropical settings are also popular.
Saturday, July 9, 2011
Global Housing Trends, Focus on South Asia
Regional Overview; In terms of economic growth, the South Asia region continues to be the second fastest growing region in the world after East Asia. The region, encompassing Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka has recorded an average annual growth rate of over 5% in 2003. Despite the fact that most of these countries have a strong agrarian economy, the thrust in GDP growth in the recent period has emanated from the services sector, accounting for 40% to as high as 60% of GDP. Ironically, the South Asia region continues to remain one of the poorest regions in the world. Forty-five per cent of the region’s population lives below the international poverty line of USD 1 a day. This region, most notable for its large population is also home to about 40% of the world's poor.
Urban Demographics; South Asia is in a period of transition as it strives to implement effective economic, political, social and legal structures to support sustained growth. The challenges are particularly great because of the speed at which their populations are growing. During the last fifty years, India's total population more than doubled, while the urban population grew by more than five times. In 1996, the urban population in Bangladesh was 23 million. By 2020, it will increase to 58 million. The urban population in Nepal, during the same period, will grow from 2.6 million to 7.7 million, and in Sri Lanka it will double to more than 8 million.
Structure of the Mortgage Market From a regional perspective, the mortgage markets in South Asia are small and fragmented with the unorganised sector continuing to play a dominant role, especially at the lower income strata. Further, key data that reflects the performance of housing markets such as housing starts, sales volumes, movement of house prices, size of the mortgage market and defaults on mortgage loans are insufficient, incomplete and not updated regularly. As regards the organised segment, there are distinct commonalities that characterise some of the mortgage markets of South Asia – a heavily subsidised monolith-like state run institution, a fledgling private sector catering to the middle and upper income segments and players from the banking sector who provide housing finance as a part of their retail portfolio. The mortgage markets in Sri Lanka, Bangladesh and Pakistan are such archetypes. A brief overview of the structure of these mortgage markets are given below. The Indian mortgage market, the largest and most developed in South Asia has seen turnaround that merits separate treatment as a case in point.
Urban Demographics; South Asia is in a period of transition as it strives to implement effective economic, political, social and legal structures to support sustained growth. The challenges are particularly great because of the speed at which their populations are growing. During the last fifty years, India's total population more than doubled, while the urban population grew by more than five times. In 1996, the urban population in Bangladesh was 23 million. By 2020, it will increase to 58 million. The urban population in Nepal, during the same period, will grow from 2.6 million to 7.7 million, and in Sri Lanka it will double to more than 8 million.
Thursday, July 7, 2011
Vacation Home Prices, not a Deal, a Steal!
Been dreaming of a vacation home? Somewhere warm to get away? Or maybe a cabin in the woods? Prices are right if you can afford it. The median price of a vacation home was $150,000 in 2010, down 11.2% from a year earlier, the National Association of Realtors reported Wednesday. In contrast, the national median for primary residences fell only 4.5% in 2010, according to National Association of Realtors.
"The fall in prices has opened opportunities for more families to enter the second-home market," said Les Sohar of soharworldhomes.com. Still, vacation homes accounted for just 10% of all sales last year, and investment properties made up another 17%. Those percentages were little changed for 2010 as home sales declined across the board. There were 543,000 vacation homes sold, down from 553,000 in 2009; investment purchases fell to 867,000 from 940,000. One factor depressing sales was the difficulty in getting mortgages due to tight credit markets. Buyers often did an end-around this problem by paying cash.
Nearly 40% of vacation home sales were cash deals, while nearly 60% of investment deals were handled that way. Those buyers who did get mortgages brought big down payments to the closing tables, according to Les Sohar with Re/Max.
For vacation homes, the average was 30%, far more than the standard 20% down. Investment buyers with financing paid an average of 32% down. Many of the second homebuyers targeted distressed properties. About 17% of investment purchases were foreclosures, while vacation homebuyers chose distressed prosperities 10% of the time, NAR said. Only 10% of families buying primary residences last year went with foreclosures.
"The fall in prices has opened opportunities for more families to enter the second-home market," said Les Sohar of soharworldhomes.com. Still, vacation homes accounted for just 10% of all sales last year, and investment properties made up another 17%. Those percentages were little changed for 2010 as home sales declined across the board. There were 543,000 vacation homes sold, down from 553,000 in 2009; investment purchases fell to 867,000 from 940,000. One factor depressing sales was the difficulty in getting mortgages due to tight credit markets. Buyers often did an end-around this problem by paying cash.
For vacation homes, the average was 30%, far more than the standard 20% down. Investment buyers with financing paid an average of 32% down. Many of the second homebuyers targeted distressed properties. About 17% of investment purchases were foreclosures, while vacation homebuyers chose distressed prosperities 10% of the time, NAR said. Only 10% of families buying primary residences last year went with foreclosures.
Wednesday, July 6, 2011
Naples Real Estate, the truth!
Naples, Florida real estate include dream homes, mansions, and condos sale properties that can statisfy investor, homes sale, and condos sale buyers as well as active retirement focused people. The recent turmoil brought by the sub-prime and credit crisis inevitably caused damage and lingering after-effects in the real estate properties market. Finding a Naples Realtor to get more accurate home and condo information for Naples real estate is paramount in a MLS search for property. That's where I come in. Check out my bio, then tell me I can't match you up with the perfect realtor. I will shed light so that as an International Realtor Specialist, with two designations you will understand all the terminology that gets thrown your way.
Naples is considered “The Palm Beach of Florida’s West Coast” and it has evolved dramatically over the last five to ten years, from a quiet little village for beach lovers and fishing, into a more modern and cosmopolitan community. The good thing about a MLS search for a golf homes or luxury beach homes or condos sale property here is that real estate in Naples still holds value well as a special coastal enclave in southwest Florida.
Those who wish to invest their money in real estate properties particularly in Naples and our sister community of Bonita Springs are in safe hands confirms the Naples Realtor community. Naples is divided into four main areas. In the south is Old Naples and Port Royal, central shore is Park Shore and the Moorings, Pelican Bay, Pelican Marsh and Vanderbilt Beach to the north shore and more inland luxury communities. Also north is Bonita Springs golf homes, beach home and condo properties as well, not to mention Estero.
Naples is considered “The Palm Beach of Florida’s West Coast” and it has evolved dramatically over the last five to ten years, from a quiet little village for beach lovers and fishing, into a more modern and cosmopolitan community. The good thing about a MLS search for a golf homes or luxury beach homes or condos sale property here is that real estate in Naples still holds value well as a special coastal enclave in southwest Florida.
Those who wish to invest their money in real estate properties particularly in Naples and our sister community of Bonita Springs are in safe hands confirms the Naples Realtor community. Naples is divided into four main areas. In the south is Old Naples and Port Royal, central shore is Park Shore and the Moorings, Pelican Bay, Pelican Marsh and Vanderbilt Beach to the north shore and more inland luxury communities. Also north is Bonita Springs golf homes, beach home and condo properties as well, not to mention Estero.
Naples, Florida real estate, hurry, hurry, hurry!
The Naples housing market does not mirror the US housing market. Naples is not like Peoria IL or Rochester MN. The Naples housing market and economy is driven by second home buyers. Not by agriculture, heavy industry, shipping or high finance. Ten thousand Baby Boomers reach 65 each day for the next 19 years. Those are the kind of dynamics that drive the Naples housing market. So when US media report on US housing forecasts, they are not specific to the Naples housing market. In 2008 they reported US home sales declined 13% (Naples was up 22%). In 2009 they reported US home sales increase 5% (Naples increased 50%). In 2010 they reported US home sales decreased 5% (Naples was up another 13%). Looking at the three year trends. US homes sales were 13% lower in 2010 vs 2007, while Naples was 103% higher. The number of home sales in Naples have been at historic highs. Once again, due to low pricing and demand at those price levels.
The surge in the Naples Florida real estate sales can be attributed to current low price levels. Some homes in Naples have recently been selling at price levels not seen in over a decade. And they have been selling quickly. Properties priced under $200,000 have been very hot sellers. More homes have sold in Naples under the $200k price range than any other year on record!
Buyers are paying cash. Naples has always had a high percentage of cash buyers vs. other real estate markets. But the number of cash buyers sky-rocketed because of the affordability.
So, maybe it's time...you think! soharworldhomes.com, sohar.ca, Re/Max 1-800-828-0531
Foreign Buyers Saving US Real Estate Market.
MIAMI – July 6, 2011 – Foreign buyers are helping to stoke home sales in U.S. vacation hot spots decimated by the real estate crash, especially in southern Florida. For the 12 months ending in March, 31 percent of Florida’s home sales were to foreign buyers, up from 10 percent in 2007, according to a survey by the National Association of Realtors.
In Arizona, 6 percent of sales in the same period were to foreigners. That was down from 11 percent last year but still up from 5 percent in 2007, the data show. Foreign buyers are being enticed by low U.S. home prices, down 30 percent nationwide since peaking in 2006, and the weakened dollar, which makes their money go further.
Since the start of 2006, the Canadian dollar has soared 18 percent against the U.S. dollar, while the euro has gained 22 percent, says data tracker Oanda. U.S. home prices, meanwhile, have fallen far more than the national average in some places, down 55 percent from their peaks in Miami-Fort Lauderdale and Phoenix, and 36 percent in Los Angeles.
Those are three of the most popular areas for foreigners searching for real estate, says Les Sohar or soharworldhomes.com. Sales are so brisk in the Miami region now that more houses and condominiums could sell this year than in 2005, the peak year, says Sohar of Re/Max. “International buyers have been the fuel for the Miami recovery,” Sohar says. About 40 percent of buyers are international vs. less than 35 percent before the bust, he estimates. Many buyers are South American investors snapping up condominiums to rent out, says Sohar, a realtor specializing in International Real Estate.
In the Phoenix region, there are at least 20 percent more foreigners in the market now than usual, says an associate of Sohar in Paradise Valley, Ariz. One of those shoppers is retired hedge fund manager Peter Duerr of Austria. He’s planning to buy a home in Scottsdale, having sold one there in 2005. “The U.S. is a great buy right now,” Duerr says.
The largest share of foreign buyers, 23 percent, come from Canada, the Realtors’ survey found. China followed at 9 percent. The survey includes foreigners living abroad, those in the U.S. with long-term visas and new immigrants.
In Arizona, 6 percent of sales in the same period were to foreigners. That was down from 11 percent last year but still up from 5 percent in 2007, the data show. Foreign buyers are being enticed by low U.S. home prices, down 30 percent nationwide since peaking in 2006, and the weakened dollar, which makes their money go further.
Since the start of 2006, the Canadian dollar has soared 18 percent against the U.S. dollar, while the euro has gained 22 percent, says data tracker Oanda. U.S. home prices, meanwhile, have fallen far more than the national average in some places, down 55 percent from their peaks in Miami-Fort Lauderdale and Phoenix, and 36 percent in Los Angeles.
Those are three of the most popular areas for foreigners searching for real estate, says Les Sohar or soharworldhomes.com. Sales are so brisk in the Miami region now that more houses and condominiums could sell this year than in 2005, the peak year, says Sohar of Re/Max. “International buyers have been the fuel for the Miami recovery,” Sohar says. About 40 percent of buyers are international vs. less than 35 percent before the bust, he estimates. Many buyers are South American investors snapping up condominiums to rent out, says Sohar, a realtor specializing in International Real Estate.
In the Phoenix region, there are at least 20 percent more foreigners in the market now than usual, says an associate of Sohar in Paradise Valley, Ariz. One of those shoppers is retired hedge fund manager Peter Duerr of Austria. He’s planning to buy a home in Scottsdale, having sold one there in 2005. “The U.S. is a great buy right now,” Duerr says.
Investing in the Americas
Fuelled by high digit economic growth over the past few years, a stable political climate and steadily decreasing risk indicators, European investors have set their eyes on the Latin America real estate market.
Within the region Mexico is the front runner with a real estate market that has grown to maturity through US investments. Brasil runs a strong second with significant international interest and high future potential as one of the four so-called BRIC countries.1 Argentina and Chile round out the top echelon. Other Latin American jurisdictions also attract investments but often these are sector-specific; for example, both Costa Rica and the Dominican Republic have been targeted by investors in the leisure industry and have seen some major hotel resort deals as a result.
As with all investments there are some general concepts that apply and that dictate the parameters the investors can play with: how the investors themselves are taxed, regulatory constraints, exchange controls, etc. Our main focus for this article is how to structure the investments in a tax-efficient way. In cross-border situations the impact of international double taxation is mitigated by tax treaties concluded between the relevant jurisdictions. Historically Spain and Portugal have strong ties with the region; hence it is not surprising that Spain has the most extensive treaty network with the Latin American region including the four jurisdictions in our top echelon. Portugal has treaties in place with Mexico and Brasil, has signed a treaty with Chile and is currently negotiating a treaty with Argentina. The Netherlands and Luxembourg, as typical locations for holding companies, also have extensive treaty networks. The Netherlands has tax treaties with Mexico, Brasil and Argentina. Luxembourg has tax treaties with both Mexico and Brasil.
Brasil Based on domestic tax law, Brasil does not levy a withholding tax on dividend distributions. As such, the investor does not require the benefits of a tax treaty to reduce such withholding tax. However, investors into Brasil should be mindful of the Brasilian capital gains taxation that arises upon repatriation of the investment out of Brasil. Unfortunately, none of the tax treaties that Brasil has concluded mitigates such tax, except for the tax treaty with Japan. Considering the Japanese tax system, with corporate income tax rates at 40% and higher, re-routing investments via Japan is unlikely to be a viable option for most European investors. On the other hand, Brasil does offer an attractive tax feature in the form of allowing interest payments on the equity of a Brasilian company to be tax deductible at 34%.3 Such interest payments are subject to a 15% interest withholding tax but are potentially tax exempt at the level of the recipient if such recipient jurisdiction qualifies the income as dividends and it is covered by their participation exemption regime.
Within the region Mexico is the front runner with a real estate market that has grown to maturity through US investments. Brasil runs a strong second with significant international interest and high future potential as one of the four so-called BRIC countries.1 Argentina and Chile round out the top echelon. Other Latin American jurisdictions also attract investments but often these are sector-specific; for example, both Costa Rica and the Dominican Republic have been targeted by investors in the leisure industry and have seen some major hotel resort deals as a result.
As with all investments there are some general concepts that apply and that dictate the parameters the investors can play with: how the investors themselves are taxed, regulatory constraints, exchange controls, etc. Our main focus for this article is how to structure the investments in a tax-efficient way. In cross-border situations the impact of international double taxation is mitigated by tax treaties concluded between the relevant jurisdictions. Historically Spain and Portugal have strong ties with the region; hence it is not surprising that Spain has the most extensive treaty network with the Latin American region including the four jurisdictions in our top echelon. Portugal has treaties in place with Mexico and Brasil, has signed a treaty with Chile and is currently negotiating a treaty with Argentina. The Netherlands and Luxembourg, as typical locations for holding companies, also have extensive treaty networks. The Netherlands has tax treaties with Mexico, Brasil and Argentina. Luxembourg has tax treaties with both Mexico and Brasil.
Tuesday, July 5, 2011
Ausi House prices in decline, at greater than 2008 levels.
MELBOURNE property values have continued their six-month downward slide, recording the fourth-largest drop across the country. The median Melbourne house price lost 0.6 per cent in May, contributing to an annual decline of 2.9 per cent, according the latest RP Data-Rismark figures. Across the country, capital-city home values fell by 0.3 per cent in the month.
The latest slide means the nation's homes have lost more value in the first five months of this year than in a similar period during the 2008 global financial crisis.
Sydney was the only capital to notch a gain - 1 per cent - in the past 12 months. But Perth home values have slumped by 7.5 per cent, Brisbane's by 5.9 per cent and Darwin's by 3.2 per cent. The median price of houses and units in Melbourne has fallen by $21,000 from its peak in November 2010, to about $500,000.
The sluggish property market was also reflected in a drop in the number of dwellings sold, he said. Transaction levels were 28 per cent below the five-year average. This has prompted Melbourne vendors to drop prices to achieve a sale. Discounting has increased to 6.5 per cent, up from 5.7 per cent this time last year.
While investors nationally have seen strong growth in rental yields, in Melbourne they declined to 3.8 per cent from a previous high in early 2009 of 4.5 per cent.
The latest slide means the nation's homes have lost more value in the first five months of this year than in a similar period during the 2008 global financial crisis.
Sydney was the only capital to notch a gain - 1 per cent - in the past 12 months. But Perth home values have slumped by 7.5 per cent, Brisbane's by 5.9 per cent and Darwin's by 3.2 per cent. The median price of houses and units in Melbourne has fallen by $21,000 from its peak in November 2010, to about $500,000.
The sluggish property market was also reflected in a drop in the number of dwellings sold, he said. Transaction levels were 28 per cent below the five-year average. This has prompted Melbourne vendors to drop prices to achieve a sale. Discounting has increased to 6.5 per cent, up from 5.7 per cent this time last year.
360 degree view from this Hawiian Estate.
Its Japanese gardens, meditative shrine and separate painting studio are likely to instill a deep sense of tranquility to visitors of this Hawaiian home that offers a full, 360-degree view of the ocean.
The four-bedroom, six-bathroom house on Hawaii's Big Island was built by a Texan developer in 2008. He purchased the land for $1.5 million and hired Honolulu architect Warren Sunnland to build a home fashioned after the Golden Door Spa, a popular spa founded in California that now has several U.S. locations.
The 9,000-square-foot house is within the gates of Kukio, a private oceanfront club and residential community that shelters CEOs and other wealthy and famous home owners.
It's been named the gold coast of Hawaii because when Christmas rolls around, or like the Fourth of July coming up, there are probably about 50 private jets at the airport.
The house has been on the market since October and is listed at just shy of 14 million.
The 9,000-square-foot house is within the gates of Kukio, a private oceanfront club and residential community that shelters CEOs and other wealthy and famous home owners.
It's been named the gold coast of Hawaii because when Christmas rolls around, or like the Fourth of July coming up, there are probably about 50 private jets at the airport.
The house has been on the market since October and is listed at just shy of 14 million.
Monday, July 4, 2011
Global Real Estate trends, Q1, 2011, some markets upside down.
After some encouraging signs of revival last year, residential real estate markets in much of the developed world are losing momentum — or in some cases, even reversing course. Increasing nervousness over global economic prospects alongside rising food and fuel prices and persistently high unemployment are keeping potential buyers on the sidelines despite highly accommodative monetary policy. A lingering oversupply of housing and/or still tight credit conditions are reinforcing the downward pressure on sales and prices in a number of markets globally.
A marked improvement in housing affordability, particularly in those regions suffering large valuation declines in recent years, will eventually put a firmer floor under prices and underpin a gradual turnaround for the sector. For the time being, however, the process of repairing bloated public and household balance sheets points to a protracted period of subpar economic growth among debt-heavy developed nations that will restrain household borrowing and spending. A generally more cautious lending environment also will hold back the pace of recovery.
Australia’s seemingly impermeable housing boom has languished in recent months. While benefitting from strong economic growth and low unemployment, record high home prices alongside a series of interest rate increases by the Reserve Bank of Australia (RBA) are eroding the nation’s already highly strained affordability. Average home prices in Q1 were unchanged from a year earlier, and down 3½% adjusted for inflation. While the RBA has put further rate hikes on hold for now, the eventual resumption of monetary tightening will reinforce the more muted housing outlook.
U.K. real estate markets also took a step back in early 2011 following a shortlived recovery last year. Average inflation-adjusted home prices were down 4% y/y in Q1. Notwithstanding ultra-low borrowing costs, recent tax breaks for home buyers and an easing in lending conditions, aggressive fiscal austerity measures and persistently high unemployment will continue to depress activity in the near-term.
Spain’s three-year and counting housing slump shows no sign of letting up. Following steep price declines from 2008-2010, average inflation-adjusted home prices were down more than 8% y/y in Q1 (and a cumulative 20% from their peak). Prices are likely to fall further in the coming year given a massive glut of unsold homes, soaring double-digit unemployment, the elimination of mortgage funding for low income families at the beginning of 2011 and a dearth of foreign vacation property buyers. Average home prices were also still declining in Italy as of the end of 2010.
U.S. real estate markets have softened again after some encouraging signs of bottoming last year. Average inflation-adjusted home prices were down 5% y/y in Q1. High unemployment and tight credit availability are restraining demand, while a large volume of distressed properties is adding to the downward pressure on prices. The modest pickup in sales over the past six months has been primarily of investor-driven foreclosed properties, with little evidence of broader homebuyer activity since the expiry of purchase incentives in early 2010. Despite gradually improving job markets and near-record housing affordability, the expected addition of at least another 1 million foreclosed properties to the market this year suggests more downside price risk in 2011 after already falling almost 35% (in real terms) from the peak.
Not all residential property markets are in negative territory, as the housing recovery continues in some of Europe’s better performing economies. In France, average real prices were up 7% y/y in Q1, though weakening global growth expectations may limit further price gains in the near-term. In Germany, for which only annual price data are available, real home prices increased in 2010 for first time in over a decade. Demand and pricing have firmed alongside a strong economy, rising exports and the lowest unemployment rate in three decades. Nonetheless, Germany’s declining population will limit the extent of sustainable price appreciation in coming years.
Switzerland reported steady real price increases averaging 4% y/y through Q1, while prices in Sweden were unchanged from a year earlier. Irish property prices rebounded sharply — and unexpectedly — in the latter half of 2010, albeit following double-digit declines in both 2008 and 2009. With the Irish economy still marred in recession, and facing an oversupply of housing, the recent upturn will likely prove temporary despite the best housing affordability in a decade.
Canada also reported positive real price appreciation in the first quarter of 2011, with average inflation adjusted home prices up 5% y/y in Q1. Housing sales in Canada, while below the record-setting pace seen in at the height of the boom in 2005-2007, are being supported by steady job creation and still attractive borrowing costs. Relatively tight supply is adding to price pressures in several cities. Nonetheless, high home prices, the further tightening in mortgage insurance rules effective mid-March, and the upward drift in fixed mortgage rates this year appear to have slowed demand somewhat, most notably among first-time buyers.
A marked improvement in housing affordability, particularly in those regions suffering large valuation declines in recent years, will eventually put a firmer floor under prices and underpin a gradual turnaround for the sector. For the time being, however, the process of repairing bloated public and household balance sheets points to a protracted period of subpar economic growth among debt-heavy developed nations that will restrain household borrowing and spending. A generally more cautious lending environment also will hold back the pace of recovery.
U.K. real estate markets also took a step back in early 2011 following a shortlived recovery last year. Average inflation-adjusted home prices were down 4% y/y in Q1. Notwithstanding ultra-low borrowing costs, recent tax breaks for home buyers and an easing in lending conditions, aggressive fiscal austerity measures and persistently high unemployment will continue to depress activity in the near-term.
Spain’s three-year and counting housing slump shows no sign of letting up. Following steep price declines from 2008-2010, average inflation-adjusted home prices were down more than 8% y/y in Q1 (and a cumulative 20% from their peak). Prices are likely to fall further in the coming year given a massive glut of unsold homes, soaring double-digit unemployment, the elimination of mortgage funding for low income families at the beginning of 2011 and a dearth of foreign vacation property buyers. Average home prices were also still declining in Italy as of the end of 2010.
U.S. real estate markets have softened again after some encouraging signs of bottoming last year. Average inflation-adjusted home prices were down 5% y/y in Q1. High unemployment and tight credit availability are restraining demand, while a large volume of distressed properties is adding to the downward pressure on prices. The modest pickup in sales over the past six months has been primarily of investor-driven foreclosed properties, with little evidence of broader homebuyer activity since the expiry of purchase incentives in early 2010. Despite gradually improving job markets and near-record housing affordability, the expected addition of at least another 1 million foreclosed properties to the market this year suggests more downside price risk in 2011 after already falling almost 35% (in real terms) from the peak.
Not all residential property markets are in negative territory, as the housing recovery continues in some of Europe’s better performing economies. In France, average real prices were up 7% y/y in Q1, though weakening global growth expectations may limit further price gains in the near-term. In Germany, for which only annual price data are available, real home prices increased in 2010 for first time in over a decade. Demand and pricing have firmed alongside a strong economy, rising exports and the lowest unemployment rate in three decades. Nonetheless, Germany’s declining population will limit the extent of sustainable price appreciation in coming years.
Switzerland reported steady real price increases averaging 4% y/y through Q1, while prices in Sweden were unchanged from a year earlier. Irish property prices rebounded sharply — and unexpectedly — in the latter half of 2010, albeit following double-digit declines in both 2008 and 2009. With the Irish economy still marred in recession, and facing an oversupply of housing, the recent upturn will likely prove temporary despite the best housing affordability in a decade.
Canada also reported positive real price appreciation in the first quarter of 2011, with average inflation adjusted home prices up 5% y/y in Q1. Housing sales in Canada, while below the record-setting pace seen in at the height of the boom in 2005-2007, are being supported by steady job creation and still attractive borrowing costs. Relatively tight supply is adding to price pressures in several cities. Nonetheless, high home prices, the further tightening in mortgage insurance rules effective mid-March, and the upward drift in fixed mortgage rates this year appear to have slowed demand somewhat, most notably among first-time buyers.
Saturday, July 2, 2011
One heck of a deal, or is it steal! Do the math...
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