Property market comment

USA: House prices and values increase

2013-11-26T22:59:00.000-08:00

U.S. home sales increased 13 percent in October, compared to last year, according to the latest data from RealtyTrac.

The number of homes sold in October -- including single-family homes, condominiums and townhomes -- was two percent higher than the previous month.

Last week, the National Association of Realtors also reported a yearly increase in home sales.

Although home sales increased nationwide, they dropped on an annual basis for the third consecutive month in three bellwether western states: California (down 15 from a year ago), Arizona (down 13 percent) and Nevada (down 5 percent), RealtyTrac reports.

The market share of short sales dropped to 5.3 percent in October from 6.3 percent the previous month and 11.2 percent last year.

Daren Blomquist

"After a surge in short sales in late 2011 and early 2012, the favored disposition method for distressed properties is shifting back toward the more traditional foreclosure auction sales and bank-owned sales," Daren Blomquist,vice president at RealtyTrac, said in the report. "The combination of rapidly rising home prices -- along with strong demand from institutional investors and other cash buyers able to buy at the public foreclosure auction or an as-is REO home -- means short sales are becoming less favorable for lenders."

The national home median sales price -- including both distressed and non-distressed sales -- was $170,000 in October, unchanged from September but 6 percent higher from last year, representing the 18th consecutive month of yearly increases.

The markets with the largest median home price increases included Detroit (up 38 percent), San Francisco (up 32 percent), Sacramento (up 30 percent), Atlanta (up 30 percent) and Jacksonville, Fla. (up 29 percent).

More from the report:

States with the highest percentage of short sales in October included Nevada (14.2 percent), Florida (13.6 percent), Maryland (8.2 percent), Michigan (6.7 percent), and Illinois (6.2 percent).

Foreclosure auction sales to third parties -- a new category separated out in the report for the first time in October-- represented 2.5 percent of all sales, down from 2.8 percent in the previous month but nearly twice the 1.3 percent in October 2012.

Markets with the highest percentage of foreclosure auction sales included Orlando (8.6 percent), Jacksonville, Fla., (8.6 percent), Columbia, S.C. (8.1 percent), Las Vegas (6.6 percent), Charlotte (6.1 percent), Miami (6.0 percent) and Tampa (5.7 percent).

Cash sales represented 44.2 percent of all residential sales in October, down from a revised 45.0 percent in September but up from 33.9 percent in October 2012.

States with percentage of cash sales above the national average included Florida (65.6 percent), Nevada (55.5 percent), Georgia (55.4 percent), South Carolina (53.9 percent), North Carolina (49.9 percent), Michigan (49.5 percent) and Ohio (49.2 percent).

Institutional investor purchases represented 6.8 percent of all sales in October, a sharp drop from a revised 12.1 percent in September and down from 9.7 percent a year ago.

Markets with the highest percentage of institutional investor purchases included Memphis (25.4 percent), Atlanta (23.0 percent), Jacksonville, Fla., (22.2 percent), Charlotte (14.5 percent) and Milwaukee (12.0 percent).

source WorldPropertyChannel.com

For the latest US property investments, please click HERE

High investor confidence forecast for 2014

2013-11-25T23:12:00.002-08:00

More than 70 percent of global investors plan to expand their portfolio within the first six months of 2014, with investor confidence forecasted to reach high marks, according to a new report from Colliers International.

The 522 global investors surveyed for Colliers' 2014 Global Investor Sentiment Survey demonstrated increased confidence in global markets for 2014, with investor focus expected to shift.

Richard-Putnam

There will be an "increased [investment] volume across all property types as equity investment continues to spread to secondary markets in search of yield and loan capital continues to become more available," Richard Putnam, managing director, Western Region, Colliers International Capital Markets Group, told WPC News.

The U.S. is the top investment destination among global investors, even as the country's economy recovers from the recent government shutdown, Colliers reports.

Investors are also expected to target Western Europe, Brazil and gateway Asian cities, Mr. Putnam said. Investors in mature markets like the U.S., Europe and Canada tend to seek returns between five and 10 percent, but in Asia, investors are looking for returns of 20 percent or higher.

Investors will target industrial and multi-family property for higher returns, as well as office products considered urban, creative, unique, necessity-based or high street retail, Mr. Putnam told WPC News.

The capital source for investors consists of institutional co-mingled funds, private high-net worth family equity searching for longterm income and foreign sovereign funds.

While investors are expected to up their investments in 2014, they also forecast obstacles. Almost half of the investors surveyed expect the cost of debt to increase next year.

The recovery of various countries, including Spain, is also creating caution among investors, analysts say.

"Social changes created by austerity imply risks," Mr. Putnam said. -

Source www.worldpropertychannel.com

For our latest high income deals in the USA and around the world please CLICK HERE

USA: Florida Q4 2013 report

2013-11-21T23:14:00.001-08:00

Florida Boom Q4 2013 Report

Florida Q4 2013 Report

The housing market of Florida continued to grow in the third quarter of 2013. Main factors of its improvement were more closed sales, higher median prices, more pending sales and steady supply of homes for sale as compared to the same period of preceding year.

“Data from the third quarter of 2013 shows that Florida’s housing market continues to grow and gain strength,” said 2013 Florida Realtors President Dean Asher, broker-owner with Don Asher & Associates Inc. in Rolando. The housing sector is considered as essential to the economy of Florida, and many realtors in the whole state are reporting of increased activities in their respective markets.

In the third quarter of 2013, Florida’s overall closed sales of existing single-family homes was 60,661 units, up by 17.3 percent in contrast with the previous year, according to the data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards. Generally closed sales happen 30 to 90 days after signing of the sales contract.

And for the pending sales of single-family homes, it climbed by 17.0 percent in the third quarter of 2013 as compared with figure of the prior year. Moreover third quarter median sales price for the whole of Florida was $175,000 up by 18.6 percent compared with the same period of last year.

The state-wide year-to-year comparison for sales of townhouse-condos reached a total of 27,200 units sold in the third quarter, up by 11.3 percent from similar period of last year. Pending sales for townhouse-condos in third quarter of 2013 rose to 12.4 percent in contrast with the previous year, while state-wide median price for townhouse-condos was $130,000, up by 23.8 percent over the same period of last year. Furthermore its median days on market for single-family homes and townhouse-condos were 48 days and 54 days respectively.

“What’s remarkable for the third quarter data is that all metro areas in Florida show year-over-year increases in both prices and sales for single-family homes, and year-over-year increases in sales for condo-town home properties,” says Florida Realtors Chief Economist Dr. John Tuccillo. “Inventories have begun to pick up a little bit, which may be consistent with cash sales declining as a percentage of overall sales. We’re alert to the fact that it may signal a trend, which could be good for the long-term stabilization and health of Florida’s housing market.”

It is interesting to note that the investment hotspots of Florida’s housing market are Fort Meyers, Lehigh Acres and Miami. These places have shown remarkable increase in market price, great demand and even significant reduction in number of days on market. In these three places demand for housing have outstripped supply.

USA Advantage has seen these exciting figures which show clear signs of great and sustained economic upturn for Florida most especially in Fort Myers, Lehigh Acres and Miami.

Market Figures

From the most closely watched gauges of the housing market, the recent Standard & Poor’s Case-Shiller Home price Index for Miami, Florida indicated this data. For the month of June the figures which were released September 24 but were not seasonally adjusted or adjusted for inflation are shown below:

Home price index, year over year change +14%
Home price value since peak, -18%

From Zillow, Home Prices and Home values as follows:

Home value index – $146,000, 14.8% Y-O-Y
Median sale price – $166,000, 19.0% Y-O-Y

A) Investment Benefits

By all indications, Florida’s housing market has been showing a sunny outlook for investors. Some of the few factors that Florida’s investment may give benefits to the housing investors are as follows:

Amazingly lower prices – Florida’s home prices have just bottomed-up in the recent years and continuously rising going back to its previous peak price. All indications are pointing to economic recovery; thus, this would be the best time to invest in any type of property in Florida.
No state tax – there is no state tax for individuals and business structures in the state of Florida; thus, this would be a great attraction for entrepreneurs.
Low mortgage rate – mortgage rates are still at the lowest levels which will help housing investors to multiply its purchasing power.
Purchasing incentives – these incentives are offered by the federal, state and local housing programs to help home buyers to make big purchases. The American Recovery and Reinvestment Act has increased the First-Time Homebuyer Tax Credit from $7,500 to $8,000 (for more details please consult your local mortgage lender about this program).
Major ships’ port of call – there are major changes in the Panama Canal operation which will allow container ships to dock Florida in 2014. This will be an opportunity for the state to become a distribution centre of imports to the eastern seaboard.
High population growth – long term economic and demographic forecast continue to show interesting data. Recent pronouncement by economists that Florida will become the third-most-populated state in the country, and one of the 10-fastest-growing states in the U.S. Population growth is considered as driver for the other economic developments.

Strengths

In general the housing market of Florida has been growing and continuously gaining strength in every aspects of the market. This strength is influenced by strong buyer demand together with limited supply of resale houses. This resulted in putting upward pressure on housing prices, and ultimately enhancing the vibrancy of the housing industry.

Moreover the positive momentum in the recent quarter continued to achieve more closed sales, higher median prices and a lot of pending sales which fuelled the housing market to move forward at a faster rate.

Recent data shows that Florida has lower unemployment rate as compared with the entire nation. Hence more jobs will give more stability for future growth in the state’s housing market and its general economy.

One of the most vital factors which contributes to the strength of Florida’s economy is its geographical location. It is considered as one of the top tourist destinations because of its all year-round fine weather condition. Hence this feature draws substantial number of tourist and consequently ensures higher demand for the housing sector.

Moreover Florida has the natural and health-friendly climate which attracts people who will not only stay for a week but for years. These are the retirees who are choosing Florida as their permanent residence because of its climate which comfortably fits to their lifestyle and physical condition.

Core Industry

The economic progress of the state is usually dependent on its core industries, and these industries usually drive the economic growth of the state. Some of the few major industries of the State of Florida are as follows:

International Trade – this one of the biggest income generating industry of the state in which about 40% of all U.S. exports to Latin and South American countries pass through the ports of Florida.
Tourism industry – there are about 90 million visitors a year that visited Florida, and is considered as one of the top travel destination in the world. The tourism industry has given to state’s economy of about $70 billion a year.
Space Industry – this industry represents about $4.1 billion of the state’s economy. The average annual wage of aerospace workers is approximately $67,000. The number employed at Kennedy Space Centre (KSC) alone is 13,000 and Florida ranks 4th among the states in overall aerospace employment with 33,000 jobs.
Agriculture industry – Florida’s agricultural income leads the southeast states in farm income. The state produces about 67% of the U.S. oranges and accounts for about 40% of the world’s orange juice supply.
Construction industry – this industry sector’s strength is mainly due to the steady flow new residents and visitors who are welcomed to Florida every year.
Services industry – this industry has shown tremendous growth in high tech, financial & back office operations.
Software industry – this industry has developed many small, entrepreneurial companies.

For more details on our Florida properties please enquire at info@lydnemproperty.com

USA: Pending US home sales hit highest levels in two years

2012-07-05T05:53:00.001-07:00

Source: Ivan Radford

Pending sales of US homes hit the highest level in the past two years in May, according to the National Association of Realtors. Monthly and annual gains were seen in every region, the NAR revealed this week, with pending sales rising 5.9 percent in May from April, 13.3 per cent higher than May 2011.

Lawrence Yun, NAR chief economist, said longer term comparisons are more relevant. "The housing market is clearly superior this year compared with the past four years. The latest increase in home contract signings marks 13 consecutive months of year-over-year gains," he said. "Actual closings for existing-home sales have been notably higher since the beginning of the year and we're on track to see a 9 to 10 percent improvement in total sales for 2012."

The national median existing-home price is expected to rise 3.0 percent this year and another 5.7 percent in 2013.

The PHSI in the Northeast increased 4.8 percent to 82.9 in May and is 19.8 percent above May 2011. In the Midwest the index rose 6.3 percent to 98.9 in May and is 22.1 percent higher than a year ago. Pending home sales in the South increased 1.1 percent to an index of 106.9 in May and are 11.9 percent above May 2011. In the West the index jumped 14.5 percent in May to 108.7 and is 4.8 percent stronger than a year ago.

Low inventory could hold back some contract activity. "If credit conditions returned to normal and if we had more inventory, especially in the lower price ranges, more people would become successful buyers. In an environment of historically favorable housing affordability conditions, it's frustrating to see some consumers thwarted in the process," Yun said.

Low inventory results partly from underwater homeowners who are unwilling to list their homes, which would require a lengthy short sale process, or additional cash to complete the transaction. NAR estimates 85 percent of homeowners have positive equity, with 15 percent in an underwater situation.

"Low inventory can be cured by increasing new home construction," Yun said. He projects housing starts to rise by 26 percent this year and another 50 percent in 2013.

"If housing starts do not rise in a meaningful way over the next two years due to the difficulty in getting construction loans, and barring an unexpected shift in the economy, the steady shedding of inventory could lead to shortages where home prices could get bid up close to 10 percent in 2013," Yun said.

For details of high yielding highly discounted US property please click here

Spain: Good opportunity for bargain hunters

2012-06-29T08:00:00.000-07:00

Source: Ivan Radford

There's no denying that the Spanish economy has been suffering recently. Banking losses resulting in the Iberian nation asking for help to recapitalise its banks has caused concern and aided a decline in property prices but for bargain property hunters, it isn't all doom and gloom.

While investment house Variant Perception reports that parts of Spain have seen prices drop by as much as 50% from their peak, Marc Pritchard, Sales and Marketing Manager of leading Spanish house builder Taylor Wimpey España believes that there remains plenty of opportunities to capitalise off the back of low prices commenting:

"In spite of Spain's current situation there are some big opportunities for shrewd property hunters right now. Property investors will not only benefit from the fact that Spanish property is currently around 33% lower than it was during its peak in 2008 but from growing tourism, which saw a 2.6% increase in the first few months of this year. Indeed, cheaper prices along with a particularly favourable euro rate means that Spanish property is an extremely worthwhile consideration as long as potential buyers ensure that they do thorough research first to avoid getting burnt. "

Further boosting the case for buying a second property in Spain today, research conducted by Holiday Lettings has revealed that Spanish property continues to dominate the holiday rental market with strong demand for apartments and villas in Spain in the first three months of 2012.

Pritchard explains,

"Demand for second homes in Spain has not been broken. Properties in prime locations are now more readily available to potential buyers given low prices and, considering the unfaltering love for Spain as a holiday destination, Spanish property owners will still be able to obtain a solid return on a relatively low-cost investment.

"For anyone dubious about how the market is performing we at Taylor Wimpey de España, the only developer on the Costa del Sol actively building and selling and the only developer building and selling larger developments in Mallorca have been experiencing great success of late. Not only has traffic taken a positive turn with a 15% increase from May until now, reaching its highest level ever last week but both leads and sales are up. Just two weeks ago we made 4 sales - our strongest performance so far this year. Indeed, our biggest success story has to be our complete sell out recently in just 13 months of our off plan development at Cala Anguila, Mallorca. Our positive results highlight that in spite of what is going on in Spain right now, buyer interest still remains solid.

Go to www.lydnem.blogspot.com for more spanish repossessions or email us at info@lydnemproperty.co.uk

USA: Latest property news

2012-06-28T23:57:00.000-07:00

GM Motors expand in Detroit

General Motors Co has shown their belief in the recovery in Detroit, by purchasing a mixed-use commercial property across the street from it's world headquarters.

Cleveland-based real estate company Forest City Enterprises Inc. announced Thursday that it sold the Millender Center's hotel, parking facility, retail and office space to GM subsidiary Riverfront Holdings Inc. for $37.8 million.

Forest City and associates retain ownership and management of Millender Center Apartments.

The sold assets had been leased to Riverfront Holdings with an option to buy since 1998.

GM spokesman Tom Wilkinson says the automaker has not occupied the center's commercial property but has used space in the parking deck.

GM bought its previously leased Renaissance Center headquarters in 2008 for $626 million. It moved into the riverfront complex in 1996.

For latest US investment deals CLICK HERE

Improving Economy Helps Vacancies Rebound

The National Association of Realtors claims that U.S. commercial property vacancies may have peaked, caused by the improving economy.

"The basic fundamental of rising commercial leasing demand, resulting from a steadily improving economy, means overall vacancy rates have already peaked or will soon top out," Lawrence Yun, chief economist of the real estate group, said in a statement today. "Multifamily housing is the one commercial sector that has held on relatively well in the past year, and can expect the best performance in 2011."

U.S. gross domestic product grew by 2.5% in the third quarter, beating the 2% estimate, according to the Commerce Department. As the economy improves commercial real estate occupancies increase as businesses expand and employers add jobs.

"Property fundamentals are improving, investment capital is slowly flowing back into the sector, commercial mortgage originations are increasing, and demand for CMBS issuance is gaining traction," Standard & Poor's said in the report today.

As commercial property grows, investors are also looking to residential property to decide where the peak is, or whether it has already passed.

For latest US investment deals CLICK HERE

Steady US Real Estate Recovery Predicted

A steady recovery is predicted for the US residential real estate market, despite some ongoing challenges, according to the National Association of Realtors.

NAR chief economist Lawrence Yun said to the 2010 Realtors Conference and Expo that he expects a continuing improvement of underlying fundamentals of the current market in the coming years.

'A slow recovery is taking place as we head toward our goal of a stable, solid housing market. However, the pace of job growth will determine the strength of the housing market recovery," he explained.

Overall real estate experts are cautious but optimistic about the current and future state of the industry. Panelist Margaret Kelly, chief executive officer of RE/MAX, said today"s market shouldn"t be called the new normal because the old market was abnormal. 'The spike up and down in the housing market wasn"t normal so we shouldn"t be measuring ourselves against it," she said.

Kelly added that despite some challenges there are plenty of opportunities in the housing market with low mortgage interest rates, abundant inventory and stable prices attracting buyers to the market.

'To be successful in the current housing market, real estate professionals need to educate themselves about buying and selling distressed properties and working with investor buyers, who are a significant part of the market. Real estate professionals should be learning how to handle short sales, how to market themselves and find buyers and to really understand market conditions," she explained.

For latest US investment deals CLICK HERE

Commercial Property Boosts US Market

Commercial property is one sector which is currently booming in the US, providing stability to the property market as a whole, according to a recent report. In fact, almost one-third of global capital available for commercial real estate investment is expected to target the US market in 2011.

Both Europe and Asia are also expected to see double-digit increases in capital commercial real estate investment, and worldwide investment in commercial real estate is expected to rise substantially in 2011.

A new study by DTZ Research finds that global investors are prepared to plow some US$97 billion into the U.S. commercial real estate market in 2011. That represents a 54% increase over DTZ's previous estimate in December 2009.

On a global basis, DTZ estimates that $281 billion of capital will be available to invest in global real estate in 2011, a 22% increase over its previous estimate. The firm's latest The Great Wall of Money report analyzed the capital being raised by an extensive range of investor groups. The greatest increase in available capital is forecast to be focused on the U.S. ($97 billion), which is in line with the "DTZ Fair Value Index" score of 89. That score indicates that most markets in the U.S. now offer an attractive opportunity to investors.

"The current attractiveness of the US is in stark contrast to the situation a year ago," says Nigel Almond, Associate Director of Forecasting & Strategy at DTZ and author of the report. "Most U.S. markets were cold, offering expected returns below risk adjusted required returns. This opportunity remains largely unexploited to date, since transaction volumes in the U.S. have not yet seen the levels witnessed in Europe and Asia Pacific."

For latest US investment deals CLICK HERE

New Research Shows Detroit as Investment Hotspot

Residential property prices in the US rose slightly last month, according to government figures, but foreclosures are still rising, increasing opportunity for overseas buyers looking for a bargain in the US.

A 0.4% increase in property prices in September almost reversed the 0.7% fall in August according to the latest report from the Federal Housing Finance Agency. However, its monthly House Price Index also shows that overall prices fell 2.4% in August from the year before and remain 13.6% below the peak of the market in April 2007. Reports also show that foreclosure filings, which include notices of default, pending cases, notices of foreclosure sale and repossessions, increased from last year in 65% of metropolitan statistical areas tracked in the third quarter of the year.

Figures from RealtyTrac shows that the Seattle area had the highest increase with filings rising 71% from the third quarter of 2009. Chicago was second with a 35% increase followed by Houston, Texas at 26%.

California, Florida, Nevada and Arizona accounted for 19 of the top 20 foreclosure rates in the country. The only exception was Boise City, Idaho, which was 14th.

Las Vegas saw the highest rate in the third quarter, where one in every 25 housing units received a filing, more than five times the national average. But the 32,288 filings is down 20% from last year.

Cape Coral-Fort Meyers, Florida, was second with a one in 35 foreclosure rate. Filings there reached 10,352, down 22%. While one in 36 houses in Modesto, California, received a filing in the third quarter for the third highest rate, but it was an 18% drop from a year ago.

Miami, Florida, experienced the highest total number of foreclosures in the third quarter, at more than 58,600 filings, an increase of 9% from last year and up 25% from the previous quarter.

For latest US investment deals CLICK HERE

New Research Shows Detroit as Investment Hotspot

The Michigan city is fast becoming a top choice for foreign real estate buyers, as US president Barack Obama declares he loves the place and the US government pours millions into its car industry.

According to a market commentator, it is displaying classic signs of being ripe for investment for buy to let investors in particular.

'The US housing market, in general, remains ideal for investment opportunities. House prices are still low due to foreclosures and rental demand is high. Now, as Detroit enjoys an economic recovery, investors can benefit from Government subsidised rents, capital growth over time and re-selling back into the local market," it was explained.

Interest doesn"t just come from the more traditional investors in Canada and the UK, investors from Saudi Arabia and Singapore are also making enquiries and looking to buy.

Analysts believe there are two potential investment strategies for Detroit, the first involving robust cash flow for purchase at a low cost, refurbish and rent and then a strategy for capital growth over time.

'Detroit was in a terrible state when we first looked at investment opportunities there. However, this worked in our favour because we approached the City and offered to assist with the housing and economic regeneration by bringing in international investment. This led to the City endorsing our product and also offering a significant reduction in taxes for investors," said one commentator.

Analysis shows that employment and the local economy are picking up in Detroit. Auto companies such as Ford and General Motors (GM) are reporting second quarter profits in the $billions. GM"s electric car, the Chevy Volt, is about to go into production for worldwide sales. Chrysler"s Fiat 500 electric car is also planned for 2012.

Although approximately 230,000 workers were laid off when the motor industry crashed in Detroit a few years ago, the industry has already taken on around 15,000 new employees so far this year. Reports indicate 10,000 new auto workers will be required, per year, from 2011 to 2013. US Mortgage collective, Quicken Loans, is creating 4,000 new jobs in Detroit. Plus Marathon Oil Corporation is expanding its refinery and creating 2,000 new positions in the area.

Detroit is also becoming a major player in the film industry. Tax incentives mean that in 2009 parts of 470 movies were filmed in Detroit and a number of 2011 release films are being shot there this year including Scream 4, LOL: laughing Out Loud with Demi Moore, Real Steel with Hugh Jackman and The Mechanic with Donald Sutherland.

For latest US investment deals CLICK HERE

Detroit Property Shows Signs of Recovery

Signs that the Detroit region is starting to recover have appeared in home foreclosure rates and jobless figures. August figures showed that the foreclosure rate slowed for the first time in the year, while the state jobless rate was steady for the second month at 13.1%.

"In the Detroit area, the worst part of the recession is over," said Patrick Anderson, an economist and principal of Anderson Economic Group in East Lansing.

Anderson cited a two-percentage-point drop in the Metro Detroit area's jobless rate to 14.1 compared with a year ago, and improving median sales prices of homes and condominiums.

Comerica Inc. Chief Economist Dana Johnson said it "all adds up to fairly convincing evidence that a moderate recovery is under way." He contends the housing market may be poised for a healthy rebound next year.

"Once people in Michigan become more convinced that their jobs are secure and that house prices have stabilized, demand will begin to build and homebuilding will start contributing to a more broadly based recovery," Johnson said in a recent report.

The state's jobless rate remained unchanged in August at 13.1 percent compared with July and was down 1.2 percentage points compared with the August 2009 rate of 14.3 percent, the Michigan Department of Energy, Labor & Economic Growth reported Wednesday.

"Michigan job levels have stabilized somewhat since August 2009," said Rick Waclawek, director of DELEG's Bureau of Labor Market Information and Strategic Initiatives.

Another positive sign is that Metro Detroit foreclosure activity, while on a record pace for the year, fell 7.8 percent in August compared with a year ago, according to RealtyTrac, a California-based foreclosure tracking firm.

Foreclosure activity from initial notices of default to sheriff's auctions of seized properties fell to 9,849 from 10,683 a year ago in Macomb, Oakland and Wayne counties. For the six-county area -- which also includes Lapeer, Livingston and St. Clair counties -- foreclosures dropped 8.8 percent last month compared with the same period a year ago.

An increase in foreclosures usually leads to lower home sales prices, but prices have been recovering in Metro Detroit because of a drop-off in foreclosure sales.

One explanation is the slowing loss of jobs and growing confidence among homeowners, Johnson said. "Houses are worth whatever people are willing to pay for them," he said. "I think you are seeing more people feeling secure in their jobs and feeling (home) prices have fallen enough."

For latest US investment deals CLICK HERE

Foreclosures reach record high

A record number of homes in September and the third quarter fell into foreclosure as lenders continue to work through the shadow inventory of distressed properties, according to RealtyTrac, which monitors the filings across the country.

For the month of September, foreclosures increased 3% from August to 347,420 properties. Banks repossessed 102,134 properties in September, the first time REO reached triple digits for a single month.

Foreclosures were filed on 930,437 properties in the third quarter, a 1% dip from last year but a 4% increase from the previous quarter. In the third quarter, one in 139 homes received a foreclosure filing, which includes default notices, scheduled auctions and bank repossessions (REO).

REO for the third quarter reached a new record as lenders took back 288,345 properties, a 7% increase from the previous quarter and up 22% from last year.

But as lenders work through the supply of serious delinquent loans, fewer are defaulting. RealtyTrac reported 269,647 default notices in the third quarter, down 22% from the peak in the third quarter of 2009.

For latest US investment deals CLICK HERE

Freeze on Foreclosures Restricts Supply

The largest mortgage firms in the US have put a halt on home foreclosures, to attempt to process legal issues. This sudden tightening of supply, with distressed properties accounting for almost a quarter of transactions, is likely to lead to soaring prices on foreclosed property, and a rush by investors to purchase what is left over.

Bank of America Corp, the largest US lender, extended a freeze on foreclosures to all 50 states on October the 8th 2010. JPMorgan Chase & Co. and Ally Financial Inc"s GMAC Mortgage unit stopped repossession cases in 23 states where courts supervise home seizures.

According to one data company, foreclosure sales accounted for 24% of all home sales as of September 2010. They made up an even larger share in states which suffered strongly in the downturn. In Nevada it was 56%, in Arizona 47%, and 43% in California. Florida, Massachusetts, Michigan and Rhode Island the share of home sales was about a third.

Some indicators show the U.S. real estate market had turned a corner in August. The number of contracts to purchase previously owned homes increased 4.3 percent, the second monthly gain, according to an Oct. 4 report from the National Association of Realtors. Sales of previously owned homes rose to an annual pace 4.13 million, up 7.6 percent from July"s record low, the Chicago-based group said last month.

For latest US investment deals CLICK HERE

One in Four US Home Sales Foreclosed Property

A massive 24% of homes sold in the United States in the second quarter of 2010 were foreclosure homes, according to new research, highlighting the amount of homes going into foreclosure as well as the demand for these homes due to their below market value cost.

The report, which examined homes for sale in Q2 2010 that were in a stage of foreclosure—either default, scheduled for auction, or bank-owned (REO)—said that more than 150,000 properties sold in April, May, and June 2010 were distressed.

The number is a rise of 3% from Q1 2010, but a decrease of 28% from Q2 2009, when the housing market crisis was at its peak. This may mean tightening supply as the recovery continues.

Despite the rise in the number of foreclosed houses sold in Q2 2010, the percentage of properties sold that were distressed dropped, due to a surge of sales of homes that were not in foreclosure.

For latest US investment deals CLICK HERE

Michigan Bank Boosts Home Borrowing

The bank JPMorgan Chase & Co. has released new plans to help unemployed home borrowers across Michigan, by participating in a state fund which aims to pay a portion of the resident"s mortgage payment for up to a year.

This will boost the property market across Michigan, especially cities whose property markets were hard hit during the downturn, such as Detroit.

Michigan's Hardest Hit fund helps qualified borrowers by paying up to half of their mortgage payments for up to 12 months, saving them thousands of dollars. The help will be available for Chase customers who are behind on their mortgage payments as well as those who are current. Chase said it will roll out the program once the Michigan State Housing Development Authority has all the logistics in place.

For example, a borrower who has been making a $1,400 monthly payment for principal, interest, property taxes and homeowners insurance may be eligible to pay only $700 per month, with the state paying the difference.

This is likely to provide support to the housing market in Detroit, and helping with the recovery.

For latest US investment deals CLICK HERE

Investment Accounts for 21% of US Home Sales in August

Residential property sales in the US increased in August with investors accounting for 21% of sales, up from 19% in the previous month. August saw an increase in sales of 7.6% alongside the ending of the homebuyer tax credit scheme, according to the latest index from CoreLogic.

Paul Dales, an economist at Capital Economics, said, 'Looking ahead, as the distortion from the tax credit continues to fade, home sales will rise further. But when unemployment is so high demand for housing in certain areas may remain relatively weak," he warned.

'Home values have shown stabilizing trends over the past year, even as the economy shed millions of jobs, because of the homebuyer tax credit stimulus. Now that the economy is adding some jobs, the housing market needs to steadily improve and eventually stand on its own," one analyst explained.

For latest US investment deals CLICK HERE

Email info@lydnemproperty for more details of properties all over the USA

Spain: Demand for Murcia increases 78%

2012-06-01T01:10:00.001-07:00

Demand for property in Murcia has surged by 78 per cent this year, TheMoveChannel.com can reveal.

The region has long been mooted as the fastest recovering area in Spain, with the upcoming international airport and Paramount theme park boosting its potential for property investors. But interest in the region's real estate has already started to grow on the overseas portal, with enquiries between March and May this year 78 per cent higher than the three months from December to February.

The increase in interest follows official reports that property sales across Spain have risen too. Real estate transactions grew by 21.9 per cent in the first quarter of 2012 compared to the last quarter of 2011, the Spanish College of Property Registrars revealed this week. This boost in sales has been attributed to the country's "intense lowering" of house prices, as holiday homes become even more affordable for international buyers.

Spain's financial woes and historic bank bailout continue to dominate news headlines, but the country's unemployment has also driven rents up, with rates growing by 0.7 per cent in Aprilcompared to last year. Now, investors are looking to take advantage of the falling prices and higher rents, and Murcia is one their main targets. During May so far, the region's enquiries on TheMoveChannel.com are already 45.2 per cent above last month.

And a development launched this week in Murcia's most-visited golf resort is set to make them climb even higher.

Las Lomas Village, with prices below 50 per cent of the market's peak value, is a chance for investors to make the most of the high yields that come with having La Manga Club next door. Owners are guaranteed 35 per cent of the gross revenue for the village, explains the development's agent, UK Murcia Investment, while operating costs are covered by management. In addition, buyers get 30 days usage per year at no extra cost.

As well as La Manga Club's famous fairways, Las Lomas boasts its own golf facilities, plus 8 football pitches, 28 tennis courts, a hilltop spa, swimming pools and an on-site beach.

Released directly from the bank, the heavily discounted apartments (both studio and two-bedroom) are eligible for up to 100 per cent financing, meaning that a total capital outlay of only 12,000 to 15,000 euros is needed to invest.

Too good to be true? Not so, says UK Murcia Investment. Even TheMoveChannel.com's Managing Director Dan Johnson has decided to invest.

Johnson explains why the deal turned his head: "As a fan of sports, sunshine and the odd glass of sangria, these fantastic properties at La Manga tick all the important boxes for me. Dig into the deal and it just keeps getting better and better. A solid management package delivers good rental income from day one, while a really generous usage scheme lets you regularly enjoy the resort with family and friends."

"I have no hesitation in recommending this deal," Johnson adds. "I'm even buying a unit myself."

Source The Move channel

For more deals and bank repossessions in Spain CLICK HERE

Spain : 2 million homes on the market? The effect on property prices

2012-05-09T06:11:00.000-07:00

I read a report on here on the possibility of 2 million homes being on the market in Spain and got to wondering the effect on already deeply reduced property prices in Spain. Two million homes sounds a lot but is it.? After a fruitless search I can not get a provable figure on what is normal in Spain.

Having lived in Spain for many years I know that the country was overdeveloped but it doesn't take a brain surgeon to know that. Having worked with all the major and some minor banks in Spain dealing with repossessions it is also very apparent that bank held property, with a "value" running into tens of billions of Euros, has a varied saleability. I would estimate 50-70% of all bank held property will never sell at a price anywhere near the book value, current value or even sell at all.

Potential buyers are now more savvy and look at value rather than price. Buyers that attained those rose tinted spectacles as soon as their plane left their country are now few and far between. So many properties were sold because they looked cheap, without the buyer having a yardstick for proper value aside from the tales told to them by their estate agent hungry to seal a deal.

There are now fears that as Bankia emerges as the next super bank in need of a bailout, following the resignation of its chief executive, that there may be a glut of property put onto the market as a result of government enforcement. Even if that does happen, do not despair. Prices will not crash further in Spain as so much of the property held by the bank is, for want of a better word, rubbish. When prices get compared there is not a decision on if to buy the bank repo that is cheap but offers no value, buyers now look for value rather than just price. Don't get me wrong, I am not saying all bank repossessions are bad, far from it. We currently are promoting a packaged deal from a bank in Hacienda Del Alamo that offers great value in the resilient market in Murcia on a golf course, near the new Paramount theme park and Corvera airport. Not a "cheap" price, just good value.

My other concern and a partial reason for the mess Spain is in, is the Euro. We can all speculate what will happen next, Greece may withdraw and go on its own which may be followed by other Southern Euro economies like Italy and Spain, but the overall answer is we do not know. Take a mortgage based in Euros for as much as you can and you can only benefit.

Over the last two years the euro has lost around 20% of its value against sterling, making property purchases 20% cheaper. Add that to declining values, low mortgage rates and good spectrum of properties to choose from, and it could be sensibly argued that the time is right now to buy in Spain. Is it the bottom of the market, no one knows. As one client once said to me, markets do not ring a bell when they hit the bottom.

Steve, MD Lydnem Property

Contact us at info@lydnemproperty.co.uk if you are looking for a good deal in Spain or its islands and we will see what we can find for you. Click on the link HERE for details on hacienda Del Alamo. For offers on property all over the world CLICK HERE

Cyprus: Limassol marina site visit.

2012-03-15T22:39:00.000-07:00

Last Thursday, March 8 2012, we visited the site for the new marina in Limassol. Having had the brochures, we were a little sceptical given the heady prices northward of one million euros for a two bed apartment and between two and sixteen million for a villa.

Within an hour our view had radically changed. The construction of the first apartments is well under way and a show apartment has been constructed and the shell of the main building is now complete.

Spread out across 120 square metres the show apartment is on the ground floor. Elegant and contemporary, the open plan lounge leads to an American style kitchen. Buyers now get the option to change the internal layout if this does not suit. Off the living area are three good sized bedrooms complimented by an en-suite on the master and a family bathroom. The property has all the latest mod cons one would expect from high quality developments.

At €1.4 million, the price is not cheap but this apartment benefits from two garden areas (total 240sqm) and views across the marina toward the sea, the grassed area unique to only a handful of apartments. The underground garage also has a further storage area. As a security controlled area, access to the Marina is controlled and limited to pass holders only.

Having looked at many developments over the years, you find yourself comparing against other countries and developments. My immediate comparison is Puerto Banus, not so much in its looks but from an investment perspective. When comparing on this basis, prices are in line and have room to appreciate significantly, hence our change of view on the the Limassol Marina development.

The apartments, called Nereids, are set for completion later in the year and hand over of keys in November. Mortgages are upto 70% of the cost and do not attract VAT. The whole development is built on land owned by the government and so all the properties are leasehold, on a 125 year lease, with the Cypriot government benefiting from the sale of each property.

We were then taken on a bus tour of the villa's. Construction of the villas has not started yet as the infrastructure is still being tested. Completion will be in early 2014. With prices starting at €1.8m and as high as €16m (this one has just been sold) this is the playground of the rich and famous. For this price it has to be special, and it does not let us down. We pass dozens of seventy tonne blocks that are testing the strength of the reclaimed land as these properties will be built in the sea, on land that has been built to accommodate them. The views that will afford these villas are second to none, the ultimate sea view with no chance of anyone building in front and not having to build high on a mountain side. Special. There is nothing else like this in Cyprus and it is hard to compare to anywhere else in the world aside from the palms in Dubai. Again, when compared to Dubai, the prices do not look expensive. The villas have a choice of a private sandy beach or with atleast one berth for boats and yachts upto 60m. There are e-brochures and plans and CGI videos to get a better idea of the Limassol marina development but you really have to visit to get a feel for its beauty, uniqueness and potential.

So, from an investment perspective the numbers do really add up. With the middle East high net worth market right on its doorstep, the strong demand from the wealthy Russian market there will be no difficulty is selling the development and a strong after market is predicted. Footballers, with their wealth and a need for investment is another key area that we see investing. it is not cheap, but it never will be, properties like these are rare and will always demand a premium.

Guide prices 1 bed room apartment from €428,000
2 bed room apartment from €809,000
3 bed room apartment from €930,000

2 bed room villas Peninsula from €1,700,000
3 bed room villas Peninsula from €2,812,000
4 bed room villas Peninsula from €2,472,000 (without berth)

2 bed room villas Island from €1,782,000
3 bed room villas Island from €2,884,000
4 bed room villas Island from €4,017,000

For a picture gallery on some of the construction and computer generated images of the finished development please click below
For more information including E-brochure, CGI video, plans, availibilty and price list, Please CLICK HERE to receive more information.

Spain: Opportunity not demolition job

2012-03-04T21:37:00.001-08:00

Immediately, after the Second World War in 1945, the general consensus of opinion was that there was a huge glut of ships.

You couldn’t give them away. Ships cost too much to maintain and there was no use for them after the conflict.

The consensus was wrong. The war had increased the desire for international goods (like Pizza from Italy) to such an extent that international trade doubled from pre-war levels by the end of the 1950’s.

With hindsight, there was in fact a latent shortage of ships but the market didn’t recognise it.

It sounds like a crazy question but could there be a parallel with Spanish housing market today?

There are between 800,000 and 1 million empty properties in Spain today depending on which figures you believe. Roughly 65% of them are in coastal areas.

The consensus is that most of them are badly built and in sub prime locations.

However the truth is that most of the time, these two things are not built into the price. Developers and banks are still trying to sell at prices that do not reflect what the market is now willing to pay.

The overseas property market is driven by convenience and price. If you could buy a completed (non-fractional) apartment for £10k, would you be willing to travel an hour and half from the nearest international airport to get there? I might, provided I could visit it first to check the quality.

Spanish tourism numbers are the one bright spot on a dark horizon. The crisis has if anything increased the desire of tourists to visit as they expect to get a good deal. There will always be a market for cheap holidays and holiday homes in the sun.

Many people tell me the overseas property market will never be the same again. Over the long term, I’m not so sure.

It’s the entrepreneurs with the vision to buy in bulk now at rock bottom prices who will be the players in tomorrow’s market.

Some of the developments may have to be bulldozed but my guess is that these will be the minority.

Everything has its price even if that price is negative and you have pay people to take developments off your hands.

Source global edge

For spanish bank repossessions in Marbella CLICK HERE

For spanish repossessions across the country CLICK HERE

For repossessed plots CLICK HERE

UK London: Student housing demand outstrips supply despite lower applications

2012-02-02T08:16:00.001-08:00

Student housing demand is outstripping supply despite a drop in university applications.

UCAS announced yesterday that final student numbers for 2012-13 academic year fell by 7.4 per cent, as increasing tuition fees deter new UK students. Despite this drop from domestic applicants, which was expected by the organisation, the number of foreign students applying to study in Britain actually rose by 13.7 per cent, pushing housing demand up above supply levels.

"The reduction in applications means that 2012/13 applicant numbers are broadly in line with those of two years ago," Unite commented. "At this level, demand for university places still outstrips supply by approximately 32% and means that more than 156,000 students applying to study in 2012 will fail to secure a place."

Unite confidently predicts that rental yields will grow by 3.4 per cent this year as thousands of students seek accommodation.

Source: StockMarketWire.com

For Prime London student accommodation yielding 9% CLICK HERE

OR

For 10% yielding student accommodation from £33,995 CLICK HERE

Croatia: Strong sale at Dubrovnik Sun Gardens with guaranteed 4% yields

2012-01-26T06:14:00.000-08:00

iO Adria report that it has had a successful start to the new year with six confirmed sales at its Dubrovnik Sun Gardens development in Croatia, with three more sales in the process of completion.

The developer recently launched the first phase of the development and is offering homebuyers net rental yields of 4% after HOA costs and tax in a bid to push property sales.

A one bedroom residence at Dubrovnik Sun Gardens starts at €170,000 (£143,000) for a ground floor property with garden view, up to €336,000 (£281,800) for sea view. Two bedroom residences range from €308,000 (£258,290) up to €608,000 (£509,920).

Julian Houchin, commercial director of iO Adria, says that he is positive about prospects for the Croatian property market in 2012, thanks in part to its anticipated EU accession in 2013..

He says that demand for homes in Croatia is already growing and expects that EU entry to help generate greater returns from property investments.

Houchin comments: “This [Dubrovnik Sun Gardens] is one of the few lifestyle freehold real estate resort investments available today in Europe offering a balance of personal usage and competitive net yields for owners through a sophisticated rental programme now in its third year of operation.

“[Dubrovnik] one of the most beautiful and fastest growing tourism and second home real estate destinations in Europe where early buyers can also benefit from entry level pricing and mortgage financing at Dubrovnik Sun Gardens.”

Source IEA

For more details on this development CLICK HERE

USA: Contracts to purchase US pre owned homes holds at 19 month highs

2012-01-26T04:16:00.000-08:00

The number of Americans signing contracts to buy previously owned homes in December held near a 19-month high, showing the stabilization in the market that began in late 2011 will extend into the new year.

The index of pending home sales decreased 3.5 percent last month after jumping a combined 18 percent in October and November, figures from the National Association of Realtors showed today in Washington. It was the best back-to-back reading since a buyer tax credit boosted demand in early 2010.

“We’ve had a clear turn toward positive momentum in the housing market,” Aaron Smith, a senior economist at Moody’s Analytics Inc. inWest Chester, Pennsylvania, and the third most accurate forecaster of pending home sales. “Lower unemployment and higher confidence, coupled with record low mortgage rates, are coalescing to spur increased buying.”

The ability of the market to sustain gains in the absence of government incentives may mean housing has stopped weighing on growth. President Barack Obama yesterday proposed a plan aimed at reducing monthly mortgage payments, which would help combat a drop in home prices that Federal Reserve policy makers say is impeding the world’s largest economy.

Central bankers said today that they’ll keep their benchmark interest rate low until at least late 2014 to help stoke the economy.
Fed Statement

“While indicators point to some further improvement in overall labor market conditions, the unemployment rate remains elevated,” the Fed said in its statement. “Household spending has continued to advance, but growth in business fixed investment has slowed, and the housing sector remains depressed.”

The decrease in pending sales exceeded the median forecast of 40 economists surveyed by Bloomberg News that projected a 1 percent decline. Estimates (USPHTMOM) ranged from a drop of 8.1 percent to an increase of 7 percent.

Sales increased 4.4 percent from December 2010.

Stocks declined as forecasts at Boeing Co. and Yahoo! Inc. trailed expectations. The Standard & Poor’s 500 Index fell 0.1 percent to 1,313.4 at 11:35 a.m. in New York. The S&P Supercomposite Homebuilding Index rose 1 percent.

Elsewhere today, the U.K. economy shrank 0.2 percent in the fourth quarter as factories reduced production and services stagnated, leaving Britain on the brink of another recession, data from the Office for National Statistics showed in London.

Japan Deficit

In Asia, Japan posted its first annual trade gap since 1980 as nuclear plant shutdowns following last year’s earthquake prompted companies to import energy. A third straight monthly deficit in December capped an annual shortfall of 2.49 trillion yen ($32 billion), the finance ministry inTokyo said.

Another report today showed U.S. home prices rose 1 percent in November from the prior month, the biggest increase in six years, according to the Federal Housing Finance Agency. Nonetheless, values were down 1.8 percent over the past 12 months as foreclosures held back a recovery.

Among other recent housing figures, purchases of previously owned homes climbed 5 percent in December to a 4.61 million annual rate, the highest level since January 2011, the NAR reported last week.

Also in December, builders broke ground on 470,000 single- family houses at an annual rate, the most since April 2010, according to figures from the Commerce Department.
Economy Improving

“The economy is beginning to firm up,” Douglas Yearley Jr., chief executive officer of Toll Brothers Inc. (TOL), said in a Jan. 11 interview with Bloomberg Television. “We see more people coming out to buy. The affordability has never been better.”

Three of four regions of the U.S. showed a decrease in contract signings from a month earlier, led by an 11 percent slump in the West. Pending sales also fell in the Northeast and South.

The report showed an index level for pending home sales of 96.6 on a seasonally adjusted basis, down from 100.1 in November. It was the highest two months since March and April 2010. A reading of 100 is consistent with the average level of contract activity in 2001 and coincides with “historically healthy” home-buying traffic, according to the NAR.

At the end of 2009, the Obama administration extended a tax credit for first-time buyers through April 2010 and expanded it to include some current owners. The government incentive, worth as much as $8,000, helped bolster sales of previously owned homes before they dropped off in the middle of 2010, at one point touching the lowest level in at least a decade.
Leading Indicator

Economists consider pending home sales a leading indicator because they track contract signings. Existing homes sales are tabulated when a contract closes, usually a month or two later.

Faster job creation may help push more people into the market for homeownership. The economy added 200,000 jobs in December, and the unemployment rate declined to an almost three- year low of 8.5 percent, Labor Department figures showed earlier this month.

Homebuyers are also enjoying cheaper borrowing costs. The average rate of a 30-year fixed mortgage fell to a record-low 3.88 percent as of Jan. 19, according to data by Freddie Mac.

Lower rates combined with prices that have slumped for four out of the five past years are making homes increasingly affordable. The median price of a previously-owned home declined to $166,100 in 2011, the lowest annual average since $165,000 in 2002, NAR data show.
More Affordable

The agents group’s affordability index was at 194.5 in November, second only to the prior month’s level as the highest on record. A reading of 100 means a household earning the median income can afford a median-priced home at current lending rates.

“Housing affordability conditions are too good to pass up,” NAR chief economist Lawrence Yunsaid in a statement accompanying the release. “Our hope is lending conditions will gradually improve with sustained increases in closed existing- home sales.”

President Obama is proposing a plan to help reduce monthly mortgage payments. The program will give “every responsible homeowner the chance to save about $3,000 a year on their mortgage by refinancing at historically low interest rates,” Obama said during last night’s State of the Union address. “No more red tape. No more runaround from the banks.”
Obama Plan

Costs would be covered by a fee on financial companies with more than $50 billion in assets, according to two senior administration officials who briefed reporters on the plan. Obama said “a small fee on the largest financial institutions will ensure that it won’t add to the deficit.”

The proposal follows Federal Reserve Chairman Ben Bernanke’s call for lawmakers and the Obama administration to offer more aid for housing. The Fed, which is holding short-term borrowing costs near zero and buying government-backed mortgage bonds, said in a paper sent to Congress this month that a previous Obama administration effort to make refinancing easier had failed to go far enough.

Source Bloomberg

For a great US property yielding upto 47% CLICK HERE

Spain: International buyers snap up homes in Spain

2012-01-24T01:52:00.000-08:00

Foreign buyers spent €3.6bn (£2.3bn) on buying homes in Spain in 2011, as they took advantage of significantly discounted properties, according to data supplied by the Bank of Spain.

The figures show that foreign property investment in Spain increased by 27% last year compared to the preceding year.

With Spain’s economy in turmoil and the housing market in disarray, owed largely to a major oversupply of homes, property prices have been in freefall, attracting more bargain hunters in the process.

The hike in property sales in 2011 marks a second consecutive year of growth in international investment with 2011 beating the total value of transactions in 2010.

Many property professionals believe that the rise in foreign investment activity is a sign that property market conditions are improving.

But with about 818,000 vacant homes on the market in Spain, the existing glut of properties is unlikely to be absorbed anytime soon, despite the recent rise in demand from foreign buyers.

Source International estate agent

CLICK HERE for Spanish property bargains

Spain: Far fewer homes available in the Costa del Sol

2012-01-17T02:22:00.000-08:00

The number of unsold new build homes on the sales market almost halved in 2011 as more bargain hunters snapped up reduced priced properties, while construction output has fallen significantly.

According to the Association of Builders and Developers of Malaga (ACP), property developers sold 10,000 new homes last year, representing about 40% of the housing stock on the market at the beginning of last year.

The property market in Malaga, home to the Costa del Sol, has suffered in recent years because of a chronic oversupply of homes. But the figures provided by the ACP suggest that market conditions are improving, thanks to the fall in supply.

Property sales have been boosted by dramatic price reductions, while house building activity has come to a virtual halt in the past three years, in order to allow the glut of homes on the market to be absorbed.

“Given the long lead times in the building industry, there could be an acute shortage of new housing a couple of years from now,” said Mark Stucklin of Spanish Property Insight.

He added: “Shortages will be made worse if demand recovers to its normal level of around 22,000 new homes a year, based on the size of the population. Unemployment or fear of unemployment is keeping many potential buyers out of the market.”

Source International estate agent

CLICK HERE for great property deals direct form Spanish banks

Developers in Malaga province (home to the Costa del Sol) sold 10,000 new homes in the course of 2011, almost half the stock of 25,000 new homes on the market at the start of the year, according to the Association of Builders and Developers of Malaga (ACP).

Lower house prices have helped boost sales, and a huge drop in housing starts over the last 3 years, most acute in popular tourist resorts like Marbella, means that the housing glut is shrinking fast.

Given the long lead times in the building industry, there could be an acute shortage of new housing a couple of years from now.

Shortages will be made worse if demand recovers to its normal level of around 22,000 new homes a year, based on the size of the population. Unemployment or fear of unemployment is keeping many potential buyers out of the market.

45pc of Malaga’s 200,000 unemployed are young adults who be first time buyers looking to start a family if they could afford to.

Much of the blame for this sorry state of affairs lies with politicians says José Prado, President of the ACP. “In recent years they’ve done nothing but earn a fortune from construction and made no effort to attract investors.”

Source Spanish property Insight

CLICK HERE for great property deals direct form Spanish banks

Euro: What we expect next and how you can profit from it

2012-01-15T02:02:00.000-08:00

The Euro, a great idea if you are one of the few beneficiary's. The main beneficiary are the countries like Germany and to a much lesser extent France that benefit from a level playing field in terms of trade with other countries that usually devalue in order to make their products, be it property, cars, debt or olive oil, cheaper.

Lets take a brief look at Spain, a country I have lived in for many years and have a huge fondness for. This country has unemployment well above twenty per cent and youth unemployment above 50%. It as a property market that has crashed due to several reasons. Over development is of course a key factor, but so is the global downturn and a recession that few economies have failed to avoid. Spain has a currency that does not reflect its economy, its plain and simple and this can never be good in periods of weakness. With the cost of exports fixed across euro members, it was always going to be the strongest exporters, especially those graced by generally high quality products, that reap the benefits. So you can see why Germany is prepared to do as much as it can to keep the Euro together.

So what happens next?. There are several possibilities. The least likely and credible is the Euro carries on in its current state. The markets, as in stock and currency markets, are rarely wrong and incredibly strong. Look at the failed Exchange Rate Mechanism (ERM). The strength of the markets and speculators forced the break of this ill thought out system. In this crazy world, when a system with some variance is proven not to work they still go ahead with a fixed system, in the form of a single currency!. Look at the basics. A single currency cannot work when you have different economies in different stages of economic strength and weakness. How can economies with a high dependence on tourism like Spain and Greece have the same currency as strong export based manufacturing economies like Germany? Simple answer, they cant. Well they can, but then every business cycle we will get a situation like we have now. The situation was only made worse by a series of non truths along the way, and some shoddy economy management by countries wanting to get in.

Another way of sorting out this problem is a two tier Euro, where the strong economies use Euro A and the weaker ones Euro B. However, we believe this is unlikely to happen as the weaker countries wanted the strength of the euro which they will not get and Germany and France will not be able to export to the weaker Euro users as their products will be too expensive.

What we think will happen is this. There are certain countries that will drop out of the Euro. Probably some or most members of the PIIGS (Portugal, Ireland, Italy, Greece and Spain) will leave the currency. First we, and many others, think that Greece will leave very soon. We think within the next six months. This gives opportunity, great opportunity which will be explained later. There will be big write offs by private and public lenders probably in excess of 50% by bond holders. The Drachma will replace the Euro in Greece and it will probably halve in value comparably. Greece will then be in charge of its own destiny. Its exports, albeit not extensive, will be very cheap for Europe and tourism will take off as it will be so much cheaper than other Mediterranean countries. The value of Greek property will be half what it was when it was in the Euro and the savvy investor will be snapping up property in the country buoyed not only by the value that they will see but also a burst of tourism and in turn opportunity to rent out in this now great value market. With the surge of tourism and property buyers, the economy will recover much quicker than it would be able to within the Euro. Spain will see what has happened and also bail out, and its back to the Peseta. Another great buying opportunity in property arises. The taxes bought in from the surge of property buyers in Spain would be significant before the long term effect of all the other added benefits kick in.

Ok, so it may not be that simple, but plodding through really isn't an option. S&P downgraded these countries because they were going no where. The scare mongers claim a break up of the Euro will be catastrophic for the UK. We doubt it, if it happens as suggested above and not just a break up of the whole thing. Our exports to the PIIGS isn't extensive and will have limited damage.. We managed before the Euro was with us, we will manage again.

What if I want to buy property now.? Our view is not set in stone and may not be correct,. We may have rose tinted glasses on as a break up of the euro in the way explained would be greatly beneficial to our business in overseas property as some of our most buoyant market places suddenly become much cheaper and attractive to buyers. However, remember that these falls in value are currency related. If you have already purchased make sure you have a mortgage. The reason is two fold. Firstly, mortgages are really cheap, and effectively free if you take into account the effect of inflation. Secondly, you reduce the currency risk if you have borrowings in the country that is or isn't in the Euro, assuming that the conversion rate out of the Euro is realistic. All mortgage payments after this event are then a fraction of what they were when it was in Euros, assuming you are paying for the mortgage in sterling. If these countries stay in the Euro as it is, you have neither gained or lost anything.
It should also be remembered that recent weakness in the Euro could be an excellent opportunity to gain entry into the countries that are likely to remain within the Euro such as France and Germany

These views are our own, and are not guaranteed. We will advise you on your property purchase in any way we can and we have have range of repossessed property and great deals. Just CLICK HERE to see a selection and contact us at info@lydnemproperty.co.uk and tell us what you are looking for if you do not initially see it. We will find it for you at the right price,

Spain: Costa lot less for holidays

2012-01-13T03:13:00.000-08:00

Costa lot less! Holidays in Spain on the rise as prices at resorts drop by 40%

By SEAN POULTER

Spain could attract a new wave of British holidaymaker following evidence that resort prices have crashed by as much as 40% since five years ago. A fall in local prices on everything from a restaurant meal to suncream has combined with the fact that the pound is at a two year high against the euro to make the Costas more affordable.

The claims come from an annual survey conducted by the Post Office, which measures the prices of eight items in resorts across 33 destinations around the world.

Spain comes out as the second cheapest destination with a price of £37.72 for the eight items, while Sri Lanka, which has seen serious political unrest, was the best value at just £27.95.

At the other end of the scale was Australia at a staggering £115.69 for the same items, together with Barbados, Singapore and New Zealand.

The number of visits by Britons to Spain has slumped by more than three million over the past five years, coming down to less than 10.5million.

More...

High prices, the cost of living squeeze and a desire among Britons to try new and more exotic locations have all played their part in the fall.

However, the Post Office research suggests Spain will now become more attractive, particularly at a time when people are desperate to save money.

The firm’s Holiday Money Report concluded: ‘Resort prices in the Costa del Sol are now 40per cent lower than five years ago, when we conducted the first price barometer.

‘The cheaper cost of travel to Spain will make it a compelling choice for bargain hunters. So does the rising value of the UK pound - up 6.4 per cent against the euro in the past three months.’

Getting cheaper: Falling prices mean the Costa del Sol is a more affordable option for families looking for some sun

The eight items included in the price comparison are a cup of coffee in a bar or café; a bottle of local beer; a can of Coca-Cola; a 1.5 litre bottle of mineral water from a supermarket; a bottle of suncream; insect repellent; a pack of cigarettes; and a three course evening meal for two adults, including a bottle of house wine.

The fact that the selection of items is small, while they are not bought from exactly the same outlet every year, suggests the figures can be skewed. However, they give a general indication of the shift in prices.

The researchers found resort prices have risen in two-thirds of the destinations it surveyed. The biggest rises were recorded in Kenya, where the basket was 52 per cent more expensive than a year ago, and Portugal, where the increase found was 39 per cent.

However, the report found that sterling is stronger against 29 other major currencies than a year ago, which should help offset higher resort prices.

Tourist boom: Turkey has become a popular holiday destination, but research showed it was 60 per cent more expensive than Spain this year

Turkey has seen a tourism boom in recent years on the basis of its perception as a cheap option. This year, it only placed 17th in terms of the cheapest option, while it was 60per cent more expensive than Spain.

The Post Office head of travel money, Sarah Munro, said: ‘Given that sterling is worth around 20 per cent more than a year ago against the Turkish lira, we expected to see a lower barometer cost for Turkey, especially as the country had a disappointing 2011.

‘However, we were surprised to find that local costs have actually risen by 21 per cent and it is only the strong sterling exchange rate that is masking that increase.

‘It will be interesting to see how Turkish resorts respond to the challenge presented by Spain and Portugal. With Greek tourism also facing a fight for survival, we could see a price war between the eastern and western Med in 2012.’

Italy came out as the most expensive European destination with the basket of items costing £89.03.

Miss Munro said: ‘The message that came out clearly from our holiday budgeting research was that 2012 will be all about affordability. Holidays may still be a priority but they are not a necessity and people will not knowingly get into debt to fund them.

‘The winning destinations will be those that offer good value not just for flights and accommodation, but for tourist staples like meals out and drinks.”

‘However, it will pay people to keep a watchful eye on exchange rate movements as well as considering easy ways to save money.’

Source Daily Mail

CLICK HERE for great holiday deals in Spain and worldwide

Spain: Still one of the favourite destinations. Strong Enquiries

2012-01-12T03:43:00.000-08:00

Having waved goodbye to what was a relatively tough year for the global property market, Kyero.com's latest analysis of the forever popular Spanish property market highlights some interesting findings, identifying that foreign buyers will continue to look for bargain properties focusing in Spain's best known areas.

Kyero.com's enquiry report analysed almost 130,000 enquiries made by email during the second half of 2011 showing that between July 2011 and December 2011 47.3% of enquiries for properties in Spain sat within the £50,000 to £100,000 price range.

Further statistics show that across Spain 31.6% of enquiries made wanted an apartment while 32% desired a 3-bedroom property. Meanwhile, unsurprisingly over half of enquiries - 55% - requested a pool.

Marc Pritchard, sales and marketing manager at Taylor Wimpey España, commented: "The Kyero.com report provides an interesting insight into what buyers want from Spanish property. In 2012 it is important to look at trends in buyer behavior and the interest generated regarding Spanish property to identify how to grab the attention of this year's property buyers."

Pritchard continued: "Indeed, the findings show that by province, Alicante and the Costa Blanca remain the favorite locations for foreign property hunters accounting for nearly 35% of enquiries according to Kyero.com's findings while Malaga in the Costa del Sol followed behind with 14.4%. With this in mind, we at Taylor Wimpey España feel we can meet the needs of customers not only because many of our properties are located in these popular areas but because we can deliver on property type and budget as highlighted in the report."

Source IEAT

For Spanish repossessions CLICK HERE

For the cheapest flights from all the major airlines

Spain: Spain set to sizzle in 2012

2012-01-12T02:08:00.000-08:00

A recent survey by TravelSupermarket has shown that more than one in ten Brits plan to travel to Spain for their main holiday in 2012. And this isn’t a new trend as 13% of the 5,187 UK adults we asked visited Spain in 2011.

Spanish breaks were most popular with those in northern and Scottish cities this year with 20% of those surveyed in Edinburgh visiting the country for their main holiday, 19% in Glasgow and 19% in Newcastle. However, it looks like the country is set to be a hit with Nottingham’s inhabitants in 2012 as 19% of the adults asked hoped to go on holiday there next year.

So, where else is set to sizzle in 2012?

The flying PIIGS

Last year, TravelSupermarket predicted that the PIIGS (Portugal, Italy, Ireland, Greece and Spain) would be popular destinations among British holidaymakers and we were correct. Not only did 13% of the survey respondents visit Spain but a further 6% travelled to Portugal or Italy.

Our travel expert, Bob Atkinson, thinks that the PIIGS’ popularity will continue in 2012 as, despite their economies suffering from the Euro debt issues, the countries are offering great-value breaks. He said: “In tough economic times Brits often return to known quantities, so this will drive an interest in these destinations. Once Brits see the great offers available, they’ll be flocking to these ever-popular countries.”

A tough time for the METTs

The METT destinations (Morocco, Egypt, Turkey and Tunisia) have had a tough year and our survey results show this. Despite 3% of those surveyed travelling to Turkey to take advantage of cheap all-inclusive packages in 2011, only 2% plan to travel there in 2012.
And, due to the Arab Spring, both Egypt and Morocco have seen a decline in visitor numbers. Just 1% of Brits plan to travel to Egypt in 2012 compared to 2% who took a trip there in 2011.

TravelSupermarket predict that 2012 will continue to be a slow year for these countries. Our travel expert Bob Atkinson said: “There has been some damage to the reputation of these countries but given a lot of the tourist destinations remained untouched, it is well worth keeping a look out for bargains in Morocco, Egypt and Tunisia throughout 2012.”

SLIMMAs to shine

The SLIMMAs (Sri Lanka, Indonesia, Mexico, Malaysia and Argentina) are set to be next year’s dark horse and a World Travel Market report tipped these nations to do well. Bob Atkinson agrees and said: “Our poll has shown that none of these destinations received more than 1% of British tourists last year – but I’d keep an eye on them as these could be the surprise winners if 2012 as they look to attract more and more UK tourists.”

Staycations: there’s no place like home

With so many exciting events such as the Olympics taking place in the UK in 2012, many Brits are likely to take their big break closer to home. And, although only 30% of our survey respondents have said that they plan to stay in the UK next year, this number may well rise as households tighten their belts even more. In 2011, 40% of Brits took their main holiday in the UK.

The 2012 top 10

The results of our survey show that the top destinations for holidaying Brits will be:
1. UK – 30% of people plan to holiday closer to home.
2. Spain – 11% expect to enjoy the Spanish sun, sea and sand.
3. Europe (other) – 9% hope to take a break in a European destination other than in the UK, Spain, France, Portugal, Italy and Turkey.
4. USA – 6% want to enjoy an all-American experience.
5. France – 5% plan to hop over the English Channel to France.
6. Asia – 3% want to go to a longer-haul destination in Asia.
7. Caribbean/Mexico – 3% hope to enjoy the Caribbean and Mexican weather.
8. Italy – 3% plan to experience la dolce vita in Italy.
9. Portugal – 2% want to sip port and enjoy the Portuguese laid back way of life.
10. Turkey – 2% hope to visit the crossroad between Europe and Asia.

TravelSupermarket’s additional hot picks for 2012

Poland and Ukraine – both countries will be appearing on our TVs when they take part in the European Football Championship over the summer. We predict that Poland will prove to be particularly popular with Brits looking to take short city breaks.
Iceland – both easyJet and WOW will add more air links to Iceland next year. This coupled with cheap prices will make the country a popular destination for travellers wanting to experience the Northern Lights and those looking for an activity-filled short break.
Vietnam – the country will no longer just be a destination for backpackers as the first direct flights to Hanoi and Ho Chi Minh City will begin on December 8 from Gatwick.
Brazil – in the lead up to Rio’s Olympic Games in 2016, the country is set to increase in popularity.

Source Travel supermarket

For great property deals CLICK HERE

UK: Student accommodation market increases by 120%

2012-01-12T01:59:00.000-08:00

Investment in student accommodation has surged in the past year, according to a new report from CBRE. The research reveals that the market has increased by a remarkable 120 per cent, with a total of £863 million invested in student accommodation in 2011 alone.

The number of students from the UK applying for university this year has fallen by almost 8 per cent, according to UCAS, as students are deterred by the increase in tuition fees to £9,000 - three times the current fee level. But the property sector has seen investor applications rise considerably since 2009, increasing by over 100 per cent in the last two years.

Commenting on the 7.6 per cent decline in applicants for September 2011, UCAS told the Guardian that it is "too early to make predictions about the eventual demand for places for this autumn". While students may seem reluctant to pay for higher education now, the impending rise in tuition fees had the opposite effect in 2010, driving students into universities to avoid the hike in cost. Indeed, after applications decreased in 2006 following the last fee increase, the next two years saw figures rebound by 7.1 per cent and, in 2009, by 10 per cent.

Now, the occupancy rate for student accommodation in the UK is at 99 per cent, says CBRE, with the conutry's growing rents increasing yields for investors by 5 per cent in London and 4 per cent nationwide.

"Student accommodation is more attractive than many other asset classes in the current climate and we have seen increasing interest from relatively new parties seeking to diversify their portfolios," the CBRE report adds.

Indeed, with the number of student applications from outside the EU increasing by 13.3 per cent and the buy-to-let market continuing to grow, university halls are set to become even more crowded.

CLICK HERE for student accommodation investments

Spain : Spanish VAT reduction extended and is on holiday homes

2012-01-11T05:04:00.000-08:00

The condition excluding newly-built holiday-homes from VAT reductions appears to have been dropped.

When the Socialist Government introduced a VAT reduction on new homes sold last year, from 8pc to 4pc, the People’s Party, then in opposition, promised to extend the reduction to the end of 2012, but only on primary residencies up to a certain price.

But now that the PP are in power it appears that they have dropped these conditions, which can only be good news for holiday-home buyers looking to take advantage of the crash in Spain’s new home prices.

The decree extending the VAT reduction to the end of the year, published in the official Government bulletin (BoE) on the 31st of December, made no mention of any extra conditions, meaning that VAT on all new home sales, whatever their use and value, will only be charged at 4pc during 2012.

Source Mark, Spanish Property Insight

Lydnem comment

Great news!! All new properties (not registered previously) will only face 4% IVA (VAT) instead of 8% until the end of 2012. This is very good news for the new build properties but also for the market as a whole as it draws attention to it. Dont miss the best properties and best mortgage facilities while they are still available and the Bank of Espana allows the banks to offer high loan to value properties

CLICK HERE for some great examples

USA: Property prices set to end the year down

2012-01-11T01:42:00.000-08:00

Residential property prices in the United States continued to drop towards the end of 2011 with the latest figures from CoreLogic showing that national home prices fell 1.4% in November, the fourth monthly fall in a row.

On a year on year basis prices, including distressed sales, fell by 4.3% compared with November 2010, the information and analytics company’s November Home Price Index also shows.

This follows a decline of 3.7% in October 2011 compared to October 2010. Excluding distressed sales, year on year prices fell by 0.6% in November 2011 compared to November 2010 and by 1.6% in October 2011 compared to October 2010. Distressed sales include short sales and real estate owned transactions.

‘With one month of data left to report, it appears that the healthy, non distressed market will be very modestly down in 2011. Distressed sales continue to put downward pressure on prices, and is a factor that must be addressed in 2012 for a housing recovery to become a reality,’ said Mark Fleming, chief economist for CoreLogic.

Including distressed sales, the five states with the highest price gains were Vermont which was up 4.3%, South Carolina up 2.8%, District of Columbia up 2.1%, Nebraska up 1.9% and New York up 1.7%.

Including distressed sales, the five states with the greatest price falls were Nevada where prices were down 11.2%, Illinois was down 9.7%, Minnesota fell 7.8%, Georgia was down 7.7% and Ohio down 7.2%.

Excluding distressed sales, the five states with the highest price increases were Maine and South Carolina, both up 4.9%, Montana up 3.8%, Indiana up 3.3% and Louisiana up 2.4%.

Excluding distressed sales, the five states with the biggest price drops were Nevada which was down 8.8%, Arizona down 4.9%, Minnesota down 4.7%, Idaho down 4.1% and Georgia down 3.6%.

Including distressed transactions, the peak to current change in the national HPI from April 2006 to November 2011 was -32.8%. Excluding distressed transactions, the peak to current change in the HPI for the same period was -23.1%.

Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 77 are showing year on year declines in November, three fewer than in October.

For great property deals hand CLICK HERE

Croatia: Set to join EU

2012-01-10T10:28:00.000-08:00

The former Yugoslav nation of Croatia has wrapped up its accession talks with EU officials, and should become the Balkans' first member of the bloc by mid-2013, a move that is sure to boost values for property owners.

As the last round of discussions came to a close yesterday, EU Enlargement Commissioner Stefan Fuele said the body was pleased with Croatia's efforts to reform its economy and political system since it broke from Yugoslavia. "In 20 years of independence, Croatia has changed tremendously", Fuele told reporters in Brussels. "It has made impressive progress in meeting EU membership criteria. Today, this has been rewarded."

The next step for the country is the signing of an Accession Treaty, which will be drawn up by the end of this year. It will then have to be ratified by all 27 existing EU member states before Croatia can officially become part of the bloc on its planned accession date, July 1, 2013.

Lydnem Comment

EU membership is good for countries such as Croatia. It makes it easier for non Croatian's from other EU countries to live and work for and they get a lot of aid as a country. It is more debatable for more developed countries such as the UK who seem to just put money in and not take it out. A positive for property investors in the country

CLICK HERE for property in Croatia

Spain: Property has reached the bottom BBVA

2012-01-10T02:43:00.000-08:00

At the end of last year, chief investment officer at the private banking division of BBVA Enrique Marazuela told the Reuters Global Wealth Management summit that the housing market in coastal regions of Spain is starting to recover in terms of transaction volumes.

Though Marazuela said that new wealth creation should not be expected in the short and medium term in Spain, he said that some areas of Spain’s battered real estate sector were close to reaching a bottom in valuations.

Property on Spain’s coasts, where the market is largely driven by British and other European second-home buyers, has already stabilized, he said.

“Now what we have seen is that the houses on the coasts . are starting to recover not so much on prices but in transaction volumes and that is coming from European citizens that want to have a second house in Spain.

Source Bancaja

Lydnem Comment.

For some time now we have thought that the Spanish market is at or near its bottom. it is hard to say exactly when the bottom occurs, it doesnt ring a bell, as they say. There is a glut of property held by the banks but even they say that a third of it will never sell as it is rubbish. We feel that this figure is conservative, very conervative. We see what they have and it is only good for demolition. So with a property market near or at its low it is time to seriously look as the best properties sell first. Also, a recent surge in sterling against the Euro has reduced sterling prices by around 10% in recent months. Take a look HERE or tell us what you are looking for by completing this FORM and we wil send you properties fitting your criteria. Act now while the banks still offer good mortgage loan to values, it will not last!!

CLICK HERE for spanish repossessions

Turkey : Istanbul prices are surging as buyers remain hungry for turkey after Christmas

2012-01-09T07:53:00.000-08:00

Photo credit: Erman Akdogan

Istanbul property prices are surging as buyers remain hungry for Turkey after Christmas.

Values of prime houses in the Turkish capital are rising, according to figures released by Castle Research. "Strong demand for apartments" has driven up prices, says the Turkey Real Estate Investment Outlook 2012 report, with developments proving increasingly popular over the past nine years: in 2003, off plan properties were selling for US $1,500 per square metre; now, those figures have skyrocketed, with real estate fetching $10,000 per square metre.

"No matter how you analyse it, those price increases represent significant market strength," Castle said, adding that the data only represents that top end of the market.

Indeed, Turkey is starting the year in a position of strength, as international buyers keep up their taste for Turkey's property, ready to either resell for profit or rent out and capitalise on the market's buy-to-let demand. Even Turkish companies are making a move toward the capital's real estate, adds Castle, where rates of return are now "higher than they earn on their bank deposits".

Visitors are getting greedy for Turkey, too, with tourism figures also heating up. According to Xinhuanet, the country's Culture and Tourism Minister predicted last week that they will welcome 32.5 million tourists in the coming year. As foreigners keep gobbling up accommodation, it is no surprise that the economy is expected to continue expanding, albeit at a slower rate, with 4 per cent growth forecast by the government for 2012, following last year's boom of 7.5 per cent.

Turkey's coast is seeing the highest number of tourists, becoming stuffed with real estate developments ripe for consumption. This glut of feasting has led to some resale values declining due to an overcrowded plate, but investors that bought before 2005 "are enjoying solid gains", Castle finds, while current buyers can still find rental yields of 5 per cent in popular hotspots.

Meanwhile, in the capital, apartment blocks are seeing rents jump by up to 10 per cent per year, with gross yields firmly in double figures. There was a decline last year in UK and North European buyers biting at Turkey's real estate, but Castle's report reveals that there is a "steady interest [from British and Scandinavian investors] at the upper-middle price bracket, and also from young professional British buyers at the low end of the market."

Christmas may be over, but as Turkey remains piping hot at the beginning of 2012, investor appetites are set to get even stronger.

Source The Move Channel

Feeling hungry for property in Turkey? CLICK HERE