REVIEW RAVERS : REAL ESTATE

Russian investors – who are they?

noreply@blogger.com (Anonymous) — Sun, 29 Jan 2012 14:04:00 +0000

The Facts:

· The Russian overseas property market is estimated to now be worth in excess of $.12 billion

· In 2010 there was a rise of 30% in demand for property abroad

· The Russian economy is rebounding faster that most European countries

· Russia is now the largest exporter of crude oil and the results are seen in the economy

· Most Russians do not have mortgages resulting in substantial disposable income to invest in real estate abroad

· Russia is home to more than 1 million so called "mass affluent" with up to $.425,000 in cash assets

· Expats living in Russia are amongst the highest paid worldwide with 36% earning in excess of $.250,000 per year

As this market hardly existed prior to 1990 it has developed exceptionally fast but has not followed established, 'normal' patterns. Excessive and highly publicised purchasing in the early 90's caused a great deal of suspicion as to the legality of the funds being used.

Since the 1998 crisis Russia, especially Moscow has changed dramatically. Political stability and increased International acceptance has fuelled a substantial economic boom. The 2008 world economic downturn actually saw an increase in sales as Russians with saving sought to put their money into property abroad.

Some salaries are now equal to European standards whilst taxation and fixed monthly charges are considerably lower. There is a fast increasing middle class amassing disposable income and overseas property is now high on their list with the number of first time buyers increasing annually.

Success in the market has been found by many developers and agents who saw the potential and were quick to adapt to the special requirements of Russian investors. Visitor numbers to the specialized overseas property shows are again increasing as interest increases.

"It's no wonder that real estate agencies are trying to win this new segment of Russian Buyers. The international market players are naturally eager to know who these newly made wealthy Russians are and what kind of properties they are interested in.

The market in reality is actually hard to classify.

One Russian estate agent says that wealthy Russians are mostly interested in high quality properties in London, Côte d'Azur, Paris, Toscana and New York.

Middle class Russians look for affordable condos and homes up to EUR 100,000 in Eastern and Central Europe and Near East.

Even an average retired Russian person with rather limited resources can afford to buy a property abroad if he sells his Russian home or condo.

What do they buy?

Over the last five years the number of Russian owners of international homes or condos has been growing.

Russians buy properties abroad for various reasons.

According to the research conducted by Prian.ru, 20% buy in foreign resort areas for vacationing with families. The next 20% are searching for countries to retire to.

A whopping 27.5% expressed their willingness to immigrate to the country where they buy real estate.

Just5.4% of the respondents will consider owning international properties as a symbol of their high social and business status.

The rest are buying as investment or for business purposes. Some consider renting the property out, others are hoping for the equity gain while selling later.

Russians mostly buy homes and land. They are less interested in commercial real estate.

The editor-in-chief of Prian.ru states;the number of inquiries from the portal visitors, Russian Buyers of properties abroad, increased by 15% in October 2008. It became 580,000 in comparison with 500,000 in September.

Where do they buy?

"Russians are mostly interested in European real estate as Europe is closer. The number of those who want to buy in more remote places as Egypt or Thailand is relatively small. But their number might increase in connection with lower credit ratings of some Eastern European countries.Prian.ru publishes the top 10 countries that the visitors, Russian Buyers of international real estate, search for, here they are:

1. Bulgaria – 14.5%
2. Germany – 8%
3. Finland – 7.9%
4. Spain – 7.8%
5. USA – 5.2%
6. France – 4.8%
7. Czech Republic – 4.6%
8. Italy – 4.3%
9. Egypt – 3.2%
10. Turkey – 3%

"There are also Montenegro and Greece in the top 15 countries searched. There is a strong interest in Thailand growing. Cyprus seems to be in less demand, it should be seasonal.

"The growing activity of Russian Buyers in the international real estate market is a part of a huge new trend, no doubt about it. The growing prosperity of the country creates new millionaires and billionaires. It develops in Russia, India and China nowadays. The number and diversity of Russian Buyers of international real estate will be growing as no barriers can stop people fascinated with wealth."

www.reviewravers.com

Brazil takes over the UK as the world’s sixth-largest economy !

noreply@blogger.com (Anonymous) — Sun, 29 Jan 2012 13:37:00 +0000

Britain has lost its spot as the world’s sixth largest economy to Brazil, according the Centre for Economics and Business Research.

The resource-rich South American economy has surged on exports to China, unhampered by the 2008 financial crisis that has hit growth in the UK.

CEBR chief executive Douglas McWilliams said: “Brazil has beaten the European countries at soccer for a long time, but beating them at economics is a new phenomenon. Our world economic league table shows how the economic map is changing, with Asian countries and commodity-producing economies climbing up the league while we in Europe fall back.”

Growth in Europe is expected to be slow next year, restricted by austerity measures to reduce huge government debts.

The European Union will remain the world’s largest trading bloc, though a recession next year is expected to hit global growth.

The latest forecasts by the CEBR show world growth falling to 2.5pc in 2012, a downward revision on its predictions in September.

However, this could fall to 1.1pc should “one or more countries” leave the euro, and there are “sovereign defaults and banks going bust and needing to be bailed out”.

The economic research body said that if the Eurozone countries can find a reasonably quick solution to the crisis, the whole of Europe will see its GDP slip by 0.6pc next year. However, if the crisis drags on or worsens, then growth could fall by up to 2pc.

The US forecast is better, with growth of 1.8pc and emerging economies are expected to regain their momentum, with China forecast to grow by 7.6pc, India 6pc, Brazil 2.5pc and Russia 2.8pc.

Brazil is set to become the country’s largest eco-friendly tourist resort.

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'Steal a US real estate deal (timing is everything)'

noreply@blogger.com (Anonymous) — Mon, 13 Oct 2008 09:11:00 +0000

It’s now almost 4 years since US real estate prices peaked later to decline into a "free fall" way down to the extremely low sale prices that can be found today.

Now the US falls into the spotlight once again with the dramatic events of the past few weeks!

With the US Federal Government now in total control of the two largest US mortgage institutions "Freddie Mac and Fannie Mae" this week drama has turned into turmoil as Wall Street faced its biggest financial crisis since the "Great depression" in the 1930's

In the past few days we have seen the collapse of brokerage investment giant Lehman Bros and an $85 billion bail out of the World’s largest insurance firm AIG whose liquidity problems were threatening to reverberate around the World, affecting each and every one of us!

The Global economy has indeed changed and the universal reaction seen with the falling share prices in Asia to Europe is a testament to this!

Cash rich British investors are now facing a reducing number of options as to where to invest, for the UK has followed in the US footsteps with house price falls still a long way off those in the US!

The investment choice appears to be somewhat limited for no place now seems to be immune from risk!

Are US housing prices finally bottoming and what are the real facts?
With 50 US States to choose from where is the best place to invest and for what reason?
Which are the fastest growing areas where 50% reductions occurred, why is this and what does the future hold?
Is inventory reducing?
What is the chance of buying a foreclosure and is this worthwhile?

Timing is always a critical factor with any real estate purchase and is this an opportune time to buy or will it get any worse?

The world’s richest person is American Warren Buffet and he says the best opportunities to make money are always at a time of financial crisis. Is he right?

Is this the best time to "Steal a U.S. real estate deal!"?

Review Raver : Graham Pyle

www.reviewravers.com

Weakening US housing market weighs on dollar

noreply@blogger.com (Anonymous) — Fri, 29 Jun 2007 19:12:00 +0000

The stumbling US housing market could cause a further weakening of the dollar as it hit a three-week low against the euro, according to recent reports.

With the dollar currently trading at $1.3443 against the euro, there has also been speculation that it might yet break the $2 to sterling barrier once again, depending on US federal and British interest rate changes and reinforcing the need to get the best exchange rates.

This has also cut the yield premium for US Treasuries, Bloomberg news agency reported.

Sue Trinh, a foreign exchange specialist with RBC Capital Markets in Sydney, told Bloomberg: "The dollar's yield advantage has waned. The market is vulnerable to weaker housing data and that will weigh on the currency."

Meanwhile, the Wall Street Journal has reported that the dollar could gain against the yen, partially due to the prospect of higher interest rates in Japan.

Last week, the yen weakened significantly against the euro, with 1,000 yen currently trading at 6.010254 euros.

Recently there has been a considerable influx of foreign investment into the US property market, with many keen to capitalise on what are very low current property prices; this is especially the case in the more popular holiday destinations such as the “US Sunshine State” of Florida. There has been a significant rise in the number of British buyers in Florida over the past few weeks, for not only can a Brit benefit by having a wide selection of “low priced” homes to choose from, they can also take full advantage of their sterling buying power and with the current prospect of an even more favourable exchange rate peaking, Florida property sales to Brits seem likely to soar skywards over the next few weeks!

www.reviewravers.com

Is a UK house price crash about to occur ?

noreply@blogger.com (Anonymous) — Sun, 03 Jun 2007 19:44:00 +0000

Of natural concern to most people living in the UK (especially homeowners) is the subject of house prices and the possibility of a UK housing price crash; recently there has been considerable media speculation and debate leaving a somewhat mixed and divided opinion.

Recent figures announced by the Halifax mortgage lender together with other data, appear to suggest that UK house prices are already falling in certain parts of the country and that there are several regional variations. The falls to date however have been relatively small and the south appears to be most noticeably affected, especially around London and the South East. Also large parts of the Midlands have been affected and this is spreading northwards yet there are exceptions, with certain parts within specific regions also experiencing minor price rises.

In contrast house sales and prices further north appear to have recently slowed and to date there have been no real noticeable drop in prices; the slowdown however does seem to suggest a strong reason for suspecting that a price decline will shortly follow.

Most economists recognise that a house price fall is occurring although various opinions exist as to the scale of any possible future reduction.

A rapid decline in house prices is the definition of a “house price crash” and to date there is no indication that this will occur; there have however been several suggestions that the recent decline in sales and house prices is merely a temporary glitch and some media reports have even been described as “sensationalism and scare mongering”; the price falls have definitely been moderate and much more sporadic than widespread and some pundits consider that any further falls will be relatively slow & will involve a steady process.

There are others though who believe that we are at the start of a housing price crash, which could leave those who have recently chosen to invest with severe consequences.

For the many hundreds of thousands who have already invested in the UK housing market an underlying belief that house prices will continue to rise has existed; for many such a positive opinion has been greatly influenced by the UK's economic prosperity, for the past few years has resulted in an easy spending attitude that has been encouraged by a sustained period of low interest rates.

Is this about to change?

www.reviewravers.com

British pounds breaks $2 barrier - The perfect time to buy in the USA !

noreply@blogger.com (Anonymous) — Thu, 10 May 2007 16:05:00 +0000

May 2007… With the US dollar reaching a 14-year high against the pound; it is currently trading at an amazing 2 to 1 exchange rate, anyone that has been considering buying a property in the USA surely should do so NOW!
The current market is providing a buying environment that is more like a “Buy 1 and get 1 FREE” offer more normally associated with our weekly supermarket shopping!

If you are extra careful by heeding some good sound professional advice as to what and where you should buy, today you can also take FULL advantage of the conditions and find yourself an absolute real bargain!

The recent slowdown in US real estate has created some unbelievable low priced purchase opportunities that in my opinion will never be repeated.

I have been actively involved in Florida real estate sales since the mid 80’s and as such have personally experienced several different kinds of markets, yet none that I have seen provided buyers with such a great opportunity for a savvy investment as this one!
Consider that a US realtor with MLS board membership such as my firm, has access to sell ALL listed property for sale, plus they can act for a buyer with a duty of care and yet their fee is paid by the title company after collection from the seller and it becomes clear that the US market is indeed a very different one from its UK counterpart.

Following is a small sampler of what is currently on offer in Orlando Florida and you will see precisely what I mean about the current buying value;

From £90,000 we can find New Luxury 2 to 4 beds 2 bath 1,200 to 1,600 square ft homes in a resort community all having short or long- term rental use approval located just 5 minutes from Disney.
From £130,000 New Detached 3 and 4 bed 2 and 3 bath villas with own pool 10 mins from Disney
£150,000 Resale A 5 year old 2,500 square ft Detached 5 bed - 3.5 bath villa with pool just 15 minutes from Disney

Furthermore loans are relatively easy to obtain; we can introduce potential buyers to specialist mortgage brokers who normally can arrange 80% mortgages for foreign nationals with 30-year terms.
Most loans will have no pre-payment penalties arising and there will be a variety of fixed 1 3 5 and 7 year adjustable rate loans to choose from. There is a further bonus too; there are some mortgages that can be fixed at a Sterling exchange rate and so those acting NOW can also take full advantage of the great current £ to $ exchange rate conditions!!!!

As an alternative to buying a home in Florida, some of you may wish to invest in land that is located in the mountains and lakes of Tennessee; here prices start from around £25,000 for a large tract that could be possibly sub divided at a later date or may be a brand new home in Panama in Central America is more you’re your type of investment. In Panama we have sourced some fine property with prices starting from as little as £85,000; the US dollar purchase is of course entirely yours to consider!!
Wherever and whatever, my advice to you any interested party is to ACT now if you are looking to try and make some real money!

www.reviewravers.com

Turkey - 'The New Spain'

noreply@blogger.com (Anonymous) — Fri, 04 May 2007 10:32:00 +0000

Strategically located just a 4- hour flight away from the UK Turkey is indeed a “rare jewel”.

This vast country has a diverse culture with many different regions that enjoy a range of varying climates. In the popular tourist areas an agreeable climate exists that sees long fine days of warm sunshine last for most of the year.

The country enjoys an amazing contrasting landscape that comprises a mixture of scenic mountains, lush green woodlands and extensive tracts of undulating beautiful lakeside countryside plus an extensive coastline enjoys numerous sandy beaches that gently are lapped by the warm seawater.

The Turkish people are friendly and hospitable, which together with the country’s many virtues is why Turkey is so fast becoming a seriously popular holiday destination, especially with British and European tourists, many whom believe they are discovering the “new Spain”.

The country offers superb property value plus a low cost of living, which alone makes this a most attractive lure for overseas property investors and sun-seekers.

Many who flock to buy are encouraged by the favourable accolades yet all foresee a good prospect for strong future capital growth and certain “hotspot” regions have become a property investor’s paradise.

Across the region from places such as Bodrum and Marmaris, on the Agean coast, southwards down to the warmer climes of Side and Alanya, overseas buyers are snapping up property.

Side is located in the Antalya region along the Mediterranean coast a 45 minute drive from the International airport, which is the 2^nd largest in the country and is open all year round. Nearby in Belek a golfers haven is being created with 12 championship courses that would not look at all out of place in Florida!

Property prices along this coast are still very affordable, although this will undoubtedly change with the passing of time.

Countryside International who have offices in the UK and Turkey are offering spacious new 2- bedroom apartments (800 square ft) close to the beach in historic Side from £50,000 whereas new large detached 4 bedroom 3 bathroom villas of Mediterranean style (1900 sq ft) with a private swimming pool within the same area are costing between £130,000 & £145,000.

Such property if it were located in the Costa del Sol of Spain would cost at least £500,000 making these homes absolutely wonderful value!

Everywhere you travel to in Turkey you will find Roman ruins; Side was once a favoured romantic meeting place for Cleopatra and this one time fishing village with its amphitheatre and fine ancient ruins is now one of the most popular holiday destination, whereas nearby Aspendos has one of the best preserved amphitheatres in the world and here they still present major music festival events and live theatre concerts.

A popular ski resort in the mountains near Antalya is a mere two and half hour drive from Side enabling visitors to take a dip in the sea in the morning and to then drive to ski in the afternoon, a fine combination to keep you fit and healthy!

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