Real Estate Value and Tips

French Property 2011

2011-04-15T23:27:00.000-07:00

The French property market will experience in 2011, a year full of changes: Scellier, zero-interest loans, energy diagnosis ...
The year 2011 will be a milestone year for the housing market in France. It will be full of changes both in the distribution of aid to purchase than for taxation. Here are the main developments affecting the market in 2011.

Energy performance in ads
Before 1 January 2011, the energy performance (ECD) was mandatory. But since this year, the result of this diagnosis (the note) must be mentioned in ads. The publication of this note is valid for both ads have showcased the agency or simply in housing ads posted on the internet.

The display of the ECD is not expected in the short term cause big changes. Buyers have not yet adopted a high sensitivity to ECD. However in the longer term, property with a low score may become less attractive. This will be reinforced probably more rural area where demand is less strong. In large cities, this phenomenon of downgrading due to incorrect ECD should be slight.

Reduction of investment aid
Before 1 January 2011, many device to aid the real estate investment existed. It will always be the case but after a grooming conducted by the government led to the elimination or reduction of certain assistance.

This is particularly true of the device Censi-Bouvard. The rate of tax exemption (deduction of mortgage interest) goes from 25 to 18% and its ceiling is lowered from 300 to 000 to 270 000 euros.

Decline in net Scellier
Before 1 January 2011, the Scellier permitted, without condition, a real estate investor to deduct the interest on the mortgage, under certain conditions. This system is considered too expensive compared to the results will change from 1 April 2011.

Both developments are scheduled for Scellier: an environmental approach and a reduction of interest rates considered. Thus the level of interest deduction for conventional dwellings from 25 to 13% after 1 April 2011. For housing consumption of low-skilled (BBC) the rate will increase from 25 to 22%.

Increased taxation of capital gains
Before 1 January 2011, to prevent real estate speculation, the tax rate on capital gains realized through the resale of a home away from home was 16% primary.

The government has decided that from 1 January 2011, this rate would increase to 19%. One way to increase state revenue but also to avoid a return to real estate speculation as was the case in Paris in 2010 (over 20% of the rise in house prices).

New interest-free loan
Before 1 January 2011, the interest-free loan was subject to special conditions including conditions of income for households wishing to buy and benefit from this device.

To encourage first-time buyers, the government has revised this scheme. This now allows new buyers had never owned to have a 0% loan, irrespective of income. The income will be taken into account only to define the terms of repayment.

To conclude these changes will impact greatly the housing market in 2011. The latter, already weakened by the return of inflation and economic growth remains lackluster, should have difficulty absorbing these new constraints. Housing prices could move back down.

Strong Increase of Benchmark Rents

2011-04-13T22:54:00.001-07:00

The IRL has increased by 1.45% according to figures from INSEE. How to Negotiate rental increases? What recourse? Which locations are affected?
According to the latest figures from the INSEE on the benchmark rents published January 14, 2010, the IRL was up 1.45% over one year, with a constant upward trend throughout the year . Knowing that this index serves as a reference for owners with a house or apartment for rent, the rents will he grow? How to negotiate with the owner? What recourse in case of significant increase in the price of a rental property?

House or apartment for rent: how the rent is fixed? What accommodations are concerned?
The figures from INSEE on the benchmark rents, or IRL, have significant consequences for all occupants of a property for rent. Indeed, this measure allows owners to adjust the price of rents, including during the term of a tenancy, but under certain conditions.

Since 1 January 2006, this index serves as a reference for all units leased under the Act of July 6, 1989.

We should remember that under the terms of Act No. 89-462 of 6 July 1989 to improve rental, the IRL for:

premises for residential use or mixed-use main business and main dwelling,
garages,
parking spaces,
gardens and other premises, rented incidental to the main room by the same donor.
The IRL is also the benchmark for apartments, but does not include rentals, homes, housing or public housing rentals.

How to calculate the revisions of the rent for a property (housing, furnished, garage, etc.)?
If you rent, the opportunity to review annual (upward) price of rents during the lease is one of the key points to check before signing the lease. Indeed, a landlord can not increase the rent if the revisions are explicitly provided in the lease, with the date on which they must enter into force.

Knowing that this increase of rent shall not exceed the IRL, it is important to check the index before accepting any increase during the lease. Do not forget, if you are a tenant, the landlord may increase the rent once (again if these increases are planned in the lease) up to five years of reindexing not worked ...

To a simulated increase in rents, so you must consider not only the price of current rent, but also the benchmark provided by INSEE, and any number of years during which he has not increased. Be aware that the owner has the option, but not the obligation, to increase the rent to reflect the IRL. You will find here a tool for calculating the rent review.

Increase the rent during the lease: how to negotiate? What are the remedies?
To challenge a rent increase, the tenant must make several points:

A reassessment of the rent according to the IRL is it explicitly provided in the lease? If this is not the case, the landlord can raise the rent without your consent.
The increase exceeds Does the IRL over the last four quarters? This is not legal.
Negotiate ... you can always try to talk to your landlord, but remember to do it if possible by letter A / R to show your sincerity and your attempts at dialogue.
In case of rent increase that you consider unreasonable, you can enter the conciliation board, you will find here a model of free sample letter to contest the rent increase

Management of Buildings

2011-04-12T23:30:00.000-07:00

In the skills of agencies or property managers include stewardship or administration buildings of condominiums. One very popular with owners.

Rent real estate assets is not without risks. The problems are many and rental of all kinds. Find more creditworthy tenants, establish a lease, make an inventory of entry and exit, handle renovations and maintenance to ensure that tenants are comfortable and they leave not establish the accounts. The management of a building, it has a flat, a few or several tens application availability that owners do not always. That's why estate agents are taking orders from managers on behalf of clients, whether public or private.

Many advantages
For individuals who engage in real estate, it is not easy to think at all, receive all complaints from tenants. Entrust the management of his property to a board or real estate agency also has the advantage of management in respect of legislation.

Moreover, in most cases, this office management added insurance that pays the unpaid rent and the damage committed by the outgoing tenant. The costs of the trial and execution are supported by the insurance company of the management. These guarantees apply from the moment that the management chooses and prepares the prospective tenant lease.

Condominiums, a new way to buy
The administration of condominiums, as to tackle a very different task. If the building management, the management contracts involved in the entire building, which includes condominiums, they are not inside the apartment. They are responsible only to deal with common parts. It must be said that when the building has multiple owners, a mediator is sometimes necessary. It's the whole point of the concierge, it is the intermediary between tenants and owners or between owners.

Condominium sales are booming. It must be said that apartment rents in direct competition with loan repayments for the purchase of a condo. Indeed, when comparing the rent for a new apartment and the amount of repayments of a loan for buying a similar apartment, it is worth buying if the former exceeds the latter. The administration of the condominium becomes an important part of the business and real estate boards.

Whether the building management or administration of condominiums, the ultimate goal is the same: to relieve owners of heavy tasks in which they are not specialists.

Housing Market Latest Reports

2011-04-09T22:05:00.000-07:00

The year 2010 saw a real estate boom but the beginning of 2011 shows that the market again towards a downtrend. Update on the situation.

The balance of the year 2010 was marked by a strong rebound in property prices. A rebound confirmed by data from notaries in France. Thus on average, house prices have risen more than 8% in France.

These data continue to be analyzed and gives new information especially on the situation in the third quarter of 2010.

Location of apartment prices

For this period and year over year, home prices marked a rise of 8.5% yoy in the third quarter. But be careful, the situation is heterogeneous between a province sees increase its rates by 5.2% and peers more than 12.2%.

Location of house prices

As so often, the house price reacts differently collective dwellings. This is the case once more. Houses rose by 8.7% on average nationally, but with a nice 9.1% in the provinces against only 7.6% in Ile de France.

These data are interesting and clearly shows the interest of looking at the data in detail. In the case of a national average slightly lower parts of the country have been in sharp decline and others increasing.

The year 2011 marks the beginning of change

While statistically the price of housing in France is generally increasing (mainly due to the Paris region), some regions have already begun a process of decline. This is the case of Upper Normandy who comes in the last three months show a decline of more than 2%.

In addition, the real estate trend could change more broadly at the national level, leaving only the Paris region to rise. The first factors are expected to decline already at the rendezvous. For example, the return of higher mortgages. Loan brokers are finding that credit rates have already risen by more than 0.45% over the last two months. Some even predict an increase in appropriations of 0.5% in the next six months. The situation tends to the housing market nationally.

Factors of decline in the property market

Add to that a very unfavorable economic conditions with unemployment on the one hand that reaches just to stabilize at 9.7% in the third quarter of 2010. And above all, inflation is rising to iron some of which believes it will reach 1.5% in 2011. An optimistic forecast given the surge in raw materials such as grain or oil.

This inflation will also serve to strengthen the higher credit rates . Indeed, the governor of the European Central Bank (ECB), Jean-Claude Trichet, monitors inflation and could quickly increase the rate of the ECB to limit it. Must remember, this rate determines the cost of borrowing money from banks to the same central bank. The commercial banks will pass on the increase so future borrowers.

Finally, another negative factor is the reduction of the tax exemption Scellier which should slow down a bit more buyers.

Finally, 2011 should advertise the market hard and the balance of the year will be in the best conditions, probably a slight decline in prices and volumes. In a more pessimistic, some already announcing an upcoming real estate crash .

Property in Brazil

2011-04-01T22:45:00.000-07:00

Things you love about owning property in Brazil

Cheapest flights Brazil, white sand and sapphire blue waters are reasons enough for most tourists come to this country. Investing in property in Brazil is a worthy enterprise, whether you plan to use it exclusively for you or if you prefer to rent to tourists. There are plenty of things to like owning property in Brazil.

And fishing villages Beaches

If you want a different experience, visiting the towns around the Bay to get something unique to take home. A visit to the fishing village of Camamu Bay, along the Costa Dende not only give you the opportunity to be with the locals at first hand, but also an opportunity for you to experience the fresh food from the sea.

Moreover, the Coast Coco and Costa All Saints offers endless miles of beautiful beaches. If privacy is a priority for you during your vacation in Brazil, there is the Whale Coast. Amenities in Brazil are relatively cheap and so is the property investment there.

A unique and charming Nightlife

When you take a trip away from the hustle and bustle of city life, nightlife will find it refreshing Bay. With a clear sky and clear of snow and smoke and the sight of the stars, you can expect fun and romantic evenings.

The fresh sea breeze and the quiet and peaceful atmosphere is relaxing in itself. There are many nearby fishing villages and rich ecological environments. You can enjoy fresh food and local entertainment.

Arts & Culture

Apart from local restaurants, you can enjoy the craft shops in Bay. If you like collecting masks, carved statues, bringing one to your home each time you return you will complete your journey. The local paintings are also unique. Production are the jewels of the local villagers attractive.

More Than Just Beaches

While the beaches are considered the main attraction of Bay and almost all of Brazil, there is more to Bahia. To enjoy nature at its fullest, I love the rivers and the fall of the Chapada Diamantina. The view of the plateaus and mountains there is a very refreshing show.

Chapada Diamantina is rich in vegetation and fauna. So here is truly an opportunity to learn about the wildlife in the area. Coconut plantations are also present in the surrounding areas. When you own any property in Brazil, you can stay longer and explore these things to your liking.

With many attractions to offer, you will be able to draw many tourists to your property in Brazil. You can make money by renting your properties in Brazil to vacationers visiting the area.

You can also use the property in Brazil to spend time and create more ties with your family. Owning property in Brazil can benefit financially, whether you rent, and you benefit in terms of experience if you decide to use only your property and enjoy family.

Commercial Real Estate

2011-03-26T02:30:00.000-07:00

Commercial real estate is a term to describe a property with 5 or more units. The different types include office buildings, apartment complexes, warehouses, and medical. Commercial real estate is a broad term, and this site will give you a thorough understanding of what it is.

If you own or manage a business, you are likely to rent to an owner of commercial real estate. Most businesses require space of some sort, whether in a shop, office, personal, or warehouse storage. As your business grows, you may need more space, expansion, storage, or just a better location can you find a new piece of commercial real estate.

What you may not know is that you are able to negotiate more favorable lease terms. Just because a landlord calls an agreement "standard lease" does not mean it should be unified for all. There are no laws requiring that they follow the same agreement with all tenants. The leasing of commercial real estate can accommodate changes in ownership and lease terms or other variations.

Before you start negotiating, you should know the answers to key questions. Others are competing for the same lease that you have in mind? If they are, their position is weakened, since the other company might not be as informed as you and sign the lease blindly.

Space has been vacant for a long time? If so, the owner may be more desperate to rent it more easily. We also consider how convenient space in terms of location, layout and other commercial real estate needs.

2 . Negotiation of lease issues
There are dozens of terms in any lease agreement. In addition to the monthly rent amount, there are limitations on the use of facilities, leased space, access to adjoining storage space, and more. Depending on the location and the specific configuration of the commercial real estate may be able to negotiate some or all of these terms.

Common terms of commercial real estate leases that are negotiated are: The monthly rental amount granted by the landlord or leasing company after a series of time payments or in response to a long lease.
Duration of the lease in months or years.
Use of the premises, including parking spaces, access to it, and changes may be made in the interior.
Exact site space leased (can rent half the office?)
Costs associated with the operation of commercial real estate. Will the landlord cover water and sewer?
Process and permissibility of tenant improvements made, can be reimbursed by the owner?
Subletting approval process or permissibility.
Renewal terms including reduced or increased cost of rent.
Rights and costs involved to abandon or cancel a lease. Under what conditions can a tenant do? Insurance requirements.
Additional space options available to the tenant if necessary.

3 . Types of Leases
In addition to the terms vary, the type of lease may vary. There are five main types of leases. The type you need depends on your business structure, budget and available space.

A gross lease is the most common type of commercial real estate. The tenant's monthly rent payments to a landlord who, in turn, is responsible for paying taxes, insurance, maintenance costs and other expenses associated with homeownership. These are often called "fixed contract," but we understand that there is nothing "standard" about them. There is no regulatory authority that establishes the terms fixed.

A net lease is the second most common in commercial real estate leases. In a net lease, the tenant pays a monthly rent to a landlord and a portion of all expenses associated with real property, including maintenance, repairs, insurance, and taxes. The network of leases often allow the tenant more flexibility in the use of commercial real estate. If you need to modify the commercial real estate leasing, this type of lease may be the best choice for you.

A triple net lease is very similar to a net lease where the tenant pays for most or all operating costs associated with commercial real estate.

In a local mall or commercial lease. The tenant will pay a rent per square foot of the facility and some of the operating costs shared by the common areas of the mall. These usually include a portion of property taxes, structure insurance, maintenance, repairs and parking areas, and delivery bays. While you may pay more for space in a mall, can be an ideal option to gain more customers, especially if the shopping center in frequented by several people.

The last and most involved type of lease is a lease of land. This is a tenant leasing a parcel of land with the intention of building a kind of ownership over the lot. Although the buildings are purchased and maintained completely by the tenant, the termination of the lease, all improvements to the building and the property reverts to the landowner. These are usually a long term lease, ranging from 5 years to 100 years or more.

4.Checklist for moving
After you have chosen your location and signed his contract, it is time to initiate movement of labor. Temporary Relocation takes a long time of packing and moving office equipment. Do not underestimate the amount of packaging that will be needed while still running the business. Consider hiring temporary helpers to pack some non-confidential documents, while their employees continue to do their job.
Take this opportunity for an inventory of your office.
The location of the design and decor is easier to do before the move. Involving employees in the design and decor increases employee morale and is a process that can be embraced.
Consider renting or buying some new parts for the new office space commercial real estate.
Interests. Plan services that are important to their employees and do not forget the break room properly.
Apply with care. Make sure your commercial real estate leases allow subletting before doing anything. If you must get approval from the landlord before a sublease, be sure to do it quickly.
Contact all utilities and communications providers to ensure you have the service in both places during the transfer.
Assign office space before the move comes, what will make the move much easier, because everyone will know where to go.
Order keys, cards, and a security service in time to avoid lockouts.
Any person for safety, must receive official clearance through the new security system.
Order checks, business cards, invoices and other printed material that is used to reflect its new direction.
Contact vendors, customers, people and delivery of your new address. Do not forget the USPS.
Take time advisory telephone system and classes for all employees, whether a new system or not. A review never hurts.
Organize a party and invite the institution customers and suppliers as well as friends and relatives of employees.

5.corridors
A corridor of commercial real estate is the person or company that is licensed by the state to represent a buyer, seller, or tenant in a commercial real estate transaction in exchange for a commission. Essentially, they are your agent and must ensure their interest.

Find the right broker for your needs. Most agents focus on two or three types of commercial real estate. Industrial, shop, office space and storage are just some of the specialty types of commercial real estate. Choose a broker with a history of the same type of space required.

Check references and licensing. Ensure that all licenses are in progress. Check the better business agency for any complaints they may have against them. Ask colleagues recommendations for choosing a broker with a good reputation for overall service quality.

You choose the space you need, and not the intermediary. Do not let an agent strong-arm commercial real estate space either choose a higher or lower than you thought necessary.

Stay away from brokers that display only the properties they represent. Remember, the broker is your agent and must do the best for the interest you have in mind, not just the desire for a commission. Not just for the fact that not a property that fits your need, we must discard.

Use the experience of your broker in the market to get you a great site. Riders may suggest areas that will be of great commercial activity away from inappropriate locations you for your business.

A good agent should be able to help you anticipate future needs, and helps you search for the property with scalability. Stay away from the "middlemen" that he just looking for a place for your business now, instead of looking at your projected growth over five years. Moving your business is a big decision, with important implications. Avoid running unnecessarily in the future for this, by planning now.

6.Some reasons for the cancellation of a lease
After some time in commercial real estate space, you can find some reasons for cancellation. The most common reasons include: The business grew faster than expected and needs more space
A better place due to a change in the direction of your company or client needs
The business is declining and needs a lower payment or wish to close your business, or both.
Dissatisfaction with the owner or administrator.

If you have to move because his company needs more space or need a better location, may be able to sublet their current space. The benefit is that it is usually a quick process requires no additional cost to you. The disadvantage is that you are still ultimately responsible for the lease of his tenant. Check the possibilities and arrangements to sublet the premises. The sublease is also a possible solution if the company goes wrong and you need cash to reduce debt.

If you are upgrading to a more expensive, or more space, you may be able to convince their owners that want to rent a larger and more expensive space to meet your needs. It will make more money, you earn more money, and may lease the other to another local business. This works best when it comes to large property management companies, as it will have more to offer.

You can leave your bid for the remainder of his contract with a single payment. The sooner you become the owner rented the space, the lower the lump sum payment. The benefit of this agreement is that it can move to its new location without a regret. The downside is that his lump sum payment is held by the leasing agent and if it works hard to rent the space, the law can intervene.

If you are unhappy in the workplace or the owner, you should reread your lease and see if your dissatisfaction is due to a violation of the lease. If you find you have enough reasons to quit the lease, you should first talk to the owner. Request to be let out of the lease and explain why. If this fails, seek legal advice.

7 . Finding the right amount of space
How much space you need to make real estate your business? Depend on a number of factors, both facts and projections. Because most commercial real estate leases are for a period of 5 years, you must base its space required figures in this number.

First, you need business partners and ask, "In what position is the business?" Does your business have a vision of expansion in 5 years? How many staff will be added in the next 5 years? While you may not be able to answer all these questions, your overall expectations will be a useful clue in the planning process for the use of commercial real estate.

What is the size of your growing organization? What are the resources required to achieve that goal?

How many employees, office furniture, space manufacturing, computers and office equipment, storage of office supplies, files, and inventory you need to achieve your goal?

Call the trade association sector. Ask about the average sales per square foot. If your annual income goal is $ 500000 and trade association estimates is $ 140 of sales per square foot, divide their goal by their current sales ($ 500000 / 140 = 3571 meters square is required to achieve the goal of income.)

If you are just starting your business, without much action, you can estimate 150 to 200 square feet per employee in addition to the traffic flows of 15% subsidy.

8.If you buy?
Are you struggling with the decision to buy, rent, or lease commercial real estate for your business? You are not alone. Each will have its own opinion, but ultimately the decision is yours. Understand that your company does not do what everyone else does, your situation is unique.

If you buy a piece of commercial real estate, you get the benefit of asset appreciation. The value goes up, which means they will be able to sell it for more than they paid for it. You also benefit from fixed overheads. Your mortgage does not go up (unless you have an ARM). Your company will have the option to sublet space to help pay their bills.

One of the disadvantages of buying is that you are entirely responsible for all repairs, maintenance, taxes and fees associated with the property. You are also locked in a larger commitment if you buy - there are often payment penalties, related to commercial real estate mortgages. If you find you do not like the area, again, is already quite grasped this. Think carefully about this decision, both in terms of their business and the area.

9.Language You Should Know about Construction
Evaluation Report - A report of an impartial professional, including an analysis of the value of commercial real estate analysis and calculations that led to that view. An evaluation report is required for any sale of property.

Broker - A licensed agent works to help the buyer, seller, tenant or landlord, or a combination of both. Help to facilitate the purchase or rental and helps clients with commercial real estate process.

Satisfaction in construction - a way of lease includes an owner improve the site to suit the needs of the tenant. The construction is usually part of the terms of the lease, but the buildings and improvements remain the property of the owners of the land to the termination of the lease. These are often long-term leases.

Commercial - the benefits, discounts or concessions made by the seller or landlord to help the sale or lease to advance rapidly. Improvements in space, moving expenses, upgrades, and reduced or zero down payment, rent a portion of the lease are common place awards.

Escalation clause - is a section in the lease allows rent increases. The escalation clause also includes the rules to be followed in case of a rent increase. The standards include: maximum rent increase per period, the length of time between the rental price increases, cost of living increases with the governance index, and increases directly related to the operations of the property.

HVAC - Maintenance of Air Conditioning, Ventilation, including those systems. While it is usually the responsibility of an owner to maintain these systems, some leases require the tenant assistance. Sublease of Property - An agreement between the landlord and tenant that allows the tenant to sublease part or all of the commercial real estate contract to another company.

Residential Foreclosure Temptation

2010-11-09T01:57:00.000-08:00

Making money by purchasing foreclosed homes sounds like an easy way to turn a profit, but buyer beware: The unwary purchaser may be buying a financial disaster.

Residential real estate foreclosures have been on the rise nationwide for the past several years with little sign of slowing down in the near future. The adjustable rate mortgage phenomenon coupled with general economic factors of our time have created a perfect storm of disaster for many homeowners, and the result is that many homeowners are finding their homes in foreclosure. With these foreclosures comes an excellent opportunity for a knowledgeable investor.

For the ill-informed, however, buying a foreclosed property at a sheriff’s sale can be confusing at best, and at worst it can be financially disastrous.

Become Familiar With The Foreclosure Process In Your State
The foreclosure process in each state is dictated by statute and case law, and the procedure differs greatly from state to state. In some states, such as Texas, the entire process can take less than three months. In other states, such as Wisconsin, the process can easily take nine months to a full year, or even longer if the homeowners file for bankruptcy protection or otherwise work to delay the process.

Each state has its own methods and procedures, and the first step to success is understanding the foreclosure process for your state in its entirety. If you plan on making foreclosure investment a serious venture, you may even wish to enlist the assistance of an attorney who can advise you on the foreclosure process and help you better understand the full procedure for your state.

Do A Thorough Title Search
In many states, properties are sold at foreclosure sales subject to any liens and encumbrances already on the property. This can include judgment liens, tax liens, prior mortgages, real estate taxes or any number of other financial or title issues which the purchaser at the foreclosure sale can inherit. An unwary purchaser may buy a property that seems like a great bargain only to find out that it was sold subject to tens of thousands of dollars worth of other liens, or worse.

Do not rely on the statements of other potential purchasers, the attorneys for the foreclosing bank, or even those of the homeowner when it comes to the status of the title to the property. Either enlist the assistance of a title company or become familiar with searching the judgment rolls, tax records and real estate records. It is absolutely essential to exercise due diligence and research the status of title for each property before even considering placing a bid at a foreclosure sale.

Be Skeptical About The Property’s Condition
Unlike a traditional real property transaction, there is rarely an opportunity to view the interior of the foreclosure property prior to purchase. Further, the properties are purchased as-is with absolutely no warranties as to their condition. Some interested buyers do contact the homeowners and ask to view the interior of the property, but not all owners are willing to show their houses and in many cases the property has been abandoned or the owners are difficult to locate. As your only evaluation of the property’s condition is likely to be from the exterior, it is essential to think critically about the interior’s condition.

When residential properties go into foreclosure it almost always related to the owner’s financial difficulties. This means that there may be maintenance issues with the property that were ignored due to their expense, or serious repairs that should have been done but were neglected due to the cost. As a purchaser of a foreclosure property, you must be willing to take on whatever problems the interior or structure of the property may have.

There Will Always Be More Properties
Foreclosures are showing no sign of slowing down. If you have serious reservations or unanswered about a property it may simply be best to hold off and wait for the next one. If you cannot go into a foreclosure sale armed with complete knowledge of the property you want to bid on – knowledge of the status of title, the interior and exterior condition, and any other issues that might be of concern to you – you may be better off waiting for the another property.

Mortgages on property

2010-11-01T05:43:00.000-07:00

The basic mortgages available and what they are.

You’ve gone out and bought a new home, but can’t afford to fork over the $300,000 in full right away, so you’ve applied for a mortgage with your financial institution. You’ve been approved? That’s great! Was it the right mortgage?

Essentially, a mortgage is a loan. Mortgages can be taken out on any property owned by someone – a boat or a car for example – but typically are used for real estate. Like everything in life, there are ups and downs to taking out a mortgage on real estate, regardless of whether it is for personal or commercial use. The positive is that whoever is purchasing the property doesn’t have to fork over the full amount right away and can make monthly payments until it is paid off. The downside is that interest is going to build up on the balance and the amortization period chosen determines just how much.

The amortization period of a mortgage is how long the term is. This time period is usually chosen by the person taking out the loan. Each individual financial institution determines the minimum loan period and the maximum loan period – for example, in Canada, the minimum is usually 15 years and the maximum recently was moved up to 35 years. The United States has a fairly similar demographic as Canada, and while most mortgages have amortization periods of 40 years, some banks have started toying with loan period of 50 years.

You can’t have a mortgage without the rates involved. No bank would willingly approve a mortgage loan without getting anything in return. That $300,000 you just paid for a new home? If you have a fixed interest rate of 4.5%, assuming you make all your payments on time and pay off extra when you can, the bank is going to make $135,000 in interest. That’s almost half the cost of your new home!

There are many types of mortgages, including but not limited to:

Fixed Rate Mortgages have set interest rates. If your mortgage starts with 4.5% interest, it is going to stay at 4.5% interest even if the interest rates increase or decrease over time.

Variable Rate Mortgages are just what they sound like. When interest rates increase or decrease over the loan term, your interest rate will increase or decrease with it. So your payments and interest will vary from month to month.
Pre-Approved Mortgages allow you to shop around for your new home or property and know just how much you can afford!

Remember that when you take out a mortgage on a property, it belongs to the bank you took the loan from. This bank can repossess the property at any time you fall into arrears – have missed several payments. Be sure to do your research before applying for a mortgage and know what you can afford. With the many types of mortgages that are available and the right guidance from your financial adviser, it is easier to choose the mortgage that fits your financial position.

Real Estate Fund Returns

2010-10-21T00:10:00.000-07:00

The interest for real estate fund is disappearing. The current representative poll of "TNS" on behalf "Robeco Germany" among 350 investment advisers shows that sales of real estate fund is currently declining. In the 3rd Quarterly assess only 48 percent of the sales consultant position to be positive - that is nine percent less than in the previous quarter.

The economy is recovering in Germany. In October, corrected-known economic institutes, the forecast for gross domestic growth in 2010 was clearly up.
The positive outlook for property funds do not apply, however: Your paragraph is to date. Attesting to the latest survey of "Robeco" under 350 investment advisers:
Assessed in the previous quarter 57 percent of respondents still on the market for real estate funds as well, are now only 48 percent - almost a tenth less.
The view forward is obscured. For the next six months expect 38 percent increases in unit sales of the consultants. That's 4 percent from the previous quarter.
"Trust in the property fund last through the settlement of individual funds suffered greatly," says Kai Röhrl, Head of Third Party Distribution of "Robeco". "Sometimes in error, for we are not real estate funds be lumped all. Generally, investors, business, the result of economic data brightened again strengthened to equity funds. Particularly the emerging markets continue to score points with a positive outlook. "

Mutual funds: paragraphs back, expectations remain positive

The sale of mutual funds in the 3rd judge Quarter, 27 percent of the consultants as well. They are 8 percent less than in the 2nd Quarter. By contrast, the expectation of good sales. More than a third of respondents - 37 percent - credit for the next six months with good sales figures. This is an increase of 2 percent compared with the previous quarter.

Equity funds: Paragraphs pull slightly, expectations little changed

The paragraphs in equity funds have increased slightly. Compared to the previous quarter sales position to assess the 3 per cent more consultants to be positive. That's 16 percent of all respondents. Few consultants have their positive sales expectations compared to 2 Quarterly change (-1%). Sun expects at least half of the surveyed consultants (45%) for the next half-year with increasing sales.

Bond funds: paragraphs and prospects virtually unchanged

Compared to the 2nd Quarter, the sales situation and the expectation with respect to pension funds has remained virtually unchanged. With a drop of 1 percent report 16 percent of respondents good sales figures. The number of consultants, the increase in sales for the next six months expect to remain, 13 percent of unchanged (+ / -0%). The current survey results confirm the slight upward trend in pension funds.

Money market funds: sales situation further act, expectations of positive

After the depression in the 2nd Quarter is sales of money market funds continue to behave. Only 14 percent of the consultants to assess the sales situation in money market funds as well. This is only 1 percent more than in the previous quarter. Although the advisers remain cautious for money market funds. But now believe at least 9 percent of the investment adviser - and 2 percent more than in the 2nd Quarter - from increasing sales in the next six months.

Hedge Funds: paragraphs and prospects remain low

According to the survey quarter, the sales situation of hedge funds in the 3rd hardly improved. After all paragraphs valued just under 1 percent of the investment adviser as well. In the last quarter of the consultants had not drawn a positive conclusion. Also for the next six months, the consultants expect any major changes: The number of those paragraphs, the increased number is expected to remain unchanged at 1 percent (+ / - 0%).

The adviser sentiment index for mutual funds decreased slightly: Compared with the previous quarter, the index falls by 0.3 percent and now stands at 99.8 points.

Russian buyers in Bulgaria

2010-08-24T04:56:00.000-07:00

The property market in Bulgaria continues to be the first in the list of Russian property portal Prian.ru, which oversees the interests of Russian buyers of overseas property, two years now. Accordingly, in July the country's share of total search queries in the database offers the portal has grown to a record 21.55 percent. For the previous June, he was just under 20%.

Previous record in list Bulgaria has made in November 2008 - 21.27%.

Although the increased interest in Bulgaria difference between coming home and favorites do not increase as interest ranks second to Germany in July also increased compared to June

The ranking of the most popular destinations from Russian property buyers abroad remained stable third consecutive month, in top 10 occur only one amendment - Turkey gave the eighth place of Montenegro.

Estimated share continues to decrease the interest of Russians to the United States and Finland indicated by the portal. The property market in the Republic has ceased to decline in the rankings in May and June and again closer to fifth place, now occupied by Italy.

Reported by analysts on the site in May and June increased interest in "warm" countries in July has stabilized and even begun to decline. This is not surprising - in Moscow and St. Petersburg thermometers showed between 30 and 40 degrees. Most interest has fallen to the Russians to Turkey (from 3.93% to 3.32%) and Egypt (from 2.04% to 1.79%).

Outside the top 10 in July significantly increased interest in Thailand, Estonia, Sweden and Cyprus, while losing positions Lithuania and Hungary.

Top 10 countries in the interest of Russian property buyers abroad in July 2010
(The share of total search queries)

Bulgaria - 21.55%
Germany - 10.86%
Spanish - 7.22%
USA - 5.62%
Italy - 4.78%
Republic - 4.47%
Finland - 3.85%
Montenegro - 3.77%
Turkey - 3.32%
France - 2.88%

Monaco expensive housing markets in world

2010-08-23T00:07:00.000-07:00

Monaco remains the most expensive housing market in the world class - the secondary housing market there seems to average 45 thousand per square meter, a study by the London-based real estate agency Chesterton Humberts.

Its closest competitor is the favorite destination of Millionaire - French resort of Saint Jean Cap Ferrand, where the price is 32 500 square meters, followed by London in third place with a price of 22,500 euros for a square.

However, London could claim that it is the most expensive housing in the world after the recent sale of the apartment complex at One Hyde Park for 220 million dollars, says the Real Estate Channel.

New York and Paris are lagging behind in this ranking, respectively, with prices from € 15,500 / sq. m and 13,500 euros / sq. m. From a total of 22 markets examined Mauritius Phuket and go with the most advantageous price of 3 thousand square meters of

For sales of new homes have led Hong Kong, New York and London respectively, with prices from 19,500 euros, 16,750 euros and 16,500 euros per square meter

Monaco is not the first time she decorates with that title, but lately there are some disagreements as to which particular area is currently the most expensive housing market.

According to the Financial News survey of the most expensive street to buy a home in the world is Severn Road in Hong Kong. The apartments there sell for an average of 54 thousand square meters, or about 70 thousand dollars. For comparison, the Avenue Princess Grace in Monaco, the average price is 60 thousand dollars since last year prices fell by 50%, reported by Financial News, as based on data from the consulting company Knight Frank and Savills.

European hotels attract investors

2010-08-21T00:17:00.000-07:00

European hotels attract investors for stable values

Real estate investors will invest more money this year in the purchase of hotels in Europe than in the U.S. because European hotels managed to maintain its value due to poor construction, writes Bloomberg.

Acquisitions of hotels in Europe will amount to a total of about 5.5 billion in 2010 compared with 4.5 billion in North and South America, predicted by the consulting firm Jones Lang LaSalle Hotels. The transaction is expected to form in the U.S. about 90 percent of all purchases in the Americas, cited by London-based company for services in the field of investment in hotels.

Last year prices fell hotels in the U.S. than in Europe, as new buildings have increased the number of properties on the market, according to Real Capital Analytics Inc. However occupancy levels and room rates in Europe rose faster than America, led by Germany and France.

"In most American cities, if you can not get a hotel you want, you just have to wait 12 to 18 months and will be able to buy one that is being built now and is exactly what you want," said David Mongo, President and Founder of London-based investment banking company Avington Financial Ltd.

In Europe under way are projects to build 587 hotels with a total of just over 100 thousand rooms, according to analysis from December 2009 to STR Global. The U.S. plans are to be built hotels with a total of 3829 just over four hundred and one thousand room.

"The properties in Europe are more expensive, but tends to lose its value less because it is much more difficult to find a replacement asset," says Mongo.

Transactions this year is expected to grow more rapidly in the U.S. than in Europe because investment in the U.S. in 2009 were much less. The total cost for the U.S. is projected to increase more than twice that 2.1 billion dollars last year, while Europe is expected rise 25 percent to 4.4 billion dollars.

Employment in Europe increased 61% to 58% in the U.S. - 56% to 54%, according to the company in Tennessee based on studies in the field of hospitality Smith Travel Research Inc. The price per room per day in the U.S. fell 2 percent to 97.18 dollars, while Europe has registered a growth of 1.9 percent to 97 euros.

Greatest American Trust for investment in hotel properties by market capitalization - Host Hotels & Resorts Inc., In July announced the purchase of hotel Le Meridien Piccadilly in London, which has 266 rooms, 64 million pounds. 95% of the rooms of the company in the U.S..

"Many European markets have a very high barrier to entry for new construction, explains Gregory Larson, Executive Vice President Corporate Strategy at Host Hotels. "This limited growth in supply in the future. Such asset markets tend to retain high value, which in terms of the owner of the hotel is perfectly obvious. "

Chain Hyatt Hotels Corp., Controlled by Chicago Pritsker family, expected to have a higher share of rooms abroad than in the U.S. within the next 10 years, announced in January, its chief executive Mark Hoplamazyan. Company is looking for acquisitions in Italy and Spain.

Listnatata London company for real estate investments Redefine International Plc, formerly known as Ciref Plc, announced last month that it had bought five Holiday Inn hotels in London by the British operator Splendid Hotel Group for over 106 million pounds. Redefine considering other properties in London and other European cities.

As another advantage of Europe shows that markets are more diverse and less susceptible to overall economic crisis in December said Arthur Haas, CEO of Jones Lang LaSalle Hotels in July. Properties in countries such as France and Germany as well as in cities like London, has done "reasonably well" even when global economies shrugged last year, he added.

Many U.S. hotels, bought in 2006 and 2007 peak years were financed with a high percentage of debt, which has an additional pressure on the value.

"The European market fell so much in 2008 and 2009 and remained in liquidity from the U.S.. Also in Europe there is more capital. Overall debt levels in Europe are lower, "says Haas December.

Housing Markets in Scandinavia

2010-08-19T02:08:00.000-07:00

Housing prices in Sweden, Finland and Norway can be thrown, which would put some of the strongest recoveries in Europe and threaten to return to their economies in recession.

The property market in Sweden could fall as 20 percent of borrowers with loans biggest difficulty with the payment of its debts, which are up to 46 times greater than their disposable income, considered by the Royal Bank of Scotland. The Central Bank of Norway said that low interest rates carry a risk of overheating of the property and credit markets in the country while in Finland said the housing market might be shaped balloon.

"I am very worried," said in an interview with Finnish Finance Minister Jyrki Katainen. 'Maybe there is a housing bubble in Finland. There is a risk that mortgage costs are too low. "

Housing prices in the three countries increased last year, although their economies are shrugged, and unemployment rose, sparking imbalances that must now be corrected. Higher interest rates in Sweden may lead to failure of some borrowers, said the RBS. The cost of loans in Finland, a member of the euro area does is determined by the European Central Bank, which makes more difficult the management of the local economy.

Housing prices in Swedish, the largest northern economy grew by 7% annually for the three months to July, which is the 15th consecutive period of increase. In Norway, it has risen by 19.6 percent from the end of 2008 until the past quarter. In Finland the prices of existing homes rose by 10% annually the past quarter, having recorded growth of 11.4 percent for the three months to the end of March.

Lars Magnusson, Director of the National Board to guarantee loans to the Swedish Finance Ministry, said in an interview a few days ago that housing in the country will lose a fifth of its value in the coming three to five years.

"A drop of 20% would probably cause or contribute to the deepening of re-recession," said Parr Magnusson, chief economist for RBS economies in northern Stockholm. "Re-recession may occur in all cases, the deterioration of international conditions for growth."

Liabilities of households in Sweden have equal 167% of disposable income at the end of last year to 104 percent a decade ago, according to calculations of the Riksbank. In Finland, this ratio has increased to 107% at the end of last year from 65 percent in 2000, according to central bank data. In Norway, the debt ratio is expected to increase to 197% of disposable income this year, which would have increased by 14.5 points compared to 2005, calculated by Norges Bank.

The main interest of the ECB of 1% may be inadequate for the needs of the Finnish economy.

"To prevent balonizirane would be better, of course, if Finland could become self-determined monetary policy," said Mikko Force, an economist at Roubini Global Economics in London. "Yet this is not enough in itself, as they say and the central banks in Sweden and Norway. Regulation is perhaps the best tool. "

Otherwise, the three economies are about to commemorate one of the most successful recovery in the EU. Finland's GDP may grow by 1.5 percent this year after declining from 8 percent in 2009, according to government estimates. In Sweden the central bank expects economic growth from 3.8 percent this year after last year's contraction of 5.1 percent. GDP in mainland Norway will increase by 1.75 percent this year after a decline of 1.6 percent last, predicted the central bank there.

According to RBS, however, risks to the real estate market today are greater than before the credit crisis, as well as households are more indebted and less unprotected from interest changes.

Decline of construction in Bulgaria

2010-08-19T02:06:00.000-07:00

Bulgaria is among the countries with the largest decline in construction in June

For the tenth consecutive month Bulgaria ranks in the top three EU countries with the largest decline in new construction. This show Eurostat data for the construction sector of the EU in June.In this month Bulgaria reported 17.5% decline on an annual basis in its new building.

Larger decreases in June recorded only Hungary and Slovenia. Since September last year, Bulgaria every month located among the three countries, where annual new construction declined the most. The largest decline recorded our country in December, when the index plummeted 33.3% yoy.

A monthly basis (compared to May) the new construction in Bulgaria, however, reported growth of 0.2 percent. This corresponds with a monthly increase of construction in the EU from 3.5%. In some countries such as Romania, is adjusted monthly growth of over 16%.

Steady increase compared to May shows and new construction in Spain, which increased by over 7 percent (and annual - with more than 18%). Zhilishshtniyat sector of the country suffer even before the economy went into recession. This led to a decline in property prices, financial problems for many construction companies and growth in unemployment among Spaniards - currently the second highest after that in Latvia.

Pan-European data show that annually, on a monthly basis and there is growth in constructing a building within the EU. Over the past 12 months the new building is maintained primarily by infrastructure projects, while construction of buildings declined dramatically.

Therefore, these data can be taken as a signal that investment in property recovered smoothly after declined substantially in 2009 In June, constructing a building in the EU increased by 7.5% annually, but growth in the euro area is 6.4 cent.

Some of the most expensive real estate markets - such as the British already seen a small increase in housing prices. According to GDP data express the EU economy has expanded in the second quarter by 1.7% yoy. This is the biggest growth in gross product of the union since the economic crisis.

Despite these statistics, some analyst companies such as Yurokonstrakt "not optimistic. A month ago the agency launched an analysis in which the expected construction sector in Europe to shrink this year.

In 19 European countries with the largest construction market is expected to decline in the sector of 4% by end of 2010 because the suspension of state aid and the economy slow recovery. The construction sector in these countries declined by 3.1 percent in 2008 to 8.8 percent in 2009 and is expected to start growing before 2011, according to economists' Yurokonstrakt.

Garden Therapy

2010-03-22T04:01:00.001-07:00

Some have a green thumb and forget all the problems taking care of plants and flowers in a garden or a terrace. But even those who have never tried it, can try this therapy, achieving great advantages.

The Garden Therapy, or ortoterapia, is a genuine alternative medicine for 'soul and body.
Founded in 1300 when Irish monks tended gardens to combat depression, but is now used throughout the world, especially in rehabilitating people with Alzheimer's, disabled and as supportive therapy in the treatment of addictions.
This form of natural medicine has proved very useful in treating forms of stress and anxiety, more and more present today.
Busy with a piece of land or of any vessel combines an excellent exercise to practice relaxation.
In addition, the garden ol 'garden requires constant care that requires commitment and passion.
Verder satisfaction from growing the plants and nurtures a deep trust even the most pessimistic.

Herbs
If you are new to gardening, but want to use this method as stress, one can begin to cultivate herbs: they are the most robust and easy to grow even on the balcony.
Their scent communicate messages that awaken awareness and invite you to establish a relationship with them.

In one corner of the balcony, try putting those most important to health: melissa sleeping good for digestion, marjoram, thyme against bronchitis, rosemary to have more energy.

Automatic Foreign Investment in India

2010-02-17T23:46:00.000-08:00

A month and a half before the unveiling of India’s consolidated foreign investment policy, the government on Thursday doubled the ceiling on automatic foreign investment from Rs 600 crore to Rs 1,200 crore. Union commerce minister Anand Sharma, who announced the decision, said the move is expected to make India a more attractive destination for long-term investment. Under the current rules, long-term investments into most Indian sectors are ‘red-tape free’, subject to a cap on the amount of money invested. “We have got a good response from companies and investors, both from India and abroad,” he said, referring to his Christmas-eve invitation for suggestions from the public on simplifying foreign investment policy.

Sharma also announced that existing investors need not seek the government’s nod for incremental investments in sectors where a fresh investor would not be required to do so. Similarly, a single no-objection certificate from business partners would be enough for all subsequent investments of a company into India, he said. For calculating the investment, the government will look at actual capital inflow rather than the projected cost of the project, he said. The simplifications are seen as the result of the feedback given by the industry on the complexities of the existing policy. Sharma had, in December last year, urged companies and investors to give their suggestions on simplification and consolidation of India’s foreign investment rules.

Sharma said that long-term foreign investment (FDI) into India has remained at levels comparable to the year before. December saw inflows of $1.5 billion, taking the nine-month total to $20.9 billion against $21.2 during the same period a year ago. FDI flows, a signal of long-term confidence in India’s economic future, have remained flat for the last three years at around $35 billion even as the country moved up to top 3 in international ratings on investment friendliness. Sharma said the year may see record FDI inflows, despite starting off slowly. “Keeping the momentum in view, it is quite likely that FDI flows this year exceed those of last year’s,” he said. Meanwhile, India’s exports, which moved back into the positive territory in November, continued to grow in January. Total exports during January clocked $14.36 billion, clocking a growth of 11.5% compared to January 2009.

Sharma said the incentives announced by his ministry, such as cash support to exporters, would remain as they are even beyond the upcoming Budget, but some of the finance ministry-related sops, such as lower excise duties may be rolled back in a “cautious and considerate” manner in the Budget. Sharma said the government is in trade agreement talks with a number of countries, including Japan, the European Union, Turkey, New Zealand and Malaysia.

Home Prices in 2010

2010-02-03T03:58:00.000-08:00

Apartment prices at Planet Godrej, a premium residential property developed by Godrej Properties in the tony Mahalaxmi area of Mumbai, had come down to as low as Rs 17,000 to Rs 18,000 a sq ft in the property market slowdown last year. The flats now sell at Rs 27,000 to Rs 30,000 a sq ft — just short of the peak rate of Rs 32,000 a sq ft in 2007-08. It’s not the commercial capital alone that has seen real estate prices on fire. Last week, the Jaypee group sold 600 plots on the Greater Noida Expressway, near Delhi, within three days at Rs 36,000 a sq yd (one sq yd equals nine sq ft). Brokers say the plots are now available for only Rs 39,000 a sq yard and will touch Rs 42,000 a sq yard within a few days.

On Pune’s posh Bhandarkar Road, apartment prices have risen 80 per cent in just five months. For example, flats at local developer Avaneesh Construction’s housing project are now available at Rs 9,000 a sq ft, compared to Rs 5,000 in August. Welcome back to the era of crazy rises in home prices. After a year of sanity, when property developers were reducing rates even in premium areas, it’s a rewind to 2007-08, when prices had more than doubled in as many years on the back of strong buyer and investor demand, as the stock markets boomed.

Then, apartment prices had gone down by 30 per cent from their peak, as home sales had almost come to a standstill in the last few quarters of 2008-09, reflecting a worldwide economic slowing. Pranay Vakil, chairman of Knight Frank India, a leading property consultant, says: “We have seen an up to 30 per cent rise in home prices in the last six months. A lot of pent-up demand came into the market around Diwali. That, coupled with strong NRI (non-resident Indian) interest, has led to the rebound in prices. Most NRIs have invested in Mumbai property this time, instead of Dubai.'’

The NRIs were absent from the property market in 2008-09. Vakil says prices have mostly risen in prime areas, where new projects are being sold out within days and where supply is limited. For instance, in the Prabhadevi area of Mumbai, if the delivery is three years away, prices have gone up to Rs 21,000 a sq ft. If the project completion is two-three months away, prices are Rs 25,000-Rs 27,000 a sq ft. But, if a house is ready to be moved into, it could go for Rs 30,000 a sq ft, Vakil adds.

The Maharashtra government has been quick to cash in on the rise in property prices and has increased stamp duty and registrations charges by 15 to 20 per cent in Mumbai, depending on the locality in the city. Last year, it did not revise these rates, as the property market was down. Analysts clearly see the return of investors in the residential market as stock markets have started booming. In the slowdown of 2008-09, investors had vanished from markets such as the National Capital Region.

Religare Capital Markets’ Associate Vice-President P Suman Memani attributes the rebound in property rates to the stock market boom. “Till August 2009, the price rise was moderate. But, after September, when indices shot up, investor and speculative interest returned to the real estate market. Sale prices have gone up by 50 per cent in some cases. It hurts genuine buyers and is not good for the market,’’ Memani says. Take Parsvnath Developers’ premium project, La Tropicana, in the Civil Lines area of Delhi. Brokers say prices have risen to Rs 12,000 a sq ft, from Rs 8,000 a sq ft in April 2009, a rise of 50 per cent. The developer has sold 415 apartments out of the 450 they have planned. The project is nearing completion.

In Mumbai, in the Oberoi Woods project in Goregaon East, prices have risen 50 per cent in the past nine months, from Rs 10,000 a sq ft in April to Rs 14,000-15,000 a sq ft now. “It is dangerous if prices go up from Rs 2,700 a sq ft to Rs 4,000 a sq ft even if the delivery is four years away,’’ Memani adds. Realty research firm Liases Foras’ Managing Director, Pankaj Kapoor, is also not happy. “The government is helping the developers to increase prices. They allowed restructuring of loans,” he adds.

Some developers do not agree and say price increases are just a function of the market. “We will go along with interest rates. If the annual interest rate is 10 per cent, we will raise it by 10 per cent. Customers will run away if you increase it irrationally. You have to increase it only to the level where it does not affect your sales,” says Unitech MD Sanjay Chandra. Adds Hiranandani Constructions’ Managing Director Niranjan Hiranandani: “I think such an increase is only in some isolated cases. If prices are reasonable, volumes will be good. If they are too high, volumes will come down.’’ So, where are the prices headed from now on? “The acid test for the property market will come in March, when the pent-up demand goes away and NRIs pull back. If stock markets continue to do well, demand will sustain. Otherwise, it will not,'’ says Vakil of Knight Frank.

Right Time For Investment

2009-10-31T19:53:00.000-07:00

Stock markets are bouncing back, interest rates have come down from this peak, properties are cheaper than what they were a year ago and GDP is again on the move up. Does this indicate that, it's time to invest in real estate? Real estate investment involves the commitment of funds to property with an aim to generate income through rental and to achieve capital growth. When a person acquires real estate, he or she also acquires a set of rights, including possession, control and transfer rights etc. It is important to understand the dynamics of the real estate investment because it usually involves the locking of large capital over a period of time. On comparing investing in stock market with real estate investment you will find, both, stock investing and real estate investing have the same basic financial objectives: People invest money in both instruments to make money from growth and income. Both sectors have merits and demerits and are suitable for different sections of people. We believe real estate sector has an edge when it comes to security and leverage.

* An investment in property is considered a safer bet as you are investing in a "real" asset.

* Investors can borrow substantially to invest in a property, in certain cases upto 90 percent of the cost of the property.

It is very important to note that, awareness is the key to maximize returns in any investment. If you are good at identifying, managing and financing real estate properties you will undoubtedly do much better as an investor in real estate! Traditionally many of us are comfortable with real estate investing because (we see it every day and better understand the factors that affect the real estate prices around us). Real estate properties have historically gone up in value without many violent downswings. The stock market usually experiences a greater degree of volatility.

'Although the real estate sector has started showing some signs of revival, a majority of the industry experts expect the residential segment to recover by the end of 2009 with a 25-30 percent renewal in demand, said the survey report by the Federation of Indian Chambers of Commerce and Industry (FICCI). Demand for houses in the range of Rs. 15 - Rs. 25 lakh will go up by 26 percent, while those in the bracket of Rs. 25 - Rs. 40 lakh will see demand rising 22 percent, the chamber said. In another survey report by FICCI, the future of Indian retail industry bright in the coming six months as implied by the data, real estate rates in India will go up by 10-15 percent over the next four to six months.

For those planning to take a loan to buy their house, there is good news too. Several banks have slashed home loan rates recently to promote financing making it more lucrative for the buyers to invest in real estate.

Real estate prices across the nation were observed to have corrected earlier this year, however considering the last financial quarters' performance the demand for real estate investment has certainly inched upwards.

Considering the availability of various real estate options to invest in at the right price, along with best rate home loans and the future growth predicted, by FICCI, there has not been a better time to invest in real estate than now!

Places to live in California

2009-10-14T01:15:00.000-07:00

There are many very beautiful places in California, but the topic is where are the best places to live. In the north around San Francisco, it is extremely beautiful and many sites to behold, but extremely expensive and unless you have a huge high paying job, it would be a difficult place to say it was the best. I do think it is one of the best vacation spots though.

California has much to offer in the way of living happy and comfortable. It has warm free beaches, pleasnt climate and good paying jobs. Put all of this together and you get the absolutely perfect place to live. Choosing the best place to live would definitely be down south. It has reasonably priced housing and it is easily accessible to everything.

Huntington Beach:
Huntington Beach is the honeymoon capital of California and a truly beautiful place to live. It has everything. Just north of San Diego and within a short drive to Los Angeles. The homes are beautiful and medium priced and the schools are excellent. Huntington beach is in the middle of some very exclusive neighborshoods such as Laguna Beach, San Clemente and Costa Mesa. Just north a little you run into Seal Beach. These are upper end communities and you will need a little more money to buy in these areas.

San Diego:
San Diego has it all from the Sea World attraction, the world famous zoo to the many ports of call. San Diego has many jobs. Many jobs mean that you can afford to live. San Diego has beautiful beaches, tree lined streets, and lots of good food. Many of the local communities are only a few steps away and just add to the beauty of the splendorous life in San Diego.San Diego is not far from the border of Mexico also, so for a quick visit and some cheap Mexican food, Tijuanna is close by. Some of the best communities close by are: La Jolla, Oceanside, Carlsbad and Escondido.

Santa Monica and Venice:
For those who just love to smell the beach morning noon and night, these are the towns for you. They are more expensive than the Downey and Lakewood areas, but they have many amenities. Santa Monica is famous for its peirs and Venice has its walk ways and bicycle trails. They are more metropolitan compared to Downey and Lakewood.Downey and Lakewood are more home town USA type areas and Santa Monica and Venice are more of the type of places where people like excitement and the night life.

Malibu and Santa Barbara:
These last two cities are the cream of the crop. They are where celebrities live and vacation. They are next to the ocean with the best view and they are very expensive. Malibu has small lots and right on the ocean and Santa Barbara is off the ocean trail, but it has huge tree lined lots.

Why even Oprah and Barbara Streisand live there. They are extremely beautiful cities and extremely desired. A home in Santa Barbara is a home next to heaven.No matter where you decide to "hang your hat," California welcomes you with open arms. Beautiful beaches, nice climate and plenty of jobs. All the necessities of life.

Lakewood, Long Beach and Downey:
Some of the best places to live in California is here. The homes are very reasonable in price, the schools are very good and these are safe areas to live. Whether you want to take a walk to the park or go have a hamburger late at night, anyone at any age will feel free to roam. There are certain areas of North Long Beach to stay away from, but the majority of Long Beach is upper class and very good to spend the rest of your life there.

Downey is the best of them all. It is a beautiful and safe community. It is surrounded by the I-5 and the I-10 on each border, a skip and a hop from downtown Los Angeles. It has Stonewood Mall and many large hotels that are easily accessible. Embassy suites has nightly happy hour with free coctails and live entertainment.

Many restaurants from Papa John's Pizza to Marie Callender's Restaurant. Richard Carpenter's home was in Downey for years and recently sold for over two million dollars, not the norm for sure. It is a place of comfort and a place to send your children to some of the best schools.

Common Mistakes By Landlord

2009-09-18T23:47:00.000-07:00

Owners of residential and commercial property must be careful in preparing and signing leases with tenants. Beyond the dollars and cents of the agreement and the income or financial statement analyses, an owner must consider how to protect themselves before, during and after the term of the lease. This overview of commercial and residential leases highlights several common mistakes made by property owners when leasing to a tenant. This overview addresses these issues directly, but is not an all-inclusive summary with respect to important issues facing a residential or commercial landlord.

Owners of residential and commercial property must be careful in preparing and signing leases with tenants. Beyond the dollars and cents of the agreement and the income or financial statement analyses, an owner must consider how to protect themselves before, during and after the term of the lease. This overview of commercial and residential leases highlights several common mistakes made by property owners when leasing to a tenant. This overview addresses these issues directly, but is not an all-inclusive summary with respect to important issues facing a residential or commercial landlord. Leasing and contract preparation requires expertise—from the owner, from outside consultants and preferably from an experienced real estate attorney. While the author has substantial legal experience in real estate and leasing matters, this article should not be construed as formal specific legal advice to the reader, nor should the reader consider the author to be his/her attorney solely on the grounds of having read this article. Every owner, every tenant and every lease is unique and advice for particular circumstance really does require individual review and consideration.

Legal disclaimers aside, an owner who wants to protect themselves from potential liability and attorney’s fees (not to mention administrative headaches), should consider the issues detailed below with respect to the following 5 lease provisions, which commonly lead to substantial landlord mistakes:

1. Use Limitations
Overview: While the intended use of the property has undoubtedly been considered well in advance of the signing of the lease agreement, it is essential that an owner include detailed limitations on the tenant’s rights to use the premises. Due to assumptions, prior informal conversations and failure to consider potential ramifications, an owner may overlook this important portion of any lease.

Commercial Lease: A commercial lease should accomplish 4 things with respect to use of the property:

(1) Spell out the sole permitted use of the property by tenant. The lease should state simply what the property is to be used for (ex: retail clothing and apparel store, fast-food restaurant, general non-retail office space). Regardless of oral understandings, prior use or anticipated current use, the lease should bind the tenant to the designated use.

(2) Detail specific limitations to the use. The lease should spell out specific disallowed uses, which the owner wants to avoid on the property, that may typically arise in connection with the intended use (ex: no retail activity, limitations on signage or window usage, limitation on number of employees in office, prohibition on style of restaurant service, specifications regarding delivery hours, procedure and location, etc.)

(3) List Specific Prohibited Uses. The lease should explicitly prohibit any business or activity that is illegal or not permitted by zoning ordinances, any use of hazardous materials, any use not permitted due to an exclusive use of another tenant and other desired limitations such as prohibiting adult-oriented services and retail.

(4) Require Certain Obligations of Tenant. Tenant should be required to maintain the property in good and clean condition, operate during desired business hours, operate without substantial periods of closure and should be obligated to notify landlord in writing in the event of any changed or additional use of the premises.

Residential Lease: While residential use specifications and limitations do not need to be as detailed as those applicable to commercial leases, there are still significant considerations that must be made. A properly-drafted residential lease should consider the following use limitations and specifications

(1) Specify Residential Use. A residential lease should indicate that the property is to be used solely for residential purposes and for no business, retail or other commercial uses.

(2) Limit the Number / Type of Occupants. An owner should consider what limitations should be placed on the number of occupants, the relationship between occupants and the permissibility of overnight and/or long-term guests. Limitations on group gatherings may also be desirable depending on circumstances.

(3) Require Certain Obligations of Tenant. A residential lease should obligate the tenant to maintain the property in good and clean condition and may limit period in which the property can be left vacant during the term of the tenancy.

Required Insurance Provisions

Overview: A well-drafted lease should spell out the insurance requirements of both the owner and the tenant. A property owner must be diligent in being sure that its property (and pocketbook) are protected upon the occurrence of events ranging from a fire or a slip-and-fall accident to a disgruntled tenant or negligent (or malicious) acts of a tenant or other party.

Commercial Lease: A commercial lease should explicitly require the tenant to obtain multiple types of insurance. In order to be sure these protections are in place, the owner will want to insert a contract provision specifically requiring tenant to provide proof of insurance. Furthermore, the landlord should retain the right to purchase the insurance policies on tenant’s behalf (and charge tenant the cost) if tenant fails to provide this proof within a designated time frame. It is important that the relevant insurance policies become effective immediately upon tenants occupancy/use of the property. An owner of a commercial property will typically want to consider requiring the lessee to obtain the following types of coverage*:

(a) Commercial General Liability
(b) Commercial Property
(c) Workers Compensation
(d) Business Auto Liability
(e) Business Interruption and Extra Expense Insurance

Residential Lease: Insurance requirements in a residential setting are typically lighter than a commercial setting for obvious reasons, mostly having to do with the intended use of the property. However, an owner must consider requiring a residential tenant to obtain certain basic types of insurance policies. If these policies are required, the landlord should require that proof of insurance be provided to the landlord. The following basic coverage* should be considered in a residential setting:

(a) General Liability
(b) Real Property Insurance
(c) Renters Insurance

*Insurance limit amounts should be determined in consultation with a qualified professional.
Protections in the Event of Tenant’s Default

Overview: No matter how well-drafted a lease is or how well-situated a tenant might be, there will unfortunately be instances where a tenant defaults on its obligations under the lease. Whether due to cash flow shortfalls, misunderstandings regarding lease terms or simply a negligent (or malicious) tenant, every owner faces the very real risk of a tenant not living up to their contractual obligations. It should be noted that defaulting on a lease encompasses much more than late (or unpaid) rent—it also includes such events as misuse of the property, failure to obtain required insurance or violating other specific terms of the lease agreement.

Commercial Lease: A commercial lease should broadly define what constitutes default, including the following events/actions: (i) failure to make timely rental payments, (ii) failure to perform any covenants under the lease after a period of written notice from landlord, (iii) failure to perform any covenants under the lease which creates a hazardous condition which tenant fails to immediately cure upon notice from landlord, (iv) an event indicating tenant bankruptcy or other financial insecurity, including a writ of execution against the premises, and (v) tenant vacating the property for more than a designated period of days (usually 10 days). A properly-drafted lease should also detail the rights that the owner has against the property and the tenant, including the following:

(a) Owner has right to declare the lease terminated and repossess the property.

(b) Owner has the right to recover all amounts due under the lease and those that will become due.

(c) Owner has the right to recover the cost of any construction allowance or other costs associated with tenant entry into the lease.

(d) Tenant shall be responsible for all costs (including attorneys fees) expended by owner in the termination of the lease and vacation of the property.

(e) Owner may re-enter the premises and lease them to a new tenant.

(f) Tenant shall be responsible for all costs associated with re-leasing the property.

Residential Lease: While provisions in a residential lease will be quite similar to those in a commercial lease, there are some subtle differences, usually amounting to slightly simpler terms. A residential lease should broadly define what constitutes default, including the following: (i) failure to make timely rent payments, (ii) failure to perform any covenants under the lease after a period of written notice from landlord, (iii) an event indicating tenant bankruptcy, and (iv) the existence of a writ of execution against the premises or the tenant’s leasehold interest. A properly-drafted lease should also detail the rights that the owner has against the property and the tenant, including the following:

(a) Owner has right to declare the lease terminated and repossess the property.

(b) Owner has the right to recover all amount s due under the lease and those that will become due.

(c) Tenant shall be responsible for all costs (including attorneys fees) expended by owner in the termination of the lease and vacation of the property.

(d) Owner may re-enter the premises and lease them to a new tenant .

(e) Tenant shall be responsible for all costs associated with re-leasing the property.

Landlord’s Default: It is not typically necessary to include specific provisions regarding landlord default. In the event that tenant insists on such provisions, they should be narrowly defined with limited potential remedies granted to tenant. An attorney should be consulted.
Necessity of a Personal Guaranty

Overview: An owner must seriously consider a personal guaranty for both commercial and residential leases. A guaranty provides an owner with added security regarding payment of rent and other expenses (and liability) while also committing the tenant to further responsibility and investment in the use of the property. There are no practical downsides of a guaranty for an owner.

Commercial Lease: A commercial lease should be guaranteed by an individual with adequate financial security. This will often be the owner of the company, a major investor in the business or a person with a close personal relationship to the operator of the business. The traditional theory is that the closer the guarantor is to the operation of the business the better, as they will have a vested interest in the success of the business, which always benefits the landlord. An owner may consider waiving the necessity of a personal guaranty in the event the tenant company has sufficient cash flow and credit history, or in the event of a renewal with a trustworthy long-time tenant. The contents of a personal guaranty requires the advice of an experienced attorney.

Residential Lease: If a residential tenant does not have adequate income and/or personal credit history, an owner should seriously consider requiring a personal guaranty from a separate individual with more a more secure financial position. The content of a personal guaranty requires the advice of an experienced attorney.
Sale of the Property During the Lease Term

Overview: Any owner of property knows that the day will come when they will want to sell the property. With respect to the lease, the owner needs to be sure to protect its right to transfer (i.e. sell, give away, or transfer to a related business entity) the property while not terminating the lease. The following provisions will prove necessary to protect the owner’s right and ability to do so.

Commercial or Residential Lease: Four predominate issues arise in the event a landlord wishes to sell leased property: (i) the continuation of the lease, (ii) continued liability of the landlord, (iii) the obligations of the tenant with respect to the new owner and (iv) the providing of relevant lease information to prospective purchasers. To these ends, the following provisions should be included in both residential and commercial leases:

(1) Termination of Landlord’s Liability: “In the event of any sale or exchange of the premises by landlord and assignment by landlord of this lease, landlord shall be and is hereby entirely freed and relieved of all liability under any and all of its covenants and obligations contained in or derived from this lease arising out of any act, occurrence or omission relating to the premises of this lease occurring after the consummation of such sale or exchange and assignment.”

(2) Subordination and Attornment: “Upon written request of landlord, or any mortgagee or beneficiary of landlord, tenant shall in writing subordinate its right hereunder to the interest of any ground upon which the premises is situated and to the lien of any mortgage or deed of trust, now or hereafter in force, against the land and/or building on the premises and to all advances made or hereafter to be made upon the security thereof.”

(3) Power of Attorney: “Tenant hereby irrevocably appoints landlord as attorney-in-fact for tenant with full power and authority to execute and deliver in the name of tenant any instruments or certificates to carry out the intent of [the previous article]. If fifteen (15) days after the date of a written request by landlord to execute such instruments, tenant shall not have executed the same, landlord may, at its option, cancel this lease without incurring any liability on account thereof, and the term hereby granted is expressly limited accordingly.

(4) Estoppel Certificates: “Within ten (10) days after request therefor by landlord, tenant agrees to deliver to any proposed mortgagee or purchaser, or to landlord, a certificate in recordable form, certifying, if such be the case, that this Lease is in full force and effect and that there are no defenses or offsets thereto, or stating specifically those that are then claimed by tenant, and any other reasonable information requested for the proposed mortgagee, purchaser, or to landlord.”

(5) Transfer of Deposits: “Landlord shall deliver the funds deposited hereunder by tenant to the purchaser of landlord’s interest in the premises, in the event that such interest be sold, and thereupon landlord shall be discharged from any further liability with respect to such deposit.”

Phuket Real Estate Still Hot in The Market

2009-09-03T23:00:00.000-07:00

The economy recession and political factors has not slowed down real estate business in Phuket, as demand remains steady.

Phuket has long been a favorite tourist destination from people all over the world. The breathtaking views around the island, the wonderful beaches and not to mention, varieties of great food have not only attracted people to come here, but to call it home as well. The island’s real estate has become a thriving business with properties mushrooming all over and the currency exchange rate advantage by overseas buyers has by far, made the intent for ownership even more attractive. Despite the economy slowdown, luxury villas in Phuket has seen a steady demand throughout, with a Bt3.5 billion transaction hit in the second quarter of 2009, as reported by C9 Hotelworks consultants. With increasing demand over the years, it is predicted that these properties won’t be enough to meet the needs of the market and this will in fact drive the increased value of it.

Darren Edmonstone, Outrigger Enterprises Senior Vice-president for Asia, whose company owns two massive luxury properties in Phuket, says that warm-weather resort destinations in Southeast Asia are in fact the most appealing development spots today. Other known developers who have jumped into the bandwagon includes Prism Estates, a Hong Kong based developer. Prism Estates has just completed the site infrastructure for Istana, a luxury villas project which was featured in Robb’s Reports Vacation Home as their ‘Top Ten Thailand Luxury Properties’ in July 2009.