Affordability problems in the UK could be providing a boost to the overseas property market, an expert has suggested.
Beth Collingz from Pacific Concord Properties said that since many young people could not afford to buy a property in Britain, some were opting to invest in homes abroad instead.
She stated that these people were continuing to live in rented accommodation in the UK, while saving the money generated from rental income.
The total gained from tenants, holidaymakers and the capital appreciation of the building could then be used to make up the shortfall in Britain and allow them to buy a home or flats.
Ms Collingz commented: While land and housing prices in the U.K. have soared astronomically in the past decade, the world real estate market is a far different story.
The average property in the UK now costs about £225,100, making it more expensive than countries such as Spain and Italy.
Let's invest mates!
Cheers
Sunday 27 July 2008
Friday 25 July 2008
Demand holds despite rising rates
Yesterday's clearance rate was 63% for 464 auctions. This is up 1% on last Saturday, which had fallen 4% from the previous weekend.
"The fact that the remaining banks have increased their rates this week certainly hasn't provided any help to the market, but (activity) hasn't dropped as much as it could have," said Enzo Raimondo, chief executive of the Real Estate Institute of Victoria.
One of the highest prices paid yesterday was for 98 Rowell Avenue, Camberwell, which sold for $1,291,000, or 17% more than the reserve. The four-bedroom family house attracted four bidders, with strong enough competition for it to open at $1.05 million and sail easily past the reserve at $1.1 million.
"It went to a couple who had seen the property for the first time (that day)," said Hocking Stuart director Glen Coutinho.
Hocking Stuart reported a clearance rate of 63% for the 54 auctions held across its network yesterday, with five returning results of more than $1 million.
A vendor bid of $300,000 opened the auction of 12/37 Wheatland Road, Malvern, with competition between five bidders strong enough for the one-bedroom unit to sell for $368,000. Richard Wakelin, director of Wakelin Property Advisory, said the property had been declared on the market by RT Edgar for $38,000 less.
Cheers mates
"The fact that the remaining banks have increased their rates this week certainly hasn't provided any help to the market, but (activity) hasn't dropped as much as it could have," said Enzo Raimondo, chief executive of the Real Estate Institute of Victoria.
One of the highest prices paid yesterday was for 98 Rowell Avenue, Camberwell, which sold for $1,291,000, or 17% more than the reserve. The four-bedroom family house attracted four bidders, with strong enough competition for it to open at $1.05 million and sail easily past the reserve at $1.1 million.
"It went to a couple who had seen the property for the first time (that day)," said Hocking Stuart director Glen Coutinho.
Hocking Stuart reported a clearance rate of 63% for the 54 auctions held across its network yesterday, with five returning results of more than $1 million.
A vendor bid of $300,000 opened the auction of 12/37 Wheatland Road, Malvern, with competition between five bidders strong enough for the one-bedroom unit to sell for $368,000. Richard Wakelin, director of Wakelin Property Advisory, said the property had been declared on the market by RT Edgar for $38,000 less.
Cheers mates
Saturday 12 July 2008
Banks hit us hard, but we lap it up
Official home loan figures released by the Bureau of Statistics show the share of new loans being signed with banks struck a decade-high 83.6 per cent in January - the first month banks began adding their own sting to official rate rises.
The shift by borrowers towards banks came amid calls by the federal Treasurer, Wayne Swan, for customers to "vote with their feet" if they did not like the interest rate rise set by their lenders.
It was impossible to tell from the figures whether customers were switching between banks, but it was clear they were not switching to non-bank lenders.
Perhaps people are also a little bit worried about the issues of the non-bank lenders and the credit crunch problems.
The latest rises mean there is now no common variable rate. ANZ and St George have the highest standard rate, 9.37 per cent, followed by Commonwealth on 9.32 per cent and NAB and Westpac on 9.27 per cent.
Mr Swan said that customers would reward banks that best shielded them from increased interests flats costs flowing from the US subprime crisis. Banks which don't act in a way which their customers think is reasonable will now run a greater risk of losing customers.
The shift by borrowers towards banks came amid calls by the federal Treasurer, Wayne Swan, for customers to "vote with their feet" if they did not like the interest rate rise set by their lenders.
It was impossible to tell from the figures whether customers were switching between banks, but it was clear they were not switching to non-bank lenders.
Perhaps people are also a little bit worried about the issues of the non-bank lenders and the credit crunch problems.
The latest rises mean there is now no common variable rate. ANZ and St George have the highest standard rate, 9.37 per cent, followed by Commonwealth on 9.32 per cent and NAB and Westpac on 9.27 per cent.
Mr Swan said that customers would reward banks that best shielded them from increased interests flats costs flowing from the US subprime crisis. Banks which don't act in a way which their customers think is reasonable will now run a greater risk of losing customers.
Thursday 10 July 2008
Real Estate Prices hit Adidas India Plans
Expansion plans of footwear and apparel major Adidas India has been hit by high real estate prices ruling in the country, a company official said.
Adidas India Marketing Private Ltd’s Managing director Andreas Gellner told reporters, “Rise in real estate prices has been affecting our growth plans in India”.
The company’s was planning to increase the number of retail stores from 325 at present to 450 by the end of 2008. It operates the stores through franchisee route.
Talking about real estate prices, he said that the prevailing rentals were not realistic. Typically, the flats rentals should be around 15-17 per cent of turnover per square feet.
However, the rentals at the moment were more than 20 per cent per square feet. In some cases it was around 40 per cent per square feet, he said.
Gellner said Adidas was not keen to spend that high an amount since the brand was not new to India. “We are in India for the last 13 years.”
Adidas India Marketing Private Ltd’s Managing director Andreas Gellner told reporters, “Rise in real estate prices has been affecting our growth plans in India”.
The company’s was planning to increase the number of retail stores from 325 at present to 450 by the end of 2008. It operates the stores through franchisee route.
Talking about real estate prices, he said that the prevailing rentals were not realistic. Typically, the flats rentals should be around 15-17 per cent of turnover per square feet.
However, the rentals at the moment were more than 20 per cent per square feet. In some cases it was around 40 per cent per square feet, he said.
Gellner said Adidas was not keen to spend that high an amount since the brand was not new to India. “We are in India for the last 13 years.”
Sunday 6 July 2008
Palaces making way for Apartment Complexes
Regarded as the most ancient living city in the world, Varanasi evokes exotic and spiritual feelings. The fact that the city is a maze of narrow lanes and bylanes makes the real estate sector follow its own typical pattern.
The traditional mindset of the people here has resulted in only the properties in established and old areas witnessing a surge in prices. Buyers are still reluctant to move to new areas. “People do not prefer to invest in new areas that are being developed due to the age-old mindset of the people,” said VN Singh a prominent property developer and investor.
The city, well known for zari-zardozi work, weaving and Banarasi sarees, is flush with funds leading to property prices being comparatively higher than other large cities in Uttar Pradesh.
The commercial hubs are Sigra, Mahmoorganj, Ardali Bazaar, Lanka, Gadaulia and Lahurabir. Lease rents for an office space in Sigra range from Rs 40-50 per sq ft a month; Mahmoorganj Rs 30-40 and Lahurabir Rs 25-30. While the lease rent could go much higher — by about 20% — in these areas if the property is located on the ground floor with good frontage. Commercial property rates for outright purchase in these areas range between Rs 3,000 and Rs 5,500 per sq ft.
Development and marketing of flats, both residential and commercial, in the city is mostly dominated by the local builders, some of whom have executed large projects and have acquired credibility among the locals. Big names like Unitech, Ansals and Sahara Housing have now started initiating housing projects.
The traditional mindset of the people here has resulted in only the properties in established and old areas witnessing a surge in prices. Buyers are still reluctant to move to new areas. “People do not prefer to invest in new areas that are being developed due to the age-old mindset of the people,” said VN Singh a prominent property developer and investor.
The city, well known for zari-zardozi work, weaving and Banarasi sarees, is flush with funds leading to property prices being comparatively higher than other large cities in Uttar Pradesh.
The commercial hubs are Sigra, Mahmoorganj, Ardali Bazaar, Lanka, Gadaulia and Lahurabir. Lease rents for an office space in Sigra range from Rs 40-50 per sq ft a month; Mahmoorganj Rs 30-40 and Lahurabir Rs 25-30. While the lease rent could go much higher — by about 20% — in these areas if the property is located on the ground floor with good frontage. Commercial property rates for outright purchase in these areas range between Rs 3,000 and Rs 5,500 per sq ft.
Development and marketing of flats, both residential and commercial, in the city is mostly dominated by the local builders, some of whom have executed large projects and have acquired credibility among the locals. Big names like Unitech, Ansals and Sahara Housing have now started initiating housing projects.
Wednesday 2 July 2008
Realty needs Indices Similar to Equity Market
The Real estate industry in India has been growing by leaps and bounds in the past few years. However, the country still lacks a credible way to cross-check the price swings (real or reported) in the sector. For example, recent reports of residential prices cooling off in major cities of the country could not be verified.
There was no authentic data to indicate such a trend. Thus, flats buyers remain confused, not knowing, for instance, whether Mumbai property prices fell more than that of Delhi in the last quarter?
The same does not happen with equity investors. If, at the end of the day, anyone wants to know the day’s market trend, he could visit BSE/NSE website or see next day’s newspaper to know the exact rise or fall of Sensex or Nifty. And nobody questions the authenticity of Sensex or Nifty as a barometer of market sentiment. With years of index publishing, a sort of credibility and association has been built with the equity investors by these financial institutions.
There was no authentic data to indicate such a trend. Thus, flats buyers remain confused, not knowing, for instance, whether Mumbai property prices fell more than that of Delhi in the last quarter?
The same does not happen with equity investors. If, at the end of the day, anyone wants to know the day’s market trend, he could visit BSE/NSE website or see next day’s newspaper to know the exact rise or fall of Sensex or Nifty. And nobody questions the authenticity of Sensex or Nifty as a barometer of market sentiment. With years of index publishing, a sort of credibility and association has been built with the equity investors by these financial institutions.
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