Around 450 properties owned by foreign nationals in Goa have come under the scanner of the enforcement directorate (ED).
The ED has sent notices to 32 property owners while in 12 cases, the properties have been confiscated for Foreign Exchange Management Act (FEMA) violations.
These include flats, bungalows, agricultural land and ancestral properties. The ED has issued notices to the nationals of Britian, Russia, Italy and some other countries after they were allegedly found contravening Section 6(3)(i) of FEMA which deals with acquisition of immovable property in India by foreign nationals.
The ED has issued notices to 450 properties owned by foreigners
A senior official said the ED had found that the foreign nationals had violated RBI guidelines that require certain obligatory permissions to be taken before purchasing immovable property in India.
Goa chief minister Manohar Parrikar said the government had decided to approach the authorities concerned to seek concession for those foreigners whose cases are genuine.
But the government would not defend the huge investments made for commercial purpose.
“We can take up the cases of small houses or flats,” Parrikar explained.
The chief minister said the state would take up cases that involved senior citizens who had invested their savings and for those dwellings which were old.
There is no real data on foreigners buying land or properties in Goa. But most of such immovable properties are along the beaches of Candolim, Morjim, Anjuna, Baga and Palolem in south Goa.
Crackdown on crime
The Goa government has decided to crack down on Nigerians involved in crimes in the state, including overstaying after expiry of their visas.
Those on student visas who are not students will be deported.
“There are several Nigerians who commit crime just to stay on in Goa” CM Manohar Parrikar said in the assembly.
Read more: http://www.dailymail.co.uk/indiahome/indianews/article-2303667/Foreigners-owning-property-Goa-enforcement-directorates-radar.html#ixzz2PidH2Fnv
More than 50 developers will exhibit about 200 projects worth QR10 billion ($2.74 billion) from across India at the Indian Property Show opening in Doha tomorrow.
The event will run until March 30 at La Cigale Hotel.
Expected to be visited by over 5,000 genuine buyers, Indian Property Show by Sumansa Exhibitions is recognised as one of the most diverse and largest exhibition of Indian Properties in many cities. Having delivered 16 internationally acclaimed shows in world’s top cities, this is the first time this show is being held in Doha.
The exhibition will provide a unique platform for Non Resident Indians in Qatar to interact face to face with Indian property developers, financial institutions, legal advisors, Vaastu consultants and more all under one roof.
There will be seminars which will offer visitors opportunities to learn about issues such as the principles of Vaastu, legalities of buying property and the do’s and don’ts of financing among others. Visitors can meet, interact and discuss with the best in the business or even seek advice from industry experts.
Featuring affordable to luxury and from investment to commercial spaces, developers will be showcasing apartments, villas, row houses, commercial, retail properties and farm land from across India.
Exclusive Property Dhamaka will bring exciting and unbeatable offers from participating developers that include discounts, amazing holiday packages for families, free property registrations and much more for on the spot bookings.
Sunil Jaiswal, CEO, Sumansa Exhibitions said: “The Indian real estate market is expected to rise to $90 billion by 2015. The depreciating rupee may be a concern for the Indian economy, but NRIs are the happier lot as they find the time is ideal for real estate investment in India. In flow of funds into property sector has increased by 25-30 per cent due to rupee depreciation.”
“The NRIs are cashing in on this deprecation and are making a beeline to buy property in India. According to the World Bank, India continues to retain the top slot in remittances by expatriates from abroad and these are mainly used for family needs and investments in stocks, property and term deposits.
“Real estate here is preferred because of a desire to create a higher lifestyle for the family and the price appreciation in the long term.”
Santosh Tandel, regional head – Mena Region, Indiabulls, said: “We are now closer to our customers in Qatar as a result of our recent collaboration with Doha bank, they are our local representative.”
“Doha Bank’s agreement with Indiabulls serves the growing demand from expatriate Indians for home loans and property acquisitions in India. NRI customers seeking to purchase homes in India through Indiabulls Real Estate can approach Doha Bank to secure financing at very competitive rates with flexible repayment schedules. Complimentary Home Loan eligibility checks, special offers on Indiabulls properties and exclusive promotions for Doha Bank’s customers will be part of the offer.”
“The fall of the rupee is encouraging more investment by Gulf-based non-resident Indians (NRIs) into the realty market which offers relatively higher returns. Properties continue to be a preferred choice for expat Indians for investment and asset creation.
“What they look for is a good brand to invest and a price point which is good to enter. For NRI’s reputed developer with good track record, quality and possible price appreciation is an important factor. We offer a range of investment options right from INR40 lacs ($735,000) to 20 crores and response is overwhelming”, added Tandel. – TradeArabia News Service
The name of your house can affect how it sells. Roderick Easdale finds out how you can make your property more of less appealing by changing what it is called.
House names matter. The right one makes your property more saleable; the wrong one can hinder a deal. Some agents, such as Stephen Parry of Sotheby’s International Realty, believe that ‘without question, names can add value to residential properties, as they can create prestige’. Prime Purchase’s Jazmin Atkins is more cautious: ‘Whether a name actually adds a monetary value is debatable.’ However, she continues, ‘it certainly adds cachet. In London, numbers can bring distinction-take One Hyde Park, for example-but in the country, it’s all about the name’.
Read more : http://www.countrylife.co.uk/property/article/530647/How-to-sell-your-house-What-s-in-a-name-.html
In desperate times, we do desperate things. On countless occasions in the past few years, many of us have “imagined” a recovery based on the flimsiest evidence around. A car crash on Dubai’s Sheikh Zayed Road resulting in a traffic jam — all that traffic must mean Dubai is back. Bad weather in Europe resulting in flights being overbooked — that must surely mean Dubai is back. Renovation work in the mall resulting in massive queues — that must surely mean Dubai is back.
None, of course, turned out to be true. But in the past few weeks, something has changed. There is a whiff of confidence around, a feeling the worst is really over, and dare I say it, a possibility that the glory days of Dubai may yet return.
This year alone, eleven huge projects have been announced. It is worth listing them: Mohammed Bin Rashid City; Meydan’s new development across the Nad Al Sheba landscape; Madinat Jumeirah expansion; Meydan Tower; Taj Arabia; Business Bay Canal Project; Dubai Theme Park; World Discus Hotel; Habtoor Palace; The Dubai Modern Art Museum and Opera House District, and the relaunch the iconic QE2 cruise liner as a 300-room luxury floating hotel.
Let’s make no bones about it. It’s a dodgy business, isn’t it? Real estate agents aren’t exactly loved in this part of the world, and despite being at the heart of the industry, I have to agree with much of the sentiment.
Not long ago, Arabian Business ran a feature headlined ‘Imagine a world without estate agents,’ with this magazine making a case to ditch the lot of us and put us out of business once and for all. While I echo some of the sentiment in that piece, such an idea is purely wishful thinking. Buyers and sellers need an independent third party to act on their behalf — quite often because both sides are extremely busy getting on with their own lives and jobs.
But that doesn’t mean the estate agency business shouldn’t get its house in order. Which is why I am launching SKAI Real Estate, as part of my own mission to clean up the industry. Will it work? Only you can decide that. Though to begin with, we need to address the key problems and their solutions.
Dubai: With an economy on the mend and trade flows recording consistently high growth, industrial and logistics real estate in the UAE is becoming a must have asset for investors. The industrial zones in Dubai are getting a lot of this investor interest and so are choice locations in Abu Dhabi.
Investor demand for such properties is broad-based – “Interest is not just originating from the UAE but across the GCC with investors looking for stable assets such as logistics premises,” said Andrew Powell, surveyor for industrial and logistics at Cluttons. “Demand has led to a hardening of yields and higher asking values, but this is coupled with the limited supply of good quality assets of this nature.”
On the supply side there will be more emerging out of the pipeline in the near to medium term. Additional areas within Dubai Investments Park (DIP) were designated as long-term leasehold – of up to 85 years – through a recent decree, and this will be used principally for new industrial properties.
The new leasehold regulation is applicable across all the zones in DIP, including residential, commercial and industrial. The move will allow existing tenants in lease brackets spanning from 30 to 60 years to acquire additional property for more than 80 years.
“With the economic and political turmoil seeing a gradual end in this region, we hope to be the first choice for investors seeking to set up shop on secure and self-contained premises in Dubai,” said Omar Mesmar, general manager, DIP.
DIP had a take-up of more than 300,000 square metres in the year to date, according to a recent Cluttons note, while Dubai Industrial City – with 10 million square feet – has done 75 per cent occupancy.
Recently, Dubai World Central – the emirate’s all-encompassing logistics hub in the making – received a major boost with the Swiss multinational Nestle taking a 175,000 square metre plot there.
The emphasis is on quality stock, which could fetch leases of up to Dh30 a square foot. “Values for quality stock will remain range-bound,” said Powell. “However, should further units be released that do not meet the higher specifications and demands of international operators, then this will affect the market and values will slip as there is already an oversupply of poor quality stock.
“Another risk is if further land is allocated to the sector too fast, then growth will be restricted by constant top up supply.”
Other market sources agree that a sharp firming up of values within the industrial real estate space may not come to pass. “While there has been more interest of late, I don’t believe prices have firmed up much as there is a supply glut of both warehouses and labour camps,” said Manish Khatri, partner at SPF Realty. “These assets are mostly of interest to UAE-based companies for their operations and not overseas investors. But Dubai’s decision not to allow companies to put up labour in other emirates is not helping.”
Taken from another perspective, that would work to the advantage of Dubai’s industrial clusters.
Source: http://gulfnews.com/business/property/uae/industrial-properties-in-dubai-strike-a-chord-with-investors-1.1065021
Making housing affordable, avoiding a property bubble and ensuring there is no over or under development are some key issues.
FOR the vast majority of people property means getting a respectable roof over their heads with proper amenities in a decent neighbourhood, and getting it affordably.
For others, it is about getting a second or third property or more for the sake of investment – a good return eventually for the price they paid and as a hedge against inflation because property prices mostly continue to rise in the long term much faster than inflation.
The most sophisticated of them don’t just restrict their investments to the residential market but dabble as well in commercial and industrial space such as shops, offices and factories, wherever they may be located.
Socially, there has to be regulation of property development not only to ensure that it is done up to certain standards but to ensure a proper mix between the various kinds of development such as residential, commercial and industrial and the various segments within these broad sectors.
It would be a mistake to micromanage however and within broad guidelines, it is often best to leave it to the market place to adjust things. But it does take a long time for things to adjust in property because of the gestation period before a property can be brought to market.
Ideally, property development should take place under the aegis of a broad master plan which has been formulated after intense study and research, taking into account projected population growth and other demographics. It should be dynamic to take into account changes.
Unfortunately we don’t stick to a plan in terms of development and even when there is a master plan it is often overruled by those in authority for other reasons which are often not compelling from an economic viewpoint.
In residential development, the greatest challenge is, of course, providing decent housing at affordable cost to the vast majority of the population. Unfortunately that is also a function of income – if people are poor, they won’t be able to afford nice houses no matter what.
But we are a middle-income country and we can do some things to keep prices of properties within reasonable levels. The best gauge of that is in relation to our own income level instead of making comparisons with countries with much higher incomes (eg Singapore) or those where special situations make property expensive (eg Mumbai).
Prices are always a function of demand and supply. Some moves simply increase demand, often without a fundamental increase in demand for actual occupation. Opening up property purchases to foreigners often result in a spurt in demand at the time of sale but properties may not get occupied. Look at some high-end properties in Mont’Kiara and around the twin towers area in Kuala Lumpur for illustration.
Also, making a leveraged property purchase easy encourages property speculation. If you pay 5% down and if your next payment is two years later and if the property appreciates just 10%, you have made 100% (before transaction costs) in two years or 50% a year roughly. That is powerful incentive for speculation, creating an artificial demand that can collapse two years out.
To curb such kinds of speculation which lead to temporary surges in house prices and a potential bursting of the bubble in future, it will be necessary to curb foreign property purchases and easy financing schemes.
Meantime, the state and federal governments and their agencies must be more circumspect about handing out their landed assets to developers at very low cost to develop. Developers naturally want to maximise their returns and high-end, high-density properties offer the best returns.
Instead governments and their agencies should develop a master plan for the land they have and allocate the areas meant for low-cost, medium and high-end residential as well as commercial and industrial. Then they can invite the developers to bid for the parcels they will develop.
All that would take a lot of work, yes, but nothing worthwhile comes without proper effort. Examples to emulate for low-cost to medium-cost housing might be the Singapore Housing Development Board which has strict criteria for purchase of property, resale and standards.
Examples not to emulate would be Singapore again which has adopted a free and unfettered stance as far as sale of property to foreigners is concerned which has priced high-end property beyond the vast majority of Singaporeans to become the domain of multi-millionaires.
Incidentally, this is one of the major complaints of Singaporeans who otherwise have little to complain about in terms of economic development and living standards given their tiny space and resources. That has been reflected in voting trends too, leading the government to descend from its mighty perch of “I know it all” to re-examine its policies.
In commercial development, the trend in Malaysia has been to cramp it all in as little space as possible to maximise development profits. Abetment comes from authorities who give approvals with little or no thought of proper planning considerations such as availability of parking, public transport and whether it will cause congestion.
Many developers are willing to take the plunge into commercial development because of high profits. The danger of over-development is the greatest here, especially with plans to set up a new financial district called the Tun Razak Exchange, which will result in plenty of commercial space coming on stream in Kuala Lumpur city. Developers in this area have been granted tax exemption which will cause market distortions by giving them an advantage over others.
Under the circumstances, authorities have to be extra-vigilant to ensure that there are no untoward pressures on the property market, both in terms of a boom or a bust.
Speculation and ill-considered development can cause a volatile, mercurial mix which if it explodes can cause years of agony. Better a sensible, more stable brew that stands the test of time and ages gracefully.
P Gunasegaram (t.p.guna@gmail.com) is an independent consultant and writer. He believes strongly in the old adage that prevention is better than cure.
Source: http://thestar.com.my/columnists/story.asp?col=aquestionofbusiness&file=/2012/8/25/columnists/aquestionofbusiness/11910564&sec=A%20Question%20Of%20Business
The UAE’s real estate market is showing signs of recovery – nearly four years after the sector faced the fallout of the worst economic crisis in September 2008 that nearly halted most of the development activities.
Backed by a structured cash injection, careful re-engineering of major development companies and rescheduling of projects and debts, the sector is expected to rebound – although slowly, according to market experts.
“The overall residential market is seeing a positive trend with the villa market continuing to outperform the apartment sector in the second quarter of 2012,” real estate consultant, Jones Lang LaSalle (JLL), said in a recent report.
Signs of improved investor confidence have flowed into the real estate sector, with continued demand for quality, well located and income producing assets, it said.
“Prime residential buildings in well established locations continue to see improved performance, but secondary locations are still suffering from rental and pricing declines,” the report stated.
Except for RAK Properties, all the publicly listed property developers have recorded solid growth during the second quarter of this year. Emaar Properties recorded a 45 per cent jump in net profits to Dh1.2 billion at a time when its revenue remained flat, while Abu Dhabi’s biggest developer, Aldar Properties, recorded a 228 per cent jump in net profits in the second quarter of the year – visibly recovering from the near bankrupt situation when it had to be bailed out by the Abu Dhabi government last year.
Sorouh Real Estate, meanwhile, recorded Dh259 million profit – a 29 per cent increase over the same period a year earlier, while its revenue jumped 247 per cent to Dh1.2 billion.
“Dubai’s real estate recovery appears to have continued in Q2,” according to a report by Emirates NBD Research.
And prices for almost all categories of housing rose April through June according to data from Cluttons. “Mid-range villa prices rose 18.5 per cent year-on-year last month, outpacing the 14.6 per cent year-on-year rise in high-end villa prices. Apartment prices rose more modestly, while price declines in the beleaguered low-end apartment sector have slowed,” the data revealed.
Total value of land transactions in Dubai grew 21 per cent to Dh63 billion in the first half of 2012, according to the Dubai Land Department. The department’s statistics reveal that a total of 18,953 transactions were recorded in the first half of the year, consisting mostly of sales, mortgages, land development, lease contracts and grants.
Sultan Bin Mejrin, director-general of Dubai Land Department, said these are important indicators of growth and strong performance of the market.
“The real estate market in the UAE is quite fragmented with Dubai already seeing greater stability and even growth in some cases for certain sub-sectors of the market. This trend is expected to continue for the remainder of the year,” Matthew Green, Head of Research and Consultancy, CB Richard Ellis (CBRE), Middle East, told Gulf News.
Echoing similar thoughts is Niall McLoughlin, Senior Vice President of Damac Properties. “Confidence is coming back to the Dubai market and investors are looking to capitalise on some great offers. We are set to see an increase in valuations throughout the rest of the year and into 2013,” he said.
Deflationary pressures are likely to persist during the second half of 2012 as new supply continues to outpace growth in demand and heightened competition aggravates already falling rents, CB Richard Ellis said in its latest report.
“On the flip side those situation in less desirable locations will continue to face challenges in maintaining occupancy rates and in attracting new tenants. For Abu Dhabi the development cycle is significantly behind Dubai, with the capital only now reaching the peak of its development cycle,” said CBRE’s Green. “As new supply emerges we expect to see further deflation of sales and leasing rates, although this will be moderate as compared to the declines that we have seen during 2009 and 2010, at the peak of the market downturn.”
According to a recent report, Dubai remains in the top performing 15 cities in global real estate sector and number one in the Middle East throughout the second quarter with buoyant Asian markets and resurgence in the main European capitals providing a stimulus for growth.
Source: http://gulfnews.com/business/property/gulf/uae-property-market-begins-slow-recovery-1.1062607
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The letting market in Dubai is thriving for both holidaymakers and temporary residents meaning that property investors are able to receive healthy profits when investing abroad. Dubai is one lucrative market where a number of investors are taking advantage of the recovering market as opposed to many countries across the rest of the world which is suffering from poor economies and slow growth, somewhat putting off investors.
Pick a property and agent
Most overseas investors opt for properties that are currently being developed, meaning that they are brand new when the time comes to pass them over to a tenant. One of the first things that many investors should do is find a management company to take care of their property, especially when they don’t live in Dubai and cannot regularly visit. Appointing a property manager is perfect as you get peace of mind as a landlord that your property is being taken care of if and when you are unable to be there.
Your property manager will be sure to visit the property regularly to keep a close eye on it. Exclusive Links a good agent to go with and they take care of properties in a number of prominent areas of Dubai, including the sought after Marina. The company will also market properties for rent on their site and many companies will find the tenant for you meaning that you don’t have to do any of the organising yourself. This is ideal as your property manager can upkeep the property and take care of any goings-on when you are unable to take part in some of the transaction stages.
What to do and expect
Of course, normal wear and tear is to be expected and minor damages and some breakages are presumed but they will be identified by your property manager and there are ways and means of keeping your property up to scratch. Minimal damage is easy to rectify and shouldn’t cost much, so keeping your investment spick and span shouldn’t be a problem. If you invest in a property that is not newly developed, ensure that any maintenance, paint jobs and landscaping are done prior to the potential tenant viewing the property and make sure that all bills are paid up-to-date.
When leasing out a property, always get the tenant to pay a security deposit to cover any costs for larger damages should this be required. The amount of deposit paid should be the equivalent of a month’s rent or around 10 percent of the annual rent; this should be enough of a deposit to cover any costs that don’t derive from general wear and tear.
Contracts
You need to draw up contracts with your tenant and determine beforehand whether your tenant requires a short or long term lease. Upon selecting a tenancy agreement, deciding upon a contract length and rental agreement you can then register your agreement via a service called Ejari which essentially is a registration portal. This is mandatory in Dubai and you need to do it as soon as possible so that you don’t incur any delays in getting the tenant in and your buy-to-let investment venture up and running. Contracts are able to register online or at a number of offices across the emirate.
Ensure that the correct contract is drawn up, especially if you only want to let the property out for half of the year or a similar period of time. That way you are able to calculate the rents, rates and returns for when you and your tenant will be living there.
Once you have acquired your property, to register it for rent with your agent you must ensure that you have your proof of purchase so that the authorities know that you have ownership of the property as well as your sale agreement and a copy of your passport. Leave a copy of the keys with your agent so that they are able to show potential tenants around the property which should enable you to lease it out with ease.
The property
Once you have acquired your Dubai property, ensure that you make it rentable by being as simplistic as possible. Remember that all people are different and your taste may not match that of a tenant so keeping the property as simplistic and neutral as possible is best. In terms of choosing the location, opt for the most sought-after areas such as Dubai Marina. Whilst simplicity is desired, an impressive view or glistening pool or Jacuzzi area could be the exterior factors that give your property the edge over some of the others that the potential tenant may have viewed.
The rental market in Dubai has been subject to many positive reviews recently with rental prices showing an annual increase, especially apartments and villas. Reports from early last month highlighted that rental returns of around seven to nine percent were being achieved in the emirate and the fact that Dubai is tax-free makes it even more attractive to a number of residents and workers. This coincides with reports that the real estate market in Dubai is outperforming those in other cities and other countries throughout the world.
Authorities
Authorities to make note of include the Real Estate Regulatory Authority or RERA who regulate the real estate sector in Dubai, setting policies and raising awareness. You should also make yourself aware of the strata law which came into place in March of 2008. One of the things that the strata law does is highlights what responsibilities the developers and property owners of certain projects like gated communities and apartment blocks have.
The property market in Dubai is relatively new and could be subject to change but at the moment it appears to be stabilising and growing in a way that other locations can only imagine possible.
Source: http://www.selectproperty.com/2012/08/a-guide-to-leasing-your-dubai-property/
New real estate laws in Turkey will allow buyers from countries that have previously been blocked from entering the property market.
Buyers from the UK, Germany, Sweden, Norway and Holland already have unrestricted buying rights but buyers from places such as Russia and the Ukraine faced restrictions buying on the Black Sea coastline as did Greeks.
Now a new decree will allow access to buyers from 129 countries including places such as the United Arab Emirates.
The new decree abolishes a reciprocity ruling that banned Turkish property purchases by citizens of countries where Turkish nationals couldn’t buy real estate.
The bill also increased the amount of land foreign nationals are able to buy in Turkey from 30 to 60 hectares.
The final details have still to be released and it is likely that there will be a limit on the number of properties that foreign buyers can own, according to Turkey property specialists Oceanwide Properties.
The news comes shortly after the Turkish Central Bank revealed there was a mini buying boom in the first month after the new property law was published in May. Approximately £706 million worth of real estate was snapped up by foreign investors, four times the total purchased by non-Turkish nationals in 2011.
‘Our experience in May alone, prior to who could buy without restrictions under the new law was defined, is testament to the upward swing overseas investors are rightly anticipating in the Turkish property market in light of the market extending to new entrants,’ said Suleyman Akbay, Oceanwide managing director.
‘Turkey is making quite a name for itself on the property scene in lieu of Europe’s troubles and the ongoing investments it is making to advance its economy. Our clients are constantly amazed at the value for money properties available in prime business and coastal spots,’ explained Akbay.
‘But Turkey’s upper hand is that its values and rental yields are increasing year on year where other markets are contracting. Affordable, good connections, lots of new homes, a burgeoning population and now an increasing market presence makes Turkey attractive,’ she added.
Source: http://www.propertywire.com/news/europe/turkey-overseas-property-buyers-201208036814.html
UK house prices have fallen for the first time in seven months as the London market begins to slow down, research has shown.
The capital, which has been a key driving force behind the nation’s property sector, recorded a 0.1% rise in prices, which is slower than previous months.
This was because an increasing number of areas in London have started recording house price falls – although more parts of the city have seen rises overall.
Across the country the research, completed by Hometrack, reveals that although more properties are going on the market, there are fewer potential buyers.
Results showed that there has been a 5.2% surge in properties going up for sale over the last quarter, while there has been a 2.2% decrease in prospective buyers registering with estate agents during the same period.
Analysts have predicted that the rapid seasonal slowdown will continue, meaning prices are likely to fall further over the next few months into autumn.
Richard Donnell, director of research at Hometrack, said: “Weaker demand is to be expected over the summer months, but compared to previous years, the seasonal slowdown has started earlier and developed more rapidly than in previous years.
“This reflects growing concern over the UK’s economy and the deepening eurozone crisis.”
He added: “Price falls in the capital are primarily being seen in outer London, where domestic demand is slowing as sentiment weakens and affordability pressures bite.
“A similar pattern is being seen in the South East, where prices were down across 35% of the region in July – above the national average.”
This trend was emphasised in the South East – another key area that has boosted the property market recently – which saw the largest fall in prospective buyers with a drop of 3.4%, while London registered an above-average fall of 2.4%.
The findings, which are based on a survey of 1,500 estate agents and surveyors across England and Wales, also suggest borrowers with smaller deposits will struggle to find a mortgage as lenders continue to tighten their criteria.
Kamlesh Padhra, managing director of Infinity Property Solutions, also highlighted lending as a stumbling block.
He said: “The main issue seems to be the lending side of it still because we’ve seen transactions get delayed or not go through because lenders are a bit fussy about who they lend to right now.”
Padhra stressed that unless lending restrictions are eased he cannot see anything changing.
“It’s going to be a standstill until the government pushes the banks to make mortgages more affordable,” he said.
“The rental market will continue to boom until that happens, because that is the cheapest option.”
Source: http://www.londonlovesbusiness.com/property/london-property-prices/london-property-market-has-slowed-down/3083.article
While Spain struggles to keep its economy grinding along with a plaster kit from a begrudging European Union, the elephant in the room- otherwise known as the illegal property scandal which in part can be blamed for the country’s current crisis- remains largely ignored.
Helen and Len Prior remain victims of the Spanish property scandal
During the good times when new developments were shooting up along Spanish coastlines faster than bamboo, thousands of British and other European nationals invested in Spanish properties. Many were retirees who spent their nest eggs on apartments and villas hoping that they could spend their twilight years in a sunny bolt hole, the reward for a life time’s hard slog. Unbeknown to hordes of British investors, the homes they bought in good faith turned out to be illegally built by unscrupulous developers aided and abetted by corrupt local councils and lawyers. The problem was further compounded by poorly enforced planning legislation. Building permits were issued by councils illegally and when the scale of the problem was revealed, regional governments were quick to react.
Two early victims of such corruption were Helen and Len Prior whose retirement villa in Almeria was deemed illegal and demolished in 2008 without any offer of compensation. With the support of tenacious action group, AUAN, an association of mostly British homeowners based in Andalucia in Southern Spain, the Priors have tried unsuccessfully through the Spanish courts and by petitioning the European Union to be compensated for their loss. It is estimated that at least 300,000 properties were built illegally in Andalucia alone and so thousands of British home owners are at risk of finding themselves on the street alongside the many Spaniards who are victims of the current economic crisis.
The Priors and countless others caught up in the Spanish housing scandal have been rigorously petitioning the European Union to no avail. According to Maura Hillen, president of AUAN, the European Commission has steadfastly blocked all appeals on the basis that no European law has been broken. She told me, ‘Many of us purchased properties believing that membership of the EU offered an extra safety net should things go wrong. We were very much mistaken.’ She and fellow homeowners of ‘illegal’ Spanish properties cannot understand why the problem is not being fully aired given that such an unresolved issue will only discourage investment in the Spanish property market at a time when it needs it most. The association is currently seeking experts in European Law to come to their aid.
It seems ironic that the EU is now creating a bailout package for the beleaguered Spanish economy when it can be blamed in part for encouraging the country’s over zealous property expansion in the first place.
Find out more about Anna Nicholas here or follow her on Twitter @Majorcan Pearls
Source: http://my.telegraph.co.uk/expat/annanicholas/10147439/british-homeowners-of-illegal-spanish-properties-still-petitioning-eu-for-justice/
Iranian investment in the Dubai property market slipped by nearly a quarter to Dh1.5 billion (US$408.3 million) in the first six months of the year from a year earlier as sanctions squeeze buyers.
Buyers from Iran still represented the fifth-largest group of investors by nationality in the market, with 1,036 Iranians snapping up villas and apartments, data from the Dubai Land Department show.
But the investment was likely to have been higher if it were not for the impact of western sanctions against Iran, say people familiar with the property market. Iranians are facing difficulties getting approval from banks in the UAE for mortgages or to make down payments for properties, said Hossein Haghighi, an Iranian businessman living in Dubai who owns a villa in the Springs.
Iranians have been one of the backbones of investment in Dubai’s property market for years because of their country’s proximity to the emirate and traditionally close business ties. Appetite has stemmed both from the estimated 600,000 Iranian residents in the UAE and wealthy home-based Iranians.
But banks in the UAE have come under pressure in recent months to scale down their ties to Iran as a result of U.S., European Union and United Nations sanctions. In addition, Swift, the world’s biggest electronic payment system, in March disconnected Iranian banks from its network.
Estate agents say the drying up of Iranian buyers is in contrast to the period up until January when many reported a frenzy of activity as people from the country sought a safe place to invest.
In the first six months of last year, Iranians were the fourth-biggest group of property purchasers after Indians, Britons and Pakistanis, with 1,124 buyers of properties valued at a total of Dh1.9bn, Dubai Land data show.
“It has completely slowed down,” said Myles Bush, the managing director of Powerhouse Properties, which specializes in upmarket homes. “They seemed to come in dribs and drabs and now they’ve stopped.”
The vacuum has been filled in part by investment from wealthy Greeks, Spaniards and Britons seeking to escape the fallout from the euro-zone debt crisis, he said.
“Some are looking towards Malaysia and the Iranian population in Malaysia has grown drastically.”
Those Iranians still buying property in Dubai are finding alternative ways to pay. Investors transfer cash for down payments from Iran to the UAE using money brokers or exchange houses outside the formal banking sector, said Mr Bunker. The system, known as hawala, usually involves the transfer of cash in small batches.
(Source: thenational.ae)
Do you yearn to buy a house in the city but find realty rates prohibitive? You could try bidding for properties being auctioned by banks. The laws allow banks to recover dues from defaulting borrowers by auctioning the properties they pledged.
Banks may fix the reserve price (minimum price at which the property will be sold) for such properties 20-25 per cent lower than the going market rate. This could translate into a bargain buy for bidders. Also, since they are auctioned by banks, the title to these properties would likely be clear.
DEEP POCKETS NEEDED
The auction process, however, has tight timelines within which the buyer needs to arrange the money to close the deal. So, this requires that you have deep pockets. Banks issue a public notice in newspapers about the proposed auction and invite bids.
The notice includes the details of the property, date, time and venue of the auction, reserve price, and earnest money deposit.
It also mentions the date on which interested parties can inspect the property before submitting their bids. Bidders must submit their applications to the bank quoting their bid amount which should not be less than the reserve price. Along with this, they must pay earnest money deposit which may be around 10 per cent of the reserve price.
The auction usually takes place after 30 days from the date of the public notice. In this period, the borrower may still pay the money due to the bank.
If the borrower settles the dues, the auction will not happen and your earnest money deposit will be returned. If the auction takes place and you do not win the bid, your earnest money deposit is returned. If you win the bid, you will have to pay around 25 per cent of the bid price (less the earnest money deposit) on the day of the auction. You need to pay the balance amount within the next 15 days or an extended period agreed between you and the bank.
If you win the bid but do not pay the required amount within the specified periods, you will lose the money paid earlier. So, walk this path only if you have got the funds ready to go the whole way. Banks may offer loans to acquire such properties. But given the tight timelines, you will have to make arrangements for a loan before the auction date.
ONLINE OR OFFLINE?
Buying property through the auction route involves effort. You will need to scan newspapers for announcements by banks regarding such auctions, do the necessary due diligence, and organise the funds quickly. Else, you can contact real estate agents who may have this information. Also, Web sites such aswww.foreclosureindia.com provide online listings of properties which banks advertise to auction.
In a normal (offline) property auction, bidders gather at the auction venue where their bids are considered. Banks may also allow competitive bidding among the bidders for improving their offers.
In online property auctions, the process is largely similar, but bidders place and revise their bids on a Web site. The online auction method has not yet been much successful in India. Observers attribute this to fears of online fraud, risk of manipulation by cartels, and lack of awareness among bidders.
WHAT TO WATCH OUT FOR
Despite the benefits, acquiring property through the auction route may not be everyone’s cup of tea. If the auction attracts aggressive bids, the price could go up and dilute the cost advantage. So, it is important that you make an assessment of the market value and bid prudently to get a good deal. Also, to be on the safer side, it is better to check the property documents before deciding to bid, or engage a lawyer to verify the title.
This apart, keep in mind that banks auction property on an ‘as-is-where is’, ‘as-is what-is’ basis.
This means that expenses on any repairs, renovation, unpaid property taxes, electricity dues and statutory liabilities will have to be borne by the buyer. The buyer also has to bear other expenses such as stamp duty and registration fees. So, do a proper inspection to assess the true cost of owning the property.
Besides, some people consider auctioned property unlucky, and have misgivings about buying something the owner does not willingly sell. This could be a reason why such properties may be priced at a discount to market rates.
anandk@thehindu.co.in
Source: http://www.thehindubusinessline.com/features/investment-world/article3613659.ece?homepage=true&ref=wl_home
The Queen’s income will receive a boost next year after record profits from her lucrative Crown Estate property empire.
Controversial changes made last year tying Royal Family funding to Crown Estate profits means the Queen and royal household will be entitled to a 16 per cent hike in their official duties grant – to £36million from next April, up from £31million this year.
The rise follows the Government’s move last year to scrap the Civil List and link funding for the royals to profits from the Crown Estate, as part of a new sovereign grant.
The royal household is entitled to 15 per cent of profits from the Crown Estate – which belongs to the nation and includes a host of historic properties, such as Regent Street in the West End of London, Windsor Park, Royal Ascot and most of Britain’s coastline.
Figures for the Crown Estate reveal the portfolio enjoyed the best performance in its history, with profits rising to £240million in the year to March 31 from £231million the year before.
Previously, all profits from the Crown Estate went to the Treasury and the taxpayer – a historic arrangement dating back to 1760.
Over the last ten years, the portfolio has contributed £2billion to the Treasury.
Campaign group Republic said it was ‘disgraceful’ that 15 per cent of Crown estate profits went to the royal household.
Graham Smith, chief executive of Republic, said: ‘This is more evidence that the whole funding arrangement needs to be reformed and put on a proper footing.’
He added: ‘The Crown Estate doesn’t belong to the Queen, it belongs to the country.’
A Treasury spokesman said it was up to the royal household to spend the grant ‘prudently’ and stressed any money not spent would go towards a reserve to cope with unexpected costs and dips in revenue.
While there is no cap on cash received from Crown Estate profits, the Treasury has set a cap to ensure the reserve does not exceed half the sovereign grant in that year.
Premium address: The royal household is entitled to 15 per cent of profits from the Crown Estate – which belongs to the nation and includes historic properties such as Regent Street in the West End of London
A Buckingham Palace spokesman said: ‘The Royal Household is absolutely committed to ensuring value for money for the taxpayer, having already reduced expenditure by a fifth over five years.
‘The sovereign grant is a simpler, more transparent way of funding the monarchy and is, of course, now open to scrutiny by the National Audit Office.’
Figures on royal household spending are due out on July 2.
It is thought some of the income from the sovereign grant will be used to clear a backlog of repairs to the Royal palaces, thought to total more than £32million.
The Crown Estate’s annual results showed its capital value passed the £8billion milestone for the first time, up 11 per cent in the year.
Total return last year was 16.8 per cent, far higher than the industry benchmark of 10.4 per cent, and the value of its properties was £7.6billion after a 7.4 per cent hike in the past year.
Read more: http://www.dailymail.co.uk/news/article-2162667/Queen-given-reason-smile-Jubilee-year-Crown-Estate-profits-rise-36m.html#ixzz1yS6Evewm
Research giant Oxford Business Group (OBG) is claiming that Dubai’s property market has turned a corner, with the residential sector having “posted solid growth over the past few months.”
In an article to be published in Arabian Business, OBG regional editor Oliver Cornock added that “other areas of the sector are also showing signs that recent declines are beginning to reverse.”
Property prices in Dubai soared after the city opened its real estate sector to foreign investors in 2002, granting them freehold ownership rights at many developments. From start-2007 to mid-2008, prices rallied almost 80 percent, Morgan Stanley estimates showed, with billions of dollars worth of new projects launched by local developers. But home prices in Dubai suffered the biggest reversal seen in the Gulf property market as result of the financial crisis, declining on average 60 percent.
Nevertheless, Cornock said he is now confident the corner has been turned, adding: “While the rate of growth given by different agencies may vary to some degree, all point toward a slow but steady recovery in Dubai’s residential property market.”
According to Cornock, investor confidence is also being driven by a new law proposed by the government and put forward by the Dubai Land Department (DLD). “Under the draft Investor Protection Law (IPL), which could be enacted this month, the rights of owners will be reinforced, including their ability to cancel their contracts if the developer does not provide all the facilities and services listed under the buyer’s agreement, or if property is not handed over within the designated eight-month period,” he said.
Source: http://www.arabianbusiness.com/dubai-property-has-turned-corner-oxford-business-group-462641.html
As real estate bidding wars become commonplace, it’s important to remember these adages:
1. The early bird gets the worm.
2. Always put your best foot forward.
Especially in areas where inventories are limited, three or more offers may be submitted within the first 24 hours after a property goes on the market. By the time your Day 3 offer rolls in, the deal is done — especially on short sales or bank-owned properties.
How do the early birds get in, tour the property and make offers so quickly? Chances are, they didn’t go see the property. That’s right. The savvy investor knows the areas in which he wants to buy, he knows what size and type of properties he’s after, and he knows what he’s willing to spend. So, when he sees a listing that meets his criteria — he’s able to pounce. If the offer is accepted, Mr. Early Bird can go see the property; if he doesn’t like it, he can back out of the deal, generally at no cost (be sure to read your contract!)
This process may be frustrating for real estate novices, but it’s just the way it is. And, honestly, if you don’t know enough about your target properties and neighborhoods so that you, too, can make a quick offer — you need to do more homework.
Becoming the early bird means you need to be well-versed with the offer process. Smart buyers know the standard contract terms and many go so far as to arm their real estate agents with signed, blank offering templates. If they see a listing they like, they can have their agent fill in the price and terms and forward the offer — all within hours of when the property first hits the MLS list.
Of course, first to bid doesn’t always win the property. You can improve your chances by ensuring you’re submitting the best possible offer. Some tips:
- Include a letter that pleads your case. Tell the seller why this is the perfect neighborhood for you, how long you’ve been looking, why you love the property (if you’ve been inside), and how you need a home to raise (or start) your family. Emphasize the aspects of your specific situation that might tug on the heartstrings of the seller or listing agent.
- If it’s a traditional sale, ask to make your offer in person to the seller. Or, you might try to go see the property when the seller is at the house so they know who you are. Even having your agent personally deliver your offer may give you an edge. (Of course, this all takes substantial time so don’t go this route unless you are 95 percent sure you will move forward on the terms you offer!)
- Some listings require a lender pre-qualification letter and proof of funds. Whether they’re requested or not, you should always include those with your offer (a pre-approval letter from a lender would be even better).
When seven offers come in and your offer includes your personal letter, plus a pre-approval letter from the bank, plus your proof of funds, plus your agent introducing herself to the listing agent, well, you might just beat out the cash-buying investors.
Knowing your target neighborhoods and markets, plus the process and contract terms, will allow you to act quickly when the right property becomes available.
From personal experience, I can tell you it does work. I’d love to write more but I just received an email about a listing for a property I know meets my criteria and I hope to have my offer in to the listing agent by the time you’ve finished reading this sentence. Good luck!
Source: http://www.forbes.com/sites/zillow/2012/06/13/how-to-beat-big-investors-to-good-properties/
Prices of homes on the UK property market increased again this month, with a third consecutive record for new sellers’ asking prices.
Property website Rightmove reported today that the average property asking price now stands at GBP246,235, with relatively few homes being offered for sale. This national average asking price is up GBP2,476 or 1.0% over the previous month and an increase of 2.4% compared to this time last year.
Despite optimistic pricing, the latest Land Registry data suggests that prices at the point of sale have remained static or fallen slightly, according to the BBC. Estate agents have reported that those who can afford to price realistically are selling, while those who are unable to go lower are struggling to sell.
“It remains a very local market ruled by property style and location. Cutting your asking price to be cheaper than your competition and promoting your selling points better will be the key to avoid being an also-ran in the race to sell,” commented Rightmove director Miles Shipside.
Rightmove also noted that sellers’ prices are considerably lower in real terms than at the peak of the market five years ago. The current average asking price is 2% up on August 2007, the month before the run on Northern Rock, but is an average of 13% lower in real terms when compared to retail price inflation over the same period.
The exception is London, where asking prices are now 3% ahead of the national Retail Price Index (RPI), driven by a more robust market in the south of the country. In contrast, real prices in Wales are now 24% lower than in August 2007.
For its monthly assessment of the market, Rightmove measured 106,576 asking prices which it says represents approximately 90% of the UK market. These properties were put on sale by estate agents between 13 May and 9 June 2012 and advertised on Rightmove.
Source: http://www.financial-news.co.uk/5825/2012/06/property-prices-in-the-uk-still-increasing-rightmove/
House asking prices have risen to a new record high, but they remain well below their 2007 peak once inflation is taken into account, a study said today.
The price of a home coming to market rose by 1% month-on-month in June to reach £246,235 on average, but London is the only region where prices have outpaced inflation over the last five years, the Rightmove house price index found.
Nearly 30,000 new sellers a week came to market in the three weeks before the Diamond Jubilee weekend, the highest rate of new listings for nearly two years, suggesting asking price increases will slow down as seller competition intensifies, the study said.
Elections in Greece and the eurozone turmoil, as well as this summer’s sporting events such as Euro 2012 and Olympics are likely to dampen house sales further, with buyers more interested in viewing sport than property, the study said.
Asking prices have risen to new record highs for the last three months in a row. But while sellers’ prices are up by 2% on August 2007, just before the economy faced the run on Northern Rock, they have fallen by 13% in real terms after retail prices index (RPI) inflation is taken into account.
London is the only region in the study covering England and Wales to record an inflation-busting increase in asking prices, which stand at a new high for the capital of £477,440. Prices there have increased by 3% after inflation since August 2007.
Prices in the South East also hit a new high of £318,717, although prices in the region are 11% below those in August 2007 in real terms.
Asking prices have plummeted furthest in real terms in Wales, where they stand at £167,875, a sharp 24% fall since August 2007.
Rightmove director Miles Shipside said: “The better properties in the better areas remain in short supply, giving sellers of sought-after stock, and their agents, the confidence to come to market at a higher price.
“The right property within commuting or holiday bolt-hole distance of the capital seems to be an attractive each-way bet with the potential to be both recession-proof and offer good odds to keep pace with, or even outstrip, inflation.”
Mr Shipside said that from a seller perspective, most are still worse off in real terms than they would have been selling five years ago.
Meanwhile, the reduction in house prices in real terms would have been great news for buyers only if their wages had kept pace with inflation, he said.
Mr Shipside added: “The reality is wage freezes, rising costs of living, and continuing tight mortgage funding have squeezed affordability for many buyers.”
A string of lenders have recently raised their mortgage borrowing rates and many have also tightened their credit criteria amid the weak economy and eurozone uncertainty, making it tougher for people to take out a mortgage.
Mr Shipside said that the “late spring rush” of new sellers coming to market had come just before the traditional summer slowdown when buyers tend to be more scarce.
He said: “With the likelihood of the Greek election outcome causing further economic uncertainty, and buyers more interested in viewing sport rather than property, it is likely we have seen the last of record asking prices for the remainder of 2012.”
Source:
As real estate bidding wars become commonplace, it’s important to remember these adages:
1. The early bird gets the worm.
2. Always put your best foot forward.
Especially in areas where inventories are limited, three or more offers may be submitted within the first 24 hours after a property goes on the market. By the time your Day 3 offer rolls in, the deal is done – especially on short sales or bank-owned properties.
How do the early birds get in, tour the property and make offers so quickly? Chances are, they didn’t go see the property. That’s right. The savvy investor knows the areas in which he wants to buy, he knows what size and type of properties he’s after, and he knows what he’s willing to spend. So, when he sees a listing that meets his criteria — he’s able to pounce. If the offer is accepted, Mr. Early Bird can go see the property; if he doesn’t like it, he can back out of the deal, generally at no cost (be sure to read your contract!)
This process may be frustrating for real estate novices, but it’s just the way it is. And, honestly, if you don’t know enough about your target properties and neighborhoods so that you, too, can make a quick offer — you need to do more homework.
Becoming the early bird means you need to be well-versed with the offer process. Smart buyers know the standard contract terms and many go so far as to arm their real estate agents with signed, blank offering templates. If they see a listing they like, they can have their agent fill in the price and terms and forward the offer – all within hours of when the property first hits the MLS list.
Of course, first to bid doesn’t always win the property. You can improve your chances by ensuring you’re submitting the best possible offer. Some tips:
- Include a letter that pleads your case. Tell the seller why this is the perfect neighborhood for you, how long you’ve been looking, why you love the property (if you’ve been inside), and how you need a home to raise (or start) your family. Emphasize the aspects of your specific situation that might tug on the heartstrings of the seller or listing agent.
- If it’s a traditional sale, ask to make your offer in person to the seller. Or, you might try to go see the property when the seller is at the house so they know who you are. Even having your agent personally deliver your offer may give you an edge. (Of course, this all takes substantial time so don’t go this route unless you are 95 percent sure you will move forward on the terms you offer!)
- Some listings require a lender pre-qualification letter and proof of funds. Whether they’re requested or not, you should always include those with your offer (a pre-approval letterfrom a lender would be even better).
When seven offers come in and your offer includes your personal letter, plus a pre-approval letter from the bank, plus your proof of funds, plus your agent introducing herself to the listing agent, well, you might just beat out the cash-buying investors.
Knowing your target neighborhoods and markets, plus the process and contract terms, will allow you to act quickly when the right property becomes available.
From personal experience, I can tell you it does work. I’d love to write more but I just received an email about a listing for a property I know meets my criteria and I hope to have my offer in to the listing agent by the time you’ve finished reading this sentence. Good luck!
Source: http://www.zillow.com/blog/2012-06-08/how-to-beat-big-investors-to-good-properties/
