By Ronan McMahon
1) In Europe, projects and banks are in deep trouble. The resulting financial distress has created pockets of opportunity where you can buy quality cash-flow property for 50 cents on the dollar.
2) In Costa Rica’s southern zone, a new coastal highway is set to open in 2010 and an airport is on its way. With improved accessibility, property prices here will increase, just as they have elsewhere in the country when better roads have gone in.
3) And in safe, stable, cultured Uruguay, there is an undiscovered stretch of coastline that big international developers have just begun to snatch up. Rich Argentines have been coming here for generations – but keeping the secret to themselves. The best beaches and seaside towns in Uruguay are here. And now’s the right time to stake a claim.
Now let me explain in more detail why…and how, you can position yourself for profits in each.
Grab Distressed Deals in Europe
In Europe right now you can get deals with discounts of 52% on list prices, or 40% on official valuations – deals in blue-chip locations that will immediately throw off positive cash flow.
These are opportunities in locations that will be the first to recover once real pent-up demand recovers. In some cases, up to 100% financing may be available.
After years of market overshoot on the upside, today we see the opposite – overshoot on the downside. You could profit in 2010 on distressed and bank foreclosed properties in Europe. The best deals are in projects that have gone bankrupt.
Here is why this opportunity exists: Banks lent to developers to build. Developers built in anticipation that there would be no problem selling their units. After nearly a decade of runaway demand and floods of cheap money, they took their eye off the ball. Developers took on more debt and risk than they should have and they overpaid for land.
The Credit and financial crises, combined with oversupply, led to a breakdown in many markets. Sales dried up and high-quality, completed units were left sitting, waiting for a buyer. Banks need to purge their loan books. Developers want to lick their wounds and move on. Forced sell-offs are happening…demand is almost non-existent. This is a formula for opportunity.
Distressed deals are available in many places in Europe, though most markets make little sense and I wouldn’t recommend them. In Central and Eastern Europe, for instance, deep structural and currency issues make the deals unattractive.
And in Ireland, there is an oversupply problem. It’s compounded by increased unemployment and an imminent fiscal crisis. Rents in Ireland have fallen by up to 30% in the past year alone. Add in more vacant structures and you see a market that is suffering from yield implosion. With the exception of an exceptional deal on a property with intrinsic value, I wouldn’t recommend Central or Eastern Europe or Ireland.
I’m focused on my three golden rules:
Buy quality (location, construction, amenities, and fit-out).
Don’t take on any construction risk; buy completed units.
Don’t take on any project risk; make sure, for instance, that the condominium is functioning. You don’t want to be one of 10 owners in a 100-unit condominium.
I wouldn’t consider any distressed deal that doesn’t tick all three boxes. So where should you look?
The best opportunities are in the UK, Spain, and Portugal. Developers here relied heavily on debt. The discounts can be big…more than 50% in some instances. The banks who control many of the failing developments will offer mortgages of up to 100% at extremely competitive rates.
In the UK, invest in prime urban areas in cities with a diverse employment base. Look to cities like Birmingham and Manchester. You can buy for less than 50% of what your neighbors bought preconstruction several years ago. Buy into projects where there are a large number of owner-occupiers. These will be more stable.
In Spain and Portugal, invest in prime resort properties in areas that haven’t been overbuilt. There’s a lot of junk out there, which you should avoid. However, the market has stalled for quality inventory, too. Northern Europeans will still come in droves to enjoy the region’s sunny weather, and these folks will still need to stay somewhere. Buy where these tourists want to stay – in places that are close to golf courses, beaches, and an international airport. Places like Granada in Spain or Portugal’s Algarve.
Costa Rica’s Suddenly Accessible Southern Zone
Anything that improves the accessibility of a piece of property increases its value – roads, bridges, airports, etc.
In 1983, IL first recommended Northern Costa Rica. Those who followed IL’s recommendation saw their investments increase 8-, 10- or even 12-fold. Today there is another Costa Rica play. History might just repeat itself.
Prices have stayed low in Costa Rica’s Southern zone because it’s difficult to get to. That’s set to change. If you move fast, you have the opportunity to position yourself ahead of the path of progress.
Some of the most amazing scenery in Costa Rica is in an area that runs south of Quepos to the border with Panama. Landscapes here in Costa Rica’s Southern zone are dramatic – panoramic ocean views; lush tropical rainforest; and sheer jungle-clad slopes, rising sharply away from pristine stretches of sandy beach.
There is more land preserved in national parks and reserves in this region than in any other in Costa Rica. Ballena National Marine Park is a hotspot for humpback whales. Corcovado is reputedly the largest area of primary rainforest left in the Americas, home to numerous endangered plant and animal species. The beaches are mostly deserted.
In a country with an established real estate market like Costa Rica, this sounds like just the type of place that would attract a lot of fervent investors. Difficulty getting there has kept it under the radar in terms of development, and kept prices far lower than areas in Northern Costa Rica.
The Costanera Highway was unpaved between Quepos and Dominical and the airports in this area are small, local affairs. These are exactly the kind of conditions I look for when scouting for a good real estate opportunity. Especially when these conditions are set to change.
Costa Rica’s President Oscar Arias Sanchez recently kick-started the final stage of the Costanera highway. The work is almost complete (only one bridge still remains unfinished). And so a project that’s been promised by successive governments for 30 years is finally on the brink of completion. It will open up a truly undiscovered area of Costa Rica by cutting the two-hour trip from Quepos to Dominical to 25 minutes.
An international airport is planned for Palmar Norte. Due to be completed in 2013 (the government has already allocated funds) the airport is planned to open in stages; the first will allow international flights with a maximum capacity of 50 passengers. Eventually, the plan is to have a runway capable of accommodating even the world’s largest passenger plane, the Airbus A-380.
An airport of this scale needs to be close to a hospital…so they built one. The ultra-modern 85,000-square-foot Hospital De Osa located in the town of Cortez opened in April 2008. The hospital features multiple treatment facilities including a state-of-the-art emergency room, a pediatrics wing, a neurology center, and an obstetrics and gynecology center.
In 2002, in Northern Costa Rica, Liberia airport started taking direct flights from the U.S….and property prices soared. The beaches in this Southern zone are even nicer…and they’re about to be more accessible.
Uruguay’s Secret Beach Hideaway: Rocha
Uruguay rarely makes the headlines. There are no natural disasters and the crime rate is low. It’s safe, stable, and cultured. The infrastructure, from modern airports to roads, is first class.
The country goes quietly and successfully about its business. Last year it made headlines with GDP growth of 8.9%, compared to 1.1% in the States. Uruguay isn’t burdened with debt. Montevideo’s largest shopping mall plans a $100-million expansion, adding to the 200 stores already open.
The department of Rocha in the east of Uruguay has for years been a favorite destination for rich Argentines. East of Punta del Este, it stretches to the border with Brazil and boasts the nation’s best beaches. Inland, you’ll find cattle ranches and sleepy towns, most with populations of less than a 1,000 souls. The coast is where the action is. The beaches here are wide, natural, and pristine. The deep-blue water contrasts with powdery golden sands. You won’t find highrises or all-inclusive resorts.
What you will find are Uruguay’s best seaside towns. La Paloma fills with tourists in high season, but it’s still a small, friendly beach town. La Pedrera has an upmarket feel to it, with large weekend homes beside a sweeping curve of beach. Cabo Polonia is famous for its shifting sand dunes and bohemian residents.
There’s an abundance of nature reserves and parks in Rocha, many with lagoons ideal for bird-watching enthusiasts.
Rocha’s seacoast draws visitors from Uruguay, Argentina, and Brazil. And this stretch of coast has recently appeared on the radar of major international developers. They have been quietly purchasing large tracts of land. Land values have been slowly increasing. Now they are set to explode. This stretch of coast is the natural extension of Punta del Este.
One planned project I recommend is by Argentina’s foremost developer, Eduardo Costantini. Estimated costs for his development run to $350 million. This is the first upscale project in the area, and it will raise the bar for quality and luxury. Included in his project is a bridge over the lagoon at Rocha. U.S. development groups also are getting ready to launch projects in this area.
Buy accessible beachfront land along Rocha’s coast, and you will do well.
Story From Daily Reckoning... http://bit.ly/5Q51NA
For Marbella Costa del Sol Bargain Property News please vist our website: Bargain-Quality-Homes.com... http://bit.ly/F6ZkQ
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Tuesday, January 12, 2010
Wednesday, October 14, 2009
Interntional Property Investors - Check this Out...
London house prices will jump nearly 40% by 2014
London will escape falling house prices next year while the rest of the country faces a setback in the values of most properties.
According to estate agency Knight Frank, house prices will end this year 2% higher than they were at the beginning of the year led by the recovery in London and the South-East. But the agency predicts that throughout next year prices will fall 3% nationally — the classic “W”-shaped recession — although London will continue to grow with prices rising by 3% next year and by 9% in 2011. Five years out, by 2014, London prices will be 38% higher than today while the national gain will be just 19%.
Knight Frank's head of residential research Liam Bailey said: “We believe that the future improvement in market conditions will continue to be led from London and southern England, particularly from the higher price brackets. Strong demand from UK and international buyers will ensure that the central London property market in particular will continue to outperform in 2010.
“The key reasons for our confidence with regard to this market are: uniquely in the UK — London will benefit from the global economic recovery, which is likely to considerably outpace that seen in the UK; sterling is set to remain relatively weak into the medium-term, encouraging international demand; the economic prospects in central London are brightening more rapidly than elsewhere in the UK.”
Bailey pointed out that prices have fluctuated in London more dramatically than in the rest of the country with a two-year rise of 60% in the two years to March 2008 followed by a fall of 24% over the next 12 months.
His comments coincide with a report from the Royal Institution of Chartered Surveyors which says that a lack of supply continues to underpin the house-price recovery. It said the net balance of surveyors reporting house-price rises rather than falls reached a positive reading of 22 in September, the highest figure since May 2007.
The closely watched sales-to-stock ratio — a measure of market slack and a lead indicator of future prices — edged upwards a little further. It has now risen for nine consecutive months and stands at 29, its highest level since December 2007.
“A lack of supply is still underpinning the rise in house prices,” the institute's spokesman Ian Perry said. “Despite the problems first-time buyers are continuing to encounter in securing finance, the level of inquiries from potential purchasers is increasing. This imbalance between demand and supply suggests that house prices will move higher in the near term,” he added.
Knight Frank's Bailey said that nationally next year would see weakness but “not Armageddon”. He said: “It would be wrong to expect a continuation of the current rapid recovery in the housing market — the economy is not in a position to permit this in the short-term. Similarly, it would be wrong to expect carnage.”
Story From Evening Standard... http://bit.ly/16NxRu
For Marbella Costa del Sol Property News please vist our website... http://www.bargain-quality-homes.info/
London will escape falling house prices next year while the rest of the country faces a setback in the values of most properties.
According to estate agency Knight Frank, house prices will end this year 2% higher than they were at the beginning of the year led by the recovery in London and the South-East. But the agency predicts that throughout next year prices will fall 3% nationally — the classic “W”-shaped recession — although London will continue to grow with prices rising by 3% next year and by 9% in 2011. Five years out, by 2014, London prices will be 38% higher than today while the national gain will be just 19%.
Knight Frank's head of residential research Liam Bailey said: “We believe that the future improvement in market conditions will continue to be led from London and southern England, particularly from the higher price brackets. Strong demand from UK and international buyers will ensure that the central London property market in particular will continue to outperform in 2010.
“The key reasons for our confidence with regard to this market are: uniquely in the UK — London will benefit from the global economic recovery, which is likely to considerably outpace that seen in the UK; sterling is set to remain relatively weak into the medium-term, encouraging international demand; the economic prospects in central London are brightening more rapidly than elsewhere in the UK.”
Bailey pointed out that prices have fluctuated in London more dramatically than in the rest of the country with a two-year rise of 60% in the two years to March 2008 followed by a fall of 24% over the next 12 months.
His comments coincide with a report from the Royal Institution of Chartered Surveyors which says that a lack of supply continues to underpin the house-price recovery. It said the net balance of surveyors reporting house-price rises rather than falls reached a positive reading of 22 in September, the highest figure since May 2007.
The closely watched sales-to-stock ratio — a measure of market slack and a lead indicator of future prices — edged upwards a little further. It has now risen for nine consecutive months and stands at 29, its highest level since December 2007.
“A lack of supply is still underpinning the rise in house prices,” the institute's spokesman Ian Perry said. “Despite the problems first-time buyers are continuing to encounter in securing finance, the level of inquiries from potential purchasers is increasing. This imbalance between demand and supply suggests that house prices will move higher in the near term,” he added.
Knight Frank's Bailey said that nationally next year would see weakness but “not Armageddon”. He said: “It would be wrong to expect a continuation of the current rapid recovery in the housing market — the economy is not in a position to permit this in the short-term. Similarly, it would be wrong to expect carnage.”
Story From Evening Standard... http://bit.ly/16NxRu
For Marbella Costa del Sol Property News please vist our website... http://www.bargain-quality-homes.info/
Saturday, October 10, 2009
The British are starting to buy again in Spain
The hoped-for green shoots of the economy in the UK were showing their heads in Birmingham last weekend:
The hoped-for green shoots of the economy in the UK were showing their heads in Birmingham last weekend, when thousands of people turned out for the “A Place in the Sun” exhibition held at the NEC. International property shows in the UK had been in the doldrums over the past months and some of the organsisers had gone into bankruptcy owing to the overall downturn in property sales everywhere, but “A Place in the Sun”, backed by the TV_programme of the same name, made a strong come-back at the NEC. The exhibition was a smaller one than in previous editions but had been well publicised, and visitors came flooding through the doors.
This was especially good news for Spain, confirmed to be the favourite destination of potential property-buyers. No fewer than 60 per cent of visitors indicated an interest in Spain, with France coming in a poor second despite its familiarity and geographical proximity to British buyers. Unlike in previous years, there was no “French village” area at “A Place in the Sun”, and Spain’s main competitors were the USA and Australia and New Zealand, which were offering immigration packages.
Surveys of the public attending the show indicated that many buyers have been waiting for the right moment, and are now ready to make the move, as prices are unlikely to drop any further. Asked why they were looking at Spain, they mentioned, as one would expect, the climate, the friendly people, and enjoyable holidays in this area in the past. Buyers were also aware of the problems now facing investors who had opted in the past for destinations less well served by the airlines. While flights to many of these have been reduced or scrapped altogether during the credit crunch, Malaga airport continues to be served by numerous airlines with dozens of flights every day to the UK.
Seminars
A programme of seminars accompanied the exhibition, dealing with such subjects as how to get a visa to move to the USA, fractional ownership of property, and “Has the market hit rock bottom?” The consensus on the last question was that although it is impossible to tell how low prices will fall, or predict when the market will pick up again, until the worst is over and the market is showing signs of growth, in most areas there is unlikely to be a better time to buy than right now.
The most popular of the seminars however was on the subject of “Emigrating to Europe”, with six talks over the course of the show commanding audiences much larger than anticipated. It was standing room only for many who wanted to hear advice and ask questions about relocating to another European country.
The seminars were conducted by a property journalist, the speakers being an international lawyer and an expert from the Foreign and Commonwealth Office, Stephen Jones, whose wide experience derives partly from his current position as British Consul in Malaga. His advice was wide ranging, from questions of vehicle licensing to health insurance, tax liability and transfer of British pensions abroad. He strongly recommended that new residents in Spain should register with the local “padrón” and that they try to learn some Spanish before making the move, in order to facilitate life in Spain and enjoy all that it has to offer. He was also insistent that before buying, it is advisable to rent for a few months to make sure of the suitability of the chosen location. Enthusiastic to the point of proclaiming Benalmádena to be his favourite of the many places he has lived, he reiterated the advice to anyone else thinking of living here to “do your homework before you come”,
SUR in English
SUR in English published a property supplement for the “A Place in the Sun” exhibition, which was also distributed to readers in Spain inside last Friday’s edition. Distributed to all visitors from our own stand at the show, it flew off the rack, often into the hands of visitors who were already well acquainted with the newspaper from visits to southern Spain or through the online version. It was clear from their comments that these were serious buyers, who had come to the show to learn more about property buying in their chosen area.
SUR in English conducted its own survey to find out what the chosen areas were. Some visitors were interested in being near the sea, but there was a marked lack of interest in the big new developments on the coast, and buyers had heard of the Coasts Law and its prohibition of buildings close to the shore. All were aware of the bad press Spanish property has had recently in the UK, where the media have reported extensively on cases of corruption, problems with zoning, land grab and failed developers, but their attitude generally was that they were seeking information in order to avoid falling into any of the traps, and were undeterred in their search for their own place in the sun.
Taken from Sur in English... http://bit.ly/XDYC0
For Marbella Costa del Sol Bank Repossessions please vist our website... http://www.bargainqualityhomes.com/
The hoped-for green shoots of the economy in the UK were showing their heads in Birmingham last weekend, when thousands of people turned out for the “A Place in the Sun” exhibition held at the NEC. International property shows in the UK had been in the doldrums over the past months and some of the organsisers had gone into bankruptcy owing to the overall downturn in property sales everywhere, but “A Place in the Sun”, backed by the TV_programme of the same name, made a strong come-back at the NEC. The exhibition was a smaller one than in previous editions but had been well publicised, and visitors came flooding through the doors.
This was especially good news for Spain, confirmed to be the favourite destination of potential property-buyers. No fewer than 60 per cent of visitors indicated an interest in Spain, with France coming in a poor second despite its familiarity and geographical proximity to British buyers. Unlike in previous years, there was no “French village” area at “A Place in the Sun”, and Spain’s main competitors were the USA and Australia and New Zealand, which were offering immigration packages.
Surveys of the public attending the show indicated that many buyers have been waiting for the right moment, and are now ready to make the move, as prices are unlikely to drop any further. Asked why they were looking at Spain, they mentioned, as one would expect, the climate, the friendly people, and enjoyable holidays in this area in the past. Buyers were also aware of the problems now facing investors who had opted in the past for destinations less well served by the airlines. While flights to many of these have been reduced or scrapped altogether during the credit crunch, Malaga airport continues to be served by numerous airlines with dozens of flights every day to the UK.
Seminars
A programme of seminars accompanied the exhibition, dealing with such subjects as how to get a visa to move to the USA, fractional ownership of property, and “Has the market hit rock bottom?” The consensus on the last question was that although it is impossible to tell how low prices will fall, or predict when the market will pick up again, until the worst is over and the market is showing signs of growth, in most areas there is unlikely to be a better time to buy than right now.
The most popular of the seminars however was on the subject of “Emigrating to Europe”, with six talks over the course of the show commanding audiences much larger than anticipated. It was standing room only for many who wanted to hear advice and ask questions about relocating to another European country.
The seminars were conducted by a property journalist, the speakers being an international lawyer and an expert from the Foreign and Commonwealth Office, Stephen Jones, whose wide experience derives partly from his current position as British Consul in Malaga. His advice was wide ranging, from questions of vehicle licensing to health insurance, tax liability and transfer of British pensions abroad. He strongly recommended that new residents in Spain should register with the local “padrón” and that they try to learn some Spanish before making the move, in order to facilitate life in Spain and enjoy all that it has to offer. He was also insistent that before buying, it is advisable to rent for a few months to make sure of the suitability of the chosen location. Enthusiastic to the point of proclaiming Benalmádena to be his favourite of the many places he has lived, he reiterated the advice to anyone else thinking of living here to “do your homework before you come”,
SUR in English
SUR in English published a property supplement for the “A Place in the Sun” exhibition, which was also distributed to readers in Spain inside last Friday’s edition. Distributed to all visitors from our own stand at the show, it flew off the rack, often into the hands of visitors who were already well acquainted with the newspaper from visits to southern Spain or through the online version. It was clear from their comments that these were serious buyers, who had come to the show to learn more about property buying in their chosen area.
SUR in English conducted its own survey to find out what the chosen areas were. Some visitors were interested in being near the sea, but there was a marked lack of interest in the big new developments on the coast, and buyers had heard of the Coasts Law and its prohibition of buildings close to the shore. All were aware of the bad press Spanish property has had recently in the UK, where the media have reported extensively on cases of corruption, problems with zoning, land grab and failed developers, but their attitude generally was that they were seeking information in order to avoid falling into any of the traps, and were undeterred in their search for their own place in the sun.
Taken from Sur in English... http://bit.ly/XDYC0
For Marbella Costa del Sol Bank Repossessions please vist our website... http://www.bargainqualityhomes.com/
Friday, October 2, 2009
Landlords In Spain Get New Protection Availability
Spanish property investors must repel pirate tenants
There has been a substantial increase in Fly to Let landlords in Spain experiencing problems with bad tenants and the eviction process due to ‘pirate tourism’ according to Paragon Advance España.
The company, which is part of the Paragon Advance group which offers tenant referencing and rent warranty in Spain, says research shows that defaulting tenants and evictions have tripled in the past two years as owners look for a solution to create income by letting their property as an economic alternative to hotel accommodation or resort to long term lets to locals.
Bryn Cole, Managing Director of Paragon Advance España who have offices just outside Marbella, the Costa del Sol and Madrid, said: “The majority of expats living in Spain have opted to retire there and are living either off their English savings or pensions.
The effect of the recession has hit them through the weakness in the pound and the dramatic fall in interest rates, meaning that a person who is paid a pension in the UK and then has to convert it, has seen it fall dramatically, giving them less money to cope with a far more expensive cost of living than it was six months ago.
“Owner occupiers are now moving back to the UK and being forced into letting out their homes in order to be able to pay the mortgage and, for those investors who jumped on the Spanish property market, buying off plan, only to see it go into freefall before they could offload their investment, they have had their fingers burned and are having to let long term and ride it out.”
Many expat landlords are unaware of the different mechanisms in place to secure rental income and often fail to implement them in their rental agreements which can leave them unprotected if the tenant does not, or cannot, pay the rent.
In order to assist these landlords, Paragon Advance España offers a rent protection and legal expenses warranty which offers a standard loss of rent cover for up to €2000 per month for up to six months cover, although rents of over €2000 can also be covered, and legal expenses cover up to €15,000.
By using the route of arbitration, the timescales involved are dramatically reduced as Javier Iscar de Hoyos, General Secretary of the European Association of Arbitration (AEADE) explains.
He said: “It can take around 18 months through the usual law system and, in the meantime, the landlord still has to pay the mortgage, utility bills and has no redress over the defaulting tenant during this time. If the landlord should refuse to pay and, for instance, the electricity is cut off, the tenant can prosecute the landlord.
“We have invested time and effort in ensuring that a more specialised system of arbitration takes root in society, providing fluidity, security and trust in contractual relationships between landlords and tenants.
“More than 80 percent of proceedings dealt with in 2008 were from the property sector in which the number of arbitration cases rose by 83 percent. During this time, the average dispute resolution took less than four months.
“With regard to tenancy arbitration, thanks to the special system created by AEADE to facilitate disputes in that sector, the time frame was limited to an average of 25 days, with more complex cases being resolved within six months.”
Taken from FCC Paragon... http://bit.ly/1axu67
For Marbella Costa del Sol Property News please vist our website... http://www.bargain-quality-homes.info/
There has been a substantial increase in Fly to Let landlords in Spain experiencing problems with bad tenants and the eviction process due to ‘pirate tourism’ according to Paragon Advance España.
The company, which is part of the Paragon Advance group which offers tenant referencing and rent warranty in Spain, says research shows that defaulting tenants and evictions have tripled in the past two years as owners look for a solution to create income by letting their property as an economic alternative to hotel accommodation or resort to long term lets to locals.
Bryn Cole, Managing Director of Paragon Advance España who have offices just outside Marbella, the Costa del Sol and Madrid, said: “The majority of expats living in Spain have opted to retire there and are living either off their English savings or pensions.
The effect of the recession has hit them through the weakness in the pound and the dramatic fall in interest rates, meaning that a person who is paid a pension in the UK and then has to convert it, has seen it fall dramatically, giving them less money to cope with a far more expensive cost of living than it was six months ago.
“Owner occupiers are now moving back to the UK and being forced into letting out their homes in order to be able to pay the mortgage and, for those investors who jumped on the Spanish property market, buying off plan, only to see it go into freefall before they could offload their investment, they have had their fingers burned and are having to let long term and ride it out.”
Many expat landlords are unaware of the different mechanisms in place to secure rental income and often fail to implement them in their rental agreements which can leave them unprotected if the tenant does not, or cannot, pay the rent.
In order to assist these landlords, Paragon Advance España offers a rent protection and legal expenses warranty which offers a standard loss of rent cover for up to €2000 per month for up to six months cover, although rents of over €2000 can also be covered, and legal expenses cover up to €15,000.
By using the route of arbitration, the timescales involved are dramatically reduced as Javier Iscar de Hoyos, General Secretary of the European Association of Arbitration (AEADE) explains.
He said: “It can take around 18 months through the usual law system and, in the meantime, the landlord still has to pay the mortgage, utility bills and has no redress over the defaulting tenant during this time. If the landlord should refuse to pay and, for instance, the electricity is cut off, the tenant can prosecute the landlord.
“We have invested time and effort in ensuring that a more specialised system of arbitration takes root in society, providing fluidity, security and trust in contractual relationships between landlords and tenants.
“More than 80 percent of proceedings dealt with in 2008 were from the property sector in which the number of arbitration cases rose by 83 percent. During this time, the average dispute resolution took less than four months.
“With regard to tenancy arbitration, thanks to the special system created by AEADE to facilitate disputes in that sector, the time frame was limited to an average of 25 days, with more complex cases being resolved within six months.”
Taken from FCC Paragon... http://bit.ly/1axu67
For Marbella Costa del Sol Property News please vist our website... http://www.bargain-quality-homes.info/
Global recovery has begun - IMF
By Lesley Wroughton
ISTANBUL (Reuters) - The International Monetary Fund on Thursday declared that a global economic recovery had begun led by Asia, also cautioning that the strength of the rebound depends on a rebalancing of world growth.
After a year of being downbeat about prospects for the world economy, the IMF's latest World Economic Outlook revised up its forecasts, projecting a stronger rebound next year.
"The recovery has started. Financial markets are healing and in most countries growth will be positive for the rest of the year as well as in 2010," the IMF's chief economist Olivier Blanchard told a news conference before the start of World Bank and IMF meetings in Istanbul.
The Fund now expects world output to contract by 1.1 percent in 2009 before growing by 3.1 percent in 2010. This is more upbeat than its last outlook in July when the Fund projected the world economy would shrink 1.4 percent in 2009, before expanding 2.5 percent in 2010.
Blanchard said at his news conference that the strength of the world economy will depend on rebalancing global growth, an issue that was the focus of a summit of leaders from the Group of 20 advanced and developing nations in Pittsburgh last week.
"If you think about global rebalancing you realise it is going to have to come from a number of measures and from a number of adjustments. It is very hard to see how this could happen at the current exchange rates," he said.
"In general, it is very hard to see how global rebalancing does not come with an appreciation of Asian currencies of various degrees," he added, without mentioning China's currency, the yuan, which the IMF has said is substantially undervalued.
Rebalancing the world economy will require debt-laden countries including the United States to save more and buy less, and big exporters like China to increase domestic spending. Such a process would almost certainly require an even weaker U.S. dollar and for the Chinese renminbi to rise.
In an interview with Reuters Television, Blanchard also said that rebalancing global foreign exchange rates was not just about adjusting the level of the Chinese currency.
"I've focussed on China because it is an obvious component of the solution, but this is not a Chinese problem, it's a world problem," he added, declining to give specific levels for either the yuan or other currencies.
The IMF report said the global economy will take a while before it returns to pre-crisis levels, with growth expected to average a little more than 4 percent a year after 2010.
The Fund said it saw both the United States and the euro-area returning to positive, albeit slow, growth next year.
EMERGING COUNTRIES LEAD
Emerging and developing countries are the front runners in this recovery, expanding by 1.5 percent this year before rebounding 5 percent next year led by China and India, the IMF said, also noting signs of stabilization in Latin America.
The IMF revised up China's growth forecast for next year to 9 percent from a July estimate of 8.5 percent.
Overall, it said downside risks to growth are receding but are still a concern. The greatest risk was that countries disrupt the recovery by withdrawing supportive measures too soon.
It said governments should stand ready to roll out new initiatives if risks to growth materialise, even if it means racking up higher levels of debt.
But Blanchard said fiscal support could not go on forever and as governments consider exit strategies, they should also commit to large reductions in deficits.
The challenge going forward is to map a middle course between unwinding stimulus measures too early and leaving them there too long, which could damage government balance sheets.
"If the recovery was truly to falter, if private demand was really to pick up, and global rebalancing were not to take place, then this might be a very strong incentive for governments to have large fiscal deficits and run debt to very high levels," he added.
In major economies, authorities can still afford to maintain accommodative conditions for a while because inflation is likely to remain subdued, the IMF said.
In emerging markets, raising interest rates may happen sooner, the IMF said, although warned that in some countries warding off risks of new asset price bubbles may require greater exchange rate flexibility.
Meanwhile, a Turkish student, who is also the editor of a small left-wing newspaper Birgun, threw a shoe which landed at IMF Managing Director Dominique Strauss-Kahn's feet on Thursday as he made a speech to students in Istanbul.
The incident echoed that of an Iraqi journalist who last December hurled his shoes, a grave insult in the Muslim world, at then U.S. President George W. Bush.
(Additional reporting by Daren Butler, Nick Edwards and Selcuk Gokoluk; Editing by Andy Bruce/Victoria Main)
From MSN Money... http://bit.ly/xBw8L
For Marbella Costa del Sol Bank Repossessions please vist our website... http://www.bargainqualityhomes.com/
ISTANBUL (Reuters) - The International Monetary Fund on Thursday declared that a global economic recovery had begun led by Asia, also cautioning that the strength of the rebound depends on a rebalancing of world growth.
After a year of being downbeat about prospects for the world economy, the IMF's latest World Economic Outlook revised up its forecasts, projecting a stronger rebound next year.
"The recovery has started. Financial markets are healing and in most countries growth will be positive for the rest of the year as well as in 2010," the IMF's chief economist Olivier Blanchard told a news conference before the start of World Bank and IMF meetings in Istanbul.
The Fund now expects world output to contract by 1.1 percent in 2009 before growing by 3.1 percent in 2010. This is more upbeat than its last outlook in July when the Fund projected the world economy would shrink 1.4 percent in 2009, before expanding 2.5 percent in 2010.
Blanchard said at his news conference that the strength of the world economy will depend on rebalancing global growth, an issue that was the focus of a summit of leaders from the Group of 20 advanced and developing nations in Pittsburgh last week.
"If you think about global rebalancing you realise it is going to have to come from a number of measures and from a number of adjustments. It is very hard to see how this could happen at the current exchange rates," he said.
"In general, it is very hard to see how global rebalancing does not come with an appreciation of Asian currencies of various degrees," he added, without mentioning China's currency, the yuan, which the IMF has said is substantially undervalued.
Rebalancing the world economy will require debt-laden countries including the United States to save more and buy less, and big exporters like China to increase domestic spending. Such a process would almost certainly require an even weaker U.S. dollar and for the Chinese renminbi to rise.
In an interview with Reuters Television, Blanchard also said that rebalancing global foreign exchange rates was not just about adjusting the level of the Chinese currency.
"I've focussed on China because it is an obvious component of the solution, but this is not a Chinese problem, it's a world problem," he added, declining to give specific levels for either the yuan or other currencies.
The IMF report said the global economy will take a while before it returns to pre-crisis levels, with growth expected to average a little more than 4 percent a year after 2010.
The Fund said it saw both the United States and the euro-area returning to positive, albeit slow, growth next year.
EMERGING COUNTRIES LEAD
Emerging and developing countries are the front runners in this recovery, expanding by 1.5 percent this year before rebounding 5 percent next year led by China and India, the IMF said, also noting signs of stabilization in Latin America.
The IMF revised up China's growth forecast for next year to 9 percent from a July estimate of 8.5 percent.
Overall, it said downside risks to growth are receding but are still a concern. The greatest risk was that countries disrupt the recovery by withdrawing supportive measures too soon.
It said governments should stand ready to roll out new initiatives if risks to growth materialise, even if it means racking up higher levels of debt.
But Blanchard said fiscal support could not go on forever and as governments consider exit strategies, they should also commit to large reductions in deficits.
The challenge going forward is to map a middle course between unwinding stimulus measures too early and leaving them there too long, which could damage government balance sheets.
"If the recovery was truly to falter, if private demand was really to pick up, and global rebalancing were not to take place, then this might be a very strong incentive for governments to have large fiscal deficits and run debt to very high levels," he added.
In major economies, authorities can still afford to maintain accommodative conditions for a while because inflation is likely to remain subdued, the IMF said.
In emerging markets, raising interest rates may happen sooner, the IMF said, although warned that in some countries warding off risks of new asset price bubbles may require greater exchange rate flexibility.
Meanwhile, a Turkish student, who is also the editor of a small left-wing newspaper Birgun, threw a shoe which landed at IMF Managing Director Dominique Strauss-Kahn's feet on Thursday as he made a speech to students in Istanbul.
The incident echoed that of an Iraqi journalist who last December hurled his shoes, a grave insult in the Muslim world, at then U.S. President George W. Bush.
(Additional reporting by Daren Butler, Nick Edwards and Selcuk Gokoluk; Editing by Andy Bruce/Victoria Main)
From MSN Money... http://bit.ly/xBw8L
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Thursday, October 1, 2009
Spain raises taxes to tackle deficit
Spain's Socialist government has unveiled tax increases designed to raise an extra €11bn ($16.2bn, £10.1bn) a year and cut a budget deficit swollen by the economic crisis. But it failed to convince opponents that the measures would be enough to rescue the public finances.
Before the summer, ministers insisted Spain did not need drastic tax increases. But on Saturday the cabinet bowed to the inevitable and approved what it called an "austerity" budget for 2010, outlining spending cuts and increases in income tax, value added tax and the tax on capital gains and interest income.
The budget prepared by Elena Salgado, finance minister, abolishes a €400 annual tax rebate granted only two years ago. That was near the end of a housing-driven economic boom that had allowed José Luis Rodríguez Zapatero, prime minister, to say even the left could reduce taxes.
From July next year - by which time the government hopes an economic recovery will have begun - the main VAT rate will rise two percentage points to 18 per cent, while a lower band for restaurants and hotels will rise one point to 8 per cent. The rate for basic food items will remain unchanged at 4 per cent.
The government has highlighted the new tax rates on unearned income - up 1 percentage point to 19 per cent, and up three points to 21 per cent for annual earnings above €6,000 - to suggest they are targeting the rich and not the middle classes.
"Those with the most should make the biggest contribution," said Ms Salgado, who also announced a tax cut for small businesses that maintained or increased the number of their employees.
However, the unearned income tax rise is expected to bring in just €800m a year, less than a tenth of the budgeted extra revenue, and other political parties whose support the government needs to pass the budget were unimpressed.
Joan Ridao, of the leftist Catalan party Esquerra Republicana, called the budget "erratic, improvised and unrealistic".
On the right, Mariano Rajoy, of the main opposition Popular party, said the budget was a recipe for more unemployment, more deficits and more taxes. "He [Zapatero] continues to lie to us, just as he did when he said there was no crisis," Mr Rajoy said.
Story from The Financial Times... http://bit.ly/3P3Kuh
For Marbella Costa del Sol Property News please vist our website... http://www.bargain-quality-homes.info/
Before the summer, ministers insisted Spain did not need drastic tax increases. But on Saturday the cabinet bowed to the inevitable and approved what it called an "austerity" budget for 2010, outlining spending cuts and increases in income tax, value added tax and the tax on capital gains and interest income.
The budget prepared by Elena Salgado, finance minister, abolishes a €400 annual tax rebate granted only two years ago. That was near the end of a housing-driven economic boom that had allowed José Luis Rodríguez Zapatero, prime minister, to say even the left could reduce taxes.
From July next year - by which time the government hopes an economic recovery will have begun - the main VAT rate will rise two percentage points to 18 per cent, while a lower band for restaurants and hotels will rise one point to 8 per cent. The rate for basic food items will remain unchanged at 4 per cent.
The government has highlighted the new tax rates on unearned income - up 1 percentage point to 19 per cent, and up three points to 21 per cent for annual earnings above €6,000 - to suggest they are targeting the rich and not the middle classes.
"Those with the most should make the biggest contribution," said Ms Salgado, who also announced a tax cut for small businesses that maintained or increased the number of their employees.
However, the unearned income tax rise is expected to bring in just €800m a year, less than a tenth of the budgeted extra revenue, and other political parties whose support the government needs to pass the budget were unimpressed.
Joan Ridao, of the leftist Catalan party Esquerra Republicana, called the budget "erratic, improvised and unrealistic".
On the right, Mariano Rajoy, of the main opposition Popular party, said the budget was a recipe for more unemployment, more deficits and more taxes. "He [Zapatero] continues to lie to us, just as he did when he said there was no crisis," Mr Rajoy said.
Story from The Financial Times... http://bit.ly/3P3Kuh
For Marbella Costa del Sol Property News please vist our website... http://www.bargain-quality-homes.info/
Monday, September 28, 2009
DO new homes or resales offer the best value abroad?
DO new homes or resales offer the best value abroad? PETER SWAIN has a look into where good deals can be found.
Strictly Come Dancing devotees will recognise ‘slow, slow, quick, quick, slow’ as the rhythm of the Tango.
Over recent years, buyers hunting for a home abroad have been dancing to a similar tempo. Up until 2007, with prices racing ahead, there was a hectic quick burst; now we’re in a slow period.
‘Costa del Crunch’ style headlines suggest there should be bargains out there, especially in Spain and Florida. But unearthing good-quality property in the right location, at the right price, is another matter.
So, to find good value for today’s dollar or euro, is it better to stalk discounted new homes or should buyers track down cheap resales; properties on developments already sold to private buyers but now back on the market?
According to Reuters, house prices in Spain have fallen 32 per cent from their 2007 peak.
Despite this, “until the beginning of 2009, developers had their heads in the sand and were refusing to discount,” said Barbara Wood of The Property Finders, which helps buyers locate their place in the Spanish sun at the appropriate price.
“Even now, they don’t want to advertise reductions on their websites,” added Ms Wood.
“But for quality property in good locations like Sotogrande and Marbella, I now look for a 30-40 per cent discount on peak prices.
“You can get 60 per cent off some apartments but I wouldn’t advise it. Bad location, inadequate infrastructure and
oversupply may make them unsellable in the foreseeable future.”
Rather than bartering with builders, Ms Wood believes the best deals in Spain are currently in resales.
“Two years ago, £300,000 would only get you a cookie-cutter square box in a bad location. Today, that buys a quality resale property right on the front line.”
The advantage of a resale on an established resort is what you see is what you get. “If you buy on an unfinished development with further phases planned, you could be living on a building site for years,” Ms Wood warned.
“Promises of future golf courses, supermarkets and tapas bars should be treated with extreme caution.”
Some resale properties may be a little tired but others, bought by investors off-plan expecting to ‘flip’, or resell before completion, may never have been lived in.
James Stewart of Savills is selling just such a four-bedroom villa in Sotogrande for €850,000, down from €1.4 million.
“Prices are back at 2003 levels. Right now there is terrific value in Spain.”
A distressed seller, however deserving of sympathy, represents an opportunity for a bargain-hunting buyer.
“I spend a lot of my time investigating why something is for sale, finding out the back story, to give my clients the best chance of getting a great deal,” explained Ms Wood.
But even in the developer market there are real opportunities.
“A frontline beach property at San Pedro, close to Puerto Banús, was originally on the market for €715,000,” said Ms Wood.
“The two-bedroom penthouse, with a roof terrace and hot tub, is one of only 36 apartments in a gated community. The developer will now consider offers of €360,000.”
Good deals aren’t confined to Europe. The price crash started in the US, where the annual rate of house building is currently at its lowest since records began in 1959.
Florida has been a bloodbath. June’s $105,000 average price for resale condos (apartments) marked a 52.1 per cent decline from the $219,000 peak in July 2006.
Orlando-based Gary Kenny is a developer and estate agent, so well placed to gauge the market.
He said: “We’ve sold 220 of the 290 condos at our Tuscana development in Champion’s Gate but to sell the rest I would have to accept a price I can’t afford.”
The Tuscana website advertises two-bed apartments for $360,000.
“I might sell them for $250,000 cash but the nearby competition is selling for $150,000,” said Mr Kenny wearily.
“Luckily we have understanding banks so we’re renting them.”
Builders in central Florida are competing against the foreclosure market, which currently accounts for more than 40 per cent of transactions, according to the National Association of Realtors.
Mr Kenny said: “When people walk in the door, their first words are ‘bank-owned property’ and ‘foreclosures’.”
He warns buyers against the very cheapest bargains. “You can buy condos for $60,000 but the Home Owners Association, which takes care of insurance and maintenance, is probably broke.”
In Florida, buyers can instantly see a record of when a property was built, when it was put on the market, at what price and by whom, so the market is more transparent than the Spanish.
New and resale property compete side-by-side at similar prices. With a 10-month supply of foreclosure property, prices could remain depressed for a while. In any market, the financial position of an individual developer is key.
Aphrodite Hills in Cyprus was successfully launched nine years ago. The 650 villas and apartments, five-star hotel and spa, and best golf course on the island, have been a winning formula.
With relatively few units left to sell, the developer doesn’t need to drop prices much, so anyone expecting to haggle huge chunks off their latest offering, Theseus Village, where apartments cost between €412,900 and €765,000, and villas well over €1 million, may be disappointed.
But among resellers on Aphrodite Hills, especially those returning to the UK and converting their euros back into sterling, there is more price flexibility.
“When comparing like for like, there are discounts of 15-20 per cent on the table for resales,” said Pauline Gallagher of local agent, Unique Living, which is selling a two-bedroom resale apartment in Theseus Village for €529,500.
Smaller developments in Cyprus have been forced to discount more heavily.
“Prices on two-bedroom apartments built by smaller developers in Paphos, just 17 kilometres away, are 30 per cent off their peak,” said Peter Cooper of Signature Properties.
If singer Peter Andre of Cypriot extraction, decides to downsize from his multi-million-pound holiday home near Larnaca, following his much-publicised divorce from Katie Price, this would be a good time to find a bargain.
So, particularly with resales and even on new developments abroad, there is terrific value.
But in the current turbulent market, local knowledge has never been so important.
Story from Daily Express... http://bit.ly/19qohB
http://www.bargain-quality-homes.info/
Strictly Come Dancing devotees will recognise ‘slow, slow, quick, quick, slow’ as the rhythm of the Tango.
Over recent years, buyers hunting for a home abroad have been dancing to a similar tempo. Up until 2007, with prices racing ahead, there was a hectic quick burst; now we’re in a slow period.
‘Costa del Crunch’ style headlines suggest there should be bargains out there, especially in Spain and Florida. But unearthing good-quality property in the right location, at the right price, is another matter.
So, to find good value for today’s dollar or euro, is it better to stalk discounted new homes or should buyers track down cheap resales; properties on developments already sold to private buyers but now back on the market?
According to Reuters, house prices in Spain have fallen 32 per cent from their 2007 peak.
Despite this, “until the beginning of 2009, developers had their heads in the sand and were refusing to discount,” said Barbara Wood of The Property Finders, which helps buyers locate their place in the Spanish sun at the appropriate price.
“Even now, they don’t want to advertise reductions on their websites,” added Ms Wood.
“But for quality property in good locations like Sotogrande and Marbella, I now look for a 30-40 per cent discount on peak prices.
“You can get 60 per cent off some apartments but I wouldn’t advise it. Bad location, inadequate infrastructure and
oversupply may make them unsellable in the foreseeable future.”
Rather than bartering with builders, Ms Wood believes the best deals in Spain are currently in resales.
“Two years ago, £300,000 would only get you a cookie-cutter square box in a bad location. Today, that buys a quality resale property right on the front line.”
The advantage of a resale on an established resort is what you see is what you get. “If you buy on an unfinished development with further phases planned, you could be living on a building site for years,” Ms Wood warned.
“Promises of future golf courses, supermarkets and tapas bars should be treated with extreme caution.”
Some resale properties may be a little tired but others, bought by investors off-plan expecting to ‘flip’, or resell before completion, may never have been lived in.
James Stewart of Savills is selling just such a four-bedroom villa in Sotogrande for €850,000, down from €1.4 million.
“Prices are back at 2003 levels. Right now there is terrific value in Spain.”
A distressed seller, however deserving of sympathy, represents an opportunity for a bargain-hunting buyer.
“I spend a lot of my time investigating why something is for sale, finding out the back story, to give my clients the best chance of getting a great deal,” explained Ms Wood.
But even in the developer market there are real opportunities.
“A frontline beach property at San Pedro, close to Puerto Banús, was originally on the market for €715,000,” said Ms Wood.
“The two-bedroom penthouse, with a roof terrace and hot tub, is one of only 36 apartments in a gated community. The developer will now consider offers of €360,000.”
Good deals aren’t confined to Europe. The price crash started in the US, where the annual rate of house building is currently at its lowest since records began in 1959.
Florida has been a bloodbath. June’s $105,000 average price for resale condos (apartments) marked a 52.1 per cent decline from the $219,000 peak in July 2006.
Orlando-based Gary Kenny is a developer and estate agent, so well placed to gauge the market.
He said: “We’ve sold 220 of the 290 condos at our Tuscana development in Champion’s Gate but to sell the rest I would have to accept a price I can’t afford.”
The Tuscana website advertises two-bed apartments for $360,000.
“I might sell them for $250,000 cash but the nearby competition is selling for $150,000,” said Mr Kenny wearily.
“Luckily we have understanding banks so we’re renting them.”
Builders in central Florida are competing against the foreclosure market, which currently accounts for more than 40 per cent of transactions, according to the National Association of Realtors.
Mr Kenny said: “When people walk in the door, their first words are ‘bank-owned property’ and ‘foreclosures’.”
He warns buyers against the very cheapest bargains. “You can buy condos for $60,000 but the Home Owners Association, which takes care of insurance and maintenance, is probably broke.”
In Florida, buyers can instantly see a record of when a property was built, when it was put on the market, at what price and by whom, so the market is more transparent than the Spanish.
New and resale property compete side-by-side at similar prices. With a 10-month supply of foreclosure property, prices could remain depressed for a while. In any market, the financial position of an individual developer is key.
Aphrodite Hills in Cyprus was successfully launched nine years ago. The 650 villas and apartments, five-star hotel and spa, and best golf course on the island, have been a winning formula.
With relatively few units left to sell, the developer doesn’t need to drop prices much, so anyone expecting to haggle huge chunks off their latest offering, Theseus Village, where apartments cost between €412,900 and €765,000, and villas well over €1 million, may be disappointed.
But among resellers on Aphrodite Hills, especially those returning to the UK and converting their euros back into sterling, there is more price flexibility.
“When comparing like for like, there are discounts of 15-20 per cent on the table for resales,” said Pauline Gallagher of local agent, Unique Living, which is selling a two-bedroom resale apartment in Theseus Village for €529,500.
Smaller developments in Cyprus have been forced to discount more heavily.
“Prices on two-bedroom apartments built by smaller developers in Paphos, just 17 kilometres away, are 30 per cent off their peak,” said Peter Cooper of Signature Properties.
If singer Peter Andre of Cypriot extraction, decides to downsize from his multi-million-pound holiday home near Larnaca, following his much-publicised divorce from Katie Price, this would be a good time to find a bargain.
So, particularly with resales and even on new developments abroad, there is terrific value.
But in the current turbulent market, local knowledge has never been so important.
Story from Daily Express... http://bit.ly/19qohB
http://www.bargain-quality-homes.info/
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