Flats 4 Freaks

Affordable Indian homes

The Indian real estate sector, had till recently been focusing on catering to the high demand for luxury living. Small house segment was ignored completely. High consumer confidence, low interest rates and a belief that the prices will only one-way, led to this euphoria. Several construction companies raised large sums of money through IPOs. After the January 2008 crash, the real estate stocks are among the worst affected. Whereas, the stocks were down, the prices of houses and real estate have not seen any appreciable corrections. Business World reports that in Mumbai recently, Bandra Kurla complex, a piece of commercial estate got only Rs 15,000 per square feet against Rs. 40,000 for a similar property in 2007.

With rising prices and interest rates, the demand for luxury flats (Above Rs 50 lakh per apartment) has dramatically come down. In India, housing if priced correctly has an enormous demand and given the huge housing shortage, it is unlikely that there will be any saturation in the market for a long time to come. This is a win-win situation for both, the buyer and developer. The attraction for developers in the affordable housing segment is assured sales and upfront cash flows. While margins may be lower compared to high-end projects, they make up in terms of volumes.

See ya mates!

Spanish get profit from tourist boom

Property investors in Spain could be set to benefit from an increase in the number of tourists visiting the country.

Estanislao Perez, director of Jerez Airport, told the Typically Spanish website that the planned expansion of the facility would result in more flights arriving in the area.

As a result, he said that the number of people passing through the airport could increase to as much as four million by 2012.

This would be twice the amount recorded last year.

A series of improvements have been planned for Jerez Airport, including the creation of new check-in desks and an extension on one of its runways.

In addition, the operating hours will also be changed, allowing it to stay open for longer and handle more flights and passengers.

This could have a direct impact on investment prospects in the region, as the enhancements could improve its accessibility and profile.

According to NatWest, Spain is the most popular country among Britons who own foreign flats, houses, condos, villas or basements.

See ya guys!

Keep going tourists, keep going!

The number of people choosing to visit Spain for their holidays has increased, according to new figures.

Statistics from the country's ministry of industry, commerce and tourism showed that 6.1 million visitors arrived in the country last month.

This is 1.8 per cent higher than during September 2006.

Meanwhile, an increase in tourist numbers was also recorded for the whole of 2007 to date.

Figures showed that 47.6 million people took a holiday in Spain between January and September this year - 2.2 per cent more than during the same period of 2006.

These figures are likely to be welcomed by investors in the Spanish property market, especially those who own rental flats & appartments to let out to tourists.

Earlier this month, Clickair announced that it would launch new flights between Edinburgh and Barcelona, further highlighting the continuing popularity of Spain as a holiday destination.

Cheers!

Canadian Style

Hi guys, now Im living in Canada 4 a while and I wanna comment you about properties here.

Cheap flats and cheapest houses, nice condos, wonderful stuff!

Weather here (BC) is very good these days, 15 days here, and only 1 were showers and clouds, but in whole Canada there are snow and horrible storms and lot of degrees below.

But if you really wanna invest go to Spain, good prices and sun all over the year!

Bye bye take care mates!

Australia: Irony 4 new buyers

Ironically new home buyers are constituents the Rudd Government has championed since its election.

Property Council of Australia director Trevor Cooke said certain housing developers would now pay a greater proportion of their income in GST and would pass on that cost to buyers.

"In its present form, this change will add to the cost of new housing," Mr Cooke said. "It's hard to imagine flats developers will be able to absorb the full cost."

The Treasury estimates the changes will reap $620 million in revenue over four years. "That money will have to come from someone," Mr Cooke said.

Under the old scheme, developers would pay GST on the difference between the sale price and the price paid for occupied land that is a "going concern". Under the new scheme, they would pay GST on the difference between the sale price and the price paid to the original land owner.

For example, apartments sell for $10.5 million. A developer bought the apartment site from a factory owner for $5 million. The factory owner bought it from a farmer for $500,000. Under the old scheme, the developer would pay GST on $5.5 million. Under the new scheme, they would pay GST on $10 million.

Prosper Australia director Karl Fitzgerald said the former system was preferable, particularly when houses were demolished to make way for apartments.

"The margin scheme was fair. It was designed to stop GST being applied to the non-GST part of land and dwellings used as exempt housing but later taken over by a developer," Mr Fitzgerald said. "Without the margin scheme . . . GST is being clawed out on the way through as housing goes from a family to a unit dweller via a developer."

Cheers!

British retireds choose Spain

Many of the baby boomer generation are choosing properties as flats, houses and vilas to retire abroad, usually somewhere with sunny weather.

A full 48 per cent of those over 55 who were surveyed said that they regret not travelling more earlier in life.

Now, approximately one-third of all trips taken abroad are by those over the age of 50.

It appears many over-55s do have something they regret, but in most cases it is not too late to do something about it.

Putting money aside and making it work for them means they are one step closer to realising their dreams.

Some 37 per cent of the over-55s who took part in the survey say that they wish they had started saving earlier on in life.

A baby boomer is generally considered as somebody born between 1945 and 1965.

Cheers guys appreciate u.

Berggruen to invest 10 billion in India

Berggruen Hotels, the hotel division of Berggruen Holdings, a New York-based private investment company, is planning to invest big time in India. It has so far invested Rs 1.5 billion and acquired land in about 18 cities. It had slowed down its land acquisition spree some time ago, because of the shooting real estate prices. In cities like Mumbai, Delhi, Chennai, Jaipur and Pune, the flats prices had shot up as high as 60%, forcing Berggruen and other hospitality companies to slow down.

Partha Chatterjee, whole-time director and chief marketing officer, Berggruen Hotels, had reportedly told DNA Money that the entire quantum of debt will be drawn up according to a need-based blueprint to fund about 38 properties in India till 2012 and will include the cost of land and construction. Berggruen will fund its overseas ventures according to a need-based plan, like it is doing in India, since there is no point in keeping idle money, Chatterjee said. The company is also looking at greenfield projects overseeas — in Middle East & North Africa, South East Asia and South Asia. The first Berggruen property in India is likely to start operating from February next year in Thiruvananthapuram (Trivandrum) as the company had zeroed in on land there earlier.

Cheers!!!

25% of Brits want Spanish property

Spain is still one of the most popular overseas property markets among Britons, a new poll has found.

14 per cent of those who were thinking of buying a second home abroad had considered the Spanish market.

Meanwhile, more than a quarter of those who already had a second property abroad were found to own a home in Spain.

Most of these were bought for investment purposes, although the study showed that some were using it as part of their retirement plan.

The accessibility of Spain from the UK was one of its major attributes, along with its stable economy.

Most buyers have a simple desire to enjoy spending time in holiday homes in a country that offers an excellent climate and attractive lifestyle for their flats.

According to research by Yorkshire Bank, the Costa Blanca and the Costa del Sol are the two most popular parts of Spain with British buyers.

Cheers!

The Tasmanian mortgage devil

The combination of the highest relative property values (flats, houses & villas) in the world with the highest official interest rates naturally produce high home loan repayments.

Just how high and how painful is now becoming more than obvious. Anecdotal reports of rising repossessions and a huge increase in forced sales are now spreading from so-called blue collar suburbs to properties in the $1 million to $5 million valuation range.

Mortgage stress is spreading across all cities, suburbs and demographics.

Overgeared families are obviously the most vulnerable but wealthier Australians are now being caught as they liquidate assets to meet margin calls on highly leveraged share portfolios caught in the equities downturn.

The latest research from Fujitsu Consulting claims more than 900,000 Australians will suffer mortgage stress by September, 400,000 of those will be in severe stress and 80,000 could lose their homes because they can't meet the loan repayments.

Severe stress is defined as being unable to meet repayments without refinancing, with many having to put repayments on their credit card.

They are sobering figures. Yet probably the scariest finding from the Fujitsu report is that once someone is in severe stress there is a 20 per cent chance of being forced to sell the property and there is only a 50 per cent chance of getting out of mortgage stress altogether.

The lesson is that if you're in trouble, you just can't ignore it and hope things will improve. The quicker you take action, the better your chances of beating the financial survival odds.

Cheerio!

Bharti Wal-Mart to open first facility in Punjab

The joint venture Bharti Wal-Mart Private Limited is set to introduce the wholesale cash-carry concept to India. The first facility is expected to take off from Punjab by the first quarter of 2009. The typical facility will stand between 50,000 and 1, 00,000 square ft and will sell wide range of fruits, vegetables, groceries, staples, stationery, clothing, consumer durables and other general merchandise items. The chain will enable minimum wastage, particularly food and fresh goods. The JV has already set up a distribution centre spread over 1, 00, 000 sq ft in Banur from where goods will be supplied to the nearest facility. But my friends, they do not sell flats!

They sell best quality products at cheaper prices in India. Wholesale cash and carry operation will provide a wide range of products to small retailers and business owners. The JV will serve Kirana stores, fruit and vegetable resellers, restaurants. The venture will invest in setting up an efficient chain and will support farmers, small manufacturers who have limited infrastructure and distribution strength. We will also help our suppliers to get easy access to finance from banks. The supplier will get the certificate from Wal-Mart, which will help them to avail the loan. But we will not stand as a guarantee if a particular supplier fails to repay the loan”. Raj Jain said, “Wholesale cash carry is new concept in India and there are various challenges like bringing new technology here.”

Cheers!

Upgrading at Spanish airports

Two major airports in Spain are set to be expanded, potentially boosting the country's property market and tourist industry.

The Spanish government has approved plans to extend the operating hours at San Javier Airport in Murcia, as well as the use of another runway.

However, flats in the immediate area will have to be soundproofed before the work is completed in order to reduce the noise for people living nearby.

Meanwhile, a new runway is set to be built at Malaga Airport, which is already having a new terminal building constructed.

The runway is set to be completed within two years, prompting experts at Homes Worldwide to predict that Malaga could be an investment hotspot in 2010.

Cheers bros!

Investors benefit from internet access

Overseas investors could benefit from choosing a location equipped with broadband internet access, after a new poll highlighted the importance of the web to many expats.

Almost three-quarters of Britons living abroad used the internet each day to contact family and friends in the UK.

In addition, 40 per cent of overseas buyers were said to go online for at least an hour seven days a week.

Many were also found to use the internet for other reasons, such as banking and keeping up to date with current affairs.

Being distanced from the UK, [expats] are reliant on it to keep in touch with family and friends, monitor the news and manage their finances.

The firm added that the internet enabled them to carry out these tasks regardless of where they were in the world.

Flats4freaks!!!! 4 ever!

Spanish house price inflation outpaces other countries

The rate of growth in the Spanish property market is continuing to outpace many other European countries, according to a new report.

Price inflation was slowing down across much of the continent, prices in Spain continued to grow at a strong rate.

Figures showed that during the last year, the price of property in Spain increased by five per cent.

This rate of house price inflation is much higher than in many other European countries, suggesting that overseas investors hoping for capital appreciation could still profit from the Spanish market flats.

During the same period, prices in the Republic of Ireland rose by just 0.9 per cent.

In addition, there was also a fall in the average price increases in Denmark, Switzerland, the Netherlands and France.

The study concurs with recent research by Halifax, which found that growth in the Spanish property market had outpaced other countries in the eurozone since 2002.

Bye, bye!

Spanish cities benefit from regional airports

Many towns and cities have benefited from being located near regional airports.

Regional airports had made foreign destinations more accessible to those in the area, including holidaymakers and property investors.

The immediate area often saw further material benefits beyond people being able to travel more, such as improvements to the local infrastructure.

If the services don't work then airlines won't run them. If they don't have enough passengers then they won't be running them.

The benefits applied in the case of both UK airports and those in other countries, as these areas had benefited from extra tourism and investment.

This comes after the Airport Operators Association praised regional airports for making overseas travel more convenient for many people.

Flats 4 us! Cheers mates...

Spanish property market sees fastest growth in EU

Growth in the Spanish property market is outpacing other countries in the Eurozone.

The average property value in Spain has risen by 100 per cent since 2002, beating the continent-wide average of 40 per cent.

In addition, Spain was found to be the only country that saw faster growth in its property market than the UK, although its average house prices are a bit higher.

While a typical property in Britain would cost £157,100, the average Spanish flats would market for about £190,200.

However, Spain was outpaced by another country on a year-by-year basis, as Belgium's average house price rose by 18 per cent over the last 12 months.

This compares with a rise of 14 per cent during the last year in Spain.

The rate of growth in the country has regularly been cited as one of the reasons for its popularity among overseas investors.

A recent study by Bank of Scotland International found that more than a quarter of second homes owned by UK nationals were in Spain.

Bye bye my friends!

What a difference a year makes in real estate

well-maintained Victorian in Albert Park should be a million-dollar property - or at least it would have had a shot at hitting that mark if the auction had been held last year.

Instead, this two-bedroom house at 23 Dundas Place attracted just one genuine bid yesterday, delivered as an opening offer at $700,000 that was well below the quoted price of $930,000 plus. Two vendor bids bumped the price up to that level but with no further interest, the property was quickly passed in. The reserve was $955,000.

"We thought we had a couple of genuine buyers before the day, but they just held back," said Cayzer agent Michael Szulc. "It's a strategy that's being employed a lot this year, with buyers hoping the auction won't be successful and they can swoop in.

"But that doesn't mean there's going to be some massive difference (in the sale price), as they're still going to have to negotiate and pay what the vendor wants for this kind of property."

Negotiations are continuing with one party. The Real Estate Institute of Victoria reported that the median flatsprice in Albert Park was $1,065,000 in March, down 0.9% on last December.

Cheers

Bring in the green

Environmentally friendly houses and apartments sell more quickly and appeal to new home and flats buyers.

The market is clearly telling us that people want sustainable places to live. Today we try to build complete laundries so people can dry their shirts on a rack rather than rely on a clothes dryer.

The introduction of the NSW Government's BASIX certificate, which required new houses to reduce energy and water consumption by about 20 per cent in 2002 and then ramped up the targets to 40 per cent, sped up the building of clean, green energy-efficient homes and apartments.

We know that that's what the market wants and as developers we want to prove to government that we are committed to creating sustainable subdivisions, apartments and retirement living projects.

Help the Earth mates!

Carrefour expands its presence in India

Carrefour, the world’s second largest retailer, is considering the franchise model to initially expand its presence in the country and may announce a local partner in four weeks, people involved in the development said.

The French retailer, which has held talks with as many as 50 domestic business houses including Mumbai-based Wadia group and Mukesh Ambani-led Reliance Industries and real estate companies, such as DLF, in the past five years, may choose Parsvnath, a New Delhi-based real estate company, as its partner.

Parsvnath has emerged as the strongest option for the franchise partner. A person familiar with the development at Carrefour gave the same timeline for the announcements. Parsvnath has almost five million sq ft of retail space under its belt and plans to increase it to six times in the next five years.

The retail giant’s negotiation with other domestic flats and companies failed as they wanted greater control over the business.

Carrefour is exploring the wholesale cash-and-carry format and front-end retailing options in the country. It has already formed Carrefour WC & C India and Carrefour India Master Franchise Company for the respective business formats.

Carrefour Rules!

Builders Pull out of Hotel Ventures as Profits Dry up

Leading property developers are pulling out of proposed deals with hospitality majors, including Royal Orchid Hotels and Ramada Worldwide, as cash flows in the real estate sector are slowing. Realtors are reconsidering plans to enter the hospitality sector, according to sources.

Real estate developers with presence in National Capital Region (NCR), Bangalore, Chennai, Pune, among others, are opting out of four and five-star hotel projects. According to sources, a five-star hotel in Pune shelved its plans recently as its developer pulled out of the commitment.

“The return on investment in a hotel will not be as high as it will be in putting the land to commercial use as flats for example.Committing to the hospitality sector means waiting for five or more years (till the hotel becomes operational) to get returns,” says Shivaram Malakala, executive director of Habitat Ventures, Bangalore.

“Developers are looking at realising their money through any alternative means and are thus in the exit mode,” he says.

More Foreign Money

Some things make the Reserve Bank of India (RBI) paranoid. The invasion of foreign money in the Indian property market has always been a familiar theme that rang alarm bells on Mint Street — the central bank’s headquarters.

Whenever it sensed an alarm, the regulator moved in to clamp down on such money flows. Even foreign venture capital funds opening shops here are asked by RBI to give an undertaking that the money they raise will not go into real estate buying properties as flats or whatever.

In the past two years, the regulator had persuaded New Delhi to tighten investment rules that would make it difficult for foreign money to chase Indian properties. Not that it has helped significantly, with smart money managers operating from offshore tax havens finding new ways to side-step the curbs.

Hot

Too hot these days in my city ( Madrid ) Awful hotness here mates... I dont know in another countries, but here in Madrid all the Capital cities are in Green Alert (green alert???)

If you wanna come to Spain i give you a piece of advice... Do not come in July and August. it sucks!

The temperature is more or less 40 ºC...

But, listen, Spain is different.

Cheers

Home but no savings in Melbourne

Facing a move from Sydney to Melbourne because of her husband's job, Wendy Lacy imagined flats costs would be much cheaper. Instead, she was surprised to discover there wasn't much difference.

Wendy and Paul Lacy found the only option that was going to provide them with real savings was if they built their own house on a block of land.

"That was cheaper for us," says Wendy, 35, who moved with Paul, 39, and their three children, aged 10, seven and four, from Sydney's Castle Hill to Cranbourne South in Melbourne's east just after Christmas.

In the process they swapped an area with a median house price of $649,000 for one with a median price of $789,950, according to RP Data. "The advantage is that you end up with a house that suits you and that you like," she says.

The disadvantage was that the couple, both missionaries, began their new life in Melbourne living in a caravan for three weeks to wait for the house to be finished until they could finally move in at the beginning of February.

When asked how Melbourne compares with life in Sydney, Wendy doesn't like to commit. "We haven't been in Melbourne long enough yet to know what it's really like," she says.

"But we've been told Melbourne is a good place to live. We miss our friends in Sydney but Melbourne feels a little more relaxed."

Cheers mates

State-Run Drug Companies Banking on Realty Pill to Boost Bottom-Line

State-run pharmaceutical corporations, struggling to survive competition with private sector companies, are now emerging in a new avatar –– as developers of commercial complexes and IT parks because of their massive land holdings.

The recently-revived Bengal Chemicals and Pharmaceuticals Ltd (BCPL) is building a 38-flats sky scraper at Worli in Mumbai overlooking the Arabian Sea. The new office complex at this two acre land in the heart of Mumbai will be ready in about 18 to 24 months.

The company intends to offer the space on a 99-year lease. Potential tenants have already pooled in money for the Rs 300-crore construction, it is understood. Public sector developer National Building and Construction Corporation (NBCC) is assisting BCPL in this venture.

Another state-run company, the Indian Drugs and Pharmaceuticals (IDPL), which is awaiting a revival package from the government is planning to leverage its vast real estate assets in Hyderabad, Rishikesh, Gurgaon and Chennai for developing large commercial facilities like software and biotech parks as well as educational institutions.

Take care my little friends...

Cheers

Real estate growth impacted due to high interest rates: ICICI

Leading home loan lender ICICI Bank on Thursday said that growth in the real estate sector has been impacted due to high interest rates and prices but maintained that there was no asset bubble in the sector.

Clearly there is a slowdown in the number of deals …interest rates have gone up from eight per cent in the past to now 12 per cent and prices too have gone up but an asset bubble is not there.

A correction was expected as the present slowdown was in number of deals and not so much in prices. Since it is genuine demand in general and the salary levels are increasing, both customers and builders are playing a wait and watch game.

Builders were able to hold prices as they were sitting on equity capital and not debt, which had to be paid off. Now they can afford to sit with the capital and that is the reason why prices have not corrected…the question is who will blink first. In India the speculative part in real estate had always been small and growth was largely driven by actual demand and affordability of people.

Cant you see you´re not good Brother Louie! Flats are the reason of my life, Anyone has one 4 me for free? I´ll pay with whispers and good words... loads of love and a cup of tea... Cheerio"

Rates hit 17% under Keating. So 7% isn't nearly as bad - is it?

For mortgage stress to be the same today as it was in 1990, mortgage rates would need to be 3%! So 7% now - and 8-10% on mortgages themselves - is three times worse than 17% under Keating.

Definitely. But the cautious approach of tinkering with rebates and subsidies is bound to win out over the hard policy of removing, once and for all, the incentives that have so distorted our housing market.

This would be predictable, timid, and ultimately useless policy. Almost every such trick simply boosts some sector of the market's demand capacity - when what we need to do is drive down the demand price.

Removing capital gains and negative gearing would slash demand, but the Government will hold off because many people who still anticipate real estate profits would scream blue murder. So to placate the winners, the losers will suffer.

Flats = mortgages ouch!

Take care my friends

How tight are loans?

Lenders usually don't announce the fact that they're tightening their lending criteria but analysts are unanimous in saying that this is happening.

"We are definitely seeing lenders tightening up their lending standards and lending criteria," says Mark Hewitt, the general manager of sales and operations, which describes itself as Australia's largest mortgage broker.

"In the credit crunch, with the difficulty of raising money, lenders are looking for assets to be much cleaner."

That said, Paul Dowling, the principal analyst with banking research firm, says talk of "credit rationing" is overstating things.

"There's a general move towards more conservative lending but I wouldn't quite describe it as credit rationing," he says.

"The banks have money to lend - it's a question of the [borrower's] credit profile and the [profit] margin."

Observers say all lenders are tidying up their credit processes to varying degrees, with the most marked changes coming from smaller lenders, which now have difficulty raising funds on wholesale markets at a reasonable price due to the global credit crunch.

Among the changes, maximum loan-to-valuation ratios are coming down. In other words, people must now stump up a bigger deposit - harking back to the days when the rule of thumb was that potential borrowers had to turn up with a 20 per cent deposit.

Cheers guys think about that!

Your dream or your NIGHTMARE

You've seen your dream house and it's on sale for a knockdown price. You had your own home valued late last year for a surprisingly good figure. So snapping up the new place, then selling your own, looks like a no-brainer.

Property analysts beg to differ. "It's total madness," says Michael McNamara, general manager of Australian Property Monitors.

"Some people would say buying before you sell is all right in a hot market, but in today's poor market, you risk a double bad whammy.

"You can buy first, then if it takes you a long time to sell your property, that's when you risk having to go for bridging finance to tide you over, plus you watch the value of your property decrease, which will also eat into your equity. It's not a good idea at all."

The hard art of price prophecies

The Office of Fair Trading action has cast a shadow over the work of real estate agents.

Agent Pam Collins (above) had been looking forward to the auction of a couple of flats she's selling - a renovated three-bedroom, two-bathroom penthouse on the beachfront - but now her heart is filled with dread.

"It can be so hard to estimate what certain properties will sell for," she says.

"This is the perfect example. There aren't any comparable properties around, it's a complete one-off. As a result, how can you hope to accurately predict the price?

"There's nothing like it in Freshwater and similar places in Manly have roads in front of them, between them and the beach."

The property, for auction on June 14 through Richardson & Wrench Freshwater-Manly, and with a price guide of $1.9 million-plus, was built 37 years ago but, in all that time, has changed hands only twice, so has little sales history to fall back upon.

"It can be very hard for agents in this kind of situation," says Collins, who's been an agent for 20 years. "There could be a huge difference in the market at any time."

Tips

My tip for today is, Tomorrow belong to meeeeee. Have you seen Cabaret, guys? Liza Minelli was great in her performance... Uoh, I said this becouse the world is getting over, mates, fight for your rights! Get your own flat or flats, be alive!!! The world belong to us!!

Cheerio!

Green streets

Environmental considerations play a huge part in Sydney's newest mixed-use development, The Village, at Balgowlah. This $345 million project - developed by Stockland and designed by Allen Jack+Cottier - will include a Coles supermarket, 60 specialty shops, 246 flats, 25 townhouses, restaurants and cafes with outdoor dining, plus gardens and a resort-style pool.

Water will be collected from the rooftop, filtered and stored in an underground 500,000-litre tank, to be used for residential toilets, washing machines and landscape irrigation.

Another clever innovation is the way that waste heat generated by the retail centre's air-conditioning system will be captured and used to heat the residents' swimming pool. Some will also be used as a pre-heat system for the hot water services in the apartments.

The majority of apartments will face north-south, reducing the need for artificial lighting. Louvred balcony screens provide shade and catch coastal breezes. A swag of energy- and water-efficient appliances and low-energy lighting will be standard.

Until recently, shopping centres and multi-unit residential buildings have been ignored when it comes to proving environmental credentials. The Green Building Council of Australia will use The Village as a benchmark for its Green Star rating tool, which will judge it on a variety of criteria, including emissions, water use and innovation.

"We're attempting to get a five-star rating for the retail mall," says architect Stephen Black.

What can we do? Just begin or keep it going? I think we have a bit to learn of Australian people...

Cheers!!!