Overseas Property Blog :: guide to international real estate investment

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Archive for the ‘Guides and Tips’ Category

Ten Things to Know before Letting Your Overseas Property

Fly-to-let Landlords have dealt with some pretty nasty events while renting out their property overseas. Every now and then we hear horror stories and some of them are reason enough to ruin the fun for good. While most tenants are as good as gold or close to, landlords can never be too careful with regards to protecting their own rights.

We have compiled a list if ten tips that will help you to stay on top as a fly-to-let landlord so you can sleep better at night. We hope they can serve as some kind of guideline. However, since every country has their own rental laws you are well advised to check legal issues with a lawyer before you become a landlord yourself.

Top 10 Mistakes To Avoid When Buying Abroad

The Advertising Standards Authority has started to look into false and misleading advertising campaigns in the real estate consumer market. Words such as “guaranteed”, “expected” and “inevitable” or all considered a big NO NO, since they promise something that might never come to fruition.

Many property investors could survive a major disaster if they had only listened to the right advice before they bought. We hope that you will find our Top 10 Mistakes to Avoid When Buying Abroad helpful enough to question certain practices within the real estate industry.

Top 10 Marina Developments

San Diego marina at sunrise

If you ever dreamed of owning a yacht and sail it around the world for the rest of your life, have you ever considered where to rest your sea weary head at night when you are not at sea?

Here is to stop worrying and start planning your next fab trip by checking out these cool Top 10 Marina Developments from us. We are sure that those are reason enough to want to set sail into the eternal sunset.

So without further ado here are our top 10 picks for best dressed marina developments in the world.

Tips to Buying Property in Malaysia

Malaysian Buyers Guide - Overseas Property Mall

Where to Look

Kuala Lumpur is in a class apart as the country’s business capital and definitely the focus of most activity in residential, retail and office real estate. The city’s central business district is currently undergoing rapid change. However, KL’s long term prospects are not guaranteed despite all the activity. Singapore (pop. 4.5m) is only as far away as London is from Paris and this proximity means that Kuala Lumpur only has Malaysia (pop. 27m) as its hinterland. Given that KL and the KL ‘metropolitan region’ have populations of 1.8m and 6.9m respectively, it seems unlikely that the city can surprise by growing into a different league, either in terms of wealth or size. However, genuine friendliness and cooperation between the two countries could herald impressive new opportunities. WTW’s (CH Williams, Tahar & Wong) series of annual property reviews provides a good breakdown of developments around the country.

Kuala Lumpur Skyline

Edmonton Canada Market Outlook

Alberta-Skyline

There is no doubt that Edmonton, Canada has seen some spectacular increases in property value over the last ten years. 200%+ in fact. But will this continue and what is Edmonton’s future prospect as a property investment? As usual, the analysts and estate agents disagree.

What caused the real estate boom?

Oil. Oil was discovered in Alberta in 1947, much of it concentrated in central and northern Alberta, making Edmonton the base for much of the oil industry. Edmonton did see a drop in values during the 80’s, but made a full recovery very quickly thereafter. Nevertheless, Edmonton’s continuing growth is based heavily on oil extraction and processing. the Conference Board of Canada’s “Autumn 2007 Metropolitan Outlook,” forecast that Edmonton’s GDP for 2007 will be $44.1 billion (2007 dollars), a 3.6% increase over 2006.

Spain Boom or Bust?

Dear Overseas Property Mall,

I am a little confused about the state of the Spanish property market. I read conflicting reports and projections about Spain all the time and the newspapers are filled with doom and gloom alongside glowing projections. Should I invest in Spain or not ?

Yours sincerely,

Confused in Coventry

Dear confused in Coventry,

Your confusion is understandable. Several small and medium sized Spanish property developers have recently run into financial difficulties, some of the smaller ones taking deposits from customers with them.

The most recent casualty, Colonial, saw it’s shares plummet 40% in 2 days, seemingly for no reason other than worries that the Spanish property boom is over. The president and largest shareholder, Luis Portillo quit after this drop.

This follows on from two other medium sized casualties. Astroc saw their shares drop 85% in July last year causing the founder, Enrique Banuelos to quit and Llanera, a developer based in Valencia, filed for credit protection a few months later.

The Financial Times has a more in-depth look at these casualties here.

Brussels offers New Opportunities

We reported recently on the likely boost in French property in Paris and Lille due to the introduction of a new Eurostar train service. But Eurostar connects to more than just Paris. There is a direct service to Brussels in Belgium with connections on to Brugge, Namur, Antwerp and Ghent.

Brussels in now less than 2 hours from St Pancras station and is already seeing an increase in interest from British buyers keen to snap up a bargain before everyone jumps on the band wagon – or should that be railway carriage?

According to the Telegraph, Restored studio flats a few yards from the Grand Place can be picked up for as little as €70,000 (£50,000), and vast, contemporary loft-style duplexes in former industrial buildings go for €500,000 (£360,000).

British Property Investors Look to The Big Apple

British property investors are taking a long, hard look at the New York property market. With the dollar at a 20-year-low, for British investors with pounds in their pocket, the Big Apple just got a whole lot cheaper. According to the Financial Times, Steven Toumbas, an equities investor from London, has always wanted to own a second home in the US. “America is the engine for the world,” he says. “Everyone wants to have a holiday home in Florida, or an asset in New York. It’s the place to be.”

Mr Toumbas began looking at potential properties in New York City in mid-June 2006, but felt the timing was not quite right. The pound at that point was trading at about $1.84. “I held back because I thought there would be further dollar weakness,” he said.

More Bad News for the US Housing Market

Despite the many billionaires created by property investments in the US, the US domestic housing market is in a bad way right now – with more doom and gloom predicted, at least in the short term.

The latest Case-Schiller Index reports further drops in house prices, by as much as ten percent in some states. California and Florida are leading the price declines with prices in San Diego dropping by 8.3 % this year-to-date. House prices are at a six year low across the country and the average drop was 4.4%, with no end in sight.

“I think the housing market has got another year of very weak sales, falling construction and lower home prices. And all of that assumes that the economy holds together reasonably well and we don’t have a recession,” said Mark Zandi, chief economist at Moody’s Economy.com. The Joint Economic Committee estimates there will be 1.3 million foreclosures from mid-2007 through 2009 in subprime mortgages, loans provided to borrowers with weak credit histories, which will wipe out an estimated $71 billion in housing wealth directly and another $32 billion indirectly by lowering the values of neighboring homes, according to the report by the JEC’s Democratic staff.

Emerging Trends in Asian Real Estate 2008

According to “Emerging Trends in Real Estate® Asia Pacific 2008,” just published by the Urban Land Institute (ULI) and PricewaterhouseCoopers LLP, Shanghai, Singapore and Tokyo rank as the three most promising Asia Pacific cities in terms of real estate investment prospects.

David Sandison, a Tax Partner with PricewaterhouseCoopers in Singapore said, “It is expected that even greater amounts of capital will be flooding Asia Pacific real estate markets in 2008. The real challenge for investors will lie in finding the right assets against the backdrop of yield compression and scrutiny by regional governments and tax authorities.”

Shanghai topped the list for investment prospects, edged up from its second-place ranking last year. Singapore received the highest rating of any of the cities included in the report in terms of overall risk.

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