Tag Archives: real-estate
The Future Of Global Real Estate: Where To Put Your Hard Earned Money
Photo: Ken Lund/Flickr Monday, September 16, 2013 – Moving A Needle by Jona Jone MANILA, September 16, 2013 – Many developed and developing countries are making promising contributions to the world of international real estate. Such an important upturn in international real estate investing currently takes place between China and the United States. The Chinese have become the second-largest foreign buyers of U.S. homes, not far behind the Canadians according to the National Association of Realtors. Consumers from China and Hong Kong also spent $1.71 billion on commercial property in the U.S. in 2011. Currently, it appears that the Chinese investors are attracted to commercial projects, residential properties, and shopping centers to name a few. According to Zhang Zu Wei of China Daily, “It’s no news that Chinese real estate developers and property buyers are flooding into the US – something that’s currently, to many Chinese, a better investment than gold – and it’s bringing more than just cash into the market.” The growing interest by the Chinese in US real estate is also creating new business opportunities. Shenzhen World Union Properties Consultancy Co. Ltd., a Chinese-listed company that offers real estate consulting services, sees the real estate appetite of the Chinese for U.S. land as a trend that may continue for a long time. Teaming up with local American realtors to serve the growing needs of Chinese investors is one approach that may prove to be productive. A recent article in China Daily notes that the National Association of Realtors affirmed that the Chinese are huge participants in acquiring residential properties in the U.S. The Chinese also ranked third in terms of land purchases in California, after the Mexicans and the Filipinos, the website Realtor.org noted. Sally Forster Jones, who works as an agent with Coldwell Banker International in Los Angeles, believes that the increasing level of international real estate purchases in LA is indeed an ongoing trend. Mary Alice Hines, author of “Investing in International Real Estate,” identified two types of passive investments international real estate investors are making. One type involves investing in securities based on international real estate collateral; the other investing in international real estate service firms and offices. The general term “real estate” also embraces real property development, sales and leasing relations across domestic borders. And indeed, the sub-category of international real estate could be regarded as one of the most dynamic branches of this business area. It is best broken down into two categories: international commercial real estate and international residential real estate. The majority of international real estate transactions will come about between corporations and may encompass or be a result of authorized urban planning, engineering, financing, and construction work. Persuading foreign investors into real estate development projects may be a priority for snowballing national revenue and an excellent strategy for finding new capital to build or improve infrastructure and services. The growth in international investment practices makes it feasible for investors to look beyond their own locales for above average performing investments. A major portion of international residential real estate transactions occur through individual purchases of lots or built units. Currently, most of these individual investments are for condominiums located in Asia, such as those existing or being built in the Philippines. Experts say that acquiring such property does not merely depend on location but also on reputation. These acquisitions account for the bulk of what is sometimes referred to as the second home market. As such, international investors may find that renting in South East Asia could be one excellent way of researching this type of investment before an actual purchase. The actual acquisition of a property, of course, always depends on the terms laid down between the realtor and the potential client. Renting in a desired locale for a time will enable an investor to research property acquisition laws and customs in a new market, better enabling him to evaluate each deal. In one article posted through investopedia.com, experts have duly noted how the tiger economies of Southeast Asian countries such as Hong Kong, Singapore, South Korea, Taiwan and China, and even the rising market economies of Thailand, Malaysia, Vietnam, Indonesia, India and Pakistan have all seen rapid growth in recent years. China remains the most promising country, currently, followed by India, although real estate inflation has become an issue in both countries. Kenneth Rapoza who contributes to forbes.com and covers Brazil, India and China wrote recently that the decision whether to jump onto the international real estate bandwagon depends on the individual. He finds the situation in China, for instance, to be most interesting. As compared to the housing market in the U.S., real estate investing the Asian tiger can be considerably different. Compared to the zero-money down, liar-loan scenarios common in the U.S. prior to the popping of the housing bubble, most buyers in China do not have mortgage issues. One simple reason: the Chinese indeed have an inclination to purchasing homes in cold cash. In the case of cash purposes, of course, there are never any foreclosure issues to worry about. Most importantly, there is no staying late at night worrying that the next day might be the owner’s last in their dream house. Chinese and Southeast Asian buyers of American real estate often make their investments on a cash basis as well. Perhaps such purchases will help head off a real estate bubble of the future by putting many housing units in the strong hands of cash buyers likely able to weather the next storm. Continue reading
Farmland Values Notch Another Dramatic Rise
John Luke, The Times The Wietbrock family works to harvest corn last fall on their land near Lowell. Statewide farmland values have risen by as much as 19.1 percent over the last year, according to a recent Purdue University study. September 12, 2013 4:00 am • Joseph S. Pete joseph.pete@nwi.com, (219) 933-3316 Farmland values and cash rents have risen again this year, and Northwest Indiana has some of the highest prices in the state, according to a Purdue University study. Corn and soybean prices have recently started to wilt but had reached record highs after last year’s drought, causing farm incomes to shoot up. Higher prices drove up profits, and farmers also got insurance reimbursements for lost crops. The better-than-expected farm incomes, low interest rates and strong demand have helped push agricultural land values up by as much as 19.1 percent this year, compared to last year, the Purdue study found. Cash rents rose by 9.4 to 10.9 percent over the same period. “While the 2012 Indiana crop suffered from the worst drought since 1988, the increase in farmland values did not bother to slow down,” said Craig Dobbins, a Purdue Extension agricultural economist. The average price of an acre of top-quality farmland in Northern Indiana rose by 17.3 percent to $9,336 an acre in June, compared to $7,958 last June. Average and poor quality farmland increased by about 14 percent over the same period. The recent dip in corn and soybean prices may slow or stop the growth in land prices, and even cause slight declines in some areas. But the cost of farmland has been booming in recent years. Five years ago, a good tillable acre of Northwest Indiana farmland would have fetched around $5,000, said Gene Eldridge, a Porter County Realtor, who represents various types of real estate, including farmland. Today, the price has risen to an average of more than $9,300 per acre in the Northern part of the state, according to Purdue. “Crop prices are up, and the margins are there,” Eldridge said. “That drives up the price of the land, and what farmers are paying in cash rent.” Prices, however, may have peaked for now, unless corn prices hit a new plateau, said Craig Blume, regional vice president of Farm Credit Mid-America. Strong demand, bad weather and farmers who were willing to pay a premium for adjoining parcels drove up prices for the last few years. But lending caps have started to reach their upper limits, to the point where farmers would have to rely on income from land they already own free and clear to pay off purchases of more farmland, Blume said. “It’s stabilized,” he said. “It’s reached where it’s going to go for now.” Commercial development, which had been largely dormant during the downturn, accounted for part of the demand for land. “The transitional land market – that is, farmland moving out of agriculture – seems to have sprung back to life,” Dobins said. “This is a specialized market, with transitional land value strongly influenced by the planned use and location.” Cash rents grew to $310 an acre from $277 an acre last year for top-quality farmland in Northern Indiana, which is a gain of 11.9 percent. Rent prices grew more modestly for average and lower quality farmland, increasing by 7.1 to 8.1 percent over the last year. Researchers came up with the estimates after surveying more than 260 land appraisers, agricultural loan officers, farm managers, farmers and Farm Service Agency personnel. Continue reading
Prescott Luxury Homes – Luxury Real Estate for SALE , Don Karcie 928-379-3375
Prescott Luxury Homes Search for Prescott Homes free at www.PrescottMountainViews.com New listed Don Karcie real estate video. Luxury real estate estate , Pr… Continue reading
