TSI
South Americans top search rankings for property in south Florida
Property in south Florida continues to be popular with buyers from South America topping the list for people from overseas searching for real estate, the latest research shows. Colombia has been the top country of origin for five months in a row and four out of the top five countries are in South America, according to the data from the Miami Association of Realtors. In second place is Venezuela, then Argentina with Israel in fourth place and Brazil in fifth. Georgia registered the most searches of Miami real estate among American states. ‘South Florida is known around the world for embracing all cultures. Foreign born residents love Miami. Their passion is visible in our monthly property searches and in Realtor.com global searches, which continue to show South Florida as the most searched US market by international consumers,’ said Mark Sadek, chairman of the association. Colombian home buyers tied with Argentinians in purchasing the third-most Miami real estate among foreign countries and 10% of all foreign South Florida transactions. Only Venezuela with 13% and Brazil with 12% bought more. Colombians moving to South Florida are often upper middle class families who want to enjoy their prosperity earned in their homeland as professionals and entrepreneurs. Colombians spend the second most on South Florida property among foreign buyers. The $516,000 average purchase price of Colombians tied with Argentina and only trailed Brazil at $766,000. Israel posted the fourth most searches of South Florida real estate in April. It was the country’s highest finish since it took fourth in September 2015. India was sixth for the second consecutive month, while in seventh place was Canada, then the Philippines, Spain and Peru. Georgia, which had been climbing the ranks in recent months and finished second in March, moved ahead of New York for the most South Florida web searches in April 2016. In third place was Texas, followed by California, Tennessee, Illinois, Ohio, Indiana, North Caroline and Michigan. The top market for overall international real estate demand: was Miami-Fort Lauderdale-West Palm Beach in Florida, followed by Los Angeles-Long Beach-Anaheim in California, then Bellingham in Washington State. South Florida ranked as a top-five market for consumers in eight of the world’s 10 largest regions in April 2016. South Florida finished as the most searched market in four of the regions. Continue reading
Bridging lending makes positive start to 2016 in UK
Gross annual bridging lending in the UK increased to £3.6 billion in February, up from £3.5 billion at the end of 2015 according to the latest sector index to be published. However, this expansion represents a modest 3% lift in gross annual lending since December, showing that growth has stabilised somewhat from the previous year, according to the West One Bridging index. The index report suggests that growth in short term finance has been driven by a number of factors including an uplift in demand for bridge to let loans in advance of April’s Stamp Duty surcharge. It points out that with property transactions rising 16.1% year on year in February, there has been a surge in demand for bridging finance in order to unblock property chains and raise additional finance. The sale of residential properties at auction also hit a record high in February, rising more than 25% compared to the same month last year. Bridging loans are usually the best option for buyers requiring additional finance for auction purchases because traditional forms of borrowing typically won’t be approved by lenders in time to complete on the sale. This continued growth in auction sales has provided a significant boost to bridging lending in the first two months of the year, the report explains. However, total bridging lending growth was tempered by a month on month flattening of construction output in February which was down by 0.3% alongside a slight 2% contraction of the commercial property market. With smaller developers using short term finance to aid in the completion of projects and specialist finance providers helping fill the post-recession gap in commercial lending, the dip in these markets has had some influence on growth in the short term finance sector. However these markets should improve following the reduction in Stamp Duty announced in March’s budget. ‘A 3% rise in lending may seem moderate, but that’s relative to some significant recent sector expansion. Moreover, we’ve seen healthy growth continuing in the weeks since February. A major contributor is professionals using bridging as part of their strategy to buy residential properties in need of renovation, improve them and re-sell at a healthy profit,’ said Stephen Wasserman, managing director of West One Loans. ‘In this case, the flexibility of bridging finance is well suited to financing such activity. With this group often buying at auction, our experience fits with the surge in auction buying noted. Moreover, we anticipate further growth from this group, favoured by the underlying lack of supply of new homes’ he pointed out. ‘Recently released DCLG figures showed that housing stock growth of 0.73% lagged population growth. That means renovating undesirable properties will continue to be a profitable and attractive business, from which bridging will benefit. DCLG data also showed a greater rise in private rented housing over owner occupied. We’ve also observed strong growth in bridging to acquire properties,… Continue reading
More money to be released to support lending for UK homes and business
The property lending industry has welcomed an announcement from the Chancellor of the Exchequer and leaders of the UK’s main lenders that extra capital is to be made available to support business and households due to the current economic challenges. Chancellor George Osborne has already said that the economy is facing a lot of challenges as the result of the decision to leave the European Union and now after a meeting with the governor of the Bank of England and leading lenders he has sought to reassure the industry that money will be available for property lending in the commercial and residential sectors. This will allow banks to release £5.7 billion from their regulatory capital buffer to support lending. ‘While we are realistic about the economic challenge facing the country after the referendum result, we are reassured that collectively we can rise to it,’ said Osborne. ‘The last time Britain faced an economic shock the banks were at the heart of the problem. Thanks to the hard work of rebuilding the banks, making them stronger and safer, and the arrival of new challenger banks, banks and building societies are now part of the solution,’ he pointed out. ‘The government gave the Bank of England new counter cyclical capital buffer powers to support lending in the financial system in the good times and bad. The independent FPC of the Bank of England have today used those powers,’ he explained. He added that the extra capital is now available to support lending to UK businesses and households and he called for a joint national effort to meet the economic challenge. It is a major change and means that three quarters of UK banks accounting for 90% of lending will immediately have greater flexibility to supply credit to UK households and firms. To achieve this the Financial Policy Committee within the Bank of England cut what is known as the UK countercyclical capital buffer rat' from 0.5% to 0% per cent of banks’ UK exposures with immediate effect. It means that lenders have extra money to fund mortgages and corporate loans and this zero rate will apply for the next 12 months, at the end of which the Bank will reassess. The Bank of England also published its Financial Stability Report, which revealed concerns about the growing amount of debt households are carrying. ‘Survey evidence on the housing market has been difficult to interpret in recent months because of the impact of the pre-announced increase in stamp duty on additional properties which took effect in April,’ the report said. The report also warned of the potential for buy to let investors to sell up and flood the market with properties which could push down prices down and indirectly hit owner-occupier households' wealth. It explained that there is a risk that people could be more likely to lose their jobs or fail to find one following the referendum. ‘The ability of some households… Continue reading
