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Two Bedroom Flat Labelled the Cheapest in Britain

[ Posted October 25th, 2009 ]







Needing up to £10,000 of  work  "refurbishing" , a two bedroom flat, has been labelled „the best bargains on the market at present”.

The flat has an open-plan lounge and kitchen and is situated above a group of shops located in the heart of Catchgate, Stanley.

Left to a woman in a divorce settlement, who realised it belonged to her after she began receiving council tax bills and other official letters, the property i son the market for £1,000.

With walls covered in a film of water and cables hanging from overhead beams, the flat has the windows covered with chipboard, but it has no water or electricity Rubble litters the floor, the walls have huge holes and the ceilings have crumbled leaving a corrugated iron roof to protect the rooms from wind and rain.

"As far as we are aware, this is the cheapest permanent residential property which has ever gone to auction in the UK," said an estate agent at the Whickham branch of Sarah Mains.

"This is a real opportunity to snap up an investment that could reap rewards in a short spell of time. While it needs refurbishing, we have been advised by qualified developers it would only take a further investment of £8- 10,000 to get this property in tip-top condition, suitable to have as a home or to let out."

The auction will occur on November 5 at the Gateshead Marriott Hotel.

The purchaser on the day must bring a 10 per cent deposit and this is also a surprise.

 Sarah Mains aded:"A starting price of just £1,000 is something that in the two years we have been holding auctions we have never encountered before. But the owner is, for personal reasons, just keen to sell and is happy to take the risk at starting the bidding so low.”

Vietnam: High Potential Market and Many Administrative Delays

[ Posted October 24th, 2009 ]







Vietnam it is seen by the property developers as a market with high potentials. Despite of  his positive looks, it is claimed that many administrative delays are holding up projects.

Both international and local property development are fighting with lengthy formalities. They claimed this is the key stumbling block.

Frederick Burke, managing partner of Baker & McKenzie explained that regulations regarding the property industry in Vietnam were sound but the main problem is the administrative personnel. He suggested that they are not well trained enough and could be a hindrance for investors.

Agreeing with the opion, the former minister of planning and investment, Tran Xuan Gia pointed the staff as the main problem.

In the capital city of Hanoi one developer was confrunted with 24 months delays to receive a license for a property project in the northern region. In his opinion the red tape could put off foreign investors and developers which are esential for the country . This days Vietnam needs to boost its real estate industry.

‘If a local investor has to face such difficulty, how much of a challenge will a foreign company face?’ wondered the developer.

Licensing procedures for a property investment or construction in Vietnam is one of the most disadvantages in this country, as often took a longer time than in neighbouring countries, explaines the managing director of Savills Vietnam, Brett Ashton.

Developers urge Vietnam goverment to cut project delays

Vietnam Tourism Property Association is keen to work closely with developers. Its goal is to attract more visitors and boost the potential for international property investors.

The developers expectation for Vietnam policies is to encourage existing investors to expand in the  property market. They are, also looking forward for gouverment to creat more favourable conditions for new property investors. The industry is warning that Vietnam needs to move quickly.

US: Jobless Crisis Pushed up Foreclosure Property Rates

[ Posted October 24th, 2009 ]







The unemployment rate in US is at a 26 year high, reaching of 9.8%. Unfortunatelly it isn’t expected to peak until the middle of next year.  The sad prediction the crisis is not over yet it is about to be  true.

the foreclosure ratings continue to be dominate by Arizona, California and Florida. Nevada had the highest rates till now this year. in second came Arizona followed by California, Florida, Idaho, Utah, Georgia, Michigan, Colorado and Illinois.

The US economy  seems to becoming out of recession, but, even so, the rising jobless crisis has pushed up foreclosure property rates by more than 5% as predictions

The latest researche from RealtyTrac releaved that the foreclosure crisis affected nearly 938,000 properties in the July to September quarter, compared with about 890,000 earlyer this year.

Sometimes  mortgage companies allow unemployed property owners three to six months for searching for a job whitout paying mortgages, but, even so, the problem isn’t solved.

According to Rick Sharga, RealtyTrac’s senior vice president for marketing: ‘The sheer scale of the problem is also preventing the loan modification programmes from having the kind of impact we’d all like.’

500,000 property owners have received help since the Obama administration programme  was launched in March, but the number of borrowers getting help are still exceeded by the number of new defaults.

Analysts have predicted a new wave of foreclosed properties hitting the real estate market next year and that could cause further depress property prices.

In September banks repossessed nearly 88,000 homes compared with about 76,000 in August, because of a massive financial distress of some property owners. Rick Sharga said that unemployment is the main reason property owners are falling into trouble. This continues foreclosures are set to hit about 3.5 million this year. There were more than 2.3 million in 2008.

 

Reluctant landlords in spanish property

[ Posted October 23rd, 2009 ]







Due to the country’s depressed real estate market, the number of property owners in Spain who are renting out their properties because they cannot sell are increasingly

It is claimed the number of bad tenants hit by the economic downturn is increasing at alarming rates in the past two years,.

Many of them who are having problems are expats who moved to Spain for a better lifestyle and then became reluctant landlords because of the credit crisis

Lots of  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.

Bryn Cole, Managing Director of Paragon Advance España said that many of these reluctant landlords have moved back to the UK and rented out their properties as they cannot sell them in the current real estate climate.

‘They have been 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,’ he explained.

 In order to assist ex pat landlords, Paragon Advance España offer 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.

They 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
 
By using the route of arbitration, the timescales involved are dramatically reduced. 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.

During this time, the average dispute resolution took less than four months. With the system created by AEADE to facilitate disputes in that sector, the time frame was limited to an average of 25 days.

Bitter blow to the Dubai real estate

[ Posted October 22nd, 2009 ]







After opening to the Cityscape Dubai expo earlier this month Rohan Marwaha, managing director, tried to remain upbeat and said that Cityscape held up well by international standards.

‘We saw a shift back to market fundamentals at Cityscape Dubai this year. The speculators and other amateur investors were conspicuous by their absence as were any hint of unrealistic or dazzling developments,’ he said. ‘The mood was sober and professional. However compared with other real estate events in Europe and Asia, Cityscape  was very well supported.’

But, it has been confirmed that the number of property industry visitors to the Cityscape Dubai expo-  which is the biggest in the Gulf region-  was down by 50%.

Before its opening the organisers said they expected a 30% fall in numbers. Unfortunately the figures reveal a much worse turnout with just 38,000 people attending the four day show.

It is a bitter blow to the Dubai real estate sector which shows no signs of recovery with prices, sales and rents continuing to tumble.

The number of exhibitors to Cityscape was also down to 218 compared with 340 last year when lots of new developments were launched amid a show of glitz and ostentatiousness.

The real estate industry has tumbled and all recent reports from analysts make depressing reading with no one predicting a turnaround in the coming months and the outlook for 2010 depressed.

International participation increased as a year-on-year percentage, with stands from Sudan, Angola, Paris, and companies from Canada and Australia, complemented by a healthy regional presence which extended across the GCC and Iraq.

 ‘We will continue to tailor this event to meet the requirements of real estate professionals, whether locally, regionally or internationally,’ Rohan Marwaha explained.

He also revealed that the changing dynamics of the industry may well lead to changes to Cityscape for next year.

Property prices in the emirate have fallen by up to 50% from their 2008 peaks and many developers who exhibited at Cityscape believed prices still had further to fall.

Figures also show that 472 commercial, residential and hospitality projects have been cancelled or on put on hold.

 

Rent Rates in Dubai Expected to Decline

[ Posted October 2nd, 2009 ]

CB Richard Ellis Middle East recently issued a report on the real estate markets in Dubak.

As was expected, the real estate markets in Dubai continue to have declinging prices, but the rate of decline is slowing. The latest analysis reports that the bottom could be reached before the end of this year

At this time, property investors are leasing rather than selling.

Office space currently outstrips demand In the commercial sector, because new completions add further pressure to existing stock. Because developers are both slowing down some construction projects and halting others, several projects have been pushed back by months if not years.

Companies that are looking for new office space are typically renting out of olde buidilngs, because of reduced setup costs. Therefore, vacancy rates in newer locations remain high.

An expatriate workforce has left residential properties empty. This  has resulted in a sharp drop in lease rates for residential apartments.

Bur Dubai, Deira and Karama, which previously had high occupancy ratios, now have greater numbers of  vacant apartments in both older and newer buildings.

An important factor is the next six months will be the amount of property space coming onto the market . The impact is expected to result in further competition between landlords and greater incentives for tenants, the CB Richard Ellis Middle East  report concludes.

 
 
 
 
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