Latest reports indicate that the Thurrock Thames Gateway Development Corporation, originally established in 2003 by the Department of Communities and Local Government with the goal of regenerating the Thurrock area after its progressive recession, is set to not join the Homes and Communities Agency in April of 2011 as originally anticipated. This is particularly good news for many relying upon the Thurrock development’s efforts to keep their work up to speed and out of any long-lasting negative impacts of the ongoing unstable recovery following the recession.

The commercial development zone of the Thurrock Thames Gateway was originally facing a large number of issues in the early part of the turn of the century due to waning interest by many groups in establishing ongoing commercial investments in the area – the same troubles that faced Canary Wharf in that time as well. In order to stem off any potential negative impacts this may have and encourage additional investment from both domestic and overseas interests the Development Corporation for the area was established.

Over the past seven years the Development Corporation has done substantial work in helping to spur on the development of the Thurrock Thames Gateway and the previous efforts have helped stem off any move to dissolve the corporation for the time being. The Communities and Local Government spokespeople have said, however, that both the Thurrock Thames Gateway Development Corporation and its sister group, the London Thames Gateway Development Corporation, are being put under review for the time being and an official announcement over whether or not both development corporations will remain independent bodies in the coming years or if they will be dissolved as was originally planned.

The office market of central London could soon be looking at record-breaking double-digit growth in the rental market in the commercial property sector throughout the coming year according to analysts. The principal reason for such optimism is the return of occupier growth led by expansion, which is the result of the recent upturn seen in both the financial markets and global trade.  Property consultants, Frank Knight, also believe that low levels of speculative development will most likely result in a dramatic fall in levels of availability during the coming two years thank in no small part to the number of favourable mortgage rates currently on the market to help stimulate the sector.

Property market analysts also speculate that a growing number of institutional property funds are likely to be buoyed by the prospect of investing in the coming year, and many also feel that a recovery in property prices will most likely be sustainable due to the fact that market activity has been in line with that seen in past cycles. It has also been forecast that prime rents in the City of London are set to see an increase of 19% in the coming year, rising to just under £53 per square foot from the 2009 level of £44. The price rise is principally a result of the shortage of top-quality office space as well as more buoyant demand from tenants. Over the coming five year period it is speculated that rents per square foot will go up to £67 towards 2014, which represents a five-year rise of 52%.

Analysts believe that as a result of far lower levels of new developments in London over the previous two years they feel that supply will be significantly squeezed over the coming two years, with some predicting a supply crunch for 2011 – particularly if foreign banks offering overseas mortgages for investment in England remain strong in the future. Rents in the London West End market are expected to record a record growth figure of 11.5% for 2010, rising to just under £73 per square foot, which is up from last year’s figure of £65, also a result of a limited number of new development schemes. It is felt that there is likely to be much higher demand for office space from specialist find managers in the coming year as a result of recent improvements in the financial markets, and this also would contribute to eh expected supply crunch, as the amount of speculative space current under construction for 2010 stands at a meagre 106,000 square feet.

The UK’s largest owner of shopping centres, Liberty International, is currently examining ways in which it can best rebound from the most rapacious property crash in a number of decades, and in so doing is considering separating its portfolio of properties into two different listed companies.

The company, which lists Convent Garden, one of London’s prestigious tourism hotspots among its assets, is said to be examining splitting its £6.1 billion portfolio into two separate entities: a shopping centre business, and a dedicated London property business. Upon the news becoming a topic of open discussion, the company’s shares rose sharply by 1.6%, reaching a mark of £4.59 per share. According to a statement released by Liberty, the transaction is still subject to several third-party approvals, and these are currently under request. The Liberty board will be able to further assess the merits of the scheme once such outstanding matters have been settled, and they have refused to discussed further how the plan might be carried out or what details may be involved.

Liberty is widely thought to own some of the UK’s most fire-proof property assets-especially during the recession period, although their balance sheet is regarded as somewhat weak by some analysts-especially in the blue-chip property sector, which has been particularly hard-hit  by the new recessionary conditions that have been affecting commercial property in particular as mortgages for commercial properties have become somewhat more difficult to come by. It is, in fact, the only member of the UK Real Estate Investment Trust that has sold any assets in order to raise new capital as well as protecting exsting funds. The plan mooted by Liberty is reminiscent of a three-way de-merger that was proposed by the UK’s largest land securities firm in 2008, although the plan was later disregarded. Critics of such schemes state that companies are unable to capture outperformance due to the fact that resources tend to be divided between assets that require very different management. Supporters of the scheme, however, argue that such multi-asset companies tend to give domestic and overseas investors the very best kind of protection when the real estate market faces any kind of sharp downturn. Investors and shareholders are likely to be encouraged, but will watch carefully to see if their faith is matched economically.

A new survey has shown that London is the world’s top city for investment in commercial real estate. In the survey, London beat off competition from such global business luminaries as New York and Washington D.C.  London ended the survey with a score that was 31 points higher than the second-placed Washington D.C. due to recent mortgage improvements and offerings, and was a full 40 points ahead of New York, which finished the survey in third place. according to the results of the survey by the Association of Foreign Investors in Real Estate.

The results mark a real turnaround for London, which found itself in second place in the same survey last year-some four points behind Washington and a mere two points ahead of New York. According to investors and analysts, part of the reason lie in the belief that the price of commercial real estate in London has already reached bottom when compared particularly to price in the US which have not. According to the chief executive of the Association of Foreign Investors in Real Estate, James Fetgatter, at the current time, London presents the advantage of a re-priced market to investors, and this re-pricing began much sooner than that seen in other cities. Interestingly, the survey, which takes into account the association’s 200 members who own over $200 billion of real estate worldwide, concluded that the US is still regarded as the most secure real estate environment globally.

This belief, however, has been eroded, with merely 44% of those responding to the survey believing that the US market is currently the most secure, this figure being down from 53% in 2008 and 57% in 2007. It is, in fact, the very first occasion on which the figure has dropped under 50%. The survey’s respondents voted Germany as the globe’s second most secure market.

Fifty-one percent of respondents thought that conditions in the US were most fertile for capital appreciation both from domestic and overseas interests, with the UK coming in second and China third. With regard to the top emerging markets, China, Brazil, Mexico, Turkey and India came out on top.

Two-thirds of respondents stated that they were looking at upping their US investments during 2010, raising equity investments by 62% and debt investments by 83% over levels seen in 2009. Respondents also believed that global equity investments for 2010 would be 46% over 2009 levels, but 20% lower in terms of debt investment.

According to recent reports the European commercial property market has sustained some major losses in 2009, with direct investment dropping to a mere 70 million Euros. This is a reduction of nearly 40% over 2008 numbers, showing a strong lack of investor confidence in the European housing market at this time. Thankfully analysis predict that investments should see a 20% increase in 2010 as the economy begins to recover a bit more, however it is still too early to tell for sure.

For those looking to invest in European commercial property, however, this could be an excellent opportunity as banks are more likely to give favourable rates on mortgages to any investors in order to stimulate the economic growth of the area.

In order to achieve the intended 20% increase in the next year and maintain a positive growth rate be sure to keep a close eye on loan rates and interest over time, as the large drop over this past year is putting increased pressure on financial establishments to offer favourable deals in order to increase investor confidence and improve turnover.

Currently the UK is standing the strongest in the European commercial property market, accounting for nearly 38%, or 25 billion Euros, worth of direct investment in commercial area, though the current condition is still being described as one of if not the lowest point in what is being considered the worst economic downturn to ever face the modern business world.

The biggest difficulty now is also finding quality product to invest in, as prime locations are being savagely vied for as key commercial locations are being held on to. Due to the decline in development over the past year a number of anticipated prime locations have also gone down in value, making those that are established even more of a target for investors, both domestic and overseas.

If you're considering investing in commercial property or have some commercial real estate of your own consider these facts and weigh them heavily before committing to any deal in the coming months.

Housing in the USA is growing increasingly popular particularly amongst those of an English speaking background as there is no language barrier to get around, especially in the UK, where housing prices, although affected by the market crashes of the last year or so have remained relatively strong compared to some areas of the rest of the world, driven by extensive domestic demand. Other countries following suit are western
European countries such as France and Spain.

Following the latest decreases in the exchange rate between the US dollar and the Euro and Pound, as well as the housing market crashes in America, the US is looking like an increasingly favourable location to invest in property, which could yield a nice profit when exchange rates rebabalance and the US housing market stabilises.

There are other reasons too for buying a house in the US, apart from the purely financial ones. While investing in some developing countries are a risk and home owners also must make certain compromises on overall living conveniences and amenities, the US has none of this, in fact, in many places the standard of services and convenience would actually be a step up from the buyers place of origin.

However it is important to consider certain details while considering buying a home in the USA, if one is looking to invest in property as a purely financial decision. The first would be to choose a place of existing and continually developing commercial and tourist development. This will guarantee rental income on the property and also make sure the price continues to appreciate rather than fall. Key locations for this would be in the well known areas such as Las Vegas, Florida, or California.

Other key considerations for those not solely investing , but wishing to eventually move to America would be to look at the climate, educational and transportation links to their place of origin (should they wish to return!) as unlike many other countries in Europe, where laws are over a whole country, big variations occur state to state.

10% of mortgages in the UK are buy to let mortgages with an approximate 1 million people holding them. But what is a buy to let mortgage? How does it differ from any other mortgage?

This article shall look at the basic information and requirements for getting a buy-to-let mortgage. In recent years the buy to let mortgage has undergone quite a few changes. Originally quite difficult to obtain; the buy to let mortgage rate was set quite above a standard residential mortgage, then as the housing bubble expanded the buy-to-let mortgage became more and more accessible. Following the credit crunch the rate has now returned to a rate around 1 to 2% higher than a residential mortgage of the same value. The reason for this is in the name, they are a loan set out for making profit on a house, and like all business with potential profit also comes potential risk.

This is quite an important point for the buyer to consider, before buying a house with a view to let it out it is important for a potential landlord to investigate the local area; the requirements for each property are obviously dependant on whether the profit is to be made from increasing equity in the house or on the rental income. But making sure to cover the basics is a must; the local area, possible future developments, history, residents, crime, average income of the people in the area, work that must be carried out on the house such as repairs like damp proofing etc.; the list goes on. Getting advice from a local agent would be advisable and joining the ARLA (Association of Residential Letting Agents) is also a wise choice.

It is important to do this research to bring to a mortgage lender who will then analyse if you are a safe bet or not to loan this money out to. The companies are a lot more picky with these as the rental income will usually be the money used to cover the costs of the loan. It is recommended that around 130% to 150% of the rental cost should be covered by rent to cover the inherent costs of renting out a house such as furniture, maintenance, repairs, time without a tenant etc. The buyer will usually need to sign a paper in writing, stating how much they expect to earn from the house.
It is also wise for landlords to familiarise themselves with the legal proceedings, for example on rental income exceeding £10,200 capital gains tax of 18% is applicable.

The key part is to do the necessary homework and calculations and also consider strongly how much you expect to take from the transactions and if these will cover ALL the costs. Also be aware that buy to let mortgages are not regulated in the same way as residential mortgages so make sure to analyse exactly what it is a lender is offering.

With the overall increase in the demand for student housing, linked to the increase in the amount of students going to University year on year there is also an increasing worry for students and parents alike regarding their son or daughters living situation for the 3 or more years they will attend.

Student accommodation rent prices at universities have risen with the increased demand, this has forced many parents to consider buying a house for their child with a view to taking the mortgage payments as rent to cover the mortgage, making something profitable as if the extra bedrooms are filled by students too then this will create a nice return, compounded on the fact that the student districts of town are notoriously low-priced, for many parents and property investors it has been a no-brainer.

But should you invest? The answer seems to hinge on what you are looking to do with the house, and how well you research the local markets beforehand, it is wise to match up the rent prices to how much you need to pay for rent and taking into account market variables. It also seems to matter if you are in it for the long or short term. Long term investors could be looking at returns, whereas 3-4 year investors may not.

To draw an example, Beeston, a district of Nottingham, is a growing student area. Here a 3 bedroom Victorian home cost just £50,000 in 2000, in 2003 one sold for £145,000, the prices then took a huge fall in the property market crash, where some houses bottomed out at £60,000 in 2008 and now, with the recovery, comes in at around £165,000.

In this, the parent looking to sell up after their child graduated in 2008 would be out of pocket, in terms of gains it would actually make sense for them to send their children back to college for another 3 years to recoup their costs.

In a report published today by international property consultants Jones Lang LaSalle, the cities of Abu Dhabi, Dubai, Cairo and Casablanca are tapped to be the most likely to attract long term capital to their real estate markets.

For some time, long term investors have been reluctant to invest in the Mena (Middle East and North Africa) region, because of the short term speculative mentality of both investors and develop ers there.

‘Creating the right environment to attract long term investment into Mena real estate markets remains a work in progress. While few of the necessary requirements have yet to be fully met, significant progress has certainly been made in many critical areas,’ said the Jones Lang LaSalle report.

Rental prices in the area  have fallen between 25 and 50%, and many short-term speculators have stopped investing there.

The analysts predict that the rest of the year will see more falls and prices corrections.

The key to investing in this area is for  private family groups, conglomorates, government entities and institutional investors such as insurance companies, pension funds and listed real estate companies to bear the brunt of the burden – bringing in stability and long term capital.

Property investors in Trinidad have dwindled in the last year. This has not prevented the government of Trinidad from implementing new taxes that will cause these investors to dwindle even more.

Finance Minister Karen Nunez-Tesheira announced that a new four-tiered property tax regime will be introduced on January 1, 2010.  This will be based on the present market values of properties.

‘In the case of residential, commercial and agricultural properties, the tax will be three per cent, five per cent and one per cent, respectively,’ she explained.

Criticcs of the scheme believe  this could have a harmful effect on both the rental and buying markets.  Some real estate owners face increases of 600%.

Opposition MP Kamla Persad-Bissessar pointed out: ‘These plans to restructure the property tax regime will bring a significant increase in property taxes which would have a devastating ripple effect on the population.’
 
‘Not only property owners, but renters, too, will be affected as rents will increase everywhere. Property owners will be forced to raise their rates to pay the higher taxes,.

Persad-Bissessar also pointed out  that small business owners, tenants in shopping malls and other commercial properties, would suffer further from increases in their rent as landlords try to cope with the higher taxes on commercial properties.