Many experts along side the British Property Foundation (BPF) have warned against a potentially dangerous move that could set back the real estate industry throughout the UK should the government move in its favor – the removal of debt relief from many banks offering affordable lending for many individuals that have suffered as of late due to the ongoing economic crisis. Word of this possible shift has caused great concern today with the vote on whether or not to follow through with the plan to cut the relief plan set to go to vote tomorrow (Tuesday) in parliament.

Should the bill pass many lenders anticipate that they would be forced to call in thousands of debt claims in order to maintain solvency, forcing many individuals out of house and home (and in many cases into even worse situations) should they need to follow through with drastic actions in order to stay afloat. This would mean a major blow in particular to those who are currently relying upon debt relief laws in order to maintain a decent (though still troublesome) bad-credit mortgage on their home to cover other debt despite the continued record low mortgage rates offered by many lending institutions throughout the country.

Residential property would not be the only affected, however – in fact, according to recent reports roughly £55 billion in commercial property debt is looking at coming up for refinancing this year in light of many businesses looking to refinance following the recent economic rebound that has occurred over the first half of the year. A change now in financing could potentially mean a major blow to many sectors that are just now beginning to recover, and many eyes are on the upcoming decision to see just how they may fair in the coming months and years financially should the debt relief be removed or even restructured away from its current regulations.

The average age of the UK is increasing. In 2008 the average age was 39, up from 37 in 98. While this doesn’t look like a big increase, it represents a large increase in the age to which people are living to, compared to the 70’s people are living around 10 years longer. So what does this mean for the property markets?

Although each person is different, the behaviour of both house buying and selling and its associated processes is changing. One of the key processes is that of the elderly and their ability to keep up with home payments, usually the gap between retirement and death is about 10-15 years and most people plan as such, however as a people live longer a gap is appearing in peoples finances and some uncertainty is being faced as to how to tackle this problem.

One of the main assets many elderly people is their home. A house represents a massive amount of equity that can be tapped by selling or renting it out. However for those who still wish to live in their houses this isn’t an option.

One of the solutions that people are turning to is equity release or reverse mortgages.

Essentially these solutions are policies wherein equity rich (but cash poor) people decide to either completely sell or partly release the value locked up in their property meaning they can stay in their home till the end of their lives, being able to sustain themselves more comfortably, or alternatively making arrangements for the home to pay for nursing homes or care should they need it, indeed more and more are turning to this option; the equity release market is currently booming, growing at an average of 13% per annum according the department of national statistics.

While for many this is a great solution, it is not for everyone. One must think about the term of the required cash. If it is long term, such as a nursing home then this is a good idea, however for quick cash releases it may not be fiscally sound thinking as the premiums and charges on this kind of plan can be steep. It is also worth checking the specifics of some contracts, make sure they are government approved as they may have small print that may not be to your liking.

Following the slumps of recent years, one might be forgiven for hesitating to buy a property, however the opposite seems to be true. It has recently been discovered that more people than originally thought intend to invest in property.

Barclays Wealth and Economist Intelligence Unit survey found 35 percent of people wanting to invest now are planning to increase the proportion of their investment spending on property, this was over a 2 year period. This trend was also found out on a global scale. 90% of investors plan to increase their property investment in the world’s biggest 10 markets.

So why is this?

It seems that the obvious answer would be that with the economic downturn and property market crashes, prices are now at what most investors seem to estimate to be the ‘trough’ of a downward trend; the only way is up!

One key indicator would be that the biggest markets for investment is in the US and the UK, this may be because this is still where much of the investment capital is, however China, not so strongly hit by the property market recession is also in the top investment areas.

So should you invest?

Roy Gilbert, head of the same unit that published these findings echoed the calls of others to say that one should exercise caution on this kind of investment, the property markets are still in turmoil and this feeling that things have bottomed out could actually be a false one, prices may still have some way to tumble. "Wider market data suggests that initial indications of recovery in property could be a false dawn, or the start of a slow upturn.

The next 12 months will be crucial in getting a clearer idea of what the longer term property investment landscape will look like" he said It is unlikely that prices will skyrocket as they did in the boom preceding the dip.

Looking at previous ‘bubble-bust’ scenarios the popping of an investment bubble is usually followed by a gradual increase rather than a sharp one on the long term, though there may be lucrative opportunities for those wishing to gamble a bit and look for some short term gains, now could be a good time for those wishing to invest in the long term too, even with another drop it would be likely that prices in 2 or more years will be higher than they currently are.

Thousands of Britons dream of having that perfect holiday or retirement home in the warmer climes of western Europe , Spain, France and Italy in particular have all seen dramatic increases in the amount of properties bought by British foreign nationals.

But for many people this dream home idea can turn into a nightmare as they were unprepared for exactly what awaited them upon arrival in their new home.

Like any investment it pays to scout ahead, and many UK residents are quite savvy when it comes to the UK markets and conditions, spending the time needed to make sure that their investment is a sound one, yet horror stories often prevail from Europe where, for one reason or another all the bases have not been adequately covered.

Firstly, the arguably most important point is to consider the strain an extra property will put on your finances.

If you have the cash, pay this way, it will make the entire process infinitely simpler. Most people will need to take out a mortgage, either as a new one or as an extension of their existing one. Bear in mind that most lenders on a remortgage deal will only release 75% of the original homes value. It also helps to remember to that should you default on your payments, you will lose both homes.

Also be wary of exchange rates, should you be either taking out a foreign currency mortgage or earning money abroad as currency value swings could drastically increase you monthly overheads.

It is also wise to take the amount you think you will spend and add at least 10% to the value for costs, then another 10% for the ‘unexpected costs factor’. While this is wise for any transaction it is especially relevant when entering unknown markets that, even with professional aid, could present nasty surprises.
Next, investigate your locale, there are now many helpful websites that will give you direct information or put you in contact with a local agent, there are also newspapers and magazines that can help; Homes Overseas, Foreign Property News and Exchange & Mart are good examples for finding that dream buy.

To finalise, the phrase “When in Rome…” is pertinent. You may still be a British citizen but when living abroad you are most likely subject to all the laws, rules and regulations that apply to a local; saying “I didn’t know I had to pay that tax” is not going to wash with the authorities and heavy fines and penalties could be enforced. Make sure you get legal advice, particularly if staying in your home abroad for more than a few months a year. While it’s not likely you will pay two sets of taxes as many countries have reciprocal agreements with the UK, there may be some stings in the tail you were not expecting.

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 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.

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.

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.

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.

Accidental landlords are those people who were (and in some cases still are) unable or unwilling to sell their residential properties when the market prices were so low that they would have had to sell their property at a loss. So instead, they rented out their properties to others in need. These were not people who wanted to buy-to-let, they were merely forced into the practice for a brief length of time!

However, the percentage of these accidental landlords are now decreasing as confidence in the market increases, and more and more individuals are able to acquire mortgages. Of course, for every action, there is a reaction. Rental prices, which had been falling as well in this market, are beginning to stabilize and even increase, so some people looking for affordable rental housing may be at a disadvantage. The Royal Institution of Chartered Surveyors (RISC) is the entity that tracks these kinds of details. Their report is due out in mid-September, and will reflect these improved numbers.