Starting from today, Google will be adding 210,000 miles of UK roads to its mapping service – Google Street View. This would give Google Street View 96 per cent coverage of the entire UK. Prior to today, only about 28,000 miles of UK roads were shown via Google Street View. Google Street View’s introduction was a bit of a controversy initially, with a streams of privacy invasion complaints but Google ‘fixed’ these issues by blurring out faces and car number plates.

It has to be said that Google’s Street View service has been somewhat of a success since its inception around a year ago – 1 in 5 people use is to find their next home! 3 in 5 people use it to find their way and others use it to check out prospective holiday destinations. Google Maps (Street View’s parent service), has seen a 30% increase in usage since the Street View service was introduced.

Google Street View Car

Photo credits: Daniel Bowen via Flickr

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

Google Street View Now Has Full UK Coverage

• Dubai’s Emaar Properties finalising Turkey project cost [Arabian Business]
• Obama Administration to Patch Up Foreclosure Crisis With $1.5b Aid [NuWire]
• Forbes rich list topped by Mexican mobile phone titan Carlos Slim [Forbes]
• Positive signs for property investment as landlords flock to Buy To Let show [myintroducer]
• China property prices rise 10.7% in February [FT]
• Chinese Exports Increase 46% as Demand From West Rebounds [NY Times]
• Brazilian property: not such a nutty idea [FT]
• The 4 Biggest Lies in Real Estate [CBS News]

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

International Property News Beat – Emaar in Turkey, China Property Surge & Real Estate Lies

PARSIPPANY, NJ and LONDON–(March 10, 2010) – Sotheby’s International Realty Affiliates LLC today announced the signing of an exclusive 25-year licensing agreement for the United Kingdom with Countrywide, the U.K.’s largest estate agency and property services group.

Under the agreement, Countrywide has the exclusive license to the Sotheby’s International Realty® brand across the United Kingdom and Channel Islands. Countrywide will create a new subsidiary called United Kingdom Sotheby’s International Realty to operate its new luxury brokerage business in those regions. As part of the transaction, Countrywide acquired the Sotheby’s International Realty – London office in Mayfair, previously owned and managed by NRT LLC, the largest owner and operator of real estate brokerages in the United States. The office will be renamed London Sotheby’s International Realty.

“This is a major step forward in our worldwide growth plan,” said Michael R. Good, president and chief executive officer, Sotheby’s International Realty Affiliates LLC. “This agreement will enable the Sotheby’s International Realty brand to expand significantly in London and throughout the United Kingdom. The leadership of Countrywide is very talented and committed to growing our presence steadily over the next several years.”

The Sotheby’s International Realty network has approximately 500 offices in 38 countries and territories worldwide. Franchise affiliates benefit from an association with the world-renowned Sotheby’s Auction House, established in 1744.

“Countrywide moves more people than any other agent in the United Kingdom through a network of 1,200 offices with 41 leading estate agency brands,” said Grenville Turner, Countrywide Group Chief Executive. “We plan to expand the presence of the Sotheby’s International Realty brand in central London and across the United Kingdom and to capitalize on the renewed sense of confidence we see in the property market. While this new business will be run separately from our other brands, we intend to leverage the support of our existing business structure. We also look forward to collaborating closely with the Sotheby’s Auction House in London as we develop our strategies.”

Countrywide has seen growth in its U.K. market share over the last year, and believes this agreement provides the platform for additional expansion. “The Sotheby’s International Realtybrand is iconic and offers a huge potential for quality growth,” said Robert Scarff, managing director, Countrywide Estate Agents. “The strength of the U.K. property market for foreign investors makes this an ideal situation for us.”

According to Charlie Smith, managing director, United Kingdom Sotheby’s International Realty, the agreement offers the opportunity to be part of a larger network of offices across the United Kingdom. “I’m thrilled with this news as Countrywide is the biggest player in the market with the energy and power to help us grow a U.K.-wide network,” said Smith, whose tenure with theSotheby’s International Realty brand surpasses 10 years. “This offers potential to grow across prime locations and signals a new and exciting chapter in our history.”

About Sotheby’s International Realty Affiliates LLC

Founded in 1976 to provide independent brokerages with a powerful marketing and referral program for luxury listings, the Sotheby’s International Realty network was designed to connect the finest independent real estate companies to the most prestigious clientele in the world. In February 2004, Realogy Corporation, a global provider of real estate and relocation services, entered into a long-term strategic alliance with Sotheby’s, the operator of the auction house. The agreement provided for the licensing of the Sotheby’s International Realty name and the development of a full franchise system by Realogy’s subsidiary, Sotheby’s International Realty Affiliates LLC. Affiliations in the system are granted only to brokerages and individuals meeting strict qualifications. Sotheby’s International Realty Affiliates LLC supports its affiliates with a host of operational, marketing, recruiting, educational and business development resources. Franchise affiliates also benefit from an association with the venerable Sotheby’s auction house, established in 1744. For more information, visit www.sothebysrealty.com.

About Countrywide

Countrywide is the U.K.’s largest and most successful estate agency and property services Group, operating more than 1,200 associated branches across England, Scotland and Wales.

Countrywide’s network of expertise helps more people move than any other business in the U.K. and is a leading provider of estate agency, lettings, mortgage services, land and new homes, franchising, auctions, surveying, conveyancing and corporate property management services.

Countrywide’s award-winning service has earned the business 29 high-profile industry awards in the last two years, which include Best Estate Agency, Best Letting Agency and Best Land & New Homes Agent of the Year at the 2009 Negotiator Awards, and Best Surveyor & Valuer at the 2009 Mortgage Strategy Awards. Customers also voted Countrywide Best Estate Agent at the 2009 Estate Agent & Letting Agent of the Year Awards. For more information, visit: www.countrywide.co.uk

Contacts

Jennifer Zimmerman
Director, Public Relations and Communications
Sotheby’s International Realty Affiliates LLC
1 Campus Drive
Parsippany, NJ 07054
(973) 407-6375
Email Contact
Gemma Stacey
Group PR Manager
Countrywide
Tel: + 44 (0)7515753344
Email Contact

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

Press Release: Countrywide Acquires U.K. Franchise for Sotheby’s International Realty Brand

Vietnam’s luxury property sector has been surprised by a rise in local Vietnamese buyers, filling the void left by the exodus of foreigners at the tail end of 2008.

Last year saw locals buy into the Hyatt Regency Residence and Ocean Villas in Danang or Sanctuary Ho Tram Resort in Ba Ria Vung Tau province where an apartment is priced at at least $180,000 and a villa up to $1.7 million.

Even more surprisingly is the fact that some analysts have linked this to the fact that Vietnamese citizens are hiding stacks of wealth in other investment vehicles including gold and securities, because the official average salary in Vietnam is just $1,100.

It is far more likely to be explained by the massive gap between rich and poor in Vietnam, the large proportion of society living in poverty, and the section of society that is becoming increasingly wealthy as leaders of industries like manufacturing, tourism, and banking.

1, 2, 3 or even 10 luxury developments seeing sales to a majority of local citizens is not enough to become a representation on the pictures the world has of a Vietnamese nation which is still a poor country by international standards.

That aside, of course the increasing number of sales to locals in the luxury sector can only be a good thing for the economy and the real estate sector. The reliance on foreigners will hopefully be a mistake never again made by developers, so an increase in sales to locals may mean that a luxury sector can still exist in Vietnam. It is also an indication that affluence is rising in the country, which contrary to the belief of some is still a good thing for a beleaguered nation such as Vietnam.

On the downside, Vietnam property became grossly overvalued, as it did in many other countries in Asia and around the world as foreign speculators drove markets crazy. In most places the exodus of foreign buyers has been a sobering experience for the market, especially the luxury sectors therein, such an increase in local demand in Vietnam’s local sector may prevent the market from being sufficiently corrected.

That being said, if there is such levels of foreign demand, maybe the market has already corrected far enough.

Photo credits: Vietnam Real Estate Blog

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

Luxury Property in Vietnam Bought by Locals Causes a Stir

Analysts are predicting a rise in US interest rates, when the Federal Reserve (FED) stops its policy of buying mortgage backed securities at the end of March, because — say the analysts — the FED’s expectation that foreign government-owned funds will step in to fill the void, will not be realised to the degree the FED is hoping for.

Mortgage backed securities sold by US (lenders) mortgage originators were at the heart of the financial meltdown that we have all just fallen victim to. Any drop in their sale now would damage its fragile recovery, not only by causing a rate-hike, but also by causing liquidity for new mortgages to fall backwards.

For those that do not know, mortgage backed securities are a form of investment. Basically it is where mortgage originators bundle up multiple mortgage deals that they have in place with debtors into pools (also known as being “packaged up”) and sell them to investment funds. The investment model was originally started by the US Federal Reserve, which began buying mortgage bundles from lenders, in order to free up their capital to make more mortgage loans available.

The primary sellers of US mortgage securities on the international market are Fannie Mae and Freddie Mac and the less heard of Ginnie Mae, AKA the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation, and the Government National Mortgage Association, all of which act as guarantors on the payments of the mortgages they sell. Ginnie Mae further guarantees the timely payment of its mortgages. Fannie and Freddie were privatised, but are now once again state-owned.

The primary investors in mortgage backed securities are government-owned funds, AKA Sovereign Wealth Funds. During the last US housing boom, foreign governments invested billions of dollars in mortgage backed securities. The mortgage-holders bundled up in those packages defaulting en-masse, is thought to have been one of the main contributory factors in the collapse of the US banking system, which of course led to the global financial crisis.

So, will foreigner sovereign wealth funds be so quick to jump back onto the MBS wheel? The Fed is obviously banking (pardon the pun) on the answer being yes, but according to experts their desire to buy MBS will not be anywhere near enough to stop interest rates from spiking.

“I don’t think it will be enough to fill the hole,” said Ajay Rajadhyaksha, head of fixed-income strategy for the United States at Barclays Capital.

However, it is also worth bearing in mind that increasing interest rates will increase the yields from mortgage backed securities, which collect the returns from mortgage payments. Therefore an initial drop in securities sales may bring increasing sales as interest rates are pushed up.

Of course any jump in interest rates would hurt the US housing market as it struggles on a rocky path to recovery. But the other effect of a drop in the sale of securities would be just as devastating: that is the very reason why the first sale of mortgage backed securities was made; to generate liquidity for new mortgages within the banking system.

Without doubt the cumulative effect of an interest rate rise, and the availability of credit falling backwards would definitely hurt the US housing market in the short-term. The FED is simply hoping that the increasing revenues from securities as interest rates rise, will combine with the increasing liquidity in the banking system to intensify the recovery in the medium term.

Photo credits: Woodley Wonder Works (via Flickr)

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

US Housing Market Could Once Again be Rocked by Securities

FOR IMMEDIATE RELEASE: Mar 03, 2010- Russia’s aigroup will host the nation’s first ever Moscow Golf & Luxury Property Show, a two-day extravaganza which will kick off on April 23. Some 5,000 guests are expected to attend the event, which will unite the Moscow Golf Show with the Moscow Luxury Property Show, to create a dynamic networking platform for overseas developers and agents looking to target high net worth Russian clients while uniting luxury property clients with their favorite pastime: golf.

The aigroup has nearly 20 years of experience in Russia and 10 years in the luxury property business and organizing successful overseas property shows in Russia, including the Moscow International Property Shows, Moscow International Investment Shows, the St. Petersburg International Property Shows and the Bulgarian Salons and Exhibitions.

“In the last years there has been a tremendous increase in the number of Russians buying overseas property, � said aigroup CEO Kim Waddoup, Russia’s internationally recognized authority on overseas property. �The largest increase has been in the first time buyer sector as the emerging Russian middle class buys. This market trend has been noticed by our participants who are catering to this market. However there has been a lack of an event catering solely to the wealthier sector and to satisfy this demand the Moscow Golf & Luxury Property Show has been created.”

The Moscow Golf & Luxury Property Show is sponsored by property luxury market leaders International Residence Magazine and 1-property.ru property portal, as well as Golf Digest Russia. The event will take place on April 23-24, 2010 from 12pm & 7pm, in the “T-Modul” exhibition hall in the centre of Moscow: location map. The Moscow Golf Show Party will be held Friday, April 23 at 7pm and will feature great food, exotic drinks and golf activities, which will give guests the opportunity to test the latest cutting-edge Russian golf equipment.

The remaining stands are selling fast and International Golf suppliers and developers of luxury property are recommended to contact the organisers to secure their space at this strategic event.

For further information visit www.aigroup.ru

Press Contact:

Kim Waddoup, CEO aigroup

Email: kim@aigroup.ru
About aigroup:
Russia’s aigroup offers full services for overseas property developers and agents to promote themselves directly to Russian buyers. With nearly 20 years of experience in the industry, aigroup is highly qualified to offer effective marketing solutions in order to penetrate the growing groups of Russian buyers. In 2003, aigroup launched the Moscow International Property Shows and in 2004 launched the magazine International Residence. The group now spearheads eight overseas property shows in Russia, and in addition, has also created Russia’s leading luxury real estate portal www.1-property.ru. Its shows include the Moscow International Property Shows, the Moscow International Investment Shows, the St. Petersburg International Property Shows and the Bulgarian
Home exhibition.

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

Press Release: Aigroup to Host Russia’s Premier Golf and Luxury Property Show

Donald Trump is currently caught up in the foreclosure crisis sweeping America. Apparently the loan on the Trump Towers project in Atlanta is slated to be sold at a securities auction.

However, it is unclear exactly how much Trump has to do with the 48-story condo tower, at 15th and West Peachtree Streets; Atlanta-based Wood Partners, LLC and New York-based Dezer Properties Inc are also named on the paperwork.

If the case in Florida — where residents attempted to sue Trump, only to find out he was not the main developer — is anything to go by then the answer is: not a whole lot. The fact that the loan is scheduled to be sold is another indication that perhaps the lenders know something we don’t with regards Trump’s involvement; we don’t know many lenders that would doubt Trump’s ability to pay such a profitable loan.

According to sources the development is still likely to go ahead, but not for the foreseeable future due to oversupply of condos on the market since the credit-crunch heralded a catastrophic drop in demand for such properties. To that end a plan has been drawn up that would see the tower become a hotel on-top, with the same high-end retail and commercial spaces in the lower levels.

The problems for the development arose from the moment the development was supposed to arise; the market was dying off when construction was scheduled to begin in 2007. The last news article on the website for the project is in mid-2008 and says only that 90 units were sold on the development before it broke ground, and that it was scheduled to be completed in early 2010.

Looking further back through the articles, the Piedmont Review covered the development in great detail at the beginning of 2008, when there was still plenty of buzz about how it was going to fill the niche in demand for mid-priced ($400k to $1m) condos in the mid-town areas. It seems that the problem only arose when sales dried up after 90.

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

Trump Towers Atlanta in Foreclosure Questions

According to new data from international estate agency Knight Frank, the number of Brits buying second homes rose by 2.6% last year, which not only reversed 2008’s fall, but also took the number of British second homeowners to the new high of 245,384.

Unfortunately, according to the research most of the second homes purchased by Brits in 2009 were purchased in the UK. This has been put down to a combination of the strong euro, the green initiative behind holidaying at home, and the trend of “staycationing”; exploring what our own landmass has to offer. A recent Telegraph article said that sales of overseas property dropped 80% last year.

The question the overseas property industry must ask of this data is: will the buyers come back in 2010, 2011, or will this have forever cancelled the British lust for holiday homes and investment properties abroad?

The short answer is: a bit of both; yes they will come back, and in fact there are clear signs that they already are; but yes the credit crunch has forever changed overseas property, or certainly made a lasting change, in that people will no longer fall over themselves to invest in emerging market buy to let’s simply because they are cheap; and not without looking into the supply/demand fundamentals in the locality.

In fact, in yet another irony to emerge from the currently bizzaro-world that is the international economic scene; the currency fluctuations and debt time-bombs are actually increasing sales of overseas property.

Never before (or certainly not in my lifetime) has there been so much fear over inflation and currency devaluation making our savings halve in value or worse. And so never before have so many people sought to put their cash savings into tangible assets. Many people are putting their money into gold bullion, but the effect of this since the start of the crisis has already sent the price of gold soaring.

The massive price of gold is making property the better option. But not property in the US, UK or Europe, where the debt balloons could yet cause further property deflation, but in markets that are considered to be insulated from the financial madness. This is leading to increasing sales of property in the Caribbean, where Cardea property consultants sold $7 million worth of prime St Lucia property in January (Overseas Property Professional – membership required).

Digression over; sales of property overseas have been increasing gradually since last April. Initially all buyers were paying cash, and it was predominantly lifestyle buyers favouring high-end property in established markets. This has slowly started to change, with clear signs that investors were returning appearing in things like Germany entering portal top 10s etc.

This was reinforced recently when major portal Primelocation reported a 55% increase in searches for property in Cyprus and Bulgaria, and a 60% increase in searches for Turkish property. The portal also reported a 25% increase in overseas property searches on the whole.

The increase in sales last year caused overseas realtors to breathe a sigh of relief, and the return of investors another. However, all agents reporting sales are also reporting that buyers are grilling them for more information on the properties and developers, and that most buyers buy only after visiting the development of choice. This means that agents have to step up their game, they have to make sure they know the properties they sell inside out, and that any investment potential is backed up by a lot of research on their part.

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

Overseas Property Down, but, Not Out?

In what is one of the biggest ironies the world may have ever seen, because of stimulatory measures taken to stave off the effects of the financial crisis, several countries are now having to act quickly to avoid their housing markets overheating, and to curb the same irresponsible subprime lending practices that caused the crash in the first place.

The most notable of these is China. The government has recently enacted several policies aimed at cooling the housing market, which is rapidly inflating into a bubble, and the latest move is aimed directly at irresponsible and even fraudulent lending practices.

Directive 138 is specifically targeting the special relationship that is being forged between lenders and real estate agents.

This relationship has become particularly close lately as lenders recently started paying cash bonuses to realtors for bringing in business in the form of high value loans. This is because of the fierce competition for loans in the growing Chinese housing market. The authorities are keen to stamp out the practice because it leads to realtors not doing the proper checks on their potential clients, and even to the realtors providing false documents to the potential debtors.

This seems like an obvious consequence to those of us on the outside looking in; to the realtors it was a no-lose situation: it is in their best interest for their clients to get a mortgage, because that allows them to pay for the property, which gets them the commission there, so the banks adding a cash incentive only intensified their reasons to want the client to get a mortgage. Who knows why it wasn’t obvious to the lenders. It seems that greed is still blinding even though we now know what this greed can bring.

The signs that the overheating mortgage market is leading to a US style crash are already becoming apparent: According to China Net News, failure to meet mortgage repayments is an increasing phenomenon, resulting in rising instances of bank-initiated legal action, and nearly one million Yuan in economic losses.

Court sources show that in Haidian district last year, late mortgage repayments took 400 people to court, while Changping and Shijingshan saw a fourfold increase in similar cases compared to the year before.

To be frank, the world cannot afford a crash in China like the one that happened in the US, so let us all hope that the measures being taken are enough.

Photo credits: NigeJones via Flickr

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

Chinese Authorities Fight Irresponsible Mortgage Lending – Sound Familiar?

By now anyone who hasn’t been living under a stone for the last month has heard of the Greek financial crisis. Basically, Greek has a massive budget deficit and investors have grown concerned about the government’s ability to bring it back under control, which has subsequently weakened the EU and the euro — not least because it highlights similarly huge deficits in Spain, Portugal, Italy, Ireland and the UK.

This is all a huge worry for the Greek economy, meanwhile Greek property prices have only fallen 5%, and according to agents foreigners are still looking for property in the country. The question is: how will the recent debt explosion affect the property market, will foreigners still buy property in Greece?

The in-a-word answer to that question is NO! To elaborate, the drop in foreign demand for Greek property likely to come from the current bad publicity could lead to the crash in the Greek property market starting now, which would be a catastrophe for the market.

Most of us know that Greece is not the only country in the EU that has a massive budget deficit because of spending to stave off the financial crisis.

Greece is unique though, because Greece has been trying to get to grips with a massive deficit since long before the recession struck. Subsequently, government spending to stave off the recession — as it did in all the countries named above — pushed the Greek deficit even higher. So, investors now ask, if they couldn’t bring the deficit down from 9% of GDP, how are they going to bring it down from 12.7%? There is even talk of this crisis bringing the complete collapse of the entire Greek economy.

The latest news is that Germany is considering a “bail-out” of Greece if it makes takes what EU Monetary Affairs Commissioner Olli Rehn called “determined action” to reduce its budget deficit.

Greece wants the EU to be much more implicit in its statements that Greece will be bailed out if necessary, and to state how this would happen, which would increase investor confidence that Greece would not default on its debts, and make raising financing easier and cheaper for Greece.

At the same time there is considerable pressure on the German government to avoid such a move, and yet more uncertainty in the future of Greece. In fact the only thing that is certain, is the fact that Greece will be forced to make spectacular spending cuts in the coming months and years.

Had we been in 2007 and in the clutches of a buy-on-sight property boom, as in sight over an internet connection, then Greece would likely have been okay. But because we saw property values around the world shed millions, today’s buyer is going to great length in researching any potential purchase. One of the main things buyers are researching is the underlying stability of the economy in the country of choice.

Maybe the government will make cutbacks in the public sector only. But this would cause unemployment and ultimately stunt economic growth, which makes it unlikely. So, maybe spending on tourism advertising and infrastructure development will drop, causing a resulting drop in tourism. This would push prices downward in tourism driven areas, which tend to be the areas foreigners buy in.

In truth: no one knows what the cutbacks will be, or the effect they will have on property prices, and it is that uncertainty that will also stop foreigners from buying property in Greece.

So far, Greek property prices have only fallen 5% according to internationally respected indices. With the current situation, this could now become a negative, because Greece will also lose out on the bargain hunters that are currently brining hope to markets like Spain and Florida. If foreign demand drops off, then prices could start their crash now, which would be a complete catastrophe, not to mention public sector cuts bringing prices down in the residential markets inland. All in all there is just too much uncertainty for the current risk-averse buyer to swallow.

Photo credits: Mick via Flickr

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

Will Foreigners Buy Greek Property Despite the Financial Crisis?

Canada has lost track of its geographic location, or you would certainly think so if you look at the Canadian housing market. In a year when house prices around the world fell, Canadian house prices rose some 20% in 2009. Yes, Canada was not the only country to see a rapid rise in prices, Australia, New Zealand and several countries in Asia did also, but Canada is certainly the only country on the Americas Land Mass that saw such rapid growth in house prices in 2009. Now the Central Bank and authorities are being forced to take measures to cool the housing market down.

Canadian house prices have risen so rapidly, because the Canadian government acted as quickly and as fervently with its stimulatory measures to stave off the financial crisis as the US, but the Canadian banking system and economy were in nowhere near as bad a shape as their US counterparts. This created the kind of liquidity surge seen in all those other places named above.

The Canadian authorities are now worried that people are borrowing more than they will be able to afford when eventually interest rates are increased from their still-record lows. It would certainly be ironic if Canada caused a crisis in trying to fight one that never really hit it.

In Australia they have already started jacking up interest rates. Canada is in a difficult position in that respect, because they have promised not to raise interest rates until June — the promise itself caused a further transaction surge in the housing market.

So, a set of measures have been announced, which are targeted at reducing people’s access to easy credit. Despite the fact that he dismisses the bubble scenario, Jim Flaherty announced measures last week that make it more expensive to buy an investment property, harder to get a mortgage, and reduce the amount that existing homeowners can borrow against equity in their home.

Mr Flaherty said he wants “to discourage the tendency some people have to use a home as an ATM, or buy three or four condos on speculation.”

From April buyers of investment properties will be required to pay a 20% deposit, currently they must pay the same 5% paid by residential buyers. Homeowners will only be able to borrow 90% from the equity in their home, they can currently borrow 95% and anyone taking out a short-term mortgage will need to meet the stricter criteria set for a five-year fixed-term loan.

Photo credits: Ian Muttoo via Flickr

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

Letting Some Steam out of the Canadian Housing Market

Golf developments in sunny locations are a big-hit with the buyers, and have sold well even during the recent downturn. They generate millions in revenue for the locations in which they are built. Unfortunately developers are trying to capitalise on this fact to build golf courses on conservation areas and even on people’s homes. Obviously this is a cause of controversy. Between that and the development escapades of fallen star Tiger Woods, here are some interesting stories in the world of international golf resort development — here are just a few of them:

Trump Course on the Menie Links Aberdeenshire

First of all we have plans for the “world’s greatest golf course” on the Menie Links in Aberdeenshire from our friendly global entrepreneur come property developer Donald Trump. Controversy comes from the fact that homes currently exist on the site, or rather from the fact that Trump has based the plan on the fact that the local council will make compulsory purchases of the homes if the owners persist in refusing to sell.

According to the design of the development one of the four homes within the bounds of the design is wiped out by the golf course, and the other by a block of holiday apartments. The scary thing is that the revenue a resort of this magnitude can bring to the cash-strapped local authority will make Trump’s demand for compulsory purchases hard to refuse. Given the 241 comments in the Scotsman, mostly against the proposal… I predict a riot!

Tiger Woods Dubai Golf Course

This is a $5.1 billion golf course, designed by golfing giant Tiger Woods, arguably the best golfer who ever lived — he also owns a small stake in the project. Controversy here comes from two reasons; a: the course was designed by Woods long before it was revealed in a Hollywood style Expose the he had been sleeping with 11 women as well as his wife, and by the course was designed and started when Dubai villas were being sold for $11 – $23m, now you’re lucky to get $1m. None the less according to recent reports the project is proceeding now, after delays over the past few months.

Tiger Woods Albany Golf & Beach Club in Bahamas

To be honest this is a fantastic project. One that I would buy into myself had I the £3m price-tag for an apartment. Controversy here comes again from the Tiger Woods involvement; the star having since been disgraced by his adulterous affairs and had several major sponsorship and advertising deals revoked.

Harbor Shores – Lake Benton – Michigan

This is a golf-centred development of luxury condos on the shores of Lake Benton in Michigan, which has just received a further $12.6m in tax credits because it is recycling polluted industrial land. Controversy here comes because the grants come at a time when the developers are being taken to court, for failing to build new parks as a replacement for the conservation park-land it was granted a long-lease on, and because it is also being taken up on other suits because residents say that they are polluting the conservation land themselves.

Westhill Golf Resort Development – Aurora – Ontario

This is 75 condos built around an 18-hole golf course. The controversy here lies in the fact that the developer has applied for planning permission to build the resort in an area of strict conservation under The Oak Ridges Moraine Conservation Act (ORMCA) and the Greenbelt Act. Conservationists say that — on top of the conservation issue –, despite the developers’ proposals to collect and recycle water, the development would put the already over-stretched water-supplies in the region under further stress.

Photo credits: bradleypjohnson via Flickr

international golf resort development

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

5 of the Most Controversial Golf Resort Developments

• More Chinese find homes priced beyond reach [mydigitalfc.com]
• Harvard to Raise ‘Several Hundred Million’ From Property Sales [Bloomberg]
• All quiet in Budapest [Irish Times]
• New Zealand Real Estate Market Experiences Alarming Decline [NuWire]
• Emaar’s profit soars 98% in 2009 [GulfNews]
• U.S. looks to reluctant foreign investors to fund housing market [Washington Post]
• Australian economist warns of bubble in nation’s housing [MarketWatch]
• Donald Trump’s £1bn golf masterplan submitted [BBC]
• Canada curbs lending to check housing boom [FT]
• London Leads Office Property Recovery Among Financial Centers [Bloomberg]

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

International Property News Beat – Harvard Real Estate, Trump in Scotland & Emmar’s Profits

A UK court has dealt a damming blow to the North (Turkish) Cyprus property market. For years people have bought property in North Cyprus at prices far below the prices south of the division, unfortunately, the reason why prices were so low is now threatening to leave them without a home and with thousands to pay in compensation and back-rent.

The reason being that a large portion of it it was evacuated by Greek Cypriots for the threat of the Turkish invasion, which subsequently became an occupation before the island was divided for peace.

Of course, many agents selling property in north Cyprus have always been upfront with their clientele; explaining to them that the price of the land or property is so low because of the risk that it could be contested at a later date by the people forced off the land (mostly by fear). It was thought that this could only happen if the issue over the division of the island was ever resolved and many people bought into the acceptable risk on the grounds that the issue would never be resolved.

However, since 2004, when Cyprus proper (Greek Cyprus) gained accession into the EU, the disposed Greek families have learned that they can take action through EU courts, and most importantly the European Court of Justice (ECJ), to try and regain possession of their land from those they deemed to be trespassing. Now the families who evacuated the north are launching a new invasion; a courtroom invasion to get back their land.

This is what has happened to British couple, Linda and David Orams. They purchased a home in North Cyprus, which, unbeknown to them, was built on land evacuated by Greek Cypriot Meletis Apostolides. Their transaction turned sour when Apostolides won his action at a District Court in Nicosia — a necessary precursor to EU court action –, which ordered the Orams to demolish the house they had built on Mr Apostolides’ land, return the land to him, pay back rent for the time since 2002 they had been there, and pay all court costs.

When the Orams — in the advice of their solicitors — ignored the ruling, this allowed Apostolides to use any court in the EU to uphold a ruling by a court in any member state. The hearing took place in the UK because it is home to the Orams’ main residence, which Apostolides’ solicitors say could be seized in order to compensate them.

The Orams are now in the very difficult position of having their battle become part of the row between nations that has raged for the last 35 years. The Turkish-Cypriot President Ali Talat has said that he will neither implement the ruling, nor allow it to be implemented, but also that the Orams will be reimbursed their legal costs and re-housed, which is a contradiction in terms.

Whatever becomes of the Orams this ruling in the UK courts will deal a massive blow to the North Cyprus property market. As was mentioned, many people who have bought property have done so in full knowledge of the situation, and the potential risk, which they saw as minimal, and worth it for the discounts on offer. It is unlikely that many people will come to the same conclusion now when weighing up the risk-reward balance of buying property in North Cyprus.

On the other hand since the credit crunch caused thousands of people to lose millions of pounds on property that will never be built, most people considering an overseas property purchase are spending months conducting their own research into the property in question; researching things including property title and ownership? So, people who are intent on buying North Cyprus property may well be able to find one with clear title to a Turkish Cypriot. At any rate it will minimise the numbers of people caught unawares like the Orams apparently were.

Photo credits: sk12 via flickr

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

UK Court Rules Against British Couple in North Cyprus Property Ownership Row

As anyone who has looked at buying a ski-property in the last few years will know, the global warming phenomena is causing a few problems for the class: meteorologists and other experts on the subject are warning that snowlines will be pushed up around the world.

In the short term global warming is expected to shorten ski-seasons at some of the lower resorts, and over the long term it could shorten the season at the higher altitude resorts and render the lower resorts out of business.

Understandably this has caused anyone looking at ski-property to focus on resorts at a higher altitude than they might have previously — well, to be fair altitude has never been a factor before.

This is causing the biggest problem in Europe, where resorts tend to expand from rural villages and start as little as 180 metres above sea-level (Lillehammer, Norway). North American resorts, which tend to be purpose built, start higher from 1500m to 4000m above sea level.

The Moroccan ski resort of Oukaimeden — about a two-hour drive from Marrakech with skiing in winter months between 2,600 and 3,200 metres — is also doing very well indeed in recent times.

That said: there are high altitude resorts in Europe and these have understandably been doing very well lately — resorts like Chamonix in the French Alps is 4000m above sea level.

"We’re witnessing an increase of demand for property in European year-round resorts such as Morzine, Les Gets, Chamonix, Serre Chevalier and Deux Alpes," says a spokeswoman for the British specialist ski estate agency, Erna Low Property.

Italy’s new Cervinia resort, about 80 minutes from Turin and 3000m above sea level is another.

"A couple of years ago, following poor snow conditions in many resorts, buyers would only consider high altitude resorts or were hesitant to invest at all," says Gemma Bruce of GK Italian Property, a British agency selling homes in Italy. "Given the excellent snow in the Alps in the last two seasons, pressure on agents and developers for very high altitude properties has lessened. But buyers are more discerning than ever, only considering resorts at high altitudes with large ski areas – more than 150km of runs – and summer activities," she says.

Of course, this is all a much smaller problem for those thinking about buying ski-property, than it is for the thousands of people who bought low-altitude ski-property before the potential problems became known.

Photo credits: Rennett Stowe via Flickr

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

Global Warming Puts Ski Resorts in Jeopardy

Knowing — or maybe believing is a better word — that property markets and economies around the world are on the way back up sure is a nice feeling. It may be a short-lived feeling, because according to some there are signs that the short-lived positivity will end as quickly as it begun.

I am not one of the people. Nor am I one of the plastic fantastic optimists that think the only way is up, and that rejoices in reports of UK mortgages doubling, and property in some areas selling for almost the same as it would have at the height of the boom.

The truth is, yes, we are making some headway against the deluge of negative financial news. In fact, a good analogy of the current recession recovery process for me, is a snow plough that has been completely submerged in snow: we have just jumped in and managed to get the engine started, the heat is slowly melting the snow, but we still have a hell of a lot of pushing to do before we clear the drifts.

As you would expect, all the countries of the world are recovering in different ways and at a different pace, depending on the makeup of their economy and the funding and direction of its government’s economic stimulation policies. Nobody knows how strong the recoveries are without the massive injection of cash and stimulation being poured into the world’s markets.

In this series of articles we will profile the G8 nations to track the progress of recovery in their housing markets so far, and attempt to map any possible deep-drifts in the road of stimulus withdrawal ahead.

Part I: America

In the last few months, the positive data has been rolling in on the American housing market; price increases, rises in new home starts and rising transaction volumes, including a somewhat astonishing 10.1% increase in home re-sales between September and October.

However, like with every almost everywhere, everything can be put down to the low interest rates and government incentives to buy a house and generally spend money. The tax incentives for first time buyers has just been extended to April, at which point the housing market will have to stand on its own two feet — unless it is extended again. Many analysts think this could spark the end of price rises and a restart to depression.

A good sign however is in the recent data from the automobile industry. It has been doing well because of the government cash-for-clunkers scheme. The scheme ended in October, yet analysts surveyed by Bloomberg still forecast a year on year rise in automobile sales for November. The analysts surveyed by Bloomberg have not been wrong in any article I have read so far.

This will instill hope that the foundations of recovery have been laid by the stimulus, and that the slow recovery can continue after it is removed.

However, the housing market is reliant on credit conditions easing, and on employment rising, or at least stopping falling, and also on wages rising.

There are currently thousands of US homeowners falling into arrears and likely to be repossessed if they cannot find a job soon. There are many more thousands only able to continue paying their mortgage one or multiple salaries or income-flows down, because of the record low interest rates. These too will likely face repossession when the government starts putting interest rates back up.

Such major increases in supplies of cheap properties, will almost certainly turn the price rises into falls when the government stimulus ends — if not before from the first group.

The number of potential repossessions will begin to fall as soon as the labour market starts to improve.

This of course will be helped by a de-restriction of the mortgage market, so that people can refinance for better deals.

What we also need to see is a significant increase in demand, which will offset the damage done by the repossessions. This will again rely on significant increases in the availability and security of employment and the availability of finance.

Spot a pattern here? Yes; the future of the US housing market post-stimulus relies on a significant increase in the availability of finance and jobs.

The availability of finance is gradually improving as the world stock markets become more profitable. But even the availability of finance is hindered by the labour market; the amount of finance the banks will provide will always be determined by the deposits and loan repayments people are making, which will of course grow as the labour market improves.

So, really it all relies on the labour market. Unfortunately unemployment is still rising. The unemployment rate in the U.S. jumped to 10.2 percent in October, the highest level since 1983. The government is determined to turn this around as soon as possible though.

The figures prompted Obama– having recently signed a bill extending jobless benefits — to promise new measures to find jobs for some of the 15.7 million unemployed Americans.

“My economic team is looking at ideas such as additional investments in our aging roads and bridges, incentives to encourage families and business to make buildings more energy efficient,” additional tax cuts, and more steps to ease the flow of credit to small business and promote exports, he said in a recent statement from the White House.

In fact it was also the rise in unemployment in October that led to the extension of the tax incentives for first time home buyers; it wasn’t for the housing market it was for the jobs it holds and may create.

So, it is the job market we must all be watching. If the government incentives can successfully bring sufficient recovery to the economy that employment starts rising before April, then maybe the housing market will be able to hold on long enough to survive till recovery proper without any further falls.

This article written by Liam Bailey of Property Abroad.com

Regular readers to the site will know that this is the next installment in a series of articles giving how to tips on buy to let property investment abroad, the first covered the potential pitfalls of buy to let investment abroad, and the second covered the potential pitfalls of buying off plan property overseas.

This one covers the next step in the process; after you have researched your market, researched and bought your property, here are 5 tips on finding good tenants, including some tips on vetting tenants, all from professional buy to let landlords.

1: Put yourself in the Tenants Shoes, and think like them

This really comes down to knowing your target market; if you want to rent to students then you will want to advertise in the university. If you plan to let to locals then an ad in the local press is probably a good idea. You will also want to have a to let sign created, as many people drive around the area they wish to live or move to.

2: Speak to Several Local Letting Agents

This is the best way to find out how to find tenants for your buy to let property abroad. It is also a really good way to learn about the local rental market: rental rates, is rent payable in advance, does the tenant pay the administrative fees etc etc. However, you should already know some of this if you have done your research before buying correctly.

3: Speak to Local Hospitals

Most hospital staff will be very helpful in telling you whether or not your property is in their catchment area. Also advertising in universities and hospitals is always very cheap and generally very effective.

4: Know the Market

In many overseas markets (especially the less developed, eg. Central Eastern Europe, and, I imagine, many other regions in the world) you can’t really do much of tenant vetting, because it’s not usual to check any references or credit score the potential tenant. Because it is unheard of to do so, the tenants will laugh in your face and you’d never let your property if you tried to do so. So you need to know what the market supports and what not, and adjust yourself to it.

5: Hire a Local Letting Agent – Where Possible

As long as it is not going to cut into your cash-flow too much; hiring a letting agent is a very good idea to let a property abroad on a residential basis. Agents will be best placed to re-let a property quickly if a tenant leaves, and will also make your life a lot less worrisome about what you are going to do if your tenant doesn’t pay the rent, and about the state your property is being kept in.

Hiring a local letting agent will also save you from having to worry about vetting tenants, because they will do it for you. They will also do it a lot better than you.

Many thanks to Petra Gajdosikova and Dawn Gray, the professional landlords who assisted in this article, written by Liam Bailey of Property Abroad.com.

Having been dropping like a stone thanks to the global economic crisis, Dubai property prices have finally risen again, according to real estate consultancy Colliers International – by 7% in the third quarter. This is the first rise since the emirate’s property market crashed at the end of 2008. Investors who bought during the boom will not be dancing in the streets just yet, though, as this rise still leaves prices around 50% down on their pre-crash level.

Prices over the whole of 2009 are still 47% lower than that peak level, and are actually now the same as they were in the second quarter of 2007.

Colliers International’s quarterly price index collates mortgage transactions on properties open to foreign ownership, and it showed that prices between July and September 2009 rose by 7% from the second quarter, from their peak level which was enjoyed in the third quarter of 2008. This 7% increase coincides with a rise of 64% in property transactions during the third quarter, which shows that some confidence is returning to the market, and perhaps that investors and buyers are making sure they act now before the market recovers even further.

Colliers International regional director in Dubai, Ian Albert, sounds a note of warning, however, describing this third quarter rise as a “bounce” and advising that people wait for fourth quarter results before deciding that an upward trend may be happening, and that a recovery is truly in progress.

The figure of 7% equates to an increase from 949 United Arab Emirates dirhams per square foot in the second quarter to 1,016 dirhams ($278) in the third quarter. Broken down a little, the 7% rise is made up of a 6% increase in the price of apartments, a 9% increase in the price of villas, and a 7% increase in the price of townhouses.

Colliers put the rise in prices down to a more widespread availability of mortgage financing, and a belief amongst the expatriate community of workers in Dubai that job security is improving. The consultancy firm thought that the effect of new units coming onto the market in 2010 may serve to keep any further rises to a minimum, as supply will continue to outstrip demand. Many construction projects were put on hold, but as the economy slowly improves these will resume and new properties will become ready for sale. Colliers’ Ian Albert added that “certain tier one developments will offer investors oases of performance, predicated upon a return to fundamentals outlook”.

Photo credits: octal & joeburger via flickr

The Hong Kong Monetary Authority, the city’s central bank, last month imposed tighter mortgage restrictions, which Hong Kong Chief Executive Donald Tsang said were to stave off a big property bubble following soaring prices this last year. He told attendees at a business lunch: “We do not want to see a huge property bubble developing in Hong Kong,” having earlier said that he wasn’t sure whether a bubble was forming or not.

The action taken by the HKMA was on October 23rd, and it cut the mortgage limit from 70 percent of the property’s value to 60 percent, on property worth HK$20 million (US$2.6 million) or more. For properties below that figure, the 70 percent ratio stayed in place but the HKMA capped the maximum loan amount at HK$12 million.

Tsang did try to reassure people, however, by suggesting that this present surge in property prices did not show the same signs of speculative behaviour that preceded the bursting of Hong Kong’s property market bubble back in 1997, which resulted from the Asian financial crisis.

He was tight-lipped on whether there were any other plans afoot to keep property prices under control, only saying that the government did have the necessary tools at their disposal, and that any action taken would be prompted by the need for stability, transparency and smooth market operations. One method could be to make more land available for residential property development, which is something the government said last month it is already considering. This would be done through auctions and would mainly concern derelict buildings left over from Hong Kong’s manufacturing days.

However, when Tsang met the city’s property developers last week to discuss the rising property prices, they told him that the government should release land at more reasonable prices than in the past, because developers have to agree to pay 80 percent of the site’s recommended price before the auction can go ahead.

Despite the global recession, prices of Hong Kong’s mass-market residential property have leapt more than 20 percent in 2009, and luxury property prices have gained even more, jumping 40 percent. This latter surge is the result of an excess in global liquidity, and a fresh influx of cash from mainland China where there has been a big increase in the number of wealthy Chinese.

Real estate agents have said that property transactions have fallen since the cut, but analysts have pointed out that because many mainland Chinese buyers of luxury property in the city buy with cash, mortgage measures may not do much to calm the luxury sector.

Photo credits: tangysd via flickr

West Side Village is a gated community of over 686 apartments in the prime location of Hurghada’s city centre. Hurghada is Egypt’s, and one of the world’s fastest-growing property hot-spots, situated on the increasingly popular Red Sea Riviera.

Overview

West Side Village is designed for all-year-round living, not just as a holiday resort. It offers the option of studios, one and two-bedroom apartments, and it is set in over 44,793 square metres of tropical, landscaped grounds, only a third of which is being built on. It has its own restaurants, cafes, bars, a health and beauty centre, three communal swimming pools, tennis courts, parking, twenty-four hour security, and on-site management.

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Location – Hurghada

Hurghada is the largest resort in Egypt with a population of 35,000. Located on the western banks of the Red Sea, it used to be a small fishing port, but it has now become a great place to enjoy two of the world’s fastest-growing sports – diving and golf.

A few moments outside the gates of West Side Village there is a new beachfront promenade that stretches for 8km, with bars, cafes and shops, making it perfect for a leisurely walk during the day or in the evening. The beaches are wide and sandy and lined with palm trees, truly making Hurghada a paradise for sun-worshippers.

Hughada town has every modern facility the visitor or full-time resident might want. There are banks, internet cafes, business centres, hospitals, international schools and supermarkets.  Further south is the city of Sahl Hasheesh, once known as the City of Isis, who was the Goddess of motherhood, magic and fertility. This area is set to be transformed by 2014, as there are plans to build twenty hotels (one of which will be a seven-star), eight golf courses, and a world-class marina designed by Lord Norman Foster. There will also be high-end retail centres and cinema complexes.

Prices & Availability

• Studio with Terrace, 44.37 SQ. M from £25,948
• One Bedroom Apartment with Terrace, 55.33 SQ. M from £32,357
• Two Bedroom Apartment with Terrace, 118.26 SQ. M from £69,159

Prices start from sterling £25,948 for a 44.37 sq metre Studio, and up to £84,864 for the two-bedroom apartments. Penthouse apartments boast a private roof terrace with panoramic views over the beautiful Red Sea Riviera. Easy payment terms are available on all these properties. This means a 10% deposit, a 30% payment on exchange at 28 days, and the remaining balance by interest-free payments. Phase 2 has just been released for purchase at Phase 1 prices, but these will be increasing in the next few months.

Contact Us

To take advantage of the Westside Village lifestyle, please use the following form to receive more information.

[contact-form 35 "Westside Village"]