Opinion: How to make Money on the South-European Housing?

Opinion: How to make money on the South-European housing?

In a crisis, investors are biding their time, or save. However, it is now investing in European real estate sites can be particularly beneficial, according to market analyst, deputy director of real estate agency «Bekar» Nikolai Lavrov.

Nicholas, what is due to your belief that it is now in foreign real estate markets can make good money?

The logic is simple. The mortgage crisis the U.S. is not spared either one of the world economy. All markets in varying degrees affected. Over the past year, real estate fell from 10% to as much as 70% - depending on the segment and country. Now, according to analysts, the peak of lower prices in most markets already passed. Therefore, invest in real estate cheapened, investor guarantees a profit at a minimum because the post-crisis period, its market value will increase. Moreover, by calculating what the market has already experienced a fall in prices, you can minimize investment risks. If we know that, for example, real estate in Latvia only in the first quarter of the year fell by almost half, respectively, the risks of investing in real estate this Baltic republic is significantly lower. The probability of a second crisis, and another huge drop in prices, will agree, is small.

Is it convenient for Russia's national business - foreign real estate? It is in Russia to tune the scheme to work with such investments?

To date, more than half of Russia's foreign real estate buyers purchase items for themselves. The fact that real estate abroad - is a ready business project with a return of 8% per annum, in Russia know at the idea. Of course, there is progressive investors, who have long been earning on this money, but their number is limited. In large real estate agencies established pattern of work on such projects. And it is not as complicated as it may seem. The problem is that the market does not have enough information about this area of business lacks the scale in co-operation of St. Petersburg and foreign tourism companies and realtors.

For example, in recent years in Russia is actively developing the South-European direction of tourism, when married couples with children go on the Mediterranean coast and a month or so live in villas or apartments. And the most popular small spa town at a considerable distance from the airports. In such places are not so many tourists, because there is a rest mostly local residents. It is a quiet, peaceful and safe holiday. Moreover, increasingly Russians think about buying for themselves villas and apartments in these locations.

In Italy, for example, a domestic buyer will give a mortgage on the villa at 4% per annum. Given the wide range of offers on the market in relation to the crises of economy buying a country house in Italy is becoming cheaper and more attractive alternative to similar acquisitions in the «promoted» resorts or in Russia.

However, this popular tourist area completely covered by any tour operator, nor realtors. Losing potential revenue, but in today's environment is critical.

What were the amounts in question, when are you talking about the profitability of real estate in the south of Europe?
If we are talking about investing in real estate in places remote from the mass flow of tourists, the most profitable sites are villas and apartments economy and comfort-class. This season rental villas comfort-class is estimated at € 10-15 thousand for the three summer months. Given the fact that the purchase of such houses cost so far in the € 300-400 thousand, you can roughly calculate that the payback of the object subject to a professional management company - the question 30 years.

Moreover, resort real estate, in my opinion, a more attractive option for investors. First, the northern people are always attracted to the sun and water, so the popularity of real estate in sunny countries on the coast among the Russians are always high. Secondly, only four to five months of «high season» property on the coast will bring more rental income than the apartment in the city for a year. Moreover, in the same season of the Cote d'Azur - always.

And why European markets? It is believed that, for example, the Asian real estate can earn much more.
But you can lose much more. Many Asian property markets at the moment developed significantly less than European. The profitability of some projects there is actually higher. By the weak competitive environment. But the risks are disproportionately. To do business in Asia, need to feel very thin market, the economy, to know all the features. The foreign investor is there to date, very unsecure. We also appreciated stability. Especially now.

Most people who now have an opportunity to invest in foreign real estate - people with the Soviet past. For the Soviet man of Europe, among other things, related to the culture (history, literature) of the European countries, in this culture have grown and nurtured today's investors. Therefore, Europe as a place for them more attractive.

What is not enough to ensure that the direction of South-European real estate has become the most profitable?
Most importantly, what is missing - information. To attract investors, must at least inform them of the possibility of profitable investment of money, you need to educate people. Cooperation professionals real estate market and tourism would not only educate potential investors, but also facilitate the clearance of long-term visas, to neutralize the problems associated with the language barrier, and so on. Partnership with European colleagues would help to establish a pattern of acquisition and subsequent management of objects of foreign real estate. All these links useful to generate a framework of international cooperation. As mentioned at the forum INFOREAL, you must create an association of professionals who will develop this trend. Of course, with the support of the State, any initiative would develop faster.

Forbes named Moscow as the Future Capital of the World

Forbes named Moscow as the future capital of the world

The influential U.S. magazine Forbes believes that Moscow could take the title of capital of the world in such cities as New York, London or Paris. Author of his forecast made on the basis of analysis of data on the flow of capital and labor, as well as the pace of infrastructure development in major cities around the world.

In addition, the list of contenders for the title of the new capitals of the world appear to Shanghai and Beijing in China, in India, Mumbai, Sao Paulo Brizilii, Calgary in Canada, Dubai in the UAE, Perth in Australia, Houston and Dallas in the United States.

However, the current global financial centers of political influence - Tokyo, New York, London, Paris, Seoul, Singapore and Hong Kong - their positions are not going to lose, the newspaper notes. Apparently, the fight for the title of world capital to be serious.

Recall that Moscow was included in the list of most expensive cities in the world under the version of the international consulting firm Mercer. But in rating the quality of life of the capital of Russia has taken only 169 places.

Mortgage Payments in the UK Have a Record Low

Mortgage payments in the UK have a record low

Monthly payments on mortgage loans declined in August by 23% compared with last year.

In absolute terms, this figure dropped from £ 792 (€ 905) to £ 609 (€ 696). The current level is the lowest in the past seven years. In addition, mortgage payments now account for 29% of net income of taxpayers, while the year before they had to spend 40% of net income, reported Daily Mail.

This resulted in reduced base lending rate of the British Central Bank to a record low value of 0,5%. It is expected that at this level, the base rate will continue in 2010. Earlier this month, Britain's biggest bank HSBC has lowered the rate on a mortgage up to 1.99%.

At the same time, the growth of consumer activity and an increase in the number of mortgage loans leads to an increase in housing prices. Such a trend seen over the past months, will eventually lead to an increase in monthly payments on a mortgage, experts believe.

Real Estate Of Future

In all ages the construction of grand buildings embodied the economic power of the state. But now, in the global financial crisis, many countries are building and designing objects that can cause admiration.

Despite the fact that money problems are dragging the construction business to the ground, «soaring» buildings being built. Moreover, it was in 2009 - the height of the global crisis - was the harvest at a record high skyscrapers.
The flagship building construction is, of course, the Middle East. Earlier this year, the final height of 818 meters has reached the current world record holder, set of Burj Dubai in the United Arab Emirates. The opening ceremony of the building is scheduled for December 2. Surpass themselves in the UAE has not obtained: the construction of a skyscraper Nakheel Tower, which height should be about 1 400 meters, has been postponed for 12-month period.

However, ready to pick up the baton to the neighboring countries. The desire to raise the record to new heights, expressed Kuwait and Saudi Arabia, where the planned implementation of projects under way or ready to soar up more than a kilometer.

Construction sites are more modest and in other countries. This year started just three draft skyscrapers in height from 200 to 360 meters - in Kazakhstan, Thailand and Romania - who will soon become the highest in their respective countries.
This year will see a number of projects, which although they look fantastic, but can be implemented as early as soon as possible. We are talking about objects that represent the unique «fusion» of different types of structures.

For example, the architects of Florence offers to throw a bridge over the River Arno library. But residents of the British capital, which has long been concerned about the mediocrity and the impersonality of London Bridge, will enjoy a proposal to equip its orchards and gardens of vegetables and fruits, Zelenshchikov shops and catering establishments.

Gaining popularity and projects «vertical farm» - high-rise buildings, which can grow crops and raise fish and small livestock. Such facilities are already developing in the United States, Canada, Australia, France and other countries.

Another newfangled trend in construction is called «arkologiya» (architecture + ecology). Its followers claim that due to the construction of giant self-sustaining structures, contains a population of a city, you can reduce the negative human impact on the environment. One of these structures - 365-meter pyramid, which can live 40 thousand people - could appear in New Orleans.

Other architectural ideas already have the right to life. Thus, in the Netherlands in January 2010 should be completed the construction of a floating city - 1 200 houses and apartments, arranged in a single «island». Since the construction is conducted in periodically flooded land, with the arrival of the water of the building will rise on its surface and stay afloat.

Something like this is and «resort of the future» - is a universal design, a cross between an artificial island and the ship. Technical details or the cost of building such a facility is not yet known, however, as the creators say, it can be used in any natural environment.

Large-scale projects, of course, require significant energy resources. The simplest and most universal solution is to use solar energy.

This year was marked by a number of projects - both under construction, and existing so far only on paper. First of all, the world's largest solar power plant, on which Australia stands ready to allocate $ 1 billion power of this energy source should be sufficient for 800 thousand homes.

More modest solar panel intends to build the Vatican, its capacity will be ten times less than the Australian. Nevertheless, it will fully meet the energy needs of the Vatican, which could become the first state, «feeding» only solar energy.

From the Australians with the Europeans did not lag behind the U.S.. This year in Florida to begin construction of the city whose power consumption will also be fully ensured by luminaries.

A key feature of all the above projects is that they have no fundamental obstacles to implementation. So very soon we will be able to see such proposal at the forthcoming exhibitions in overseas real estate.