Foreclosures Make for Hot Florida Property Investments

Ocala, Florida has seen home prices drop lately and the sales of single- family homes have increased as the abundance of foreclosures abound. With the struggling economy and higher unemployment rate, it seems as if now is the time for those wanting to relocate to Florida to purchase that retirement or winter home.

It appears that property prices for residential homes last month in Marion County were at levels that we haven’t seen since the 1990’s. The average median home price decreased from $87,800 in November 2009 to $75,900 in November 2010. That is a significant 14 percent drop and the biggest percentage drop in the Florida metropolitan area.

The home prices in Ocala have been decreasing for about three years now due to the recession and double digits unemployment rate. Home investors at home and abroad are taking advantage of the price decline and buying up investment properties. According to MLS surveys, just last month in November, realtors sold 269 residential homes compared to 251 a year ago in 2009. That is a 7 percent increase in sales mainly due to the amount of foreclosures on the market. The past year has seen many more foreclosures and distressed sales due to the struggling economy.

Almost 630 homes were on the foreclosure list in November, which equals out to one in every 251 homes were looking at foreclosure. With so many foreclosures, investors have taken advantage of such a prime market to buy up homes for short or long term rentals in the hopes of gaining significant returns in the future.

Australia’s Booming Property Market Attracting Attention of Investors

Australia’s housing market continues to grow stronger and is anticipated to remain a strong contender for drawing property investors in the upcoming year. Australia and Canada have been competing neck and neck but it seems that Australia is pulling away as Canada’s real estate sales are cooling down.

Due to low interest rates as well as economies beginning to recover, global markets have seen some rebounding this year. It has been reported that house prices rose in six of twelve industrialized countries, including Australia, Canada, France, Sweden, Switzerland, and the U.K.

Low interest rates and a strong and stable economy attract first time buyers as well as property investors looking to capitalize on the real estate market’s abundance of affordable homes. Investors have confidence that their investments will yield good size returns in years to come as the property market continues to grow strong and house values rise.

Some of the success of the property market will depend on factors such as job growth as well an income growth. Interest rates and lending rules play important roles as well. Interest rates are expected to stay relatively the same throughout next year which will help keep the market stable. Australia seems to be doing well as solid job growth is reported and high demand comes from Asia.

Other areas of the world are seeing some growth as well. The U.K. and Swiss markets are seeing some recovery and it is reported that Sweden is actually experiencing somewhat of a mini-boom. In Italy house prices are dropping some and the U.S. market is becoming more stable.

Malaysian Property Market Recovering Rapidly

Malaysia’s property market anticipates growth in the upcoming year as the economy enjoys stability and growth as well, peaking the interest of overseas investors. This is good news for Malaysia as much of the world has been hit pretty hard by economic struggles.

The Fourth Malaysian Property Summit is scheduled to be held on January 18^th, 2011 in Kuala Lumpur and will include various speakers from fields such as developers, property owners, bankers, investors, and economists. Talk of property investment potential will likely be a main topic.

James Wong, a property consultant, says that there is a huge demand for property in Kuala Lumpur and Penang. As property prices rise, it is important that the government come up with incentives to boost income to help the growth of the economy as property market and the economy oftentimes go hand in hand.

It will be essential that the Economic Transformation Programme set clear guidelines on Private Finance Initiatives so that proper funding can come from private initiatives.

It is reported that market prices have set record highs and the interest rates remain low presently. Investors from all over the world are interested in this prime location. Chinese investors already invest highly in Australia and Singapore and buyers are hopeful that they will be seeing more of such investors in Malaysia. Along with China, investors from Singaporean and Hong Kong are also interested in Malaysian properties.

It will be interesting to see just how much growth Malaysia will see in the upcoming year.

US Housing Market Thought to Have Lost $1.7 Trillion of Value in 2010

Zillow, the US's second largest property portal has predicted that the value of US homes will be down $1.7 trillion this year compared to last year.

This, compared to the $1 trillion loss in value last year compared to 2008, represents a 63% larger decline, and means that the US housing market has lost $9 trillion in value since the collapse began in 2006. While many markets around the world have apparently fallen faster and harder than the states, few can match a decline like that.

As we would expect, the portal reports that the largest falls happened in the second half of the year. With the homebuyer tax credit propping up the market, the housing market lost $700 billion in the first half, and with the tax credit rug firmly pulled out from below prices the second half loss is predicted to be $1 trillion according to Zillow.

"It's a testament to the nearly irresistible force of the overall market correction that government incentives can only temporarily hold back the tide, and that the market will ultimately find its natural equilibrium of supply and demand," said Zillow Chief Economist Dr. Stan Humphries.

And it may not get much better.

"Unfortunately, with foreclosures near an all-time high in late 2010 and high rates of negative equity persisting, it does not appear that the first part of 2011 will bring much relief," Humphries said.

While the value of homes in Boston increased by $10.8 billion and those in San Diego by $10.2 billion, it was the most overvalued cities which really dragged the overall picture down. In New York, the value of homes has fallen a whopping $103.7 billion this year, and in Los Angeles it has fallen by $38.7 billion.

According to the big investment banks, the American economy is turning around, the picture seems to be continuing to worsen for the housing market.

According to reports in the third quarter, 23.2% of single family home owners owed more on their mortgage than the value of the property, up from 21.8% in the third quarter of 2009. Until defaults and repossessions are brought under control, and the backlog of properties sold there is unlikely to be any recovery. Of course, with investors snapping up properties at 60% below their replacement costs and earning 10% yields on tenanted properties, many are in no rush for recovery anyway.

Investors Seek next Hotspot as Thai Property Recovers

We are all hearing about the revival of Asian property markets, and while much less talked about than China and India we know from recent reports that Thailand is now starting to see its share of this revival.

In the early-mid noughties when the great global property boom was finding its feet, Thailand was powering out of the Asian economic crash and Bangkok property prices were among the fastest growing in the world.

While Bangkok property is still expensive and thought to be on its money if not a little over valued, people are finding investment opportunities in new areas as they seek to find the Bangkok of this economic recovery.

Pattaya is definitely a contender to this throne. Pattaya is exactly what we are looking for in an Asian investment hotspot, it is an urban/suburban area, set to grow into a metropolis and with demand for housing growing far more quickly than supply. Oh, and property is cheap.

Take the new development from Azure Overseas, Art on the Hill is an equisite development offering fully-furnished 1 bedroom apartments in the Pratumnak district of Pattaya from £21,000. The development, which is located just 5 minutes from downtown Pattaya is complete with:

• Rooftop Pool
• Secure Underground Parking
• 24 Hour Security
• Modern Design
• 400 Meters from Pratumnak's best beaches
• Family Friendly Neighbourhood
• Close to all local shops and amenities

Turkish Property Gaining Appeal with Overseas Property Investors

Turkey is a hot spot for property investors these days.  Its economy is growing very quickly and not only that, it has a stable, strong economy.  It’s no secret; Turkey is booming. 

Tourists love to travel to Turkey and the construction industry has taken advantage of this and is thriving.  As fast as developers are putting up developments, investors are taking advantage of competent, wise investments. 

Europe has countries with strong economies, but Turkey is shining right now.  The GDP has grown 10.3 percent in the 2^nd quarter and according to the OECD, it is predicted that the entire economy will grow perhaps 6.7 percent within the next 7 years, which is greater than all its neighbours. 

Why is Turkey gaining such momentum?  Many believe it is their powerful banking and financial system.  It is fiscally stable due to the government taking time and great effort to achieve stability.  Therefore, investors rest assured that their investments will stand and Turkish buyers are confident when they are ready to purchase a home.

Dominic Strauss-Kahn, who is the director of the International Monetary Fund, states that Turkey is, “the most suitable emerging market candidate for a seat on the IMF executive board.” 

Turkey’s property market is booming as well.  The Global Property Guide reports that Turkey is ripe for residential property investment as new laws now enable foreigners to purchase land.  Hard to believe this country was in such a financial crisis only ten short years ago and now it is one of the fastest growing economies in Europe.

US Property Portal Giant Realtor.com Goes International

Realtor.com, the property portal of the US National Association of Realtors, the largest portal in America, is to target overseas buyers, and enter the overseas market with a range of new services, including international listings, and translation services.

The portal says that it currently receives 575,000 non-us visitors each month, whom it makes no effort to cater for. That is to change as the portal tries to better leverage its international standing.

“Realtor.com will expand the exposure of U.S. real estate listings to global markets and add international listings,” said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I.

“While all real estate in the U.S. is local, the same is not true for property owners. The U.S. continues to be a top destination for international buyers from all over the world. Foreign buyers understand the value of owning a home in this country and can rely on Realtors(R) to help guide them through the process of buying property in the U.S. With expertise, knowledge and experience, Realtors(R) have a global perspective, reflecting the increasing importance of foreign buyers to U.S. home sellers,” Phipps said.

The industry is in doubt as to what impact the move will have on an already packed overseas property portal market. Realtor.com is known the world over, and Move Inc, the digital clout behind NAR in the operation is almost as powerful. However, dominance in the US doesn't immediately translate to dominance overseas.

What we usually see with something like this is a learning curve, as the company comes in with power, prestige and money but lacks experience. Success will no doubt be determined by how quickly Realtor.com can learn from its early mistakes.

Spanish Developers Lure Buyers with Great Deals

Despite the fact that Spanish property sales have reportedly been improving for the last several months, developers continue to take seemingly extreme measures to lure buyers.

Costa Almeria development Balcones de Palomares is a good example just added to the Azure Overseas portfolio. Anyone not bowled over by the price; just £68,469 for a key-ready 2 bedroom apartment in a quiet and secure development near the coast and with white good included, probably will when they realise that 100% mortgages are being offered with properties in the development.

Most buyers of Spanish property in the last 2 years have been cash buyers, equally because wealthy individuals made up the majority of buyers, and because mortgages were scarcely available. Slowly but surely buyers who need mortgages (low budget buyers) are returning, and thankfully more mortgages are coming up as well.

The price is the most impressive thing here though, well designed, quality 2 bedroom apartments in a nice development with a communal pool in Andalusia, Spain for not much more than you would pay in Turkey is truly a bargain.

Low prices like this in an established market like Spain is always good news for investors; the low price means you can set your rental rates lower and sill make a strong yield. Not to mention capital growth potential, in the fact that Spain will recover, and when it does these units will quickly double in value, then go to 150% of their current price.

American Property Market: Volatile but Bountiful in Opportunities

The US property market is probably the most volatile in the 1st world right now. We have reports of prices falling, and we still have tens of thousands of homes being repossessed every week, some reports talk of falling repossessions because of the freeze, other's say the freeze was barely a blip. On the other hand mortgage interest rates are at all time lows and most reports concur that sales are increasing in most regions.

Volatility aside, few can deny that the US market is currently abundant with opportunities, and that these opportunities are in their best presented to foreigners, or certainly out-of-state buyers. Foreign and out of state buyers needn't care about the effect that the rock-bottom price they are paying for a distressed or repossessed property, only that the price they are getting for will increase their rental yield (rents haven't fallen as fast as sale prices, and there is no such thing as a distressed rental -- not now anyway). Not to mention the potential capital growth when America finally gets back on her feet.

And what an opportunity it is:

The dozens of repossessions don't only increase availability of property at rock bottom prices, but they also increase the number of people and families in demand of rental accommodation. Thus, investors can buy in at low prices and with a large pool of potential tenants.

In fact, there is an even better way to invest...

Shrewd investors, developers and anyone else with the cash to do so, have decided to cut out the void between buying and finding a tenant, they are buying distressed homes and renting them back to the original owner. This is why we are currently seeing so many tenanted deals coming across the Atlantic. The average yield on the tenanted deals is 6%.

There is nothing average however, about the Village at Town Centre development in Orlando, offering tenanted 3 bedroom apartments just minutes from Disney World from just £47,300. Understandably, net yields of 10% are currently being achieved.

Berlin Property Prices Lowest in Industrialised World

Berlin property prices are lower than in any capital city in the industrialised world, according to a new comparative study by Engels & Volkers, although it is not the first time this has been reported, and it will probably not be the last either.

In Mitte, the upmarket district of Berlin, top end apartments currently go for an average price of 3,500 Euros per square meter, which is a fraction of the price of a comparable unit in the financial district of New York.

Engel and Volkers declared Berlin's history of division as responsible for its failure to grow like other capital cities.

"We have only begun to see things changing here in the last ten years. But, compared with other major cities, the impact of this on the property market is rather minimal," said Anne Riney, managing partner of Engels & Volkers in Berlin-Mitte.

"It will take a long time yet before the market reaches anything like the price margins of London, Tokyo, New York or Paris. Until then, Berlin will remain the world capital with the lowest-priced residential property," she added.

It is true; history is a huge part of the reason why Berlin property prices are so low, but not in the way laid out by Engels and Volkers.

Only 40% of Germans own their own homes, much lower than the developed world average of around 70%. The status quo has developed over the years, and the renters culture is now deeply entrenched in Berlin.

Because of the situation, the government imposes controls on rental rates, allowing rents to rise only when wages rise. Because the biggest buyers of property in Berlin are buy to let investors, price rises are governed by rental rates. This vicious cycle has kept the lid on Berlin property prices for years.

US Housing Market on a Positive Run?

The latest figures released by the federal government show a pleasantly surprising 6.6% rise in sales of new homes in September. The second monthly rise, took total sales to 307,000, which is stronger than the 300,000 analysts predicted, but still nowhere near the 414,000 seen before the government tax credit ended.

Recent figures also showed a 10% rise in existing home sales, both reports seemingly supporting the view by some economists that the housing market will bottom at the end of this year.

“After dropping precipitously following the expiration of the first-time home buyer tax credit, it looks as though new home sales have stabilized,” said Nicholas Tenev, an economist at Barclays Capital. “We expect a gradual recovery over the coming months.”

None the less, new home sales are still 21.5% lower than this time last year. Also, supply is still a big problem; the government estimates that there is 8 months worth of supply on the market, although that is a slight improvement on the 8.6 months predicted in August. According to supply data in September, stock fell 1% on the month, and 19% on the year.

“With little new construction going on, inventories of unsold new homes at least aren’t a problem even with sales at a depressed level, with the number of new homes for sale extending a run of record lows,” said David Greenlaw, an economist at Morgan Stanley.

New home prices recorded a slight rise as well in September, up 1.5% month on month, and up 3.3% year on year. This took the average to $223,800, approximately 30% above the average price of existing homes.

According to analysts, the foreclosure moratorium by some leading lenders, had only a small effect on the housing market in September.

Looking at September, and the data running up to it, this would seem to be one of the most positive periods we have seen in the US housing market. While repossessions still seem a long way from ending, maybe the misery is starting to ease just a little.

Confidence Increasing in Overseas Property

We have all heard reports that the low interest rates in the UK are causing more people to look to overseas property. The latest report to confirm this trend comes from the latest Worldwide Property Group confidence tracker; a survey of those considering buying overseas property.

The survey found that 71% of potential overseas property buyers said that the current level of rates had increased their desire to purchase a property, 64% said that they are benefiting from the continuing low level of interest rates. Interestingly.

73% respondents said that they felt that now is a good time to buy property overseas showing that confidence is returning. 68% of respondents said they are actively considering buying a property overseas.

Asked which regions they were most interested in, respondents came up favouring the US, Caribbean, and Brazil, followed by the traditional European destinations like Spain, France and Italy, with Portugal also getting a mention.

Commenting on the figures, Kevin Wilkes, Managing Director of the Worldwide Property Group said: “The results of this survey make for very positive reading. I am delighted to see that confidence in property both in the UK and overseas has reached such a high level. It is also very interesting to see that with all the fantastic opportunities currently available around the world, it is still the more traditional markets that draw the most interest. This is valuable information as it enables us to offer exactly what our clients want.”

US Sellers Slash Prices as Foreigners Keep Coming

Research shows that the asking prices on almost half of all the properties in 26 US markets, Florida in particular, are being cut by sellers.

Now, real estate investors from Asia, Europe, the Middle East, Russia and South America are finding bargains as a result of the price cuts.

California based online real estate brokerage ZipRealty believes the price cuts on 47.8% of the housing inventory tell only part of the story, according to the firm 25% more sellers have cut their prices this year than last year, and have cut prices twice in most cases.

The median reduction was $19,725 and this was 7.25% of the list price on average. Florida sellers have been wielding the heaviest knife, with Miami, Jackonsonville and Orlando sellers cutting double digit percentages off their asking prices. Miami saw the biggest discounts, with sellers slashing an average 12% off their asking prices. Discounted properties in Orlando are a big hit in the UK.

‘The summer home selling season never kicked in this year, leading anxious sellers to slash prices,’ said a statement from Zip Realty.

Florida is currently seeing a large number of foreign buyers, attracted by the bargains. Foreigners have always been high in Florida, but the gap between Florida and other states has widened because prices are so low.

Foreigners now make up for 10% of the market according to a recent report by the National Association of Realtors, but this is spreading fast according to experts. Marketing campaigns are now targeting foreigners specifically and realtors are offering heavily discounted viewing trips.

Top Russian Portal Publishes Search Data

Leading Russian overseas property portal 1-property.ru has just revealed its first ever chart of top overseas property destinations, based on search data from users of the site.

The top 5 is as follows:

1. Bulgaria
2. Spain
3. Turkey
4. Montenegro
5. Cyprus

Firstly, Bulgaria in number 1 is particularly significant. No, not that it is a favourite with Russian buyers, who have always tended to choose Eastern Europe for their beach holiday homes, but for Bulgaria's ailing property market. The number of Russian buyers is growing rapidly, and the Bulgarian property market is in a lot of trouble from oversupply. Russian buyers could potentially increase in volume sufficiently to really pull the market out of the proverbial.

Secondly Spain, another significant result, though we have been hearing similar reports about British buyers returning to Spain, it seems the dark clouds may be lifting there as well. It also has a massive oversupply problem and needs all the help it can get.

What a result for Turkey in third. Turkey is climbing the ranks of British charts as well, and for it to be third with Russian buyers backs up the reports we have been hearing from Turkish property agents.

Montenegro certainly isn't surprising, it has long been a favourite with Russian tourists.

Cyprus, again, a market in a lot of trouble, left near-baron by the exodus of British buyers, and could gain a lot from an influx of Russian ones.

Dubai Property Victims: the Sad Story of 29 Boulevard

It's been a while since we posted a Dubai disaster story, but following the lead of the Indian TV station NDTV we thought we'd do a little digging.

NDTV's report is a bit like the one shown on British television not that long ago, an episode of the program Homes from Hell dedicated solely to the tragic tales of people who have paid thousands of pounds dollars and euros towards Dubai properties that are still no more than rotting foundations, and how, because the market developed so rapidly, the legal system still has nothing governing off plan purchases, and so there is very little that those affected can do but wait.

The NDTV report focuses on the property 29 Boulevard, a prestigious skyscraper project designed by New York architect Frank Williams and to be built near the now completed Burj Khalifa, the tallest building in the world. 100 people camped outside the Emaar offices to bag a good unit in the development, according to the NDTV report. The property has never got any further than its foundations, which are "rotting" according to NDTV.

“It’s really a disaster, the situation in Dubai,” said Silvia Turrin, a real estate agent who bought into the development, and has been unable to get her money back out. “It’s not like in Western countries. It’s very difficult to exit here if there’s a problem. And we’ll never get our money back, but now we’re stuck dealing with this hole.”

The lack of legal framework is allowing Emaar to hold onto people's down payments of up to 80%, despite failing to deliver on the project.

In a statement, Emaar acknowledged that 29 Boulevard was still “under construction” but said that it upheld transparency standards and had “taken several proactive measures to address the concerns of investors on developments that are in the pipeline.”

As we know, 29 Boulevard is far from being an isolated case, the ITV program covered dozens of couples and buyers trapped paying off loans for payments made on properties they look unlikely to ever receive.

It is ironic that Dubai's legal system is strong enough to prevent people from walking away from loans for fear of being jailed, but unable to force developers to honour contracts.

But we know all this. However, according to the NDTV report vacancy rates in Dubai are still rising. This flies in the face of a recent report by Dubai investor newsletter Arabian Money, which said vacancy rates fell over the summer. It is obviously counting a different figure for total housing stock, and potentially new supply as well, which no one really has a handle on, again this is down to the legal systems.

If one good thing has come out of all this it is that buyers are doing more digging than ever before. Checking laws, checking the season to make sure they will not be holidaying in a baron landscape off season, and checking planning permission, developer status, in short: checking everything they should be checking.

Distressed US Investment Property Supplies Increasing

Sales of distressed and bank owned property accounted for some 24% of all US home sales in the second quarter, down from 31% in the first quarter, according to the latest data from Realty Trac.

Of this bank owned properties accounted for 15% of home sales in the second quarter, and properties in some stage of mortgage distress for 9% of sales. This is down from 19% and 12% respectively in the first quarter.

This shows that sales are dropping. But the number of properties sold after receiving a default or auction notice was up 5% from the previous quarter, although it was 20% lower than last year. This would seem to suggest that supply may be rising.

Discounts on distressed and repossessed US properties are also falling, which also suggests that supply may be rising. According to the Realty Trac data, the average discount on sales of properties in default or scheduled for auction was 13% in the second quarter, down from 16% in the first quarter, and 19% in the second quarter of last year.

The average discount on bank owned properties in the second quarter stayed at the running average of 31%.

While supply of distressed and repossessed US properties rising is bad news for the US housing market, because their heavily discounted sale prices are factored into future valuations of other houses in the area, it is not such bad news for the droves of investors from across America and around the world who are getting some seriously good deals on US property.

Azure Overseas are currently marketing the Village at Town Center, a development of luxury condos just a few minutes away from Orlando's main attractions. The price of just £47k for a 3 bedroom unit is evidence of the fantastic investment potential of discounted US properties. Think of the yield you could make renting that out on a PPPN basis.

Property Investment Not as Simple as Many Think

Property investment is a lot more diverse than many people give it credit for. Many people think it is a comparatively simple investment class compared to say stocks and shares, but when you break it down it is not so simple.

Firstly there is commercial and residential property investment. They are then further sub-divided into offices, retail and industrial property investment on the commercial side, and local and overseas property investment on the residential side. Overseas property investment can then be subdivided into residential and holiday rental investments. And we haven't even covered tenures or property debt investments yet.

Commercial property investment is most often the purchase of an office, retail or industrial space, to rent out to one or more companies -- usually on a long-term lease -- for an annual figure of between 4% and 8% of the purchase price. The 4% to 8% is known as the rental yield.

Residential investment usually works on the same principles, but the number of variables is much greater.

There is buy to let investment, which tends to mean the purchase of a local property or properties for the purposes of renting out to residential tenants or holiday makers. Buy to let investments usually yield between 4 and 6 percent, but can be much higher in the right set of circumstances; namely massive repossession volumes in an area, which reduce prices and increase rental demand.

Then there is overseas property investment. This is perhaps most diverse of all, because, as well as having to choose property class, location and tenure, we also have to choose country, region and also whether we want to let residentially or to holiday makers.

The huge choice usually gives way to higher yields for the shrewdest investors. This is especially true at the moment, because of the massive price reductions in many countries, including up to 60% off repossessed property in America and Spain etc.

Spanish Property Benefiting from Resurgence of Low Budget Buyers?

When it comes to overseas property purchases reliant on mortgages, the market is very much dominated by just three countries. That is, according to the latest data from Conti, which said that of all mortgage applications received this year 85% have been for just 3 countries, namely France, Spain and Turkey.

With 43%, French property has been by far the most popular with the British buyers seeking mortgages through Conti, Spain takes second place with 24%, and Turkey third with 18%.

Conti has previously told us that France is currently the dominant force among British buyers looking for mortgages on overseas property, people see that the years of restraint in the French banking and mortgage sector is now paying dividends for France, with low interest rates and stable liquidity.

But isn't this significant news for the Spanish property market. We all know how the Spanish market was devastated by the exodus of British buyers because of the financial crisis, which compounded the emerging over supply problems and at the same time caused the latter problem to worsen to the nth factor because developments started had to be finished (where possible).

Reports began turning positive last year, with developers discounting prices between 25% and 40% and cash rich buyers snapping up the bargains. However, as I said this was predominantly cash buyers, and predominantly wealthy buyers buying in prime areas like Marbella etc.

The data from Conti indicates that Spain could be benefiting from the resurgence of low budget buyers seeking mortgages, which we know from other sources is happening across the industry. This should spread demand out into other areas of the country.

Speaking of bargain properties in Spain, Azure Overseas has just added the Alcazaba Hills Development, offering 2 bed 2 bath apartments, in a luxury resort near the Costa del Sol's ever-popular Estepona from £191,363. The development is located just a short drive from Marbella and Gibraltar, making the prices even more incredible.

Investors Dominant in US Market – Little Wonder

Foreign investors are so heavily active in the US property market right now that, along with their US counterparts they are preventing first time and low income buyers from benefiting from the massively reduced prices on offer on repossessed and distressed sales.

Who can blame them though?

2 million homes were repossessed in 2008, 2.8million were repossessed in 2009, and a higher figure is predicted for this year. Not only does this mean 4.8 million homes being sold dirt cheap -- add on well over a million for this year already --, but it also means a high proportion of 4.8 (to 6+) million people moving back into the renting circle.

The downsides are: A: we need first time buyers and occupant buyers for a healthy market, and B: with such a high proportion of houses being bought by investors there is the potential for a severe jolt if they all (or too many of them) try to sell at once.

Luckily, we know that most investors today -- not only in America -- are investing for rental income, with capital appreciation being considered a bonus.

But this may only severely delay the problem. There is still the potential that years down the line, when the market has really strengthened, droves of them will sell up to recapitalise their business of for whatever reason and kick the market, or at least some local markets in the teeth for a bit. But anyway we are getting ahead of ourselves.

For now, all we need to say is that there are millions of great deals out there. And while it is sad that people are losing their homes, it is them, the economy and irresponsible lending (the banks) that are to blame, so there is no point in investors cutting off their nose not to capitalize on it.

Cuba 99 Year Lease Law to Indicate Overseas Investor Sentiment

Cuba's decision to allow 99 year leases will be an excellent indication into the current state of the overseas property market. In fact it will be one of the only true indications we ever get.

This is because the market is a truly strange place. Overseas property news and reports have always been dominated by people and companies with vested interests, and now is no different. But it is now harder to decide what is true and what isn't, as reports of increasing sales and searches conflict with things like austerity blues.

Why Cuba's decision will be an indication of how the market conditions is because analysts are expecting a wave of new condominium, golf and marina developments, like we saw in dozens of emerging markets during the boom.

According to sources in the Cuban government 16 condo developments have already been approved by the council of ministers and are proceeding to implementation, and another 4 marina only condo developments are in the pipeline. Many developers have been waiting for the chance to enter the Cuban market for year, so that is not the insightful part.

What will give us an insight into the current state of overseas property investment is sales and demand for the resorts. We know that agents and developers in the Caribbean have seen strong sales to wealthy lifestyle buyers since last year, and that sales of property in emerging markets like Turkey and Egypt have also reportedly grown.

But we don't hear much of the far flung markets like Panama, Phuket, Koh Samui etc. A reported new development on Koh Samui last year gave cause for hope, but there has been little since. Because the Cuba law is hot news, it can be expected that we will hear if demand is particularly strong or otherwise. Thus giving us an indication to where overseas property investor confidence is currently at.

Overseas Property: Has Private Investment Really Been Killed?

This week, overseas property portal Primelocation ran a report on how 91% of all property searches were for property in France, Spain, Italy and the US. But we know from recent reports that the world’s investors are focussing heavily on places like Turkey and Egypt, which are growing strongly at the moment. Surely pure property investment hasn’t been killed on the private level, has it?

It seems to have been according to portal searches. Rightmove Overseas’ results also showed no sign of Turkey or Egypt recently.

Thank fully we know that it hasn’t been. We know that buyers are still heavily interested in Turkish and Hurghada property because we talk to them everyday.

So where is the deficit? Well, the keyword is buyers. Most of us heard about the recent battle of the apps as both Rightmove and Primelocation brought out Apps for the much reveered Ipad at around the same time (Rightmove won by the way). These of course followed Iphone apps by not only Rightmove and Primelocation but all the other major portals as well.

These apps, and technological advances like it have not only made it easier to search for overseas property, but they have made it fun. Unfortunately this has increased the number of people searching for overseas property who have no serious intention of buying anytime soon.

Anyone who has ever dreamed of buying an overseas property (and let’s face it, who hasn’t?) in the sun is now searching for their dream home on the miserable commute home from work. Whereas before people would have played mini-games to escape the akward silence of the train, now they are playing with their apps.

This is great for the portals, but not such great news for the agents receiving their enquiries. So, while the portal search enquiries are an indication of the lasting popularity of the traditional destinations with those seeking a lifestyle buy, they do not neccesarily indicate an end to pure investment on the private level.

Any Briton on a low budget looking for an investment or holiday home investment they can afford now, and easily and affordably get to, is buying in Egypt or Turkey, and that will be the case for the foreseeable future.

Turkish Property and Tourism to Benefit from Economic Realities

Property in Turkey could see increased foreign demand as Europe continues to struggle with the recession and sovereign debt crisis, according to one overseas property commentator.

“We are all feeling the pinch as we struggle into a ‘rocky recovery’,” said Liam Bailey, director of Write About Property, explaining:

“In fact many people are feeling worse now than they did during the recession, because we all thought the worst was past, now inflation is rising faster than growth, and we are full of dread at the impending austerity measures.

“For the next few years, because people always want holidays abroad, we will see continued rises in tourism to low-cost destinations like Turkey, and this will also bring increases in demand for holiday homes and holiday home investments in the country, also fuelled by the country’s low prices.”

Bailey went on to say that Turkey would also benefit from Greece being practically a no-tourist zone.

“Greece has always been one of Turkey’s biggest competitors for tourism. Now, with the British Consulate and others warning of disruptions because of the industrial actions, and terrorist groups threatening to target the tourism industry, many people will give Turkey a wide berth, and many of them will choose Turkey instead.”

For the property market, Bailey also said that Turkey would benefit from being in a better state fiscally than its rivals.

“People are more cautious than ever when it comes to buying overseas property. When you look at Greece, Spain and Portugal being downgraded by investment ratings agencies, and Turkey looking likely to be upgraded, you do the math,” he said.

Why is Turkey Property Such Hot News Right Now?

Turkey's profile as an international destination of choice for tourists, holiday home buyers and even holiday property investors (fly-to-letters). It used to be that one of the main reasons to recommend buying property in Turkey was because EU membership was on the horizon, but since then Turkey has become a strong and powerful package all on its own, and property there is predicted and capable of growing and earning strong rental yields with or without EU membership.

We haven't really published a guide like this since things changed so drastically, and we thought that now would be a good time to do so. But why is Turkey so hot?

Economy Growing Faster than Rest of Europe

According to Turkstat data Turkish GDP grew 11.7% in the first quarter of this year compared to the same quarter of last year. This follows a growth of 6% in the final quarter of last year. Comparing this to Spain which contracted –1.3% and –3.1% respectively, the UK which shrank  –0.2% and  -3.1% respectively, Germany which grew 1.5% in Q1 following a –-2.2% contraction in Q4, France which grew 1.2% following a 0.5% contraction, and Italy which grew 0.5% following a 2.8% contraction, you can see why the Turkish economy is becoming such hot news.

A strong economy means a strong currency, healthy inflation (if carefully managed) and therefore growing property prices.

Strong Tourism Growth

The latest data on tourism from the tourism ministry shows that Turkish tourism grew 9.6% in the first half of this year, compared to the first half of last year. While the British travel industry is reporting a struggle, the Turkish tourism ministry shows that any drop in British visitors is being more than compensated for by growth in visitor numbers from Russia, Syria, Iran and Bulgaria

Tourism growth is one of the most important factors in the success of the Turkish property market. Again this is because most buyers are buying holiday homes and almost all of them will plan to rent it out for an additional income.

Marinas, Resorts and Success Stories

The volume of positive news relating to the overseas property market in Turkey is about the biggest in the world right now. Each week we hear of a new marina, new investments, new hotels from Hilton, Marriott, and other success stories, with very few if any negative news to temper it. For instance, there have been no reports of developments cancelled, or investors out of pocket, or certainly no more than in any market.

Thus, each week confidence in the Turkish property market grows. In a risk averse world confidence is a main driver of sales, and that is why Turkey's fortunes continue to improve.

Emerging Market Picks Part I: Latin America

After almost 2 whole years in the doldrums, emerging market property investment is picking up in support once again, thanks in no small part to the massive acclaim of Brazil, which has grown into one of the world's highest profile markets.

Thus, we have decided to conduct our first review of which emerging markets around the world, starting with Latin America. No, it's not just to get another tuppence worth in on Brazil, but because Latin America is very much becoming a centre for emerging market growth, with many hot markets and we wanted to lay out what markets we feel are offering the biggest potential for growth.

Brazil

We would love so much to have been different, to have been able to be controversial in saying Brazil wasn't one of the hottest emerging markets in Brazil, or the world, but we just can't do it. Brazil has so many strong sectors, as do many Latin American economies, but then Brazil has also discovered oil.

Brazilian agriculture is in the top 5 in the world, in terms of volume of production and head of cattle. Then you have the booming services sector, fuelled by leaps in budget aviation and technical and administrative outsourcing over recent years. Then you have the discovery of oil, which will add millions of dollars in revenues as it is tapped and exploited.

All this is fuelling phenomenal economic growth, which is increasing employment and affluence within the Brazilian population. As such the demand for affordable housing to buy and rent is growing massively. The north east, and especially cities like Natal and Sao Paulo have been found to be leading this growth in terms of percentages.

Availability can be a problem for foreigners, but we have just brought on the Edifício Dr. Geraldo Furtado development in Natal. The development is specifically targeted at the local market, which means low prices to foreign investors.

Panama

You don't hear much about Panama these days but that doesn't mean it lost all the growth potential it had in 2006, 07 and 08. While many markets crumbled at the hands of the crunch, and developments were postponed and cancelled, the construction boom in Panama continued, as the economy has continued to grow by around 5% per annum.

The economy is forecast by both the World Bank and International Monetary Fund to grow by over 4.5% this year (4.5% and 5% respectively).

Then there is the expansion of the Panama Canal. 5% of global shipping cargo passes through the canal, but it has grown outdated and too small for the larger super-freighters that now rule the seas. The multi-billion dollar expansion will add to Panama's economic growth.

Panama property is not the cheapest in the world, but it is very competitive. We have a development of luxury apartments in a resort on the Caribbean coast at prices starting from £55,000.

Studio Apartments in Hurghada from £8293 - Incredible

Azure Overseas are happy to announce the lowest priced property in Hurghada ever has just been added to the site. We recently raved about the new Tiba Heights 2 development, but the Isida development is closer to the sea, has a bigger pool, bigger gardens and is 10% cheaper.

You can now buy an apartment in Hurghada for just £8,293. Developments like this are the reason why Hurghada property is set to become one of the biggest stories ever seen in overseas property. For the price, Isida is top quality, and with an array of features including:

• Located just five minutes' walk from a public beach
• Good location in the heart of the fast evolving Al Ahyaa area of Hurghada.
• Large swimming pool on site with dedicated childrens' section
• Gardens around the project
• Communal roof terrace with seaviews
• Centralized satellite television, telephone and internet links to all apartments
• High speed internet to all apartments
• Two elevators to all floors
• 24 hour security
• Ten years' builders' guarantee
• Low annual maintenance fee of just LE2500 (GBP280/EUR340)

The only reason why you don’t read more about Hurghada in the press is because of the obstacles that the economy still must overcome, most prominently the massive gap between rich and poor. But at such low prices, and with so much growth potential, for many people it is well worth throwing in, and as a result Hurghada property is currently one of Azure Overseas’ biggest sellers.

Both the World Bank and the International Monetary Fund are forecasting growth of more than 4% in the Egyptian economy this year (4.5% and 5% respectively), and the IMF is forecasting growth of 6.3% next year. Both are known for being bearish on markets, because they decide which will get loans and which won’t.

You tend not to think about it because Hurghada is known for low prices, but a studio apartment for just over 8 grand, in a luxury resort, in a place with a warm climate year round, clean, safe beaches, and tourism from britain alone growing at 20% per year (Association of British Travel Agents), is nothing short of incredible. Little wonder that projected yields are 10% upwards. It is off plan, and so certainly a high risk category investment, but if you do the proper research this risk can be minimised.

Dubai Property: The Good the Bad and the Bare Naked Truth

There is a lot of hosh and poffel being talked about the Dubai property market at the moment. According to Colliers International prices were 2% higher in the first quarter of this year compared to last year, the 4% quarterly increase was the third consecutive growth recorded by the firm. Echoing Colliers findings of a market currently stabilising, Asteco said that prices were flat in the second quarter compared to the first.

But then comes a cold stark report in Bloomberg of a barren market with insufficient sales to allow buyers to gauge prices. If you ask me this is the most realistic story, and I am sure anyone who watched the recent Homes from Hell Dubai Dreams program on ITV will be of the same opinion.

Let us not forget that £50 billion worth of construction is on hold in Dubai, and that several of Dubai's largest developers are still juggling huge debts that could yet be defaulted. At a time when French leasebacks giving returns of 4% max are more popular than off plan properties capable of returning twice that, because investors just don't want to take any risk, it is hard to see sales increasing in such a volatile market.

Dubai property prices have fallen a reported 50% since the start of the downturn, but in reality that may only tell a fraction of the story; if a property is only worth what someone is willing to pay for it then how much is a property worth that no one wants?

Further, how much is a property worth that has views on 1-4 sides of unfinished foundations and uncompleted towers?

What's worse is I can't even see any hope in Dubai's future. Okay, if sales do increase on the towers that are complete or being completed and the market verifiably stabilises, then new developers will undoubtedly want to take over the uncompleted ones and get them up and going ready for the growth cycle. It is worth that initial sales spurt will come from that I can't envisage. Answers on a postcard, or in the comments, whichever is easier.

Turkey Property Investment Recommended by GPG and Me

The well respected Global Property Guide publication has given a glowing recommendation for investment in Turkish property, particularly Istanbul.

According to the firm's research for its mid-year investment recommendations, yields on Turkish property in Istanbul are currently averaging 5.48%, which is higher than average yields in Italy (5.04%), France (3.85%), Spain (3.81%) and Portugal (3.63%).

These yields, as with most -- if not all -- of the GPG rental yield figures is based on residential rentals, which means they do not give a clear indication as to the kind of yields a holiday property might make, which can often by higher than residential yields depending on a number of factors.

This is unfortunate, because most overseas buyers of Turkish property are currently aiming at holiday lets, and there have been several reports of those buyers earning yields of 6% net.

Basically, yields on holiday property in Turkey will tent to be higher, because property in the touristic areas tends to be cheaper than that found in Istanbul, while rental rates on holiday lets tend to be higher, which can actually be higher than residential rents in Istanbul or the same depending on the property and exact locations in question.

Given these truths it is only a matter of how much paying occupancy the holiday home owners can achieve, which then depends on the amount of time they want to spend in the property.

The best strategy for holiday home investors in Turkish property, like those anywhere else in the world is to rent out the property for the entire season and use it during low season. This is a problem for some owners who don't do sufficient research and subsequently find out that the area they have bought in is completely closed off during low season, with not even so much as a shop to buy essentials like milk.

This is in fact one of the reasons why Turkey is currently seeing its popularity with this type of investor soar: because most buyers are currently doing a lot of research, they are finding out that most of Turkey's touristic areas are open all-year round.

Turkish Property Investment Making the News

Turkish property is currently among the most talked about in the world of overseas property, and for all the right reasons.

There are two main stories in the past week: Global Property Guide stating that the average rental yield on Turkish property is 5.48 per cent, which is much higher than the yields on offer in France (3.85%), Spain (3.81%) and Portugal (3.63%) and reports on the massive numbers of British people owning property in Turkey.

According to the Turkish Land Registry's latest figures, 32,000 Britons own Turkish property covering 6 million square meters. This is twice the area of property owned by Germans (3.5 million square meters), which is significant because Germany is Turkey's largest tourism market. The report received coverage in the Telegraph.

These reports follow several other features on the draws of Turkish property to appear in the national press, including one article calling the Turkish resort town Belek the next Algarve. If this had been a few years ago it would have been insignificant, but now, when the press is being extra cautious in its praise, this is all a big testament to the potential of Turkey.

Speaking of potential, nearly all the articles you read about Turkey, especially in the industry press, talk about the investment potential of Turkish property. However, this potential is being missed out on at the moment, because the majority of buyers are lifestyle buyers, with investment being a secondary consideration on their minds.

Sure, the majority of these people are still benefiting from the investment potential, because they are renting out their property when they or their family and friends are not using it. But the keywords there are "when ... are not using it", meaning they are not realising the maximum potential return from investment in Turkish property.

Survey Indicates UK First Time Buyers May Turn Back to Overseas Investment

OMG I thought I had fallen into a time conduit and been sucked into 2005 then... I read an article in Sky News pertaining to a survey in which nearly a quarter of UK first time buyers have said they would consider buying a home overseas for its greater investment potential and increased value for money.

Such articles were commonplace in the mid-noughties when it was thought that many first time buyers were investing in overseas property in order to use the rental income to boost their earnings sufficiently to get a mortgage in the UK.

So... seeing one now I immediately thought: what kind of source are we dealing with here; Friday night in the Tamworth Arms. I was wrong though, the survey comes from a more reputed base than any of those seen in the mid-noughties. In this case the survey was commissioned by Moneycorp and surveyed a pool of 2000 first time buyers.

Obviously it would have been better if the survey had been commissioned by someone less partial. That said: a pool that size has to be given a great deal of validity, especially when the survey's other findings are confirmed by many other sources.

Namely: the survey also found that 70% of first time buyers have given up on owning a home in the UK. This is confirmed by several other prominent sources recently.

Not least the recent report by Nationwide, which found that the average house price is now 5.5 times the average salary. This is far greater than the long-run (30year) average of 4 times. Add to that the fact that first time buyers need at least a 10% deposit in order to get a decent deal on a mortgage and you can see why owning a home in the UK is currently outside the reaches of most first time buyers.

With that knowledge the only surprise is the percentage of them considering a purchase overseas. Don't get me wrong it is a good surprise, because it confirms earlier reports that investors are once again entering the overseas property arena, after almost-nothing but lifestyle buyers since the crunch. Time will tell if considerations become determinations and desires result in increased sales.

New Development One of Finest Investment Opportunities in Florida

Azure Overseas is now marketing the Village at Town Center Development in the resort area of Orlando. The development offers 2 bedroom luxury condominiums just minutes from Disney World from the 70% discounted price of £40k. The resort-development also boasts an impressive array of facilities including: swimming pool, club house, state-of-the-art health and fitness centre, volleyball, basketball and tennis courts.

As an investment the main points of the development are as follows:

• 70% below its peak selling price
• Net Yields 10% currently being achieved
• Tenants already in place (91% occupancy)
• On-site management & letting team in place
• 1, 2 & 3 bedroom units in private gated community
• Minutes away from Walt Disney World and Universal Studios
• Potential to generate over 100% on capital invested, excluding rentals

What is missing from the main points is the fact that the properties can be rented residentially or to tourists; Florida uses a zonal rental system, with owners of property in residential zones unable to rent to tourists and vice-versa. Having said that, this development being just a few minutes from Walt Disney World, Universal Studios and the new Wizarding World of Harry Potter it should do sufficiently well on holiday lets alone; giving the owner(s) some use of it themselves.

For anyone that can't already see that this is a bargain from the low price and location, the properties are being sold at 50% below their build replacement cost. This has become the yard-stick for buying discounted properties in America.

This is undoubtedly one of the finest opportunities in the Florida property market right now, and that is saying something. Right now it is almost impossible to find an expert or analyst who will advise against investing in Florida property, and, as anyone that knows overseas property will know, that is also saying something. It is little wonder though; prices are currently low, yields are therefore high, and Florida has a strong and proven growth cycle.

Turkish Property Sales Increasing, Set to Continue Growing

Conti, one of the largest mortgage brokers for foreign property purchases has revealed that it issued twice the quotes for mortgages on Turkish property in May than in April.

The firm said that this huge growth followed steady growth over the last year, which it put down to the strong Euro highlighting the better value for money Turkey offered as a tourism destination and in property purchases.

Clare Nessling, Conti's operations director, says: "These factors, combined with low interest rates and some bargain property prices, have made Turkey increasingly attractive, as well as more affordable, for UK buyers. Property purchase costs and taxes there tend to be lower than other popular hotspots. Accessibility is important too and the country has a wide choice of airports which are well served by flights from the UK. Bodrum, for example, is only half an hour's drive from the international airport."

While Conti pointed out the steady growth in demand for Turkish mortgages over the last year, looking back to June last year, we can see that Conti then released data revealing a 143% growth in Turkish mortgage quotes in the previous two months, and a 65% increase comparing the opening 5 months of 2009 to the closing 5 months of 2008.

This is a very positive sign for Turkey, especially at a time when overseas property sales in the lower-budget category -- which Turkish property falls into -- are on the increase.

Of course, with the pound now strengthening against the Euro, Turkey will have to compete with Eurozone destinations.

This shouldn't be a problem though, Turkish property sales accelerated rapidly between 2005 and the second half of 2008 when the crunch went global, so it is a safe bet that Turkey will see strong sales again as part of the natural progression of recovery in overseas property demand. In fact if anything, the downturn will prove to have done Turkish property a favour, by increasing its status as a global property destination.

Repossessed US Properties to be Plentiful Until 2013

US foreclosure tracking agency RealtyTrac has told the US real estate press that it will be at least 2013 before the repossession problem is back under control. This is ultimately very bad news for the US housing market, and for homeowners, but the silver-lining for property investors is that there will be plenty more bargain US properties coming onto the market in the coming years.

The statements were made by a Rick Sharga of RealtyTrac in a conference with the National Association of Real Estate Editors, in which he talked about the so-called "shadow inventory". Sharga said that of the 3.5 million homes repossessed in 2009 only about 20% of those were listed for sale, as the banks were overwhelmed by the sheer volume and speed at which the problem escalated.

Needless to say the shadow inventory was huge coming into 2010, and there have been hundreds of thousands of homes repossessed already in 2010. The fact that over 370,000 homes were repossessed this March alone compared to RealtyTrac gives us an idea of the size of the current shadow inventory.

As time progresses the channels to bring these homes to market are getting better. However, the banks and lenders will always give up the best properties for first refusal in their own ranks before listing it to outside investors, and this will therefore always slowdown the process of these homes coming to market.

One thing that is not slowing down is demand to buy these properties as confidence in the international recovery brings increasing numbers of property investors.

Arguably, repossessed property in America is one of the top property investments on the global market right now. Many of the properties are being sold for up to 50% below their replacement build cost, which makes them a no-brainer if we dare call any property investment that after such a catastrophic crash.

In fact, replacement build cost has become the way of measuring the discount being offered by repossessed and other below-market-value properties for sale. As people started buying property again, people would hear that a property was being offered at 20% below market value, and they would soon find out that it was 20% below the peak market value, not the current market value. In the fast-paced world of repossessed sales, replacement build cost is a good measure of current value, with no time to do a proper valuation.

On this measure, a property being sold for 40% below its replacement build cost is most likely at least 20% below its current market value, and could be up to 50% or even 100% below its current market value, depending on the quality of the property, and the neighbourhood etc.

Most repossessed properties are being sold at such low prices that their being a bargain is undeniable. The question then becomes, is it going to regain its former value, and when it comes to America, that is unquestionable in most places. So then the only thing stopping people is their financial situation, or lack of confidence. So, now that both of these things are improving, so the number of potential investors in repossessed US property is also on the rise.

Repossessed Property Investment Hotting Up in America

The market for repossessed properties in America is really hotting up at the moment, and little wonder. According to RealtyTrac -- the leading tracker of the American repossession situation -- 2009 was a record year for repossessions with 2.8million homes being repossessed, but experts are warning that 2010 could be even worse.

These fears were heightened when a new monthly record was set in March, when RealtyTrac says some 378,000 homes were repossessed, higher than in any month since they began tracking repossessions in 2005.

While investors from the US and around the world are capitalising on repossessed and distressed properties in all corners of the states to make strong yields, certain areas stack up better than others and as such as seeing demand intensifying at a faster rate, and even slight increases in price.

One such area is Fort Myers in Florida. As we know Florida has been one of the worst affected regions in terms of repossessions, but within that Fort Myers has taken a real battering, and was one of the fastest areas into the repossession crisis in terms of repossession volumes.

However, the fundamentals for economic growth are strong in Fort Myers with many businesses noting recovery and the labour market seeing increased stability in recent months. The biggest pull to Fort Myers property for those buying up repossessed and distressed properties though is the price and the value for money.

Perhaps more than anywhere else, in Fort Myers there are plentiful opportunities to buy new and nearly new properties that have been repossessed or face repossession and are therefore at rock-bottom prices. These present the opportunity to rent out the properties almost immediately after they have been purchased, and yields are around 8%-10% net.

One such repossessed property investment package in Fort Myers is currently being offered by Azure Overseas, with a typical deal being a 3 bedroom property in a good area for £50k, which will rent out for £552 per month, with £367 being left after expenses such as management and maintenance (net).

Demand for repossessed property in Fort Myers and America as a whole is predicted to remain strong in at least the short-medium term, because investors feel confident buying property in an established economy market for such low prices. Another factor is the strong dollar which increases rental yields for British investors.

EU Construction Output Increase Bodes Well for German Property Investment

EU construction output grew 6.8% in March compared to February. This is the largest growth seen in the EU construction sector since the crisis hit. In fact, all the other rises have been lower than or a little over the 1% mark.

According to the data, from Eurostat, construction output rose on a monthly basis in thirteen of the fourteen states that provided data. The largest increases were recorded in Germany (+26.7%), Hungary (+5.5%) and the Czech Republic (+4.7%). Sweden was the only country to register a monthly contraction of -0.4%.

In the annual data it is a different story. Construction output for the entire EU was down 5.2% in March compared to last year, and the only countries to register an annual growth were the United Kingdom (+9.2%) and Germany (+2.6%). The largest decreases were registered in Romania (-23.1%), Bulgaria (-20.9%), Slovenia (-19.7%) and the Czech Republic (-19.1%).

This is the latest positive data on the EU economy, god knows it needs it after the debts of Greece blew up in everyone's face. According to recent reports, European property markets are starting to improve, and this is likely a major factor in the construction growth.

The growth in Germany is particularly interesting, because it confirms recent reports of major demand for retail and commercial spaces in the country. This will obviously fuel the residential markets in areas where the new construction is taking place. It is also good news for the German economy, which -- more than most places -- is a big factor in the shape of the property market.

In Germany only a little over 40% of the population owns their own home, and some 48% live in rented accommodation at full price. For this reason the property market is heavily restricted, with landlords only able to raise rents if wages are increasing. Thus, German property investments are most profitable when the economy is doing well.

View German property for sale

Italy Leading in Overseas Property Revival Says Rightmove

The overseas division of the UK’s largest property portal Rightmove has revealed a 73% year on year increase in searches for Overseas property in April.

According to the portal the biggest benefactor of the increase was Italy, which saw its market share increase by 20% as it became the fourth most popular country on the site, up from 6th in March.

The portal said that Sicily had seen searches increase by 115%, which Sardinia, Lazio and Campania saw searches of between 20 and 30 percent higher than March. Agents in Calabria have also been reporting significant increases in foreign activity, though, they say sales are still low, enquiries are definitely increasing.

According to Rightmove’s head of overseas Robin Wilson, the increase in activity is representative of increasing confidence among buyers, as those who postponed their purchasing plans last year, deciding that now is a good time to buy.

“There’s no doubt absolute traffic volumes are down on the bubble peaks of 2007/2008, but there’s a ground swell of consumer confidence and resolve amongst serious lifestyle buyers to put into practice the purchase plans they put on hold last year,” he said.

This is the latest in a series of positive reports about overseas property this year, particularly European property in established markets.

These included a 150% year on year sales increase in Marbella, and an 18.7%sales increase in wider Spain. These early signs of hope can only be built upon now that the Eurozone debt problems are leading to Sterling having a run against the Euro.

1 pound Sterling is currently worth 1.17 Euros, having smashed the 1.15 ceiling of the past two months, which followed the breaking of the previous 1.10 ceiling that brought us out of 2009.

Because the Euro has come to near parity with the Pound, the difference this makes can easily be quantified: property in the Eurozone, including Italy and Spain is currently 12% cheaper to British buyers than when the pound was worth 1.05 euros in the second half of last year.

View Italy property for sale

Rugby Giant Falls for Altinkum and the Apollon Holiday Village

Rugby giant Jordan Crane has invested in a property in the Apollon Holiday Village development in Altinkum Turkey through Azure Overseas. Entirely happy with the service he received, Jordan sent in the following as a testimonial to the quality of our services:

"I would like to thank you for all the support and help you offered me during the process of purchasing my apartment at the Apollon Holiday Village in Altinkum Turkey. I did not make the trip over to Turkey to view the complex but Jess and Belinda were very well looked after while they were there, and the staff there went above and beyond to make sure there trip was a good one. Personally I would recommend Frank and Azure Overseas to anyone who is thinking of buying a property abroad."

A regular with both the Leicester Tigers and England Rugby Union squads, Crane purchased a 3 bedroom unit in the development for the incredible price of just £32,000.

And that is the exact reason why Turkey property is set to be one of the biggest sellers for at least the next 3 years, the incredible value for money.

The Apollon Holiday Village is a development of supreme luxury, with the resort and apartments all built to the highest standards by a reputed British developer. According to the other testimonials on the Azure site, those who have seen the resort are surprised at just how big the apartments are, and one couple even comment that the pool is bigger than they thought it would be.

Altinkum is an upcoming tourist town on Turkey’s Aegean coast, and property prices are unlikely to stay at their current levels for long.

Currently prime property is selling better than the lower classes, but this is set to change as confidence grows in the recovery around the world. Thus there is a gathering storm behind property in Altinkum and Turkey, to suggest increasing sales, increasing prices, and increasing rental yields.

Greek Tax Changes to Have Big Effect on the Market

As some of you will know there have been some pretty sweeping changes to the Greek taxation system in relation to property purchases and sale. Usually when a government does things like this it is easy to pick out their motive, but this time it is unclear whether they are trying to revive foreign sales, increase tax payable for commercial transactions, both or something else entirely.

Firstly and perhaps most importantly for the market, the annual levy on properties held by foreign companies and funds was increased from 3% to 15%. This will almost certainly be reduce investment in Greek property by international real estate investment trusts (REITs) and other commercial funds.

On the flip side, the 1% property transaction duty and capital gains tax on property were both zeroed, and transfer tax reduced from 11% to 10%. This should be good news for many foreign buyers.

Not all buyers will benefit however, because VAT on new build homes was increased by up to 2%, which will cancel out some of the benefits to new build buyers.

The changes won’t drastically reduce demand from foreigners buying privately, if correct advice is given, says Peter Mihalos, president of Southeast Real Estate Group.

“A ‘normal’ foreign buyer will actually see a small discount in the transactional tax due,” he told Overseas Property Professional.

“Furthermore European Union citizens are also eligible for various tax breaks, especially if they are residents here.”

The changes could bring about a 20% reduction in Greek property prices as investors give the country a wide birth, says RICS Hellas spokesman George Litsas.

“I believe that this will turn off foreign investors buying any kind of real estate in Greece, local demand for property will slump and eventually, from the second semester of 2010 the property prices will decrease,” he said.

View Greek property for sale

EU Property Investment Up 15% in the First Quarter

13.4 billion euros worth of property investment deals took place in the EU in the first quarter of this year. This represents a 15 per cent increase over the first three months of 2009, according to research from PropertyEU released yesterday.

This shows unequivocally that faith is returning in the international property arena. Sure, this report is on commercial real estate, but growth in the residential sector will almost certainly follow in the areas where these purchases and expansions are taking place.

Malls need staff, malls need shops, new ventures open up and they need staff, not to mention staff to manage the malls. It is a fact that many of these staff will already be in place, but I do not know one mall investor who will not want to have some sort of presence in the higher levels of their new investment’s staff.

Also, the malls and offices wouldn’t be worth investing in if growth and expansion were unlikely in the market. This means expansion of stores and business, which cannot happen without more staff.

Speaking of which, according to the report, the retail sector was by far the best performing, over the office and industrial sectors.

The retail sector, which saw a 5.2 billion euro growth, was boosted, by the 1.3 billion euro purchase of a portfolio of operational shopping centres and shopping centre developments by Dutch investment trust Corio,  from developer-owner Multi Corporation.

Both companies agreed that Corio would acquire four active retail centres in Germany, Spain and Portugal and another retail centre under construction, again, in Germany.

The second most lucrative deal in the first quarter, was the purchase of  Simon Ivanhoe's portfolio of shopping centres in France and Poland, worth about 715 million euro, in February, by Unibail-Rodamco.

According to the website of PropertyEU, the site was established in 2006 to provide insight on financing and investment in the latest important deals in Europe, investors from North America, the UK and elsewhere.

The research follows investment deals exceeding 20 million euro in value, for which the financial details are known.

Italian Property Market on the Turnaround

The Italian property market looks to have turned the same corner that many established markets did in the second half of last year, the corner onto the road leading to recovery.

Un the final quarter of 2009, property transactions declined by just 0.4% year on year, according to the latest housing market review from the Agenzia del Toro (Italian Land Registry). This is compared to a year on year drop of 18.6% in the first quarter. In the second half of 2009, Italian property prices were just 0.2% lower than in the first half, and just 0.7% lower than the second half of 2008.

This is hardly surprising. The trend in 2009 was buyers going for safety and stability. This made property markets where prices had held up well against the downturn much more popular than those that hadn’t.

Italian property prices fell by among the smallest amount in Europe throughout the entire course of the crisis. In fact, in Knight Frank’s index in Q2 of last year, Italy was the 10th best performing market in Europe (16th in the world), with prices down just 3.5% on Q2 of 2008. The same index in Q3 showed prices were still down only 3.5% year on year, by which time the market was clearly already on the turn.

Italy is a strange one though. The other markets that have seen prices holding have tended to fit certain criteria:

In economies that have not endured a severe recession, and, in some of these places, an economic stimulus has been far more than was needed, creating a liquidity surge.

Italy has endured a severe recession, and its stimulus has tended to be very measured. For this reason, when Italian property prices do start to grow now, going forward there will be no need for anyone to fear that a bubble is forming.

In terms of foreign demand, Italy may well suffer in the short term, as buyers look for bargains in the markets where prices have been slashed. Whether it does or not, Italy has now proven that the management of its property market is capable of preventing speculative bubbles, and this makes it a stable long-term growth market. This will do it more good than harm over the long term.

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MIPIM Picks Out a Few Overseas Property Investment Hotspots for 2010

According to an article in Overseas Property Professional, the recent MIPIM property investment seminar highlighted very few investment hotspots.

Apparently residential property in Asia is where we should all be investing. One example given was Vietnam, which has a developing tourism industry, but that is not where to invest, according to a David Blackhall of VinaCapital Real Estate, it is the local residential housing projects which have the biggest growth opportunities.

I have to say, I would be very disappointed to have had to pay good money to go to MIPIM just to pick up that pearl of wisdom in the Trends in Asia Pacific Property Markets seminar, something which is pretty much common knowledge among anyone with even a passing interest in overseas property markets.

Asian population and economic growth is among the fastest in the world, and in most countries the demand for affordable housing among the newly employed is growing far faster than developers can keep up with; so it doesn’t take a rocket scientist to work out that affordable housing is a good investment in any of those countries – Vietnam being one of them with bells on.

The South-East Europe – Riding Out the Storm seminar was apparently very tough on the region it spoke of, pointing out roaring liquidity problems and massive price falls in almost every country in the region. Bulgaria, Romania and Greece were picked out as among the worst performers.

Turkey on the other hand was picked out as the exception to the rule. According to those in the know the worst of the crisis is over in Turkey, and while liquidity problems remain, growth is expected to resume this year. Turkey’s population growth of 1.2 million per year was highlighted as a massive strength for residential investment.

Serbia and Ukraine were also highlighted as worthy of investment in the South East Europe region.

Bulgarian GDP Down 5% in 2009, Property Market Looking Up?

Official government figures have revealed that Bulgarian GDP shrank some 5% in 2009. That is of course bad, but given that many economies in the world shrank by that amount or larger, putting it in the proper context it can easily be viewed as a positive for Bulgaria, which some (most if we’re honest) analysts predicted to contract by much more. The IMF predicted a 6.5% contraction for example.

The statistical institute had previously said that the economy contracted 5.1% last year, so the latest data is a revision upwards. What wasn’t revised upwards was the fact that the contraction accelerated on a quarterly basis throughout the year, with the final quarter being the worst.

According to the data the Bulgarian economy contracted by 3.5% in the first quarter, 4.7% in the second quarter, 5.4% in the third quarter, and 5.9% in the final quarter.

The government is expecting a further 2% contraction for this year, which is what it has based its forecast on.

Meanwhile Bulgaria property is becoming more popular. According to data released by leading portal Primelocation, searches for Bulgarian property increased by over 50% in January.

Bulgaria property is known as being some of the lowest priced in the world. Thus, with the level of research that today’s buyers are known to be doing this presents the chance of getting some exceptional value for money on carefully chosen properties. There have been reports of oversupply, but to a lifestyle buyer after a quality ski resort property for example, that doesn’t necessarily matter all that much if that are able to get a really good deal/

Cyprus Property Sales Increasing in 2010; Let’s Try not to Cry

The latest property sale figures from the Land Registry show a 30% increase in property sales in February this year compared to last year, and a 27% increase in January and February this year compared to the same period last year. Respectively the numbers were 558 and 1274 contracts of sale registered.

While this is most definitely positive news, analysts have been quick to point out that sales are still 60% down on 2008 levels. They have been quick to point out also that this is general data, and there is no indication of what proportion of sales are attributable to foreign buyers -- the Cyprus property market has become incredibly reliant on foreign buyers in recent years. Figures on sales to foreign buyers are expected to come out in the next few days.

The most surprising response however came from Solomon Kourouklides, president of the Cyprus Real Estate Agents’ Association, he has been quoted as saying:

“The latest increase is attributable to the opportunities in the market. Many Cypriot individuals and investors have bought properties from non-Cypriots or Cypriots who cannot pay off their loans. But these opportunities will run out

"If the economic parameters remain the same, we believe that the market will remain at the same level as in 2009, while there is a possibility of a slight deterioration."

Talk about looking a gift-horse in the mouth (yes, I know that saying doesn't exactly fit, but until I think of a better one...).

No one seems to have touched on the fact that this is now 2 straight months of increasing sales in Cyprus. In January sales to foreigners were also found to have increased. This would seem to indicate that the mix of government legislation and advice from Cypriot legal officials has cooled some of the negative effect the title deeds issue caused.

Nor has anyone mentioned the potential positive effect the slew of new golf courses scheduled to be built in Cyprus starting from this year could have. I am not saying go out and buy champagne to celebrate the massive increase in Cyprus property prices in advance, but I am saying, let's not be too negative either. 2010 is likely to be a strong year for overseas property sales, and with the deeds issue semi-resolved and the new courses, Cyprus may well get some of that action.

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US Mortgage Interest Rate Crosses 5% Threshold, Worries Market

It seems that the Federal Reserve (FED) winding down its policy of buying mortgage backed securities (MBS) from US lenders is already having an effect, with US mortgage rates climbing for the first time in three weeks. More importantly the rate climbed past the 5% mark, which is thought to be a key level that could see demand for housing loans suppressed in a still depressed US economy.

Interest rates on the most-common U.S. 30-year fixed-rate mortgages averaged 5.05 percent for the week ended Feb. 25, up from the 4.93 percent recorded in the previous week, according to the survey released by Freddie Mac (FRE.P) (FRE.N), the second-largest U.S. mortgage finance company.

The figure is slightly below the figure recorded in February last year of 5.07 percent, but above the record low of 4.71 percent recorded in early December. Freddie Mac started the survey in 1971.

"Interest rates for 30-year fixed mortgages followed long-term bond yields higher and rose above 5 percent this week amid a mixed set of economic data reports" Freddie Mac vice president and chief economist Frank Nothaft said in a statement.

Analysts have been worried that the FED's hope for foreign sovereign wealth funds to fill the void in MBS sales left by the end of its buying policy would not be realised, and that this would bring a rise in interest rates. Ironically, such a rise in interest rates will make MBS more profitable and could bring increased interest from foreign funds.

In the meantime the end of the FED's MBS buying policy could hit the housing market, which is still very fragile with a double whammy: it will cause increased mortgage interest rates, and it will also reduce liquidity in the banking sector again, making mortgages harder to obtain (again).

That said: the FED couldn't keep buying the banks' MBS forever, the market was always going to have to return to normal at some point. Perhaps they think it is better getting the rocky-ride over with now, when the wider economy is still a little shaky, so that the two can stand together on their own two feet as they walk slowly into a 2011 recovery.

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Germany Rated One of Best for Property Investment in 2010

Germany continues to be rated as one of the top property investment markets for 2010. In fact: the number of people sharing this view has risen to 80% from 66% last year. This is one of the key findings of Ernst & Young Real Estate’s annual trend survey of some 100 companies and investors. That said: another finding was that over 80% of the respondents do not believe the market has bottomed in terms of demand, space, and payment behaviours.

Survey participants included banks, closed-end real estate funds, real estate stock corporations/REITs, institutional investors, investment companies, opportunity/private equity funds, insurance companies and residential real estate companies.

'Although the transaction volume is set to increase for the first time since the beginning of the crisis, major commercial portfolio transactions and distressed sales are currently not anticipated,' said Hartmut Fründ, Managing Partner of Ernst & Young Real Estate GmbH. 'The market is still going through a period of consolidation,' he added.

Other statements from Ernst & Young partners confirmed what we said in yesterday's post; that residential property (buy to let) is attracting more attention from institutional investors than it has for years.

Partner Christian Schulz-Wulkow said that the residential sector is currently very popular: 'Residential property entails less risk and it has become a considerably more attractive proposition for institutional investors,' he said.

Another finding that was particularly interesting, was the fact that only a minority of those surveyed expected sovereign wealth funds and banks to be active buyers in 2010. In 2008 these buyer classes were among the most active in the German market -- especially in Berlin. The majority believe that family offices and institutional investors, most notably insurance companies, special funds and open-ended funds, will continue to be key buyer groups in 2010.

Opportunity and private equity funds, real estate stock corporations and international funds are seen as the biggest seller groups in 2010. Non-property companies and the public sector will make occasional sales only, according to the majority of respondents.

View German property for sale

Spanish Property Sales Bouncing at Bottom as Government Denial Starts to Crumble

According to Spain's National Institute of Statistics, sales of Spanish property were 48% lower last year, than in 2007, at just 372.000 sales excluding social housing. This represented a year on year decline of 27%.

That said, according to their data, month-on-month transaction numbers have been hovering around the 30,000 mark since November 2008, which is less than half the sales recorded month-on-month at the beginning of 2007.

The INE data also showed that sales of new developments outstripped resales throughout much of 2009 but have more recently started to reach similar levels. This is likely because of the high prevalence (well dominance is a more apt word) of lifestyle buyers during the last year, and the increasing number of investment buyers now looking to snap up bargains.

The Spanish property market and economy have their own set of problems, not least because the economy was built solely on the strength of the property boom, as Spain saw more construction starts than Germany, Italy and France put together.

Spain seems to have remained in denial far longer than most; and rather than admitting the problems so that the populous can learn to deal with the tough measures necessary to fix it, the Spanish government has continued to parade around price indexes that show only slight decreases in prices, and other positives, without any negatives.

According to the government Spanish house price decline has yet to reach double digits over a year, and even the index ran by Tinsa, regarded as most accurate put the price decline at just 5.5% in the year ending January 2009. In reality developers and agents have only been selling at a discount of 25% or more. The 1.8% increase in mortgage approvals recorded by the INE in November is another example; 1.8% of very little is not a great deal.

This has now changed, analysts believe it is down to the Greece debt debacle, and in just the last 2 weeks, the government has started to come to grips with the economy's problems. It has announced some serious plans to tackle public spending, like cutting pensions over the medium term and cutting short term deficits by reducing infrastructure and civil service expenses.

The next steps needed are things like educational reforms to give Spain more strings to its economic bow than tourism and construction, as well as taking steps to eliminate the harmful split between permanent and temporary workers, which destroys any incentive for professional development.

Spain is in the fortunate position of being able to finance these reforms relatively easily, unlike Italy where the reforms needed to return to growth will cause substantial problems for the population and therefore the government. Spain has among the lowest levels of public debt in Europe, and Moody's just reaffirmed its triple AAA investment rating.

Why Demand for Overseas Property is Increasing so Rapidly Right Now

Overseas property buying is on the increase once again, and rightly so. Around the world there are literally millions of properties available at heavily discounted prices. The discounts range from 40% off to 60% off. Even more importantly; the trend is that the hotter the market was during the boom, the more discounted properties there are now.

Spain, America and the UK in particular are offering an abundance of exceptional bargains. Within that, sub-sections of the most popular areas are now where to go for the biggest bargains, Florida, London, and Marbella have thousands of distressed sales, repossessed and otherwise discounted properties.

Therefore, it is understandable that the first signs of recovery in the global economy, by being enough to life the panic over the extend the crisis could reach, would be enough to cause significant increases in demand for property in these markets.

At the height of the boom millions of properties around the world were being purchased every week by buyers foreign to the country of purchase. This died very quickly, and for every person that lost money in the crash, there was at least 1 person who was actively looking to buy but just hadn't got so far as to do so.

As many of you will know, once you have started looking at and/or longing for something like an overseas property, it is hard to stop wanting it even though you can't (or in this case shouldn't) get it. So, to say there was pent-up demand is somewhat of an understatement.

Anyone who wants to buy an overseas property will surely be buying it now, while no one (analysts and pundits included) is absolutely sure when prices will start rising again, but almost everyone is pretty sure they won't be falling very much further. Therefore, this explains why demand for bargain properties is really accelerating at the moment.

Predictions Confirmed So Far, So Sales Set for Big Increase in February… Maybe anyway

Today two things I had thought to be true about overseas property, were confirmed to be true.

A: I had been watching and reading, and surmising that rental rates had not fallen as fast as prices have, thus rental yields would mostly have improved around the world.

Today Invesco confirmed that rental yields across Europe were running higher than their long term averages.

B: from various sources and events -- not least the fact that investment oriented destinations began to dominate the top 10’s of various overseas property portals -- I had reckoned that the number of investors actively purchasing overseas real estate had increased in the final quarter of last year.

Today, the Royal Institute of Chartered Surveyors confirmed that indeed the number of people buying overseas property as an investment as oppose to a lifestyle choice had indeed increased in the final quarter of last year.

Now, if my other big predictions come true, that 2010 will be a good year for overseas property, and that sales will increase from February, it will be even better.

In fact, now that you mention it (yes, I know you didn’t but…) one of them already has. According to an article in Overseas Property Professional an agent in Sharm El Sheikh has been selling Sharm property to overseas buyers at a rate of 1 per day since the beginning of the year.

So, watch this space for the next big prediction, in fact… why wait: in 2010, I am forecasting a resurgence in the resort markets of Koh Samui and Phuket.

Polish Property Gets A Daft New Portal

As confirmation that Poland is currently one of the hottest overseas property markets, Daft Media have just launched a new portal for Polish properties.

Poland was one of the few countries in Europe to avoid recession altogether, and property prices in the country have also shown incredible resilience, and then even growth since early 2009. As a result millions of Euros have been invested into commercial property in Poland by funds, and a wave of private investment is expected to follow. Daft's portal however, is aimed at the domestic market.

Anyone who has been around the overseas property industry in the last 2 years has probably heard of daft.ie, the Irish property portal, well now there is daft.pl, the Polish property portal as well.

Daft Media were very adept at spotting the gap in the market that existed for an Irish property portal, in fact at the time they were the portal specialising in Irish property. One can only assume that a similar gap existed in the Polish property market, which has now also been filled with Daftness (sorry, couldn't resist any longer).

If the success of their Irish portal is anything to go by, then many a Pole will be buying his house using the Daft.pl portal. According to Alexa, which ranks websites on their traffic levels, Daft.ie is the 8,644th most visited website in the world.

The one area that Daft Media's Irish portal struggled in was its placements in the search engines. Not for terms relating to its core Irish market, but in its overseas section: I remember one of the agents I worked for doing an analysis of all the portals we listed on and finding that Daft were producing the least leads. A look at the search term overseas property for sale puts them in 42nd for overseas property for sale.

Back then they didn't allow users to upload multiple properties using a datafeed either, this may or may not have changed since then.