New Canadian mortgage rules may affect market

Foreign mortgage insurance companies have only been allowed to operate in Canada since May 2006, and with these new regulations came a more liberal view of borrowing practices. Prior to this date it was impossible to get a mortgage without making a minimum 25% deposit, but now it became possible to get mortgages without deposits, and also to repay these mortgages over a 40 year term.

This had the effect of heating up the property market, so in the summer of 2008 the government took steps to cool it by reducing the maximum mortgage term to 35 years alongside a requirement of a 5% deposit. These actions had the effect of protecting Canada from the worst of the US sub-prime mortgage market as the government also purchased the billions of dollars’ worth of insured mortgages in order to give the banks breathing room.

The housing boom in Canada was able to continue due to low interest rates, prompting the government to introduce minimum deposits of 10% for homeowners while investors must make a deposit of 20% or more. New laws introduced last week will take effect in March and will lower the mortgage terms to 30 years which some feel may dampen down the housing market.

While this may be true there are certain areas that may always buck the trend, especially in ever popular Vancouver. The average price of a home here it over $1 million, and a dilapidated property recently went on the market for just over $1 million, but created such interest that the eventual selling price was over one and a half million dollars. Part of the reason for high prices here is the popularity of the city with investors from the Far East who have money to spare from their own booming economy.

Malaysian Property Market to Grow in 2011

Property experts report that the Malaysian property market will strengthen and grow in 2011 and according to Malaysian’s Valuation and Property Services, property transactions are predicted to rise above RM 100 billion (US $32.8 billion) when compared to RM 96.77 billion (US $31.7 billion) last year.

Malaysia is experiencing a rebound economically after facing a couple tough years due to the global financial crisis. This economic recovery has given the overall property market a boost, especially the residential market, which is giving the market some forward momentum.

Residential and commercial properties have risen in the last year. Between July and November 2010, properties purchased in the residential sector increased 15.5 percent to RM22.6 billion (US$7.4 billion) when compared to the same time period in 2009. The percentage of commercial properties purchased increased 22.4 percent in the same time period to RM9.78 billion (US$3.2 billion).

Experts are optimistic that a housing bubble will not occur in the near future. Incentives are out there to help propel movement such as offering first-time home buyers a stamp duty exemption of 50 percent for homes under RM350,000 and 100 percent loans to purchase homes below RM220,000.

Positive growth has been recorded in various areas throughout Malaysia. The highest growth recorded was in Pulau, Penang, which increased 9.7 percent. Kuala Lumur, Selangor, and Johor have also showed moderate growth at 8.2 percent 7.2 percent, and 3.6 percent. These areas have been experiencing steady, continual growth throughout the past three years, with figures coming in between 20 and 50 percent.

View Malaysia property

Paris Property Prices Outstripped Rest of France in 2010

Paris property prices enjoyed double-digit increases last year as opposed to the rest of France where prices remained more or less static. In the Paris metropolitan area prices rose by an average of 12% which compares very favourably with a rise of just 0.6% throughout the rest of France, and there is little doubt that continuing low interest rates helped to fuel this rise with rates at their lowest levels since World War II.

The housing boom in France lasted 10 years from 1997 to 2007 with the price increases peaking in 2004. When the economic downturn began to bite prices decreased by nearly 12% in 2008, but apartment prices in Paris had risen 115% during the boom meaning some investors still enjoyed excellent capital growth returns. The rent index which rose by just 29% during this period. Although initial rents can be set freely they can only be revised once a year and there are strict limits as to how much they can be increased by due to the INSEE rental index.

This means that the rental market within France is constrained as there have been certain periods where the allowed rent increase has been below the rate of inflation. In addition there is quite a large social housing sector which holds about 17% of the housing stock, while 21% is held by the private rental market. However the number of people who choose to rent a home rather than buy is much higher in France than in the UK, and rental property in Paris will always be in demand due to the high numbers of people who choose to move there for work.

View France property for sale

Brazil Property Investors Happy on Rentals Waiting for Growth

Brazil, known for being popular among tourists, has property investors highly interested in capitalizing on its low home prices and positive economic outlook for the next several years.

Property prices are falling and reports state that the prices may have already peaked in the largest city. In October of last year, home prices dropped 3.53 percent compared to September. Additionally, there was a 25.6 percent decrease in the number of homes sold.

Falling home prices are not keeping local and overseas investors away though. They are confident that the real estate market will turn and in the upcoming years their investments will be worth it.

In the meantime they will enjoy the residual income that fattens their wallets each month as the rental property remains stable and many are opting to rent these days due to the unstable economy around the world.

Brazil’s economy is strong and it is expected to continue to grow in 2011 and according to research by the Association of Foreign Investors in Real Estate Market (AFIRE), Brazil’s investment property market is one of the hottest places to invest right now.

Brazil has ranked fourth in a list of countries that are predicted to have a great chance of recover, coming in right behind the UK, China, and the USA.

Joao Crestana, president of Sao Paulo SECOVI, states that Brazil’s market is returning to normal following a period of time when supply just wasn’t in competition with demand. He looks for 2011 to be more equal and stable.

View Brazil property for sale

Has the Bulgarian Property Market Bottomed?

Experts are claiming that the Bulgarian property market may have bottomed, making now a good time to reconsider property investment in the country. The market has had a tough time, arguably one of the toughest, not least because its downturn started well before the rest of us. This has led to prices falling up to 50% in the coastal resorts, and 20% in the cities according to those behind the claims. Not that I disagree.

Has the market bottomed? I don’t know and the truth is no one will ever really know when a market hits its absolute rock bottom, in fact by the time we realise that it has we will be the latecomers who have long missed the worm. The best way is to make your own judgements based on growth potential, value for money and macro-economic fundamentals.

In Bulgaria we certainly have low prices, in fact according to the Global Property Guide property  prices in Sofia are currently around 1,759 EUR per sqm, compared to 2,354 EUR per sqm in Belgrade, Serbia, 2,406 EUR per sqm in Vilnius Lituania, and 2,748  in Ljubljana, Slovenia.

This would seem to suggest that Sofia property, and that of other parts of Bulgaria is running undervalue. However, Bulgaria’s downturn bit first because of oversupply and the deep recession and drop in foreign demand caused by the global financial crisis certainly never helped that. So, it may well be the time to buy in some places, but I would still be inclined to do some length research into supply and demand in any areas I looked at.

View Bulgaria property for sale

Brazil Property Enjoying Sustainable Growth

While some countries have suffered heavily as real estate bubble’s were abruptly popped, other’s have remained stable and stayed on track for a steady trajectory of long term growth.

Brazil property is a prime example of this. Throughout 2009 when we all had realised the hopes that most emerging markets would avoid property market crashes were in vain, Brazil was frequently mentioned as a hotbed of potential growth, with big names like Sam Snell acting as patron saints.

The latest big name to put his weight behind Brazil as a property investment hotspot is Donald Trump, who has just entered into a joint property development venture in the country, and told the Los Angeles Times that he felt investing in the country to be a safe bet.

Another, Warren Buffet stated to Fox News that Brazil could just become “one of the world’s greatest investment opportunities in modern times.”

The former President Luiz Inácio Lula da Silva was highly committed to fuelling growth in the property and housing market. His increasing the maximum mortgage repayment term from 12 to 30 years, and the Minha Casa Minha Vida (My House My Life) scheme, have helped the youngest and those on a low income to buy a house.

It is predicted that the Brazilian economy will have grown 7.5% in 2010, making it one of the fastest growing economies in the world. 100 economists recently predicted that growth will slow next year, to a still-very-strong 4.5%. With da-Silva's protégé having taken the helm experts predict this growth to continue being channelled into housing market growth.