In another sign that the London commercial-property market may have turned the corner, Germany’s Union Investment Real Estate AG agreed to purchase a prime office building in the City financial district for £141.5 million ($230.5 million).
July 7 (Bloomberg) — Vornado Realty Trust, the third- biggest U.S. real estate investment trust by market value, is trying to raise $1 billion to invest in real estate assets, according to a person with knowledge of the fundraising.
Property investors including REITs are raising money from stock investors and through private funds to take advantage of falling real estate prices as debt financing becomes scarce.
As the heart of the nation’s financial sector, New York City has been hit in a number of ways, from a declining tax base, to rising unemployment to a shift in its services to lower cost markets in the south and over seas.
Today, the New York City property market is shifting based upon these changes as the domestic investment banking sector can no longer rely upon large year end bonuses to fuel increasingly expensive Manhattan condos.
At the same time, there has been an infusion of international demand for properties in the market, which has helped to stabilize the market in relative terms. While the long term values of property in the certain remain uncertain, due to their ties to the larger fates of the city and the financial sector, it is an opportune time to see if there are long-term opportunities for investing in the Big Apple. Read the rest of this entry »
Imagine this scenario: a middle aged couple loses their home to a foreclosure, and is forced to pack up their possessions as the bank has taken ownership. For countless families, this is an absolute tragedy that leaves them to try to pick up the pieces and rebuild their financial futures.
Another segment of the population, however, packs up their care and moves back to their primary house. In fact, a large number of foreclosures in today’s market occur on investment property, which does not serve as a primary residence for the owner and was financed by easy credit.
The core problem with today’s foreclosure market is that families are losing their homes and their options, which leaves them to have to declare bankruptcy to protect them from their creditors. These families are the Read the rest of this entry »
Once you’ve taken the dive into the real estate investment market, you’ll be faced with a number of questions regarding management of the property. Since the “quick flip” strategy has soured given the difficulties in property values and financing in recent years, you’ll most likely find yourself managing property, including tenant relations, to earn a solid profit on your investment.
A key to success in property holdings is to outsource everything that you can do profitably. One of the areas that can provide the biggest benefit to you as an investor is to select a good property management firm. when seeking out a firm, look for a company that has a track record of providing direct management services, with experience in the specific market segment that you are familiar with, whether it is commercial or residential buildings. Read the rest of this entry »
Today, the financing market can be quite tight, especially if you’re shopping for a loan for investment property.
While banks today may take a longer look at your credit history before issuing a loan, and you will certainly be required to put more money down than you would before. Banks are looking to get a quicker return with a lower risk profile than ever before, which makes the way you structure financing on your investment property even more important than ever before.
In order to properly secure the best possible loan package, try to move beyond anonymous, data-driven loan offers that are common with global banks. Instead, look to regional and local banks, which may be willing to work with you on a more personal basis, and might have direct knowledge of the area which can only further enhance your prospects. Read the rest of this entry »
The key to any investment is to get a steady return over time, and renting out property can be an effective strategy. While there is work required to ensure that you are able to provide for a rental community, you can earn a more stable return on your investment through development than you could through merely waiting for the underlying land or assets to accrue in value.
Before you consider property management, make sure to consider whether you are fully able to be vested in the venture. Whether you are buying an existing complex, redeveloping an older property or building up land into rental properties, there is quite a bit of time required to see the project to completion.
In particular, you’re going to have to oversee the physical (construction, upkeep, etc.) as well as the human (tenant relations) aspects of the project to keep it afloat and active over the long run. Read the rest of this entry »
With its ideal location in the heart of the Mediterranean, the Spanish property market has been a prime choice for European investors over the past decade. For UK-based investors, investing in real estate and homes in Spain has been a solid investment, as demand has been steady over recent years.
Today, the market seems vulnerable in the face of a larger, global real estate crisis which has lowered demand and made financing terms more difficult. Smart buyers can still find opportunities in today’s Spanish market, but it’s important to fully understand the context of those decisions. Read the rest of this entry »
AS real estate values fall throughout the United States, investors are looking for new opportunities to invest in property abroad. The benefits of international investing include a diversification of your portfolio, as well as a larger potential upside in developing markets. Still, there are several factors to consider before buying property abroad as the risks are generally higher including increased legal and transaction fees, higher potential property loss from political instability as well as more strict local regulations for foreign investors.
The primary reason to consider international property is for portfolio diversification - rather than relying entirely upon the US market, diversifying your portfolio can ensure you can hedge against downturns in the domestic market. For example, there are many countries in the EU which have seen growth in their property markets over the past year, while the US market has contracted by nearly 1/3. Read the rest of this entry »
Today, Florida is increasingly becoming a focus of national attention both in the real estate and political words. As a battleground state and with an evolving real estate market, Florida is undergoing important shifts that will shape the future of the country. While many investors are shying away from the market due to the uncertainty, there are also an emerging class of investors who are finding opportunity in the shifting market.
Take the example of Miami condo developer Jorge Perez. As head of the Related Group, South Florida’s largest real estate developer, has been aggressively buying certain properties in today’s market (see Wall Street Journal).
The key to Perez’s investments are his insights into the intrinsic values of the properties based on the international market demand - the key buyers for Miami property assets are generally European and South American buyers. Estimates suggest that tens of thousands of condos remain unsold or incomplete in the market which has depressed prices – however, there also remains a potential as prices get closer to equilibrium and financing options start to re-emerge. Read the rest of this entry »