The Latest News

News from around the Investment and Property Industry are published in chronological order, most recent first.

UK and US investors eyeing up Australia

Posted by Editor - Jan 29th 2010

Until recently the collective view has been that property in Australia, like that in the UK is overpriced. Why then are associates in Australia reporting a strong growth of interest from US and UK Investors?

This interest seems to be confined to the upper end of the market; prices at the top end had slipped backward during 2008 – 9 some by as much as 50%! A lot of downward pressure came from a serious tightening in bank lending practices with LTV’s of around 60% being offered many local buyers just found it impossible to get into top end property.

In short term I personally don’t see much growth in prices for the next year or so but I do think Australian Real Estate prices have bottomed out and some of the properties on the market for around 500,000 AUD (about £280,000) are in stunning developments and locations and if location is golden key to successful property investments then these are certainly are starting look a bit of a steal.

Or maybe, these investors are expecting a market rush from the tens of thousands of  the growing number of ABH’s (that’s Anywhere But Here) eyeing up Australia for their new home. We’ll be keeping our eye on it that’s for sure

US Foreclosures, more gloomy news from RealtyTrac

Posted 20th Jan 2010 by Editor

Foreclosures still a problem across the US, as the number of new foreclosure filings rose by 14% in December, which is usually a slow month for foreclosures, new filings climbed to affect more than 349,000 homes which is an increase of 15% from 2008’s levels in the same month.

By far the largest number of all foreclosure filings, more than 50%  occurred in California, Florida, Arizona and Illinois, which means these states which led the boom are still suffering badly.

Nevada had the highest foreclosure rate in 2009, RealtyTrac said, with more than 10% of all housing units in the state receiving at least one foreclosure filing, the third straight year the state has led the nation in pace of foreclosure activity.

The second worst state was Arizona with more than 6% of its housing supply receiving a foreclosure filing during last year and Florida came in third, with 5.93% of state wide housing units receiving a filing.

Across the US the figures from RealtyTrac show that 2.2%, or one in every 45 properties, received at least one foreclosure filing during the year. That number increased from 1.84% in 2008, 1.03% in 2007 and 0.58% in 2006.

Most foreclose property on the market looking for overseas buyers continues to focus on New York State, Michigan and Florida. Cash remains king and bargains abound with some properties showing gross rental returns of 40%.

To make matters worse or better depending on you viewpoint the latest forecast from the Mortgage Bankers Association anticipates that mortgage issuance will fall 40% in 2010 and the decline will be led by a plummeting rate of home refinancing, which I guess means there will be plenty of stock around for the investor to feed on for some time yet.

Latest on obtaining finance for a Berlin Property

Posted by: Heather Chesham 3/01/10

The Banks attitudes to lending seems to me to change on a week by week basis, from our recent experience this appears to be the current situation

Vacant Property

As a foreigner it is currently very difficult to arrange finance. However the German Banks will lend to anyone in the German tax systems so you need to be living and working in Germany.

Tenanted Property

Needs to have a purchase price 60,000 Euro plus and then anything from 35 – 50 per cent will be advanced depending on district, purchase price ,rental yield certain areas are not financiable like Wedding and Neukolln.

Apartment Blocks

In Saxony Apartment Blocks needs to be virtually fully tenanted and in good order then we are looking 50 %to 70%, each application is assessed on an individual basis. The rental income is very influential in the loan assessment

In Berlin the situation is similar to the above but as rental yields will be lower in Berlin I wouldnt expect more than 60%

In both situations any block mainly empty or for renovation no finance will be offered until it is in good order and tenanted.

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