Posts Tagged ‘Recession’
I work with hundreds of real estate agents and property developers and at this time one thing is for sure things could be better, however I will present a twist in the tale that changes this for buyers and agents alike. Despite lower overseas property prices consumer and bank confidence is low, this has resulted in a reduction in numbers of people buying real estate overseas. This combination is slowing our industry down but it’s far from a grinding halt and in fact for some, things could not be better.
The bad news is that I am seeing evidence especially in markets that were fat with buyers such as Spain suffering the most with real estate agencies reducing staff whilst other are closing down all together. So what does this say for the future of international real estate? Those buyers who are in the fortunate position not to require high loan to value finance are now reaping the rewards they have the power. Agents who can sell to this audience will no doubt survive these times but this is not all that is required.
Lifestyle buyers and Investors Can Win Win Win
I tend to split overseas property buyers into two types of buyer the first is a lifestyle buyer i.e. buyers seeking retirement, relocation, a second home or holiday home. The second type of buyer is the hard nosed investors who almost don’t care about the location only the figures on the bottom line. What ever the types of buyer both are now in for a treat when buying abroad. Like natures cruel method of selection the fittest survive and this can also be attributed to agents, developers and their products. So how are the agents becoming the fittest?
Real Estate Agents are now presenting the best available
Evidence that recession proofing measures are being undertaken by the overseas property industry includes reducing marketing budgets and agents becoming more selective with the products that they push. I know of numerous agents who have got rid of the stuff they will find harder to sell and to hold on to properties that are more desirable. One of my agents is a good example he previously marketed properties in 6 countries he has now reduced this to one region and only the properties that give the buyer a high loan to value finance option. He explains I have got to go where the guaranteed money is going to be. Other agents are not so concerned with branding and are simply promoting for a tangible return for their marketing. Lifestyle buyers cannot believe their luck I recently spoke to a British couple who for them the slowdown had come at the right time. They like others had a life time ambition to buy a property in Florida. With the help of a local realtor they found a home being sold on ’short sale’ i.e. sold by the owner before the bank took it from them. For the owners it left their credit status intact for the British couple it gave them a huge property beyond their imaginations.
Property Developers are now bending over backwards
Property developers know the environment that are operating in and are becoming more and more inventive with finance products with very low initial deposits lengthy payment plans, guaranteed buy back schemes, rental guarantees and free furniture packs to name but a few. The most innovative developers can be seen in Dubai with some outstanding finance packages for off plan property. The rise of the fractional ownership for the more expensive real estate is almost common place. Good examples of this can be seen in Portugal with two of the most prestigious developers now offering luxury homes on this basis. Developers need agents to help sell their homes and many have increased their commission rates and incentives for them to do so One of Dubai’s largest developers Damac properties has pushed up its commission rates substantially to encourage agents to increase their activities
Overseas buyers and investors are still there
My own experiences running an overseas property website prove to me that buyers are still there and that they are picking and choosing the best products for them. These tend to be for investors developments that offer low deposits and guaranteed returns. For the lifestyle buyer it is desirable property that has been reduced in price importantly these types of buyers like to see evidence of the price reduction.
Hot property regions reflect the state of the market
The top 5 countries that appear to be the hottest for UK buyers at this time are
1.Egypt
2.Dubai
3.Turkey
4.Florida
5.Portugal
All the above regions are providing investors with low entry prices and good prospects for capital growth over a 5 year term.
Tipped for the top
My tip for the top is Ajman I see this part of UAE as Dubai a few years ago properties prices are low starting from about
As the recession has affected common man, many people want to earn money by renting out their property. This way his or her house is taken care of by somebody instead of remaining empty and a reasonable amount of money can also be earned.
It is not easy to find a tenant for your property who is capable enough to live in your house, without creating any problem for you and your house. Along with this and many other factors, it is good to use a letting agent for his/her efficient services when you plan to rent your property.
Every letting agent has a different mindset and concept of let only service. Therefore, it is very important to read all about his services before hiring him. Moreover, making a rate comparison between different letting agents is a wise step towards choosing an appropriate letting agent.
People, who do not hire the services of letting agents, put themselves into stress of making a decision about their property. You should let go of your stress and hire an agent for all the services. As to why do people prefer to get services of letting agents is a very important question and its answer is very informative. People hire their services because they are experienced, have conducted a complete market research, have done vast analysis, and are thus efficient to advise an accurate rent for the property.
When an agent advises you on a certain rental value, you can quit using his services if you are not satisfied with him or his opinions. However, you’ll have to live with it once you have hired him.
A letting agent not only helps you in determining the right rental value of your home but also helps you to resolve different legal issues that can affect you in one way or the other. He can define the actual obligation on part of the tenant as well as on part of the landlord. He is capable of leading you to a better decision, regarding implementation, insurance and mortgages. He elaborates different types of tenancy and helps you decide if you should rent out your property furnished or unfurnished.
A good letting agent always finds a good tenant for your property. He tries to increase the rent for your benefit. He takes the whole pain of advertising your property for an amount that has been decided between you and the agent. A letting agent accompanies prospect tenant to your property. He always proves to be a good marketer by focussing on good points of the house in front of the tenant.
It is a hassle for a landlord to make arrangements of insurance products for safety measures. A good letting agent also helps the landlords in getting those things done or at least help them in finding the providers. He also helps in performing some administration related functions, like transferring the council tax liability to the new tenants or arranging for metre reading. All these things and many more can become a big trouble for a landlord if he/she doesn’t seek the services of a letting agent. Therefore, it is always better to get a lettings agent’s services to make a good decision for the property.
By: James L Harrison
