Monday, April 20, 2009

Real Estate In Australia Now

Hi Guys.
What is it with the real estate business now in Australia?
I have had some very interesting conversations with some very shrewd property investors in the UK and they have a good handle on the property market down under.
The signs are that great value is to be had in some niche areas.
Do you have any interest in getting into real eatate now in Australia?
Is it a good investment?
I need to do more research into this market before I can recommend where to invest. As ever do your due diligence.

My Business is Money

The one asset we need to enhance our wealth is real estate.
It has out - performed all other asset types and will continue to do so.
The serious investor will have property as a central plank in his portfolio
What do you think?

Friday, April 10, 2009

The Secret To My Internet Business?

I have often been tempted to design a website that would be a one stop shop for property investment but realised that I would be wasting my time. I am not interested in providing services and trying to hawk properties to inexperienced investors.Also, the time spent on such a project would be better utilised expanding my own portfolio.
In my opinion it is mostly inexperienced investors who use such sites as experienced investors will do their own due diligence and make their own decisions.
Many property clubs are pushy and are all about the hard sell. Do not be sucked into this - do your own due diligence - visit as many blogs and sites as possible and accumulate as much information as possible.
So what is the secret to my internet business?
I do not have an internet business. I am merely interested in sharing information in the hope that people may find it useful.
That's my secret!

Monday, March 30, 2009

Time To Add To My Portfolio!

I have a little portfolio of properties in the UK and am in the process of adding to it at the moment. Why am I doing this now? If you have been following my blogs you will know that my analysis of property markets is based on simple economics. Buy at the bottom of the market. I believe that certain areas of the UK market are at the bottom and provide great value which can even be enhanced with some structured negotiation.

There is an undersupply of new build properties at the moment for many reasons. Principally the key is the situation developers have benn faced with.
Because of the uncertainty developers faced last year with falling house prices and less demand, they had put a stop on their supply. Many developers have been waiting to sell their current stock before even thinking about moving on to new projects.In fact quite a few developers have folded and their existing stock will be sold at discount to canny investors. Likewise land banks bought with hefty bank loans will begin to be offloaded in a spate of foreclosures.

There will be a lag time before new developments happen and therefore another oportunity for the experienced investor. However, at present there is very little opportunity in new builds and the clever investor will look to recently built stock that has to be sold below market value and therefore with built in equity for the investor!

Simply put, stock levels are drying up! The pressure is on to get the best deals.
Don't get left behind!

Monday, March 23, 2009

Good News - End to Recession on Horizon?

Another indicator that now is the time to get back into the property market came recently from the head of the Fedaral Reserve Ben Bernanke.
Mr. Bernake is hopeful for US recovery. The head of the US central bank has said he expects America's recession to end this year. "This decline will begin to moderate and we'll begin to see a levelling off," the Federal Reserve chairman told the CBS 60Minutes TV programme. But he said the world had come very close to financial meltdown last year, before governments stepped in. Mr Bernanke warned that the biggest risk to recovery would be a lack of political will to solve problems. The BBC's Sarah Morris says it is unusual for the Federal Reserve chairman to talk to the media in this way - but Mr Bernanke said he decided to go ahead with the CBS interview because this was an extraordinary time.
His comments came after the UK government warned that the upcoming G20 meeting was critical if the world wished to avoid the economic turbulence seen in the 1930s. Mr Bernanke told the US Congress in January he believed that the recession that took hold at the end of 2007 would end this year. He stuck to that view in the interview while suggesting that recent developments may have set confidence back. "We'll see recovery beginning next year," he said but added recovery could be put in jeopardy if "we don't have the political will". He said a government fund of $500bn was stabilising the mortgage market and business lending was picking up.
Now is the time!!!!

Tip of The Day

When the masses are selling - BUY! and when the masses are buying - SELL!

Sunday, March 22, 2009

Value In USA Foreclosures

My Last post focused on buying below market value(BMV). One way to ensure you are doing this is to actively seek out foreclosures. The market is at the bottom in many areas of the USA at the moment but with experts predicting a turn in the market at back end of 2009, you need to strike while the iron is hot.
In fashionable areas such as the Hamptons in New York, it is now possible to pick up a beach house for less than $300,000. This same property was almost double the price three years ago!
These types of deals will not last for long. The market is definitely picking up and house starts in the USA increased in February by 22% from January. This brought an end to 18 straight months of decline.
If figures rise again for March, my guess is that investors with access to funds will become quite active and you need to be with these if you want to get the best deals. Do not wait for the masses to enter the market as by then it will be too late!

Tuesday, March 17, 2009

Below Market Value

All experienced Real Estate Investors focus on true Below Market Value (BMV) properties as a way of ensuring equity from day one. Many inexperienced investors think they may be getting properties at below market value, but when these deals are analyzed they may not be as juicy as they initially appear.
The secret to acquiring BMV properties is to do your due diligence - Resarch Research and Research!!!
Much real estate in the USA is currently for sale at Below a Market Value - but- the question you need to ask - is it below what the current market value of a property of equal standing? It does not matter what value an agent or for that matter what a valuer (even a reputable one!) puts on the property. The value of that property can only be measured against a property on the same street , in the same condition which has recently sold.
This information may not always be available and you will have to do some serious investigative work to acquire it!! However, when you have this information, you have control of the situation. There are many ways to get this information, among them Online Valuations and even word of mouth. Some of the best information comes from developing good communications with local agents and other experienced investors. Experienced investors will often be willing to share their ideas and secrets with you if you are prepared to invest some time and energy - Sweat Equity!
Why reinvent the wheel? Go and seek out a mentor!
Happy St. Patrick's Day!!!!!

Sunday, March 15, 2009

Buying in Today's Market

Getting back to my previous post on Lag Time, I now need to tell you waht properties you should be aiming to buy in the next 6-9 months.
There is still an oversupply of new properties and off plan properties available in many property markets. My advice is to avoid any schemes where you are being offered these at discounted prices. Do you really believe that they are giving you a realistic discount. Instead, look for distressed sellers in the same area and go for these. You will find that these properties will be available at true Below Market Value Prices.
There is a huge difference between what developers and agents claim to be discount prices and what you can get at Below Market Value. Certainly in markets such as Spain and the UK you can pick up some great properties at prices which are genuinely up to 30%-40% below True market Value.

Saturday, March 14, 2009

Tip of The Day

Property is a Medium to Long Term Investment Not A Get Rich Quick Scheme
This is a very interesting and informative piece:
Property investment is not something we all know how to do. However, when done right, it can guarantee important profits and a capital growth that is maintained for a long period of time. The Internet is the perfect resource to find companies that present investment property offers on a regular basis. They put their emphasis on overseas properties, with locations like Barbados, Dominican Republic and Thailand sitting at the top of the list.Why should you decide to seek out property investment in Barbados? The answer is obvious. We all know that this is a tourist hotspot, a destination that millions of people seek out ever year. Investment property becomes a pleasure here, as there is an increased demand for accommodations. The tourist industry develops at a fast pace and the opportunities are simply too great to pass them on. For anyone who is looking to make a profit on the real estate market, Barbados like many other popular tourist destinations is a great idea.Like Barbados, the Dominican Republic or Thailand offer some pretty amazing property investment opportunities. The real estate market is stable and the need for accommodation increases with every day. Investment property becomes an option for more and more people, as they realize the returns that can be offered. They prefer to use the Internet in order to sign up and become members of property investment clubs, thus being informed about discounted properties situated in the above mentioned locations.We have mentioned that some of the best investment property offers are to be found overseas. However, despite the recent economic changes, the UK real estate market can provide some interesting opportunities for property investment. For someone who is looking for discounted properties, the UK real estate market is a great place. There are many developers out there providing discounts for their properties; other offers are represented by mortgages or distressed sales. Whether you prefer overseas property investment or you are more attracted to UK real estate, there is one thing that you have to understand. In order to get the best discounts, you need to be in contact with a professional company. The best way to do that is to join a property investment club and ask them to send listings of various properties through email. They have the necessary relations, including with developers, to provide that kind of information without wasting too much effort or time. If you are looking for good investments, then this is the place to start.Take advantage today of the opportunities presented to you and become a member of property investment club. Check out their offers for investment property and start building a portfolio. You can find properties that were recently built and are now offered at amazing discounts. There are also distressed homes, properties that have been repossessed and those that are found overseas. The offers are diverse and the expected returns guaranteed.

About the author: Investment property is something we deal with every day. Make sure you pay us a visit and find out more about property investment. Once you are a member, prepare yourself to discover some really great deals!Article Source:

What is Lag Time?

When demand for property diminishes, the price of property will begin to fall and obviously there will be an oversupply if demand drops dramatically. The upside however as has happened in most markets will come. It is a matter of judging when the demand will begin again. The period prior to the demand increasing is known as the Lag Time . If we examine the UK market at present we know that the demand for properties has dropped dramatically over the past two years. However, an anlysis of some areas in the UK market in the past couple of weeks suggests that there is a little movement in sales. This is probably as a result of some UK banks freeing up finance to the property market. However, I believe this is a signal that we are at the crucial stage in Lag Time. Investors who are ready to pounce will probably need to do so in the next 6-9 months as this should signal the end of Lag Time. After this period, property values will begin to creep up again. In short now is the time to buy at the bottom of the market.

Friday, March 13, 2009

Tip of the Day

The day you buy a property is the day you make your profit!!

Supply and Demand Contd..

The reason so many people have not succeeded in property investment is that they have not taken the time to understand the basics of the market. It does not really matter whether you are buying shares, stocks, commodities or property, if you do not understand how the market works, you will not succeed. If there are too many properties on the market in a particular area then invariably the price will drop. This is fine if you have the ability to keep the property and wait until the demand increases again.
Unfortunately, too many people in the past few years have bought at inflated prices and now find they cannot sustain the repayments and worse still because the supply of houses is great will not be able to sell without losing quite a lot of money.
The experienced investor will see this as an opportunity and will be readying himself/herself to get into the market at the right time. The secret is knowing when is the correct time to get in and buy at a discounted price. The critical time is called the Lag Time. In my next post I will deal with this concept and help you try and understand this very important phase in the cycle.

Now is The Time To Buy Property

The property market has been as bearish as the stock markets for quite some time but let me tell you why I believe that thgis is about to change.

My experience as an investor in the European market has taught me some valuavble lessons. While many people were rushing to throw cash at properties in Europe at the height of the boom circa 2005/2006 the canny and exparienced investor was doing his/her homework and looking at ways to either offload at a good profit or establish a cashflow that would get him/her through the downcycle.

Far too many people took a gamble on property appreciating and interest rates ramaining stable and did not do their due diligence. Properties in the most outlandish areas were bought on a wing and a prayer. These inexperienced investors are the ones who have taken the greatest hits and will probably never again invest in property.

My view however, is that now is the time for all inexperienced investors to begin their education in investment. I reckon if you give yourself six months to get to understand the market and have your research done then you will be ready to pounce at what will be the most opportune. time.

My reasoning behind this is based on pure simple economics of supply and demand. The oversupply of properties has been one of the main contributing factors in