Monday, November 21, 2011

In half of the world's real estate prices in mid-2010 began to grow. The leaders - Asian markets

The global real estate market is changing trend. The second half of 2008 and the first half of 2009 different outbursts of indiscriminate cheaper housing virtually anywhere in the world. Withstood the storm could be counted on one hand: China, Taiwan, Switzerland, Luxembourg, Israel. Then prices have stopped falling and began a slow reversal of the trend. And in the middle of 2010 already half of big states recorded growth in prices. Bubbles Chinese and Israeli serious price increase is concentrated in one region - Asia. According to the company Knight Frank, leaders in the appreciation of real estate are now Singapore and China - 36-37% per year. Around a quarter had risen in value accommodation in Hong Kong, Taiwan - 12%. Asian real estate becomes more expensive is not accidental: in Asian countries experiencing economic growth despite the global crisis, but also kept low interest rates on loans. These factors, together with the inflow of foreign capital and caused heating of property markets. International Monetary Fund warned last summer about the likelihood of Asian countries inflate the housing bubble. And the IMF pointed to the Asian bubble as one reason for possible instability in the global economy. However, the Government of Singapore, China, Hong Kong and Taiwan before the guidance of the IMF adopted a series of measures to cool the market. In all these four countries, banks have increased the initial fee when buying a home with a mortgage loan. In Singapore and Hong Kong authorities to increase the offer on the land market, enhancing construction. China has introduced several measures to curb speculative demand for housing. Banks ordered to raise mortgage rates and the size of the initial payment of up to 50% of people buying second or third apartment. More stringent conditions for borrowers, who can now only be issued for the purchase of apartments in the city where the person is registered and where to pay taxes over a year. From two to five years of tenure increased the apartment when a customer is not charged tax for resale. However, according to one estimate, to cool the market in China, Hong Kong, Taiwan and Singapore have failed. Israel continues to amaze. In the real estate crisis here has risen by a record 11%, and now home prices are growing at 12% per year. This growth, there are two main reasons: lower interest rates on mortgages, established by the state, and limit the supply of artificial land for development. Pumping up demand, Israel is a dangerous American way: in real estate speculation on borrowed funds include more people. Riga seaside as a window to Europe According to the portal www.globalpropertyguide, by mid-2010 to 6-7% of housing has risen in price in Latvia and the United Arab Emirates, in Dubai. What unites them is that in the acute phase of crisis accommodation is lost rapidly in price. Then, for the year fell to the Arab real estate 48%, and Baltic - 57%. And now there was a trend reversal. House prices in Latvia have done in the past decade, incredible acrobatics. After joining the European Union came into the country western capital, and banks have launched a lending at very low rates - up to 5% per annum. Boom in house prices jerked upward - the growth rate reached 10% in a month. But the bubble at some point burst, and the mass of the Latvians remained with the credits, which must be maintained. Prices have fallen by 70%, an apartment in Riga cost 500-600 euros per square meter. Latvian real estate has potential for growth at the expense of Russian buyers. The fact is that from 1 July in Latvia the amendments to the Immigration Act. Now, when buying a home costing 70.5 thousand euros (for Riga, Jurmala and several other cities of national importance that amount twice as much), a foreigner can obtain a residence permit for five years. Russians have already responded to Latvia as a window to Europe and to actively buy apartments and houses on the Riga coast. But experts insist that the residence permit in Latvia is not so simple. Tenure does not guarantee a residence permit, but only provides an opportunity to receive it. Moreover, even after receiving a five-year residence permit, it is necessary each year to come to Latvia and to renew it. In addition, the economy is in a deplorable state: in 2009 GDP fell by 18% (this is the worst figure among the EU countries), and unemployment reached 20%. In this population decline. So what to expect from the Baltic real estate new price jump is not worth it. Especially when you consider that the local resort property is unlikely anyone is interested, but Russian. However, prices in Latvia are very low: for 38 thousand euros you can buy a kopeck piece in Jurmala. A modest dacha there recently worth about 70 thousand euros. At the Dubai real estate market things are going a different way: before the crisis, it could earn double-digit gains by investing in new buildings. Local developers managed to unleash an unprecedented real estate development in the desert of intensity. The key elements of the Dubai model was a constant increase in prices not less than 10% in year and preferential purchase terms with the various installments. This, naturally, attracted private investors from around the world. However, crisis influx of private investors ceased. European banks have stopped lending to property developers and construction stopped. Today, the authorities in Dubai organized by funding major projects, but the timing is "gone" and the old scheme with private investors does not work. Russian investors who bought in installments flats, suddenly found themselves in a difficult situation. Terms of construction has steadily increased, but the investor is obliged to pay the original schedule. It turned out that the Arab laws protect the developer, not the buyer. If the buyer no longer transfer payments as scheduled installments, the court in Dubai simply can confiscate property. But the sanctions to the developer, who is not construction, is almost impossible to apply. So the most lucrative real estate market has become the world for private investors a golden cage. Four years of the crisis on the U.S. housing market remains difficult situation. Due to force government programs to stimulate demand wave of collapsing prices and a half years ago, managed to shoot down. But now the program term expired, and the prices once again began to decline unhurried. According www.globalpropertyguide, falling 1.6% a year. But falling prices are not the worst. In September, the United States the number of housing seized for the debts exceeded the record high of 100 thousand units per month. This is the same as for the whole pre-crisis 2005. Also in September, was produced 347.4 thousand notices of withdrawal from housing mortgage debtors. In the near future the number of exemptions will be reduced, but it will not be linked with the advancement of the borrowers, but with a new scandal in the mortgage market. During the four years of crisis has 6.5 million homeowners have been evicted for debt. However, in October 2010 found that banks performed procedure for the removal messy. Eviction from homes they put on stream, with specially hired people whose sole task was to put a signature on documents without knowing the details. In all 50 states prosecutor's office began an inspection of the mortgage companies and banks. Mortgage giants Bank of America and J. P. Morgan Chase has acknowledged mistakes in the eviction of people and the availability of special-robosaynerov (from the word "robot" and "signature"). These banks have frozen not only confiscation of housing for non-payers, but also the sale of homes, of which the debtor has already been evicted. However, the difficulty is that if, because of audits will be a moratorium on the confiscation of real estate transactions, the market will be destroyed. Today withdrawn and exposed banks to sell the objects are, depending on the state, 30-50% of the market. In general, the crisis in the U.S. real estate market has been going on for four years. There was virtually nationalized mortgage system. Back in 2008, the largest mortgage agencies Freddie Mac and Fannie Mae because of huge losses have been transferred under the control of the state. It is believed that about a quarter of all real estate, bought the mortgage in the U.S. is now "under water" that is, the mortgage debt on these sites exceeded the market value of housing. For the pessimistic scenario, the rescue of Fannie Mae and Freddie Mac could cost U.S. taxpayers 363 billion dollars.

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