Weekend round-up

Here is a collection of real estate articles from around the world to comment on. What are you seeing out there in your area? Post your links and thoughts.

Online property sales probed - Australia

Moody's: Commercial real estate prices slipping - USA

Real estate sector growth trends - Bulgaria

5-10 percent European property fall

Real estate wary of hot foreign money - UAE

Al Gharbia set to become a real estate hot spot - UAE

Israel is still a hot market for high-end real estate

Africa: Asset Managers Look to Continent

Japan faces backlog of unsold homes

Hawaiian home away from home

Canadians are one of the forces holding up Hawaii's real estate market and currently estimated to account for 10% to 15% of foreign buyers.

The main draw for foreigners seem to be in the $500,000 + luxury home and condo sector as many see this market as currently having good value with great future growth potential.

Sales volume has cooled off from its highs in 2005 and with the weak US dollar, many foreigners are buying up luxury condos and houses for investment and vacation homes.

One realtor comments, "Maui inventory is much more available and affordable. The period of "irrational exuberance" in the Real Estate Market is over for now. There has been a correction and the over inflated priced homes do not sell. The market seems to have stabilized in the recent months."

Final thoughts: A quick search showed vacation rentals in the $120.00 per night for a 2 bedroom 2 bath condo.

I looked around an MLS site and there are plenty of options for less than $300,000.

It would require more investigation but on the surface it looks like one could purchase a decent condo around the $200,000 mark and have tourists pay it off.

If you are interested in a vacation home in Hawaii it's worth looking into.

REIT's and Real Estate Funds

Looking for the next real estate play? Real Estate Investment Trusts and Real Estate Funds are worth a look.

In the US, a Wall Street Journal article states; "The average real-estate fund, which lost more than 14% on average in 2007, is up nearly 5.6% this year through May 12, which makes it the second-best performing U.S. stock fund group this year, behind the hot natural-resources funds category."

The Jerusalem Post in Israel quoted; "The current crisis that started with the sub-prime fiasco has [affected] real estate prices all over the world. It is now possible to buy real estate for rental purposes at prices that are lower by up to 20% from a year ago, and I believe prices will fall more. The current prices are hurting many, but for those companies or individuals with ready cash, it has created attractive investment opportunities. "

If you are interested in these real estate investment vehicles, China is one of the places to put on your radar. A storey in The Sydney Morning Herald printed this; "As the fastest growing real estate market, with substantial commercial property assets that are of investment grade, China has the potential to be an REIT phenomenon if the legislation for such a market is put in place."


Final Thoughts: There are several real estate markets around the world that are still growing.

In markets such as the US, the price to get into these types of investments are cheap compared to previous levels.

There is talk out there in the msm covering how these trusts and funds got beat down in 2007 and the upside potential that is beginning to take shape. Now is the time to investigate. If you wait to hear about it on the evening news before you make a move...well need I say more.


Today's Quote: Owning a home is a keystone of wealth.. both financial affluence and emotional security. Suze Orman

The best and the worst of the US real estate market

We all aware of the real estate slump in the US and how it is expected to continue for the next couple of years before we see a bottom.

Here is a sample of some of the steepest declines in residential real estate since the peak of the market in 2005/2006:

Detroit, MI -24.5%
Miami, FL -23.7%
Sacramento, CA -30.2%

These and other areas are forecasted to continue falling another -15% to -24% over the next 12 months.

Not all areas are facing such steep declines and look more like a return to a balanced market. What has only been a whisper in the msm are those real estate markets in the US that are holding up and even predicted to see an increase in home values over the next 12 months. When considering that the median asking prices are in the $100,00 to $200,000 range, one can conclude these were not "hot" markets in the first place.


Final thought: I am going to paraphrase a quote from Noel Whittaker, Rich Assets Real Estate that I thought was fitting and true to a fault.

The property boom has made us all feel wealthy, but unfortunately it has lulled many into a false sense of security.