Continued on the U.S. housing market crisis raises many questions from potential investors as prices fell, how different the situation in different parts of the country, is it possible to obtain a mortgage loan to a foreigner can buy that can be sold, how long it will last, and whether reasonable buy real estate right now in America?
Indeed, the mortgage crisis has caused significant changes in U.S. real estate market.
With sales of new homes declined since the crisis began on average 26%. Prices are also down - by an average of 11% in 2007.
In accordance with the message of the National Association of Realtors in America, the secondary housing market, which accounts for a significant part of the overall real estate market is experiencing the largest drop in sales over the past 25 years, the average price of homes in the secondary market dropped over the past forty years.
Change in property prices in different cities and regions of the United States is not the same.
According to the index S & P / Case-Shiller, which is an indicator of home prices in 20 major U.S. cities, the value of residential real estate from January to October 2007 fell by 6.1%. The most significant decline in prices occurred in Miami - 12.4%, in Tampa, they fell by 11.8% in Detroit - 11.2%, while in San Diego - by 11.1%.
Prior to that, over the past 5 years, housing prices in New York, Florida, Maryland, New Jersey and Pennsylvania rose by 80-100% in Rhode Island, California and Nevada - by 100-117%, and in prestigious suburbs of Los Angeles and San Diego and did leapt to 150-175%.
When to buy?
At first glance, the situation is unfavorable for investment, as there is a widespread belief that the property is needed to fly at a time when prices are rising. This principle is trusted by many people. In the past several years the real estate market in America was founded on this principle and was speculative. Many buyers bought property in the expectation that prices will rise even more, and they can make a profit when selling in a short time. However, serious investment plans suggest a different strategy. The greatest benefit is achieved when you buy at lower prices nadvizhimosti. For example, Sam Zell, the famous American investor in real estate, has created a huge fortune using cyclical real estate market and buying real estate in a downturn in prices and demand.
Why America?
In America right now profitable to buy property with investment objectives. Although prices are likely to still be in decline for some time, and "bottom" is not visible, is now good reason to not wait.
In the market of a large number of objects from which to choose.
In response to the crisis, banks and insurance companies have been selling real estate debtors unredeemed at prices far below market value (discounted to 40%).
The rental market residential property in great demand. Despite the fall in house prices, rental prices not only dropped, but even increased in many areas. Over the last year 1.2 million Americans moved from homeowners in the category of tenants.
The real estate market in America is very well regulated, it excludes many elements of risk in the transaction.
Due to the depreciation of the dollar against major European real estate market valbtam U.S. is particularly attractive for European investors.
Non-residents of the United States (including citizens of the former Soviet Union) have the opportunity to obtain a mortgage loan up to 70% of the value of the acquired property at a rate of 5.15%.
Some experts are already talking about starting "warming" of the market.
In recent months the U.S. government several times lowered the refinancing rate, which allowed mortgage baknkam in America to lower interest rates on mortgage loans to 5.45%. Sellers glimmer of optimism.
What to buy?
When selecting a particular object should pay attention to cities and states, not untwisted, but having its own distinction: resorts, campuses. For example, the city of Ventura, California is located between Los Angeles, Malibu and Santa Barbara. But prices are still much lower than in neighboring cities, although the Ventura also has beautiful beaches and interesting historical center, reminiscent of old Europe.
Investors in real estate should be closely monitored for the development of local infrastructure. Of particular interest is the discovery of new highways. As a rule, construction of road junctions leading to a demand for facilities in the immediate vicinity.
You also need to bear in mind that the U.S. has a concept of "neighbourhood" (ie - who are your neighbors). This is the main criterion that influences the price in a given area. At the same prestigious small town prices for two different (seemingly similar) streets may differ by several times. And the reason is that on the same street lived lawyers and doctors (ie, high-paying profession), but on the other - people low paid occupations. Therefore, investors should conduct a careful study area and the house or rely on a professional realtor.
U.S. housing market is well organized and carefully regulated compared with markets in developing countries, which eliminates many of the elements of risk in implementing the deal. The buyer has access to the most complete information about the object of the proposed purchase, including the history of sale of the facility for the previous few years.
Many foreign investors have not even come to the U.S. for processing transactions on your property, but do it at the U.S. embassy of his country.
Although experts predict year-end prices would continue to fall, now you can buy property at a discount from banks and insurance companies. Many realtors say this is the only time you can choose the real estate itself and dictate terms.
What is a discount real estate and how to find it?
Discount real estate - real estate, which is sold at below market price for the following reasons:
Property confiscated by banks for non-payment mortgages
auction sale of property developers, banks, insurance companies, tax authorities
Urgent sale of objects in which both the bank and the owner not to spend money on the next court, ready to make serious concessions on the sale of
To deal was profitable and successful, the investor must be willing to use the services of a professional team. The main thing - is to have access to information and to react.
Also, based on analytical data and results of market research professionals can help the buyer to choose a specific location (area of the city, street, neighbors), in which the property has potential for growth, get all the features you liked the facility, including a full description (size, layout, year buildings, the potential rental income, etc.), the "history" (the names of previous owners, previous sales price, assessed value, etc.), information about similar transactions in the last 6 months.
With the help of professional buyer can get a complete financial analysis of cost and content of the object, taking into account the utility payments, maintenance fees, fees for managing the object and taxes. Specialists will help negotiate with the seller about the price and make a deal.
When property rental specialist agency to help find a reliable management company that's just take on the responsibility for finding tenants who receive rent, utilities and taxes.
Specialists will help you choose the time for bargain-hunting real estate, and to organize itself for sale.
Indeed, the mortgage crisis has caused significant changes in U.S. real estate market.
With sales of new homes declined since the crisis began on average 26%. Prices are also down - by an average of 11% in 2007.
In accordance with the message of the National Association of Realtors in America, the secondary housing market, which accounts for a significant part of the overall real estate market is experiencing the largest drop in sales over the past 25 years, the average price of homes in the secondary market dropped over the past forty years.
Change in property prices in different cities and regions of the United States is not the same.
According to the index S & P / Case-Shiller, which is an indicator of home prices in 20 major U.S. cities, the value of residential real estate from January to October 2007 fell by 6.1%. The most significant decline in prices occurred in Miami - 12.4%, in Tampa, they fell by 11.8% in Detroit - 11.2%, while in San Diego - by 11.1%.
Prior to that, over the past 5 years, housing prices in New York, Florida, Maryland, New Jersey and Pennsylvania rose by 80-100% in Rhode Island, California and Nevada - by 100-117%, and in prestigious suburbs of Los Angeles and San Diego and did leapt to 150-175%.
When to buy?
At first glance, the situation is unfavorable for investment, as there is a widespread belief that the property is needed to fly at a time when prices are rising. This principle is trusted by many people. In the past several years the real estate market in America was founded on this principle and was speculative. Many buyers bought property in the expectation that prices will rise even more, and they can make a profit when selling in a short time. However, serious investment plans suggest a different strategy. The greatest benefit is achieved when you buy at lower prices nadvizhimosti. For example, Sam Zell, the famous American investor in real estate, has created a huge fortune using cyclical real estate market and buying real estate in a downturn in prices and demand.
Why America?
In America right now profitable to buy property with investment objectives. Although prices are likely to still be in decline for some time, and "bottom" is not visible, is now good reason to not wait.
In the market of a large number of objects from which to choose.
In response to the crisis, banks and insurance companies have been selling real estate debtors unredeemed at prices far below market value (discounted to 40%).
The rental market residential property in great demand. Despite the fall in house prices, rental prices not only dropped, but even increased in many areas. Over the last year 1.2 million Americans moved from homeowners in the category of tenants.
The real estate market in America is very well regulated, it excludes many elements of risk in the transaction.
Due to the depreciation of the dollar against major European real estate market valbtam U.S. is particularly attractive for European investors.
Non-residents of the United States (including citizens of the former Soviet Union) have the opportunity to obtain a mortgage loan up to 70% of the value of the acquired property at a rate of 5.15%.
Some experts are already talking about starting "warming" of the market.
In recent months the U.S. government several times lowered the refinancing rate, which allowed mortgage baknkam in America to lower interest rates on mortgage loans to 5.45%. Sellers glimmer of optimism.
What to buy?
When selecting a particular object should pay attention to cities and states, not untwisted, but having its own distinction: resorts, campuses. For example, the city of Ventura, California is located between Los Angeles, Malibu and Santa Barbara. But prices are still much lower than in neighboring cities, although the Ventura also has beautiful beaches and interesting historical center, reminiscent of old Europe.
Investors in real estate should be closely monitored for the development of local infrastructure. Of particular interest is the discovery of new highways. As a rule, construction of road junctions leading to a demand for facilities in the immediate vicinity.
You also need to bear in mind that the U.S. has a concept of "neighbourhood" (ie - who are your neighbors). This is the main criterion that influences the price in a given area. At the same prestigious small town prices for two different (seemingly similar) streets may differ by several times. And the reason is that on the same street lived lawyers and doctors (ie, high-paying profession), but on the other - people low paid occupations. Therefore, investors should conduct a careful study area and the house or rely on a professional realtor.
U.S. housing market is well organized and carefully regulated compared with markets in developing countries, which eliminates many of the elements of risk in implementing the deal. The buyer has access to the most complete information about the object of the proposed purchase, including the history of sale of the facility for the previous few years.
Many foreign investors have not even come to the U.S. for processing transactions on your property, but do it at the U.S. embassy of his country.
Although experts predict year-end prices would continue to fall, now you can buy property at a discount from banks and insurance companies. Many realtors say this is the only time you can choose the real estate itself and dictate terms.
What is a discount real estate and how to find it?
Discount real estate - real estate, which is sold at below market price for the following reasons:
Property confiscated by banks for non-payment mortgages
auction sale of property developers, banks, insurance companies, tax authorities
Urgent sale of objects in which both the bank and the owner not to spend money on the next court, ready to make serious concessions on the sale of
To deal was profitable and successful, the investor must be willing to use the services of a professional team. The main thing - is to have access to information and to react.
Also, based on analytical data and results of market research professionals can help the buyer to choose a specific location (area of the city, street, neighbors), in which the property has potential for growth, get all the features you liked the facility, including a full description (size, layout, year buildings, the potential rental income, etc.), the "history" (the names of previous owners, previous sales price, assessed value, etc.), information about similar transactions in the last 6 months.
With the help of professional buyer can get a complete financial analysis of cost and content of the object, taking into account the utility payments, maintenance fees, fees for managing the object and taxes. Specialists will help negotiate with the seller about the price and make a deal.
When property rental specialist agency to help find a reliable management company that's just take on the responsibility for finding tenants who receive rent, utilities and taxes.
Specialists will help you choose the time for bargain-hunting real estate, and to organize itself for sale.
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