Size is crucial 

Square footage of homes for sale is attractive when printed. But the perceived size of the homes generates more impact to the buyers. In order to achieve this kind of effect, you can something as simple as de-cluttering. Remove all the unnecessary furniture and strip your home to its bare. Paint the walls with neutral colors and keep all the accessories hidden before allowing walkthroughs. This will surely provide the illusion of more space for the buyers, which is typically what you need to aim for. 

Vacant homes sell faster 

Homes for sale are easier and faster to sell when they are shown to the buyers vacant. Although you don’t have to move out after putting up the home for sale, you must be ready to vacate the property on a fly once a buyer is viewing it. Personal items generally dictates ownership, so be sure to remove your family portraits and other personal belongings from the buyer’s notice. 

Repair what needs attention 

The obvious leakage from the roof needs repair; then you must repair it. Don’t favor cosmetic upgrades for structural ones, otherwise fall on the losing end when it comes to home inspection. Before you do updates on your home, be sure to have your property pre-inspected in order to anticipate any repairs and sell the property on a value nearest to your asking price. 

Cosmetic updates must not be overdone 

Home updates are important but not all of them give the best return for your money. Research is a crucial part of staging a home. Before you plan to put laminate countertops, be sure to check what your neighbors have. The same goes for your other home improvement projects. Try not to spend too much money on unnecessary updates that buyers are generally not attracted to. 

Concentrate on the kitchen and baths 

Two of the areas that make homes for sale easier to be sold are the kitchen and the bathroom, especially the master bath. Focus a significant portion of your funds in these two areas, making sure that the upgrades are neutral and versatile. Avoid being thematic as this can only make your home lose points with buyers who normally likes a home that goes well with the neighbors. 

Mark Michael Ferrer 
Homes for Sale

The collapse of the world’s housing markets can be seen from three points of view, and unfortunately, all of them reinforce the bad news.

During 2008, the downward price momentum accelerated, as compared to 2007.
Only 2 countries saw positive momentum in 2008 (a slower downward house price movement than last year, or faster upward movement), while 28 countries saw their housing market momentum deteriorating, compared to the previous year. The two countries with a positive momentum were Germany and Switzerland.

During 2008, house prices fell in most countries.
During 2008 only 8 out of 32 countries saw house prices rise, after adjustment for inflation, while 20 countries experienced house price falls.

In contrast, during the year 2007, the downturn was just beginning, and only 6 countries saw house prices fall, while 24 countries saw house prices rise (all figures inflation-adjusted).

Many house-price falls during 2008 were extremely severe. Countries with house price falls of over 10% during 2008 were Latvia (Riga) (37%), Lithuania (Vilnius) (27%), the US (20%), the UK (18%), Iceland (16%), Ireland (12%), and the Ukraine (Kiev) (12%) (all figures inflation-adjusted).

During the final quarter (Q4) of 2008, the downward price momentum significantly accelerated, as compared to Q3, suggesting that the situation is deteriorating.

During 2008’s final quarter, 9 countries saw house price falls of 5% or more during just that quarter. Price drops of more than 10% during this single quarter occurred in three countries – in Latvia (Riga), which saw price falls of 15%, in Ukraine (Kiev) (13%), and in Hong Kong (15%). Other countries with Q4 house-price falls of 5% and over, included the UAE (8%), Lithuania (7%), Iceland (7%), Singapore (6%), Bulgaria (5%), and the UK (5%) (all figures inflation-adjusted, except UAE).

These price falls were much greater than during the previous quarter, Q3. During that previous quarter, only two countries experienced house-price falls (inflation-adjusted) of 5% or more, and no countries experienced house-price falls of more than 10%.

REGIONAL SURVEY BY GLOBAL PROPERTY GUIDE

Europe has major problems
The Baltic countries of Latvia and Lithuania suffered the hardest price falls both in nominal and real terms. In Riga, Latvia, the average price of standard-type apartments plunged 37% during 2008. Prices have been going down in Latvia since late 2007, after a remarkable increase of about 70% in 2006. The most alarming decline took place in the 4th quarter, when prices declined by 15%, the steepest quarterly drop in real terms in any country. These price falls were triggered by increased interest rates, and by the tightened credit rules which Latvia imposed in 2007.

Average prices of apartments in Vilnius, Lithuania, fell by 27% during 2008. House prices started slowing in mid-2007, and crashed in early 2008.

House prices in the UK plummeted by 18% in 2008. Although mortgage interest rates dropped slightly, to 4.48% in December 2008, the number of loan approvals for house purchases fell 58% in 2008.

There is serious trouble in Iceland (house price fall of 16% during 2008), Ireland (12%), Ukraine (12%), Malta (9%), Portugal (8%), France (8%) Finland (7%), Norway (6%) and in Spain (6%).

North America’s woes
In the US, the centre of the global financial crisis, in 2008 house prices fell 20% according to the Case-Shiller house price index, which emphasizes urban areas. OFHEO and FHFB figures, which are associated with Fannie Mae and Freddie Mac loans and have somewhat lost credibility, suggest a smaller decline of 6% and 3% respectively, during 2008. The US government recently approved a $ 787 billion economic stimulus package, of which $275 billion will be allocated to rescue the ailing housing market.

Canada has been much less affected than the US.

Pacific heads down
Both Australia and New Zealand saw house price declines during 2008, of 7% and 8% respectively.

Asia no longer insulated
Housing markets in Asia have not been insulated. Singapore, Hong Kong and Philippines recorded house price falls during 2008.

Singapore’s private residential prices dropped 9% during 2008, in sharp contrast to the 26% price increase of experienced during 2007. The developed countries’ economic troubles adversely affected Singapore’s exports, and during 2008, output in the manufacturing sector, particularly of electronics, precision engineering and chemicals, shrank by 10.7%. Singapore was officially in recession in Q3 2008.

Hong Kong has been badly hit by the crisis. House prices were down by an average of 6% in 2008. But during the last quarter, Hong Kong experienced a severe decline in prices of 14%.

In Makati, Philippines, prime 3-bedroom condominium prices fell by 2% during 2008, after an 11% price rise during 2007. Nevertheless construction of high-rise residential buildings continues, with residential condominium stock rising by 7% during 2008, according to Colliers Philippines.

Japan recorded modest Tokyo condominium price rises of 1.2% during 2008. On the other hand, land prices in Japan’s six major cities fell by 6% y-o-y to Sep-2008.

In Shanghai, China, house price rises slowed to 5% y-o-y by the end of 2008, after peaking at 30% y-o-y to May 2008. However Shanghai is likely to be somewhat exceptional, and Xinhua News Agency reported house prices declines in 70 major cities during 2008. Shenzhen suffered the hardest fall, with prices down by 18% during 2008

UAE on shaky ground
In Dubai, UAE, despite the bleak global picture, saw surprisingly large dwelling price rises of 41% during 2008. However during the year’s final quarter, prices fell by 8% in nominal terms. This downturn is attributable to strongly tightening lending criteria, an increase in interest rates, multiple layoffs, and alarm among buyers.

Forecast: No recovery in 2009
History suggests that in a crash, housing markets take many years from peak year to full recovery. In view of this and of the pessimistic IMF forecast for the global economy, no real recovery is likely in the global housing markets this year.

The IMF has predicted that the world economy will grow by 0.5% in 2009, the lowest level in 60 years. GDP in advanced economies is expected to decline by 2% during 2009. The United Kingdom and Japan will be hit the hardest. Output in the UK may contract by 2.8%, while Japan’s may fall by 2.6%.

Growth in emerging economies is expected to slow to 3.3% in 2009, down from 6.3% in 2008. Developing Asia is forecast to be the least affected, with growth of 5.5%. China’s economy is predicted grow by 6.7% in 2009, but this is a substantial decline from 9% growth during 2008.

We cannot be optimistic for five reasons:
• Valuations still clearly remain stretched in most countries, in terms of price/rent ratios.
• Economic growth is slowing or negative in many countries, which is negative for housing values.
• There are no signs that banks are becoming more willing to lend.
• The unprecedented nature of the financial system’s collapse has greatly added to the difficulties facing the world’s housing markets.
• Some national governments are experiencing difficulty in refinancing their national debt, putting their currencies under pressure. Currency instability is likely to aggravate housing sector problems in countries where many loans were taken out in a foreign currency.

The positive news is that the US government and several others are acting with vigour, as has the IMF. Nevertheless, there is a long tough road ahead.

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Description of the Global Property Guide:
The Global Property Guide (http://www.globalpropertyguide.com) is an on-line property research house, specializing in analyzing residential property valuations around the world.

Terms of Use:
On-line newspapers, magazines, sites, etc wishing to use material from this press release MUST provide a clickable link to www.globalpropertyguide.com Sites and newspapers found not to be providing a link to us will be removed from our press list.

Requests for Comments:
Requests for comments are best made by telephone to +(63) 917 321 7073. UK-based callers should telephone before lunchtime. Our local time is Hong Kong time, i.e., standard time + 8.00

Economics Team:
Prince Christian Cruz, Senior Economist
Phone: (+632) 750 0560
Email: prince@globalpropertyguide.com

Publisher and Strategist:
Matthew Montagu-Pollock
Phone: (+632) 867 4220
Cell: (+63) 917 321 7073
Email: editor@globalpropertyguide.com

Address:
Global Property Guide
http://www.globalpropertyguide.com
5F Electra House Building
115-117 Esteban Street
Legaspi Village, Makati City
Philippines 1229
info@globalpropertyguide.com

The Global Property Guide

The Global Property Guide is the authoritative source of information on buying residential property. It covers every investible country in the world, from the perspective of income, tax, and capital gains. We provide research and information on 131 countries to residential property investors, with brief information on 85 countries.

Property, as an asset class, is highly susceptible to booms and busts. Across the Western world major countries have experienced a prolonged residential property boom.

Like stock prices (but with markedly different dynamics) residential property prices are now coming back down to earth. We help investors make sense of these swings by providing tools of analysis, and displaying data in a clear, comprehensive and accurate format.

Our fundamental residential property market data includes

â?¢ Price change 1 year

â?¢ Price change 5 year

â?¢ Price change 10 year

â?¢ Square metre price city centre

â?¢ Total round-trip transaction cost

â?¢ Gross yield

â?¢ Price to rent (P/R) ratio

â?¢ Price to Gross Domestic Product

â?¢ Change in interest rates

â?¢ Taxes on income (effective rates)

â?¢ Capital gains tax (effective)

â?¢ Inheritance taxes (effective)

â?¢ Buying process (graded by quality)

â?¢ Tenant legislation (graded as landlord-friendly)

â?¢ Residence (high tax / low tax)

â?¢ Economic growth

â?¢ Competitiveness

â?¢ GDP per capita

â?¢ Competitiveness rank, improvement over 5 years

â?¢ Stage of economic cycle

â??Our aim is to be the Bloomberg of international residential property,â? says publisher Matthew Montagu-Pollock, referring to the financial site on trading desks around the world (http://www.bloomberg.com/). â??Bloomberg provides data – but also makes it easy to use.â?

â??Itâ??s important for a residential investor be able to see what his likely return on investment will be. What his taxes will be. To be able quickly to check whether the laws are landlord-friendly. To survey the inheritance laws. All this is now available, for almost every country in the world, on our site, without any marketing material or any attempt to sell you anything â?? just the facts.â?

###
Description:

The Global Property Guide is an on-line property research house.

Publisher:

Matthew Montagu-Pollock Phone: (+632) 867 4220 Mobile: (+63) 917 321 7073

Email: editor@globalpropertyguide.com

Address:

Global Property Guide

http://www.globalpropertyguide.com

5F Electra House Building

115-117 Esteban Street

Legaspi Village, Makati City

Philippines 1229

info@globalpropertyguide.com

Ensure that you have plenty of credit or cash available to complete a project – rehab financing is an option used by many investors for flipping houses. This covers the costs for purchase or remodeling.

Making a spreadsheet of many houses in a locality is the best way to determine which house will make money. Therefore, you should be prepared to do research and understand your chosen real estate market. You will not get any success unless you actually do this.

Find out how much it will cost to do the repairs and upgrades on a house. You need to know how to make estimates on the cost of materials and labor. A visit to the local home improvement store can come in quite handy in order to know the prices of materials.

Flipping houses means that you must be adept at comparing the purchase price, labor, materials, expected sales price etc. You must not forget to include closing costs, holding cost and unexpected costs funds to this total. Only after this can you determine which houses offer the best profit and accordingly you should make your offers.

Take into account the best financing for your situation. Try to figure out that whether you will use your own money, rehab financing or an investment property loan. In fact you must talk to a loan officer in order to explore the options that will make for the best deal for flipping houses.

You must know who to hire for making the repairs. Another factor to keep in mind is that you have to make changes according to the desires of your future buyers. Learn which patterns, colors and features bring top dollars without spending any extra money. You should have a plan of action that has already been formulated before your buyer sees anything. This will ensure that you can immediately start to make repairs. A house that sees no activity after closing costs more money daily for the utilities and mortgages. When you initially get into the business of flipping houses, you should look for houses that need only cosmetic work such as painting, cleaning up, new flooring, etc. When you view these houses you should use some imagination to visualize how the finished house will look.

Flipping houses is more than just a way to make money. You can also help improve neighborhoods or turn a shabby house into a buyers dream. Flipping houses can be made to a fun activity.

Hawaii has always been a dream destination for many to go and settle in. This obviously reflects the Hawaiian natural wonders and the warmth of the Hawaiian Aloha. The Hawaiian Islands have been not only one of the most favorite tourist spots in the world but also a heaven that draws in people for a lifetime. People want to live in Hawaii and enjoy what it has to offer, and, consequently, the Hawaiian real estate market is one of the most stable ones in the entire world. It presents a unique opportunity to come to these islands and experience their beauty with the privilege to possess your own property. Hawaii MLS is the best resource here. It provides you with the great chance of finding your dream home easily and quickly.

Oahu is the most populous island and has not only beautiful beaches and wild nature but also the only real metropolitan area in Hawaii.  Because of this fact, the real estate on Oahu provides highest enjoyment and is very coveted.

The technology is developing further, and now it has more than just simple plain electronic MLS listings searches. If you too are looking to own a real estate property in Hawaii, the best place to begin your search is to take a look at the Hawaii MLS listings placed on the map. alohamapper.com is one of the best sites that provides you with this opportunity. It uses cutting edge technology to make your searches quick and efficient, and presents them in a comprehensive way. You can easily get all the needed details about every particular listing and view it on the map. You can also compare a set of properties and choose the ones that fit your requirements best. The Hawaiian MLS contains the listings of all real estate agencies on the Islands, and the website presents them all on the map. You do not have to go all over the island anymore looking for the right place to purchase a Hawaii real estate property for yourself and your family. You can view all the properties on the map, together with pictures and detailed info. MLS on the map saves you lots of time and money and is the #1 resource for a real estate buyer.

Therefore, if you are seriously considering getting yourself a Hawaii real estate property, Hawaii MLS listings on the map is the most convenient way of looking for a property of your dreams.

Singapore experienced Asia’s highest residential property price increases during 2006, with 9.5% real (inflation-adjusted) house price rises.

There were also 9.3% real house price increases in South Korea, and 9.1% real house price increases in the Philippines. These were seen in the Global Property Guide House Price Indices, the biggest collection of residential property price indices.

Singapore’s strong 2006 GDP growth rate, at 7.9%, pushed up demand for Singapore property. The Urban Redevelopment Authority (URA) private residential property price index rose by 10% (9.5% in real terms) in 2006.

South Korea also saw a strong rebound in property prices, despite continued efforts by the government to depress the market. The Kookmin Bank’s house price index rose 11.6% in Dec. 2006 (9.3% in real terms) from a year earlier.

In the Philippines, strong economic growth and reduced inflation contributed to the continued recovery of the real estate sector. In addition, demand from Overseas Filipino Workers (OFWs) and dual citizens has been strong, pushing prices up. Luxury condominium prices in the Philippines rose 15% (9% in real terms) in 2006, following an 11% nominal price rise in 2005, according to Colliers International.

Japan and Hong Kong are laggards

Japan’s residential property market continued to fall in 2006, despite repeated attempts by the media to portray the market as rallying. Nevertheless, the residential urban land price index registered a smaller fall in 2006 (-2.8%) compared to last year (-4.7%).

Hong Kong’s property market turned negative (-2.13%) in 2006, after impressive gains in 2004 (27%) and 2005 (8%). Higher interest rates in the US, mirrored directly in Hong Kong, were a major cause of the downturn.

Taiwan’s messy political crisis seems to have frozen residential prices, with 0% appreciation during 2006. In real terms, Taiwan experienced a decline in house prices during 2006 (-1.7%). During three years prior to the second quarter of 2006, Taiwan’s Sinyi house price index rose 17%.

In Malaysia, house prices did not to keep pace with inflation. Malaysian house prices today are at the same level as 1995, in real terms.

Thailand saw the end of ending its strong post-Asian crisis property market recovery, as the political crisis impacted the economy. House prices moved up just 1.9% in 2006 (-2.4% in real terms), after 2005’s price increase of 7% (1.5% in real terms), and 2004’s rise of 9% (6% in real terms).

Indonesia managed to reduce 4Q 2006 inflation to 6% from 16% during the first three quarters. With the house price index registering a 6.6% increase in 2006; house prices rose by 0.5% in real terms.

The 2007 elections – risks abound

2007 is an election year in Korea, Taiwan, and the Philippines, and political uncertainty is likely to increase. There will also be elections in Japan and Hong Kong, but they are unlikely to have much impact on the real estate market. In Thailand, uncertainty will increase if elections are not called.

The Philippines. A victory for President Arroyo’s party in the upcoming Congressional elections would be positive for real estate. Election years in the Philippines bring money inflows, but also increased uncertainty. But if Arroyo wins enough seats in Congress she will push constitutional change, removing constitutional limits on foreign ownership of real estate and companies – good for real estate.

South Korea. The economic interventionism of left-of-center President Roh Moo-hyun has been damaging for Korea’s housing market. His support is crumbling, and a less interventionist president may be elected in December. But even if the opposition Grand National Party wins, excessive government intervention in the housing market has a very long history in South Korea.

Taiwan. Parliamentary elections at end-2007 will provide a strong lead on whether the Kuomintang (KMT) can regain control of the presidency in 2008 from the Democratic Progressive Party (DPP). President Chen Shui-bian’s two terms have largely been spent on keeping him from being ousted. Significant banking and tax reforms have been held hostage by politics.

Japan. Half of the seats in the upper house will be contested in July. Seats held by the Liberal Democratic Party (LDP) may be reduced, risking its reform agenda. These seats were won with the help of former prime minister and popular reformist Junichiro Koizumi.

Hong Kong. Donald Tsang is up for re-election as chief executive where elections are still largely ceremonial and Beijing’s anointment is the only significant factor. Pro-democracy campaigners are hoping and pushing for reforms to full democracy and Mr. Tsang’s failure to push for constitutional reforms in 2005 means that this will be his last term.

Thailand. The sooner elections are called, and Thailand is returned to democracy, the better it will be for the property market and the economy as a whole. The fate of Thailand’s property market hinges on the junta. If the junta prolongs military rule, the market will suffer.

The Global Property Guide sees inflation risks to be minimal in Asia in 2006. But other risks threaten the real estate market, particularly the re-emergence of bird flu in several countries, Indonesia in particular.

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Conveyancing is the legal term for the process of transferring ownership of a property between two parties. A conveyance is legal document known as a deed that conveys a property from the seller (or vendor) to the buyer.

Property conveyancing is usually carried out by a solicitor, a licensed conveyancer, or, in Scotland, a solicitor’s agent. It is possible to carry out your own conveyancing, but for most people this is not advised. Some estate agents offer in-house conveyancing services, although it is usually wiser to engage an independent solicitor in order to avoid any conflict of interest. It is also a good idea to engage a solicitor who has been personally recommended as frauds committed by solicitors are not unheard of, and have even increased in recent years.

For buyers, your conveyancer will require the property details, the name of the selling agent (if applicable), a list of items to be included in the sale, details of your financial sources, the name and contact details of your lender and when you wish to take possession.

If you are selling, the conveyancer will need details of the deeds, the name and contact details of your lender, copies of any planning consents, and the date by which you wish the transaction to be completed.

The conveyancing process (detailed below) takes on average 10-12 weeks to complete, but the timescale is determined by financial, legal, social and personal factors. During the period prior to contracts being exchanged either party can pull out of the transaction for any reason without obligation to the other, giving rise to gazumping or its opposite, gazundering.

The conveyancing process should involve the following:

1)      Verifying ownership of the property and ensuring that a good title is obtained. Title refers to a bundle of rights in a property and is distinct from possession, which can accompany ownership but is not necessarily enough to prove it.

2)      Carrying out local authority searches.

3)      Ensuring that the land has been registered and checking the existence of any restrictive covenants. Restrictive covenants refer to the restriction of anything from the height or size of building, to the materials used in construction.

4)      Ensuring that any planned alterations have necessary planning permission, building licenses, and that they have a warranty.

5)      Checking that any debts against the property are cleared before contract exchange.

6)      In leasehold properties, the lease and its clauses are checked.

7)      Drawing up a contract of sale.

8)      Registering the title in the name of the new owner after the property is sold.

There are a number of other checks that you can ask your conveyancer to carry out, for example:

1)      Finding out who own any adjacent land, and checking the level of development that may be allowed, especially any commercial activity. Checking if there are planned developments in the area that may affect the value of the property (e.g a motorway, landfill sites, railway lines etc) is highly recommended.

2)      Ensuring that the seller is the sole owner and actually has the right to sell.

3)      Discovering if the property is prone to flooding is important especially with coastal properties or those near to rivers. Erosion and global warming issues should also be considered.

4)      Discovering what the land both surrounding and under the property was originally used for which is especially important with relatively modern properties.

Many people successfully carry out their own conveyancing and it is entirely legal to do so. However the process is time consuming, complex and a good grasp of details and much patience is required. It is also risky as if a mistake in the contract is missed, it is possible to be left with a property you cannot sell. If it is the fault of the solicitor or conveyancer, you can at least sue.

If you do have a complaint about your solicitor, it is advisable to try to resolve it with them personally, if this fails you can report them to the Office for the Supervision of Solicitors.

Cap rate is also known as capitalization rate or cap. It’s the ratio between the incomes from the rent for the year over the price that was paid for the property. So if you make $25,000 in rent from a property every year and paid $400,000 for a property then your cap rate would be $25,000 / $400,000. If you’re planning on investing in commercial properties you’ll want to understand this number because you’ll see it several times when you’re looking at property listings. The average cap rate runs between three percent and ten percent.

When you’re looking at investing in a commercial property it’s important that you understand that you want a higher cap rate. A higher cap rate means that the property has a higher income which will lower the amount that you need for a down payment. Many successful investors use the cap rate to help them stay away from properties that offer little to no income and that have the potential to become a huge risk for them. This also helps the investor minimize his risks which is an important factor for successful investors.

If you become familiar with the cap rate you will be able to find properties that are able to collect more money from the tenants than what you have to pay the bank. This is a great investment as you are not only investing in property but you’re essentially not even paying for it! Also the instant profit can be helpful even if it’s only a little as you can use it to pay for the building if you lose a tenant.

Another number that can be confusing is proforma which is also known as potential cap. This number is used by sellers when the property has a lot of vacancies. It’s used to help capture the attention of the investor. For example if a property is listed for a million dollars and is filled to 90 percent occupancy then the gross income is $90,000 a year with $30,000 in expenses. You can assume that the potential cap is going to be $110,000 a year when the property is at full occupancy in which the porfoma cap would be listed as 11%.

Since the listings can come in three different cap rates for one property it’s important to understand how each works and which ones are the most beneficial. You’ll need to understand the net cap rate, gross cap rate, and potential cap rate so that you can make the best investment choices.

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