Christopher Clover asked:




The 2009 Marbella Property Market Report

An up-to-date report on how the worldwide economic crisis is affecting the property market in Spain’s most important resort city.

By Christopher Clover, owner and Managing Director of Panorama, Marbella’s longest established Real Estate Agency

February, 2009

Before the critical events of September 2008 and the following months, the property market in Marbella was suffering severely, as throughout Spain and the rest of the world, especially in the lower end of the market, and especially with newly built properties. 

As the year advanced, it became clear that Spain’s own economy was nowhere nearly as strong as the politicians were announcing before the March elections. The “easy credit” which was a primary factor in fuelling the Spanish property “boom” of the mid-1990’s to 2006 had virtually dried up. Property companies started to go bankrupt, affecting the entire economy. The Bubble burst, hard times began with a bang and the repercussions ran deep.

On the Coast, the market for “off plan” touristic properties peaked in 2004 and has been on a descending curve since then, reaching crisis proportions last year. Nationally, the demand for new homes hit its peak in mid-2007, according to national statistics. Today, (with reliable statistics still lacking from the Government) the Bank of Bilbao Vizcaya Argentaria estimates that at the end of 2008 there was a glut of between 800,000 and 1,400,000 new unsold homes in Spain (19/12/08, http://prensa.bbva.com), including the Coastal properties, with an estimated 24,000 living units on the Costa del Sol (Diario Sur Domingo, 04/01/09), which will take years to be absorbed.

However, one cannot really analyse the market from the press reports which generally concentrate on new properties and the national market. There are different sectors belonging to different markets in different areas where there is a variance of some of the basic fundamentals at play, and one should not make the mistake of lopping every sector of every market in Spain into the same basket and reaching the same overall simplistic conclusion. For example, until September of last year, it went virtually unreported that the higher end of the luxury market, comprising mostly resale properties, had held up reasonably well, as elsewhere in the world, and the most expensive properties belonging to the Super Rich were even marginally increasing in value.  

The World Financial Meltdown, starting in mid-September, changed the scenario

The rapid slowdown commencing in September began to affect buyers of Luxury Residences not only in Marbella but globally, exacerbated by the credit crunch and the difficulty in obtaining mortgages. A very low volume of sales has characterized the market on all levels in general in the last quarter of the year.

How much have prices dropped from their peak prices?

The percentages stipulated in the following paragraphs are intended to be indicative in nature and are based upon the first hand experience of seasoned agents in the Marbella area who deal daily with buyers and sellers, including property developers.

Properties most severely affected are the least expensive (under €700,000), comprising principally newly built properties but not excluding resales, in the less consolidated areas. They have gone down in price from their peak values in 2005-2006 (defined as real sales values, as compared with asking prices, of similar properties at their highest historical point) by generally 20% to 30%, but in some cases, even up to 40%.

Properties in this price range achieving the best prices in a shorter selling period are located in better areas, and are usually resales, have descended in value from 15% to usually not more than 25%.

Properties priced from €700,000 to €2,000,000 have seen a 20%-25% decline from their peaks (again, less so in the best areas) while those priced at up to €3.000.000 have suffered a lesser drop of 15%-20%. In the higher price brackets: fewer properties are for sale and although owners may be receptive to reasonable offers, in general they have the financial wherewithal to “hold out” if necessary. There are and will be some very good buys as, in some cases, even very wealthy owners simply want to “move on”. Very special “one of a kind” properties, with unique characteristics, qualities and location, have not been substantially affected by the crisis, provided their asking prices are sensible.

 

Again, the same is true for the most expensive properties as the less expensive ones:  the better the location, the better the market, and the easier it is to sell.

The pricing of properties by their owners, in most price categories, is now far more realistic than in the past. This process has been complicated, as usual, by some agents who tell owners what they want to hear, rather than explaining the realities of the market. Most sellers, however, have already sharply reduced their original asking prices, but many potential buyers do not take this into consideration when they place an offer.

What is selling? 

Barbara Wood, in a well-written market report of Andalucia, stated recently “in the quality resale market it is not so much about over-supply but more a factor of how badly and how quickly does the seller need to get out that is driving the market.”

There have obviously been sales since last September, but generally at substantially reduced prices, with the notable exception of truly unique properties which cannot be easily reproduced, or which a buyer has not wanted to risk losing by delaying. Many potential buyers think that vendors will drop their already reduced prices an additional 25% to 50%, without careful analysis of either the current market, intrinsic value, historical value, reproduction cost, or comparable sales being made right now. The result is that such offers simply throw a bucket of cold water on most sellers, and do not engage their interest to negotiate.

Other sales have been made between reasonable buyers (looking for a very good deal), and reasonable sellers, (looking to make a sale and move on, often to another property).  Further sales are being made by those willing to trade up or down.  These types of sales will continue throughout this difficult period.

Warren Buffet, who ranked number one on the World’s Billionaire list in 2008, said in an interview last November: “I don’t worry about the things that I really am not going to understand anyway. I worry about what’s important and knowable.”

What is knowable about the property market in Marbella that will be important in the coming months?

1. The demand factor is still there. The number of potential purchasers enquiring about and visiting properties for sale in this area has not plummeted, as worldwide property market stagnation might suggest. Viewings have dropped around 25% over last year’s levels, as reported by the top agents in Marbella, coinciding exactly with Panorama’s statistics of its own activity. However, enquiries via the internet actually increased during the last quarter of 2008, with respect to DM Properties and Panorama. The difference is that very few offers are being made, and many of these are totally unrealistic, as mentioned above. What is selling is limited to either very sensibly priced properties or very special properties from the standpoint of location, quality of construction or architecture, where a willing seller is ready to sit with a willing buyer and a good agent and see if they can realistically come together in harmony. 

Strong supporting evidence of the still-present demand factor can be found in the study published last December by the company Globaledge (www.globaledge.co.uk).  Claimed as the “biggest ever” study into global demand for overseas property”, the study examined 1.4 million English-language searches on Google using property and real estate keywords.

In essence, the study measured curiosity and Spain was clearly more interesting to Web surfers than any other destination, beating France into second place by more than a two-to-one margin.

Clearly there is a continuing and increasing demand of people who want to buy property in Marbella, waiting for the right time to move, and some of them will unquestionably act in the coming months. More than a few potential buyers, having located “the right property” for themselves and taken the decision to wait, will be disappointed when they decide to take action and find that their ideal property not only has been sold, but that there are no similar properties at similar prices on the market to replace it.

What else do we know for sure?

2. The off-plan purchaser has disappeared, for the foreseeable future, and will not be missed.  Speculators of this nature only distort the market place. The end-user has taken his place, a good sign of a healthier market to come.

3. Quality locations hold value best: The three most important words in buying property “location, location, location!” remain true. Prime locations in the Marbella area and everywhere in the world are holding property values and selling far better than non-consolidated and secondary locations.

An excellent illustration of the above can be taken with the Urbanization Marina Puente Romano, in the middle of the Golden Mile, beachside, and situated next to the famous hotel of the same name.  There are a total of 248 apartments in this magnificent estate.  Only 13 of them are for sale, at the date of this report.  And of these, only two owners have shown clear signs that they want to sell quickly, have dropped their asking price and are encouraging offers. La Zagaleta, located just outside the Marbella municipal boundaries, representing a quality estate environment virtually unique in Europe, has just 200 completed villas, amongst which only around 25 are for sale. Therefore, those potential buyers who place all sellers in the same category, and are expecting a deluge of properties for sale in the very best areas at rock bottom prices, are in for an unpleasant surprise.

4. Buyer insecurity is history: With the recent provisional approval of the new General Plan of Marbella, which is due to receive definitive approval later this year, buyers will not be responsible for developer’s sins, or failings of prior Municipal governments. Less than 400 living units are considered illegal under the new plan (compared with 19,000 before), and this phase of bad press and buyer insecurity is now virtually in the past.

5. Safe Haven seekers: Trust in banks and their investment products has declined. The stock market has burned so many people, that many will be unlikely to return. The logical alternative or “safe haven” for many will be that of well-located “bricks and mortar”, bought at rock bottom prices, as among the most effective medium for future long-term investment, especially when coupled with usage and the well-known life style factors which make Marbella unique in Europe.

6. After the crisis, inflation: Governments have embarked on immense deficit spending in an attempt to pump their economies out of recession. Along with other measures taken, this enormous amount of money just now starting to be spent will eventually assist in reviving economic activity. But inevitably, printing money, pump priming, will result in inflation, significant inflation, and the prime beneficiaries of inflation will be those who bought properties at prices which are now reaching lows never anticipated only a few months ago.

Sophisticated investor buyers who have seen the above rule work time and time again, are right now in the market, looking to pick up the highest quality real estate they can at the best price, and will continue to be present for at least another two years.

7. A concentration of Wealth: There is a tremendous amount of wealth concentrated in the Marbella area. Economically speaking, this area of Spain will be less affected compared to the rest of the country, due to the higher level of stability in the quality end of tourism, which is its number one industry, and in the so-called residential tourism resulting from the use of first and second homes by international part-time and full-time residents. Wealth attracts more wealth, and there are still lots of wealthy people in Europe who want to live all or part of the year in Marbella for well known reasons.

8. A multi-source market: Although the Marbella market includes a good percentage (easily over 30%) of Spaniards who represent the foundations of the market in the first instance, it is nevertheless substantially more international than it is national. It is a multi-source market. This diverse international market base is the biggest factor which distinguishes the Coast from the national market, and will provide strength for a quicker recovery.

9. British sellers are providing better deals: With the pound plummeting by over 25% of its value at the beginning of 2008, and over 40% since its peaks in the year 2000, many buyers are finding that the very best buys can often be found with British sellers, who count their assets in Pounds Sterling, and can afford to sell therefore for a lesser amount of Euros compared with Euro zone resident sellers.

 What about the future?

The Coastal market will probably start to recover during the last half of 2009, depending on the evolution of the current world situation, but certainly before the national market. However, this recovery will be very slow, and very gradual. One should anticipate at least three years minimum before the market can return to normal activity. In the context indicated, the beginning of a market recovery is defined as “a significant perception by the market of an increase in the volume of sales”. Price levels of course depend on the level of both supply and demand, and as buyers come back into the market in significant numbers, prices will gradually increase.

Why is it possible for a beginning of market recovery so soon?

When the last setback commenced in 1990, the beginning of market recovery took easily 4 years. The market then built up year after year, to a speculative fever commencing around the year 2000 and double digit annual price increases. However, Marbella today is not the Marbella of the early nineties, for the following reasons:

* In 1990, Marbella was seasonal in nature and had a real population (i.e. “off-season residents” including the floating population of people living here but not officially registered), of around 120,000 people. But when recovery was well underway, between 1995 and 1996, there were at least 150,000 people really living in Marbella off season. It was this “core population”, or critical mass of residents in the winter months which allowed Marbella to convert to a 12-month season, where restaurants, nightlife and sporting facilities could have enough business to remain open all year round. Today, this real population off season is estimated to be in the region of 225,000 inhabitants.

* A critical factor in making the above happen was the investment of hundreds of millions of Euros in infrastructure, improvements and new facilities of all types, both by the municipal government of the early Mayor Gil years, as well as by private investment which Gil was influential in attracting to the city. These were the “show business” years of the early Gil government.

* Events and their repercussions move today at lightning speed compared with just twenty years ago, due to “globalization”, interdependence of economies and the speed of communication. As the prices in Marbella reach their lower limits, which is happening already in some categories and in “distress sales”, the word will spread instantly and those who have been waiting to buy will come into the marketplace, which will be the start of what will no doubt be a long period before returning to normal market activity.

* But the most important factor is that there is just not a great number of quality apartments and villas out there for sale in the best areas, i.e. there is a limited supply. Marbella is not, in terms of numbers of villas or apartments, the West End of London, or Paris, or New York. The last official statistics date from the year 2001 census of the Instituto Nacional de Estadística, just at the beginning of the explosion of growth and building fever in Marbella and throughout Spain, and estimate that there were 80,172 living units in Marbella in that year. Extrapolating by the number of building licences granted in the interim period until now, there are only about 105,000 villas, townhouses and apartments in all of Marbella today. Of these 105,000 dwellings, in very rough terms, about 25% would be rated in the luxury end of the market, let us say properties priced over €500,000, and in quality, homogeneous residential areas. And of these, how many might be for sale? Certainly not more than between 5% minimum and 15% maximum. If one takes an overall estimate of 15% on average for all of the quality end of the market in the previously mentioned price range, that would give us only around 4,000 units for sale. Compare that with the estimate of between 800,000 and 1,400,000 unsold living units in Spain quoted earlier, and it is easy to see why we are talking about a different market sector.

It is for the above reasons, therefore, that it is probable that the market will start to lift off later this year. But, in the meantime, before this recovery commences, a gradually increasing volume of sales will be made, generally to buyers who have decided they do not want to postpone their plans further. Generally speaking, the type of properties they will purchase will be well-priced, or viewed as excellent buys for their location, price, condition and lifestyle factor, or rare and unique properties which cannot easily be reproduced. A good agent will have these properties on his books and the knowledge and skill to help the buyer negotiate successfully with the seller. 

There are of course conditions to securing a solid, long-term recovery. Apart from the obvious financial liquidity necessary for the beginning of a world economic upturn, these comprise: transparent, corruption-free and efficient local governments (this is certainly happening now in Marbella with the brilliant management ability and transparency of Marbella’s new Mayoress Ángeles Muñoz and her team); better public services and communication along with increasingly good infrastructure, which has already been ensured by the Regional Government and recent municipal grants by the National Government to the Town Halls; and greater care of our environment for which, finally, all levels of government are bearing the responsibility, as is apparent in the new territorial plan and urban plans for this part of the Coast.

Provided the above comes to bear, and there is solid evidence to this end, Marbella will not only come out of the current recession stronger than before, but will set the standard for other quality resort cities worldwide.

By Christopher Clover

Copyright © 2009 Panorama Properties S.L.

All rights reserved.

Christopher Clover is graduate with distinction in Economics of the University of Virginia (1969); a permanent resident of Marbella since 1973; and the founder, owner and Managing Director of Marbella’s longest established Real Estate Agency, PANORAMA, with offices opposite the

HOTEL MARBELLA CLUB and in the HOTEL PUENTE ROMANO

info@panorama.es         www.panorama.es

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

K. Van Liew asked:




Investors typically choose real estate for a number of reasons: cash flow, appreciation, tax benefits, and leverage.  A real estate investor holds property for personal or commercial investment reasons.  This differs from real estate dealer who holds property primarily for resale to potential clients.  An active investor typically buys a property and then makes repairs or improvements with the intention of selling the property for a profit.  A passive investor usually hires an investing firm to find and manage potential profitable opportunities, and is not actively involved in any improvements or negotiations related to the property.  Unlike a professional realtor who has to pass a series of exams and be licensed by local and state agencies, an investor simply needs capital and confidence. 

By putting down payments on a real estate transaction, an investor can significantly increase his profit percent and better the terms of the financing loans.  By bettering the terms of the loan, an investor can increase his available cash for other transactions, thus increasing potential earnings exponentially.  This process creates a strong cash flow.  This cash flow is very enticing to real estate investors.

Barring any unforeseen declinations in quality, real estate, unlike a car, generally appreciates in value.  This means that once a property is purchased, the value of that property steadily increases over time.  Residential real estate is especially prone to this process.  This is so because residences are comparatively priced.  This means that the value of a property is largely dependent on the value of the surrounding properties.  Therefore, if one house appreciates in value, then the surrounding properties also increase in worth.  An investor can force appreciation by investing in repairs or improvements.

A somewhat lesser known reason that so many people are learning how to become a real estate investor is the beneficial tax rules governing such transactions.  State and federal governments try to encourage investment by writing financial rewards into the tax code.  There are two main rewards built in.  First, an investor can claim monthly mortgage payments as a tax deduction.  Secondly, tax deductions can be made through a process called depreciation.  Though a property may appreciate in value, an investor is allowed to make the assumption that it will actually depreciate over the projected useful lifespan of the unit.  He or she is then allowed to claim this theoretical loss as a tax deduction.

Another strong reason for becoming an investor is called leverage.  Leverage can best be explained through an example.  Say you bought a house for ten thousand dollars and then sold it for eleven thousand dollars.  Your profit margin would be ten percent.  However, if you get an initial loan for the purchase and make a down payment of only one thousand dollars, then your profit margin would be one hundred percent.  This method is called leverage and is a great way to maximize profits.

For all these reasons real estate investing is both an easy and very profitable business to get into.

Rajput Jitendra asked:




Most organizations distinguish the many benefits of buying software applications from overseas rather than developing them onshore. It is marked that Software Outsourcing is replacing In-House services as more and more IT development jobs are sent overseas for the development purposes. The fact is, by obtaining packaged applications or by utilizing applications that service providers create, host, and make accessible over the Web, organizations can obtain effective business solutions with the advantages of standardization and quality. IT Outsourcing has changed the way of business and thinking of the global world by providing these many benefits. In this way, organizations can keep up with of the modernizations developed by focused specialists.

Despite those benefits, custom-built applications development is still very much a part of the onshore development. Organizations in many sectors use well over half of their applications development budgets on custom software, used largely to improve, support, and control customized systems and services. For large organizations in competitive environment, fast-moving industries like telecommunications, media, financial sectors, high tech service sector, and pharmaceuticals, those expenses can run into hundreds of millions of dollars for the development purpose. Even when an organization utilizes off-the-shelf applications services, it often customizes these applications, typically by adding modules that facilitate a unique capability.

Software Outsourcing

Yet in Software Outsourcing, some pioneering organizations have found a way to gain the advantages of packaged software in a customized-applications arena as a part of their IT Outsourcing. An approach some organizations have utilized to turn components of custom-applications support system into packaged activities engages standardizing the safeguarding, supporting, and software-management actions that groups of applications share and services. The upside of this attitude is now quite clear and specific for Software Outsourcing. One organization that adopted these support and maintenance applications decreased spending on applications maintenance almost by 30% amounting to 60% to them of the whole applications budget for the single project.

quinlanmurray asked:




The Plano Apartments is not only the ideal place for the honeymoon couples but it is the best place where you can find optimum pleasure. Amidst the serenity of the beautiful Plano Apartment, you can find optimum facilities. The rooms of this place are elegantly furnished and there is teak furniture available here. The windows allow a lot of light to usher inside. You will also find chair and table to enable you do your work. Inside the rooms there is a television with cable connection. During your leisure you can observe the marvel of the city. There are numerous attracts here and there. The attraction includes parks and museums.

Parks and Museums nearby: The parks are well maintained and it is meant for both the adults and the younger. The adults can have their morning walks in the parks while the children can play games in these parks. The museums speak volumes about the city and the historical significance. There are also interesting shopping malls which are located at a very close proximity from this place. The shopping malls are a delight for the people who are satisfied with nothing better than a good shopping.

Bars and Nightclubs: You can also have a splendid time in the bars and nightclubs which are scattered all over the city. The bars and the nightclubs speak volumes about the vibrant nightlife over here. The Plano Apartment is meant not only for the leisure trippers but also for the business class people as well. The business class people find amusement in the Internet services that are available here. They can also conduct their business meetings and conferences.

Swimming Pool: There is a spacious swimming pool which is located just in front of the hotel. When the scorching heat of the sun becomes unbearable, then the swimming pool is perhaps the best option for you. It is centrally heated and people find optimum fun while visiting this place. There are also other modes of entertainment like sauna bath and Turkish bath. You can while away in the parks which are located nearby.

Staff and people at Plano Apartments: The hotel amenities include state of the art swimming pool and multilingual staff, concierge desk. The travel desk will help you to make a ticket booking and also make bookings to various tourist places. Once you come here you will be free of difficulties concerning ticket booking to various places. You don’t even need to go elsewhere to exchange money since currency exchange services are available here.

michaelrussell asked:




A strong online presence is now essential for real estate professionals. It does not matter if you are a realtor or an investor, a homeowner or homebuyer; the Internet is steadily growing into the world’s largest real estate resource, with thousands of pages of listings, community information, photographs and multimedia tours. The Internet must be utilized if a real estate group wants to succeed in today’s market.

Two things have happened recently. The real estate market crashed and realtors got Web savvy. These events are not mutually exclusive. An online presence is a relatively affordable way for realtors to share their products and information with countless potential clients. It also allows them to take a proactive approach to their work while the market struggles.

It is one thing to merely transfer your current listings from print outlets to online outlets. Being online allows you to easily update and share your listings, but the real estate market is already crowded, and if you do not employ savvy techniques and rich, unique content, chances are that your properties will not have much more success than they did in print. Think of it in terms of the newspaper industry. Many major papers are struggling because they are not doing more with their content. They are not doing more for their readers. They are merely shifting their information from print to the Web. Successful newspapers — and successful real estate Web sites — are using the Web as an advantage, as a platform from which numerous ideas can take shape and redefine what it means to be informed.

Young, innovative companies run the most popular Web sites and blogs. They recognize the advantages and challenges of working online. They engage their readers with community forums and visually stimulating photographs. They collect information from outside contributors. They give advice and notify the public of investment opportunities. Most of all, they provide up-to-the-minute information that is relevant and interesting, useful and entertaining.

One of the most popular is Curbed. The site focuses on all things real estate, in New York and San Francisco, and provides readers with pages and pages of insightful content. Curbed has transformed the way users view real estate. It has turned the buying and selling, the deals and steals into enjoyable, opinionated information that is quickly consumed by a hungry market.

Apartment Therapy is another popular site. It strives to provide users with tips; advice and user-generated comments that will help to maximize what can be done with the usually confined space of apartment living. This site is at it’s most popular now, as the economy and people are looking for ways to do more with less.

Trulia is an aggregate site. It works with real estate professionals to offer the most comprehensive look at the entire United States market. Trulia offers articles and blogs, Q&A forums and maps, listings and updates from experts around the country. It is a destination site, giving readers a truly rewarding experience.

These are the newer Web sites. But what about the companies that have been around for a while? What about the real estate groups that worked for years to succeed and become trusted as the most knowledgeable professionals in the field? Well, they have to work just as hard to succeed online, often times reshaping their approach and technique.

The Real Estate Book, which has one of the largest distributions of any real estate group, has for years been available to the public in countless retail stores across the country. The American public grew to trust and rely on the Real Estate Book for its listings and realtors. It became synonymous with the real estate industry and those looking for property. When the market turned its focus online, the Real Estate Book built a formidable Web presence. Now it is offering a new product, a way for realtors to harness the Real Estate Book’s massive amount of listing information.

The product is actually a widget. A widget is a tool for your Web site. The widget increases your Web site’s functionality. The widget the Real Estate Book has developed allows real estate professionals to work together. They can download the widget, customize it so if fits their site’s feel and size, and then access the Real Estate Book’s listings. This allows every realtor, no matter the size of their operation, to offer their clients an easy and informative way to browse the Web for real estate listings. It is an advantage to both the Real Estate Book and the realtors that use it. It brings together information, offers it to more people, and improves the way listings are explored online. As a successful company must, the Real Estate Book has developed a new way for people to use their resources.

K. Van Liew asked:




The real estate marketplace can fluctuate dramatically and unpredictably leaving as many stories of failure as there are stories of success.  The best way to help stack the odds in your favor is to have a solid real estate investment business plan.  A business plan is a detailed outline that includes a clearly stated objective and a how you are going to achieve that objective – in this case real estate.  It should contain methods of securing financial support, either through partners or loans, and be able to describe ways of limiting fiscal risks.  It should also list certain criteria that will distinguish between investments that are likely to provide a profit and those that are likely to create a loss.  Finally, it should delineate clear methods of procuring a steady stream of buyers.

The first step to success is to find potential investments.  The basic principle to follow is to buy low and sell high.  Situations that depress a property’s asking price include foreclosure, owner death, IRS issues, illness, divorce, relocation and job transfer.  In a number of these cases, a bank or financial institution assumes ownership over the asset.  Hoping to reclaim some of their financial losses, they sell off as much of these assets as possible.  This typically happens to houses that have come under bank ownership.  The asking price for these houses is generally much lower than market value.  These types of situations are advantageous to an investor because a lower asking price ensures a higher profit margin.  A successful real estate investment business plan should include as many of these beneficial opportunities as possible, thus increasing the likelihood of a greater profit margin.

The next principle of any business plan is to secure the funding needed to get started and keep the process going.  When dealing with real estate, this part is usually straight forward and easy.  Ideally the money for the initial investment would come from your own savings or a trusted partner.  In this way, while you are risking your own money, failure would not harm your ability to garner future loans from banks or mortgage lenders.  However, not everyone has enough personal capital to begin buying real estate.  This is where proven time tested techniques are utilized to secure the funds needed from joint venture partners or private lenders.  Both of these groups are mainly interested in two items; One – how secure is their money and Two – How much will they be paid.  As long as it is a truly good deal you should have no problem finding the money.  Do not be afraid to share some of your profits to your money partner, better to share some than not be able to do the deal and make nothing.   The idea is to secure the loan, purchase the property, sell the property, and then pay off the investor.  Using this method you can buy real estate without any personal financial commitment.

Finally, a real estate investment business plan should include a stable method to facilitate a deal with your exit strategy.  This should consist of a manner to procure buyers, in the marketplace. There is no shortage of these, and it is a way to close the deals that ensures the highest possible profit margin possible.  It may be a good idea to hire an advisor at this point if you are not confident with your own experience.  In the beginning it is a good idea to re-invest the profit.  In this way you can create more opportunities to earn more money, thus securing the ultimate goal: financial success. 

Real Property Management asked:

In southern California, especially property management in Orange County is an important investment in real estate.

The return on your property depends on hiring a qualified professional and attentive management company property. Hiring the wrong management company can mean the loss of thousands of dollars or more. The owners who hire the right property management company OC however, can enjoy the benefits of an investment property profitable. Some of the most common, and often, the errors at the expense of a property owner makes the investigation is not doing enough. The more research you do, the more you can avoid hiring a company of mismanagement.

management companies who also sell property properties, often national companies like Century 21, etc. is usually a bad idea. In general, are major real estate agents, who also do property management, because they want to handle when you choose to sell the property. A management company of the property as this is not a good idea because they make more money than the sale of management. You would benefit more from a smaller company, specialized that only deals with property management in their area and nothing else.

For example, if your property is in Huntington Beach, you should try to find a local expert Orange County property management company that has extensive experience in the local area . Be sure to check references from other clients of his management company. Do not be afraid to make some calls, and get a good track record. You should not sign anything before you have a good idea for the company that is hiring is the best in property management in Orange County and you can trust. Moreover, as owner, you should not be too demanding of the references either. A good management company property will not disclose all customer information to you,

because it is private and confidential information. The management company is not making obscene amounts of money in the administration of his property, so I can always tell you to take your business elsewhere if it is too much pain. You will do well with about 3 references to speak, and get an idea of how they work with their customers. Some other things to consider: Is the company licensed in the state of California? Is the insurance company? Do you have a loyalty to protect themselves in case of an employee mishandled their money? Do you offer reporting? Will you sell your property? How to deal with late charges? How to handle tenant complaints? And so on. Here are some tips to make sure you hire a good company property management professional and effective management of your property, helping to turn your home / apartment apartment / commercial property in a constant investment.



properties

The Global Property Guide asked:


Santiago and Concepción are attractive for residential property investors, Viña Del Mar less so, says the Global Property Guide

There are surprisingly large differences between returns on residential property in Chile’s main cities. The Global Property Guide (http://www.globalpropertyguide.com), the research site for residential property, released today the results of research into rentals in major cities of Chile. It revealed that:

• Apartments in prime areas of Santiago have excellent average rental yields of 8.16%.

• Apartments in the city of Viña Del Mar yield only half as much, on average, with gross rental yields of around 4.31% only.

The rental yield is the annual rental income on a property, as a percentage of today’s property purchase price. This is what a landlord can expect as return to his investment. The rental yield is one useful yardstick of whether property is over-valued or under-valued

The high yields on apartments in prime areas of Santiago – Las Condes, Providencia, and Vitacura – suggest that these Santiago areas make good residential property investments.

Apartments in prime areas of Santiago cost on average US$ 98,520 for a 60 square meter apartment, according to the Global Property Guide’s research, versus US$ 87,480 for the same sized property in Viña Del Mar. However, 120 square meter apartments are more expensive in Viña Del Mar than in Santiago.

The result? Looking across the different sizes, prices in the two cities are more or less the same, on average.

Though apartments in Santiago and Viña del Mar cost around the same, per square meter, yet Santiago apartments produce twice as good rental returns – i.e., rents for the same sized apartment in Santiago are nearly twice as high. This means that Santiago is much more attractive as a residential investment.

In the southern city of Concepción, 120 square meter apartments have excellent gross rental yields of 9.04% – also, an excellent level of rental yields, making Concepción a very attractive investment.

Why consider rental yields? Some investors in residential property may ignore rental returns, being more concerned with capital gains.

Yet even they would do well to consider rental yields. The rental yield, or price/rent ratio, is similar to the price/earnings ratio in the stock market. As in the stock market, property investments with high rental yields tend to perform better, and have higher capital gains, in the long-term.

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Extensive Report - http://www.globalpropertyguide.com/Latin-America/Chile/Rental-Yields



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