The Finance Media Blog

Archive for the ‘Real Estate’ Category

The real estate market in India is supposed to be the most exciting real estate market in Asia, according to Michael Smith, Head of Asian real estate investment banking at Goldman Sachs. The Indian real estate market is an improving market and has created an asset-price bubble that has led the Reserve Bank of India to increase the risk value on real estate loans in India. Most of these loans for real estate investments in India are extended by banks and the mortgage rates have appreciated from a modest 7.5% to 9.5%!

However, this has not made any difference to the real estate investor in India because this figure is still well below the 15% that Indians are used to, The land prices have gone up by 30% to 100%, while the real estate stocks are up by as much as 2,000%. The run-up in real estate in India has attracted many big time foreign investors whoa re even willing to place their money in the midsized constructions

The value of real estate in India is rising fast, and not just in the biggest cities, but in the small towns too. The current boom in technology and the outsourcing opportunities that India is offering the Western giants has spread across the country and today, more and more Indians are buying their own homes. The Indian economy is actually growing at rate that is on record as faster than 8% a year. Indian real estate investments are attracting more investors every year and many of them come from the developed world, bringing in the boost to the Indian economy from abroad!

India is believed to be one of the last few countries in the world today, where there is primary demand for real estate in comparison to individuals trading up. This research revelation says it all for the Indian real estate investment market. Research further reveals that the Indian realty sector is estimated to grow from the $12 billion on record for 2005 to $90 billion by 2015!

The US real estate investments are at an all time high. Now, established agencies in the US are teaming up or partnering with big shot investors who provide complete financial help and back up to the core investments. The returns in real estate investments in the US are huge and this makes the whole business very lucrative, as long as you really understand the rate of return and the risks involved in any real estate investment.

When lucrative US real estate partnerships like those with Farallon Capital Management are closed, the joint-venture rakes in the big bucks in billions! The partnerships snap up lucrative deals in prime properties in central locations and the supposed acts of idiocy by local developers, end up in huge bids that surpass the original deal with little or no comparison at all! The partnerships enable the entities to make the most of the tie up and apply advantageous clauses developed by both to increase profits nd this is exactly what is happening in the US

Most of the participants in the real estate investments in India and the US are the same. The buyer, seller, lender, agent and broker and the advisor remain the same in both countries, in functionality and presence throughout the deal. Most of the real estate investment laws are the same and so are the federal income tax laws, property management paradigms, real estate finance terms and conditions and providers, property or real estate valuation processes and even the real estate appraisal techniques.

In both countries, real estate attorneys offer their services and consultancy online and offline. The US and Indian real estate markets have managers, dedicated magazines and various associated opportunities in the field of real estate investments. Both countries encourage the presence and organization of seminars that offer information on the property investments. There are development agencies in USA and India who offer real estate and property investment proposals for the investors. Both countries follow the trend of making available mortgage loans at competitive rates and these can be looked into via the investment property forums and blogs online.

In the recent years the property front in the UK has been subject to sudden ups and downs that have dealt really crippling blows to the real estate sector here.

Though now times have changed and the trends have suggested benefits and growth for those investing in property, investment in property in still
considered off the mark.

Successful investors will look for benefits everywhere. How do they accomplish this?
Simple look out for best hot spots where you can see and relate to performance related to growth of property in the coming future.

Monitor publications and keep track of new properties and premises that are an indicator of the growth taking place in a particular sector.

Rental properties, properties solely for investment means etc are all subject to ups and downs and the current financial stability icon should not be taken under consideration when one thinks of investing in property, as the UK property scene is likely to bloom in the long term.