Studio Flats London

Are you becoming wealthy on your house? Is your home your best performing investment? Is your house the only area that of your investments in which you are making money?
Red danger signals should be appearing in your mind. The housing market has gone up, up and up. Many people believe that they “have made x dollars from their house”. Is this true? Is this realistic? Will they ever be able to see or use their new found wealth?
It is true that. Even in 2004 it was said that housing prices had risen the most in 2004 in the past 25 years – that the OFHEO price increase was 13.4 %. Prices have been double digit and seemed to be able to go up and up forever. Indeed the price run-up from 1997 to 2006 was the largest in history.
What fueled this seemingly endless run-up in housing prices? The answer in 3 words was “low interest rates. China it seems wanted to maintain high employment figures for political and economic reasons. In order to maintain high employment levels the price of Chinese goods – at Wal-Mart or wherever had to remain low. If the Chinese currency remained low relative to the U.S. dollar or if the U.S. dollar remained at relatively high levels in relation to the Chinese currency this would be accomplished. It amazing that in our small global world decisions made by someone or a group of people in China can affect yours and mine economic position and future so greatly.
As a result China chose to pump money back into the U.S. buying U.S. treasury bills enmasse. The Amerian dollar remained high , the Chinese currency low. You could buy Chinese made goods cheaply at Walmart or Target stores. And interest and mortgage interest rates were at historically low levels.
As a result you could now purchase a house , upgrade your house or purchase a much larger and expensive house than you could of previously. Your banker or mortgage lender was only too happy to loan you the money for the mortgage – after all the loan , or mortgage was secured by good old fashioned real estate as collateral.
The housing market soared. People who could never of afforded to buy a home , condo or land could now afford one. So many new and additional buyers were entering the real estate market that not only did the demand for homes and other real estate increase but there were bidding wars for properties and sale and the supply for more and more houses and other forms of real estate diminished and housing prices soared. You may well of heard stories of people putting the proverbaial shingle on their home one morning and having it sold for unbelievable sale prices by the end of the day.
Along with this home builders were building scads of homes and selling them at these high sale prices. Mortgage lenders and banks were facilitating the process by selling and marketing low priced mortgages called “subprime” mortgages which offered an initial period of lower rates, the rate charged reverted to regular rates after the introductory period.
The key to all of this was that prices kept going up, up and up. There was no end in site. Not only that but what fueled the boom further was the fear that if you did not get in that you would be locked out in the future. The same house had risen from say $ 200,000 a number of years ago to $ 400,000 to $ 500,000 in one year, if I do not get in the market now; the reasoning went that home could be $ 600,000 or $ 750,000 next year. By getting in now I will get equity and be in the game. If I stay out – my family and I may be locked out of owning a home ever.
So went the logic. As well it seemed that the only place the family could make money in their investments was in the value of their home. One could not seem to “make money “in other traditional investments such as the stock market or their retirement plans.
Which brings us to the basic question? How is money being made? Can you ever spend this money for enjoyment or other goods? At coffee a Mr. Brown may tell you “I made $ 250,000 on my house.” It is true that profits on the sale of your home are treated different and better than other moneys made but the question is how did Brown come out ahead? He will be purchasing another property in the same market. As is said you “have to live somewhere”. If your house sold for a good dollar, that it was desirable, and was a nice home located in a nice neighborhood. It is highly unlikely that you are going to move to a much less desirable, more dangerous neighborhood where housing is much cheaper. You may be going to downsize somewhat but you are not going to move to a slum after enjoying luxury. So it goes this is not liquid profit that you can easily cash out. Even if you or wife decides that it is now time to sell the house since you can get a good price and “We can live in an apartment. So what!” you may well find out in a year that apartment living is not all it is cracked up to be. It was no accident in the past that you scrimped and saved to buy a house and move away from that noisy small, cramped apartment to a house. So it goes that after being reminded of your lesson that you find out that being out of the house and into an apartment for a year that it will cost you substantially for being out of your home for a year.
This all brings us back to our first question. Are you becoming wealthy on your house?

London and Monaco are Europeâ??s most expensive cities for residential property buyers. Prices in the Baltics have risen to the same level as capitals such as Copenhagen, Berlin, Munich, Stockholm, Vienna, and Frankfurt.

High rewards await property investors in some parts of Europe, according to the Global Property Guide, a residential real estate research organization (www.globalpropertyguide.com). Rental yields for apartments in several Eastern European capitals are above 10%.

Rental apartments in Moldovaâ??s capital city Chisinau can be expected to yield annual rental returns of around 14.13%; in Polandâ??s capital Warsaw, 13.28%; in Bulgariaâ??s capital Sofia, 10.56%; and in Slovakiaâ??s capital Bratislava, 10.06%. The higher risks of Eastern Europe may be a factor in these returns (corruption, political instability, etc).

But risks are not the only factor. The Global Property Guide believes that the relatively recent arrival of the market economy, high interest rates, and relatively undeveloped mortgage markets, largely explain the low prices in the east. To illustrate, it would surely be hard to label the historic city of Bratislava, Slovakia, as a high-risk location, yet the rental income returns are excellent.

Western Europe generally suffers from another, different disadvantage: High taxation. There are high rental income returns to be earned in Amsterdam and Paris (8.25% in both), in Munich (7.80%) and Brussels (7.53%). But all four cities are high tax environments (but so too is Poland).

Property in Prime Central London returns surprisingly high rental yields, at 7.13%. Note that this â??Primeâ? category encompasses relatively a narrow group of super-luxury apartments in absolutely prime areas (Belgravia, Chelsea, and Knightsbridge). The high returns in these select super-central locations contrast with the significantly lower rental yields (5.79%) available in Central Londonâ??s other luxury areas (Kensington, Bayswater, Notting Hill Gate, St Johns Wood, Highgate, Islington, Highbury, and Primrose Hill). Europeâ??s most expensive cities

The tiny principality of Monaco is the most expensive location to buy an apartment in Europe at around â?¬24,900 per square metre (sq. m.).

Closely on its tail is Prime Central London, where 120 sq. m. super-luxury apartments can cost £1,170,000 (â?¬1,742,656) or £9,750 (â?¬14,522) per sq. m. Apartments of 120 sq. m. in other luxury areas of Central London are likely to cost £580,000 or £4,833 per sq. m. (â?¬863,880 or â?¬7,199). The large difference is explained by Londonâ??s highly segmented top-end market, with super-luxury apartments in absolutely prime areas commanding considerable premiums.

Paris and Amsterdam follow London. A 120 sq. m. apartment in either of these cities has an average purchase price of â?¬800,000 (â?¬6,667 per sq. m.).

Moscow is Europeâ??s sixth most expensive capital for buyers of residential property. And though apartments in Moscow can be rather rewarding for buyers in terms of rental income returns, investors should be aware of the high risks (purchases are cash-based, and the authorities can suddenly turn hostile).

Dublin makes an appearance among Europeâ??s most expensive cities in 10th place, with a high end 120 sq. m. apartment on average costing around â?¬600,000.

The Baltics, till recently Europeâ??s hottest residential investment destination, are now expensive. A high-end apartment in Central Vilnius, Lithuania will cost on average around â?¬3,792 per sq. m (â?¬455,000 for 120 sq. m.).

Latvia follows closely with high-end apartments in Central Riga costing an average of â?¬3,020 pr sq. m. Rental yields in the Baltics have also dropped to very low levels.

There are still some very inexpensive capitals in Europe. Berlin, in particular (â?¬3,167 per sq. m.), is now experiencing inflows of foreign money in response to its relatively low prices.

Even less expensive are:

Slovakiaâ??s Bratislava (â?¬1,292 per sq. m.)

Polandâ??s Warsaw (â?¬1,175 per sq. m.)

Macedoniaâ??s Skopje (â?¬1,125 per sq. m.)

Moldovaâ??s Chisinau (â?¬917 per sq. m.) Rental returns cannot fall forever

As 2007 dawns, rental returns are lower in most locations than they have been for 20 or more years.

Nowhere in Europe are rents keeping pace with the continued strong rise in property prices. Residential real estate prices are at historical peaks in almost all countries in Europe, except Germany and Switzerland.

This is cause for concern. At the Global Property Guide, we informally consider a danger signal to be rental returns of around 4% or below.

Several European capitals offer rental income yields around or below this 4% level. In example is Madrid, where rental returns are now at only 3.15%. Rental yields in Monaco are the lowest in Europe at around 2.43%. See tables at:http://globalpropertyguide.com//articleread.php?article_id=82&cid=

London and Monaco are Europeâ??s most expensive cities for residential property buyers. Prices in the Baltics have risen to the same level as capitals such as Copenhagen, Berlin, Munich, Stockholm, Vienna, and Frankfurt.

High rewards await property investors in some parts of Europe, according to the Global Property Guide, a residential real estate research organization (www.globalpropertyguide.com). Rental yields for apartments in several Eastern European capitals are above 10%.

Rental apartments in Moldovaâ??s capital city Chisinau can be expected to yield annual rental returns of around 14.13%; in Polandâ??s capital Warsaw, 13.28%; in Bulgariaâ??s capital Sofia, 10.56%; and in Slovakiaâ??s capital Bratislava, 10.06%. The higher risks of Eastern Europe may be a factor in these returns (corruption, political instability, etc).

But risks are not the only factor. The Global Property Guide believes that the relatively recent arrival of the market economy, high interest rates, and relatively undeveloped mortgage markets, largely explain the low prices in the east. To illustrate, it would surely be hard to label the historic city of Bratislava, Slovakia, as a high-risk location, yet the rental income returns are excellent.

Western Europe generally suffers from another, different disadvantage: High taxation. There are high rental income returns to be earned in Amsterdam and Paris (8.25% in both), in Munich (7.80%) and Brussels (7.53%). But all four cities are high tax environments (but so too is Poland).

Property in Prime Central London returns surprisingly high rental yields, at 7.13%. Note that this â??Primeâ? category encompasses relatively a narrow group of super-luxury apartments in absolutely prime areas (Belgravia, Chelsea, and Knightsbridge). The high returns in these select super-central locations contrast with the significantly lower rental yields (5.79%) available in Central Londonâ??s other luxury areas (Kensington, Bayswater, Notting Hill Gate, St Johns Wood, Highgate, Islington, Highbury, and Primrose Hill). Europeâ??s most expensive cities

The tiny principality of Monaco is the most expensive location to buy an apartment in Europe at around â?¬24,900 per square metre (sq. m.).

Closely on its tail is Prime Central London, where 120 sq. m. super-luxury apartments can cost £1,170,000 (â?¬1,742,656) or £9,750 (â?¬14,522) per sq. m. Apartments of 120 sq. m. in other luxury areas of Central London are likely to cost £580,000 or £4,833 per sq. m. (â?¬863,880 or â?¬7,199). The large difference is explained by Londonâ??s highly segmented top-end market, with super-luxury apartments in absolutely prime areas commanding considerable premiums.

Paris and Amsterdam follow London. A 120 sq. m. apartment in either of these cities has an average purchase price of â?¬800,000 (â?¬6,667 per sq. m.).

Moscow is Europeâ??s sixth most expensive capital for buyers of residential property. And though apartments in Moscow can be rather rewarding for buyers in terms of rental income returns, investors should be aware of the high risks (purchases are cash-based, and the authorities can suddenly turn hostile).

Dublin makes an appearance among Europeâ??s most expensive cities in 10th place, with a high end 120 sq. m. apartment on average costing around â?¬600,000.

The Baltics, till recently Europeâ??s hottest residential investment destination, are now expensive. A high-end apartment in Central Vilnius, Lithuania will cost on average around â?¬3,792 per sq. m (â?¬455,000 for 120 sq. m.).

Latvia follows closely with high-end apartments in Central Riga costing an average of â?¬3,020 pr sq. m. Rental yields in the Baltics have also dropped to very low levels.

There are still some very inexpensive capitals in Europe. Berlin, in particular (â?¬3,167 per sq. m.), is now experiencing inflows of foreign money in response to its relatively low prices.

Even less expensive are:

Slovakiaâ??s Bratislava (â?¬1,292 per sq. m.)

Polandâ??s Warsaw (â?¬1,175 per sq. m.)

Macedoniaâ??s Skopje (â?¬1,125 per sq. m.)

Moldovaâ??s Chisinau (â?¬917 per sq. m.) Rental returns cannot fall forever

As 2007 dawns, rental returns are lower in most locations than they have been for 20 or more years.

Nowhere in Europe are rents keeping pace with the continued strong rise in property prices. Residential real estate prices are at historical peaks in almost all countries in Europe, except Germany and Switzerland.

This is cause for concern. At the Global Property Guide, we informally consider a danger signal to be rental returns of around 4% or below.

Several European capitals offer rental income yields around or below this 4% level. In example is Madrid, where rental returns are now at only 3.15%. Rental yields in Monaco are the lowest in Europe at around 2.43%. See tables at:http://globalpropertyguide.com//articleread.php?article_id=82&cid=

Among the populated beaches of Durres and Vlora, Albania offers unexplored stretches on the north and south coasts of the Adriatic and Ionian seas, which are attracting more interest among foreign tourists.

Real estate property investment is also now considered to be a major part of teh economy as many more investors are realising the huge pottential Albania has to offer.

Statistics from June record a 20% increase of tourist visits to Albania from the same period last year. Expectations ran high for June and July, which marked the peak of the summer season.

Among the populated beaches of Durres and Vlora, Albania offers unexplored stretches on the north and south coasts of the Adriatic and Ionian seas, which are attracting more interest among foreign tourists. Statistics from June record a 20% increase of tourist visits to Albania from the same period last year. Expectations ran high for June and July, which marked the peak of the summer season. “More tourists are arriving in Albania this year, and their number has been steadily increasing in the past few years,” Minister for Tourism Ylli Pango said at a press conference. Visitors from Kosovo comprise the bulk of the tourists. Their number has increased by 43% this year, according to official sources. There are also 42% more tourists from Macedonia than there were at the same time last year.

But for such a well located country, which enjoys over 402kms of unspoilt coastline along the Ionian and Adriatic seas, Albania has been virtually untouched by the property boom which swept Europe in the last decade. Ironically, however, just as the rest of Europe is beginning to put the brakes on property, Albania wants to make its presence felt.

‘Albania is the last European market to be discovered,’ says Ismet Terziu, a native Albanian based in London with agents Albania Properties. ‘While other countries may have been oversubscribed in recent years, nobody could level that accusation at Albania.’ That might well be the case but few will deny that this is a risky, emerging market.Property as investment is still in its infancy, with clean title and valid planning permission chief concerns among overseas buyers. Efforts are being made to minimise corruption, while the Albanian government is intent on increasing transparency in business and banking, which, it hopes, will encourage more foreign investment. Investors are primarily focusing on the capital, Tirana and the coastal cities of Durrës and Vlora.There is also interest and development in the southern city of Sarandë, close to the Greek border. To encourage the development of tourism, gated resorts are under construction, but there is a lack of facilities. Mr Terziu points out that there are no golf courses – despite 300 days of sunshine per year. But there is no shortage of land. With a population of 3.6 million in a country roughly the same size as Belgium. Albania has beach-front and city sites available.

For more information you can visit: www.albania-properties.co.uk or www.holiday-property.net.

Buying and selling an house are very particular moments, these are actions that can have a very deep and long lasting impact on our life, so it is better to carefully consider every aspect before proceeding.

The real estate buying and selling acts, juridical speaking, are plain juridical legal document drawn up by an individual and they wouldn’t necessitate the intervention of a third person, despite the one of notary at the moment of the signs notarize. However the matter is quite complex and delicate, so it would be advisable to consult a lawyer for the preparation of acts of compromise and deed. The compromise is the preliminary contract, or promise of sale, while the deed is the act of sale itself.

A different figure is the one of the real estate agent, not essential but very useful to the aim that supply and demand in the housing market can match. In any case, on both sides, always better not to limit his freedom of action with “irrevocable promise” or “exclusive assignments”. Activity management is a delicate moment for the agency, especially in this time when even the outbreak of the real estate bubble is feared, manage property and customers in an appropriate manner is essential. In fact, it is very important to provide customers with proposals as close as possible to their needs and expectations, to be able to carry out the business.

Last data says that in the big cities the timing of sales are around 138 days, in growth compared to 128 days registered exactly one year ago. These data provide us with the idea of what now has been happening for months on the real estate market: the larger supply of homes allows the buyer having more choice and deferring purchases until the house is “suitable” to his own needs. To this we have to consider also that the gap between the demands of potential vendors and the availability of potential buyers spending involves longer negotiations and inevitably the time needed to complete the purchase lengthens. In light of these data is clear that a correct method for the company management is the key to success.

In a market in which transactions are slowing down or in any case are in clear decrease in comparison to last years, also adopt some correct strategies is decisive to carry on as many commercial transactions as possible. Buying and selling seem to decrease, this is a sign of a frozen market, but quotations don’t seem to be much irritated by this. The case of Milan appears to be almost anomalous, because here house’s prices still increased of 2%, especially if compared to London. In the British capital, house’s prices in December decreased of 5%. The crisis seems to spare, at least in part, the Italian real estate market.

By Martina Meneghetti with support from agenzia immobiliare consulenza for any information, please visit software gestione immobiliare or visit programma gestione immobiliare