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There has been a lot written about the mechanics of how to buy a house. You get prequalified for a loan, then perhaps preapproved, and then you look for a home, make an offer, have inspections done and so on. Many people can help you through the process. But what if you can’t get preapproved? What if you have little income, bad credit or other serious problems that prevent you from buying a home?

Mortgage loan requirements are being toughened up again now. Once again you might even need a down payment to get a loan. A bad credit rating no longer just means paying a higher interest rate – it can actually exclude you from obtaining a mortgage loan. But there still is hope. Let’s look at how to buy a house when it doesn’t seem quite possible.

How To Buy A House With Bad Credit

To begin with, if it is a slight credit problem, you may still be able to get a traditional loan. There are several ways to do this. The first is to correct any errors on your credit report, and challenge any entries you disagree with. You have a legal right to do this. Once changes are reflected in your credit score, you may be able to apply again and get a mortgage loan.

The other way is to go to local lenders which hold their own loans. Ask around to see which ones do this. Most lenders sell the loans they make, and so these loans have to meet the requirements of the secondary market. If they keep some loans “in house” they are not necessarily bound by rules or requirements other than those they have for themselves.

You can also buy a house with another person. Many people think that this is only for married couples, but any two people can buy a home together, and the lender will look at both credit histories to determine eligibility. It can be risky to buy a house with a friend, but sometimes it works out better for both compared to renting. If you had a down payment, for example, and he had good credit, you might help each other out, and sell the home five years later to recover your down payment and the respective shares of the equity you build.

You also can look to seller financing as a way to buy when you can’t get a loan. I have seen homes sold without credit checks and with nothing down by sellers who financed the deals. The usual motivation for them to do this is to get a higher price and /or to sell a problem property, but it still can sometimes be a good opportunity for a buyer. Even if sellers don’t offer terms, if you know they own their houses free and clear you can make offers that involve making payments to them rather than getting a loan to cash them out. Make it decent offer if you want it accepted, of course.

How To Buy A House When You Have No Money

If cash is your problem, you can start by making high offers on those houses that might be sold with zero-down seller financing, as suggested above. Teaming up and buying a home with a friend who has a down payment is another possibility. There are even a few mortgage lenders out there who are still offering zero-down loans. Check around.

One way that no one seems to like much is to save the money for a down payment. This means putting off owning a home for a while, but that may be a good thing at times. For example, in some areas in 2005 it cost $600 more per month to buy a house than to rent an apartment of similar area. Suppose you could have afforded the house, but had no down payment. You could have banked the $600 you were saving by renting each month, and three years later you would have about $23,000 for a down payment. Meanwhile home prices fell.

What if your problem isn’t just a lack of cash, but also low income? Then maybe this isn’t the right time for you to buy a house. This is especially true where the cost of buying is significantly higher than the cost of renting. On the other hand, if it will cost you about the same each month to buy as to rent, try everything above to get into a home. You’ll be better off in the long run.

You might want to consider cheaper options than the usual starter homes. My first home was a mobile home on a small lot, for example. It cost less than $20,000 and I sold it for $45,000 years later. The monthly payment? $257. That certainly beat renting, and you can see that the idea some have about mobile homes not appreciating is just plain wrong (the land is where the value is, of course).

There are other ways to buy a house when your income is low and you have no money saved. If you expect your income to rise, you might look for a lease-option deal. You rent a house with an option to buy it at a set price within a set time (often a year or two). This buys you time to save money, improve your credit, and increase your income, so you can get a loan.

Buying a small lot for now is another way. Sellers of small lots may not worry about credit ratings, and they often don’t need large down payments. They know you can’t damage a piece of land as easily as a house, so they feel secure selling it with little or nothing down and they enjoy the interest they make. Your goal here is to get your finances and credit in order as you make those payments, so you can get a mortgage loan in a couple years, and put a house on the lot.

Look at all the possibilities. There is usually a way to buy a house if you keep trying.

‘Cash for houses’ services provide expert solutions based on the homeowners’ bad financial situations. The ongoing mortgage crisis is pushing more and more people to seek ways to sell their homes. Unforeseen circumstances land people in a desperate situation forcing them to sell their homes urgently to settle long dues on their credit cards or bills. Instant equity to make a home purchase in a different market, and foreclosure problems or liquidations to handle is some of the issues handled by the ‘cash for houses’ companies. You can have peace of mind avoiding stress as you get cash fast and move on. All the procedures and transactions are handled by their teams.

Whatever the nature of your circumstances may be, the ‘cash for houses’ companies close houses in any condition. Working diligently with you they provide a detailed and authentic, documented analysis of your property. They even offer customized service to ensure your satisfaction at all stages of the transaction. Even if there is no equity in the house the ‘cash for houses’ services offer to help the home owner.

The cash for house companies advertise the types of situations they are searching for in hopes that you identify with them and call them. They provide solutions for a whole range of situations:

·Bankruptcies · Home owners who can’t sell or whose house has been listed for a long time. · Owners going through divorce· When houses are in probate· Houses facing foreclosure · Vacant houses · Trashed or damaged homes · Owners with problematic tenants · Owners on a job transfer Any condition is acceptable

Whether you’re facing relocation, transfer, foreclosure, divorce, bad tenants, or are far behind on payments, the ‘cash for houses’ help you solve those problems. The cash for houses’ companies buy homes irrespective of area, size, or price range. The advantages of using ‘cash for houses’ service · Immediate action and cash · Personalized service and tailor made solutions · Sound financial backing · Trust and good reputation · Real Know-How and experience · Instant relief from mortgage problems · Offer a quick, short and simple process · Offer of fair market price for the house · They work out a flexible moving-out date · Quick processes and fast transactions. · They buy homes with foreclosure problems and mortgage problems. · No waiting involved and the procedure is completed within days. · They offer fair market prices depending on the prevailing rates in that area and the house’s condition. · Privacy and confidentiality are assured. · ‘Cash for houses’ companies work immediately with the home owner and make an offer instantly. Assessment is free of charge and the home owner has no obligation to accept it. • The ‘cash for houses’ companies do not charge any fee or commission as they have tie ups with real estate investors who are the buyers who pay them.

‘Cash for homes’ services are ideal for those who want to get out of their financial crisis quickly and move on in life.

The interest rate increase has in turn caused a rapid fall in the housing sector. There is a home loan fall of around 7.9% which is a steep fall in past eight year’s time. With the increase in interest rates and the cost of living boost has become a burden for the common man. The Melbourne Institute index is at its lowest level, forcing consumers to reduce borrowing.

How does Rates woes prompt housing slump. It is also seen that the economy is slowing drastically; looking at the figures proves this fact. The Reserve Bank of Australia feels that the fall in the construction rates have been a boon as they will not be any need for them to increase rates.

Where else does Rates woes prompt housing slump. It is seen following the patterns of United States and Britain, Australia has also gone into housing recession leading to fall of housing sector. The reasons for this fall are increase in borrowing costs and slow economic growth which is leading to decrease in housing price fall for the past five years.

What does International Monetary Fund say on Rates woes prompt housing slump?

The International Monetary Fund has estimated the property market would slide by 30% by the year 2010. Since the Great Depression most of the Australian cities have experienced a slash in house price.

According to International Monetary Funds expert who feels Australian houses are overvalued by 25% in the year 2007 when it is compared with the household income. It was thought only Ireland, Britain and Netherlands were supposed to have a higher value for their houses, but the scenario has changed today.

Residex’s view on Rates woes prompt housing slump

It is felt that the data is highly irregular when compared with the data since 1865. Housing cost has fallen in cities like Melbourne, Sydney, Perth, Brisbane, Adelaide, Darwin, Hobart and Canberra by 0.6% to 2.2% according to Residex.

Rates woes prompt housing slump is a reality, the 100 year slide is seen in real estate and every aspect of housing industry has gone into negative. The debt in housing has grown twice since 1990 to 160% of the income, which is a lot more than Britain and the United States, says AMP Capital Investors. The median house price has increased by 140% during the period.

It is also felt that compared to Americans’ spending on property the Australian houses are very expensive. An Australian spends his six years of earning on property, whereas an American expends only half of that.

The growth rate is the same since 1991, whereas the Reserve Bank of Australia expected growth to move from 3.9% to 2.25%. The number of unsold homes is also going up and auction rates are falling. It is also seen that the period it takes to trade a properties has also gone up by 50%.

Selling your house? Staging makes an empty house a home. Hereâ??s a real-life â??soldâ? example of how it works.

Mr. and Mrs. â??Sâ? called me. They were fed up and angry. One year of carrying two mortgages, their big, beautiful house in the North Hills of Pittsburgh sitting vacant on the market – not a single offer in all that time – and no one could tell them why.

â??I hear you work magic,â? Mr. â??Sâ? said to me.

So, two days later, I interview them in the home theyâ??d down-sized to, a lovely patio home with beautiful furniture, and Iâ??m thinking, â?Wow. These people know how to create a home.â? And they tell me all about their house that hasnâ??t sold.

It was a huge placeâ??4,100 square feet! And it was just to die for. Custom-built gourmet kitchen with granite counters and hardwood floors, oak throughout the house, vaulted cathedral ceilings, open floor plan, big rooms, huge master bedroom, tons of windows, big sliding glass doors opening onto the tiered decking and patioâ??there was even a pool!

And then there were the grounds: Almost an acre of land with hundred-year-old sycamores, beautiful landscaping, flowersâ??Mrs. â??Sâ? had tears in her eyes as they described their former home.

Iâ??m heading over to this house the next day, Iâ??m already in love with it, sight unseen. Then I get there. Bam. What happened. This isnâ??t a home. This isnâ??t what I heard them talk about â?? the kids, the Christmases and Thanksgivings in their gorgeous dining room, the entertaining, the house that all their childrenâ??s friends loved to hang out at, the big, beautiful, warm home that helped them raise a family and live a happy lifeâ??this was just a house! It was cold, dark and empty and had nothing left to show for what a gem of a house it was.

So I started making my list to bring back the magic of this home that everybody loved.

For a whole year, this place had been shown with two lights in the entire house. BRING IN LIGHTS!

For a whole year, this place had been shown without any furniture to show people that this is a HOME, not an empty box with vaulted ceilings and hardwood floors. BRING IN FURNITURE! (What we call STAGING.)

After a whole year, the grounds had lost their perfect grooming, making it look abandoned and depressing. WEED, MOW, MULCH, AND PLANT FLOWERS!

For a whole year, the elements had trashed the beautiful decking, making it look uninviting. POWER-WASH THE DECK!

And then there was the blue carpeting and the blue wallpaper. Without the furniture to complement and offset them, that blue just dominated the rooms! Iâ??ve seen over and over how strong colors jump up and shout, especially on the web, and I didnâ??t want people checking out the house on the web only to get distracted by strong colors!

Well, my number one rule is Keep It Simple, Sellers, so for the carpeting, I knew that the furniture I was bringing in anyway was all that was needed to take the focus off the color. But wallpaperâ??s a different story: Itâ??s as personal to every homeowner as the art that hangs on their walls. Itâ??s always better to just remove it and paint the walls a neutral color.

So I start getting to work on my list: bringing in furniture, hanging pictures, polishing, planting flowers, power-washing the deckâ??and theyâ??re amazed. Iâ??m as religious as the next person, but I donâ??t just put a house on the market, then pray that it sells. I work to make it sell.

See before and after photos at: http://homesalespittsburgh.com/?page_id=9

And then something happened that I see over and over: They started getting excited again. Not right away, not even after the first week of me going over there almost every day to work on the house. And certainly not at our second meeting when I brought them the list of what needed to be done!

Maybe they thought I was full of hot air, maybe they thought I was half nuts. They didnâ??t say much, but they also didnâ??t disagree, which is good. That says to me theyâ??re listening, theyâ??re willing to work with me, theyâ??re willing to trust me and give me a chance to make good on my promise to definitely sell their house, and to hopefully do it within my average of 60 days to contract.

Sure enough, going into the second week, they started getting excited, not just the homeowners, but the whole family. They all started pitching in. The sons came over to mow the lawn and mulch under all the trees, they brought in a professional cleaner to scrub the home from top to bottom, they brought in painters to spiff up the garage and basement, they started bringing furniture and little knick-knacks back to the houseâ??they even brought back the beautiful teak patio furniture.

After Iâ??d furnished the house and after Iâ??d brought in a ton of lamps, I asked them, â??May I ask you for a monthâ??s electricity bill? May I leave a few lights on at night so people can peek in and see how beautiful this home is?â? Well, Mr. â??Sâ? said to me, â??A month?! What if itâ??s another year? How do I know youâ??ll sell this house at all? It didnâ??t sell for the last twelve months!â?

â??Do you trust me?â? I asked him. â??Look, after one month, Iâ??ll pay the electric bill.â?

They trusted me to leave the lights on. But it didnâ??t take a month; it just took a week.

Why? Because with staging, we made the house a home.

http://homesalespittsburgh.com/

Trying to sell your house is stressful and time-consuming. If you sell your house yourself, you have to buy for sale by owner signs, signs directing traffic to your house, take all the calls, walk strangers through your house, and follow up with buyers. You have to be ready for a “potential” buyer to come treading through your house at any time. You don’t want to miss that one buyer who could finally buy your home.

Why bother? 1-800-Cash-Out buys houses fast, in any condition, anywhere. I know you’re asking yourself, who are you and how do I know you can buy my house? Well, 1-800-Cash-Out represents a group of investors with over 32 years of experience in the real estate business. We buy houses, land, commercial property, mobile homes, strip centers, apartment buildings, notes and mortgages. We’re experienced investors that won’t waste your time. We will tell you upfront what we can do and how we can do it. We’re not the typical investors that just got into the business last year and decided to start buying houses.

We will buy your house or make you a fair offer of what we can do. We are investors, so the deal has to be a win-win for both of us. So as long as the deal works for both parties, we can do business.

The houses we purchase vary in price and income level. We buy houses in the war zones, nice houses in great areas, houses in blue collar neighborhoods, shacks, luxury homes, etc. We buy houses in any condition!We buy and sell houses on a regular basis and have worked with a variety of situations. When we buy your house we can:

Stop Foreclosure

We Buy Houses in Bankruptcy

We Buy Houses with Liens

We buy houses with bad tenants

Houses in DivorceSell your house fast by giving us a call. You don’t have to make any repairs since we buy houses As-IS.

Even if you are in foreclosure, we have purchased houses the day before the auction. It is not easy and it costs some money, but it has been done. So whether you’re behind in payments, just starting the foreclosure process, are the auction date has been set, we can still buy your house fast. So if you are losing your home to foreclosure, visit us at 1800CashOut.com

Sure, we buy pretty houses that are ready to move in, but we also buy ugly houses. We have rehab crews that do nothing but fix up ugly houses. So don’t hesitate to call us just because your house needs repairs.

We buy houses in divorce. We’ve worked out deals where the wife gets the house and some deals where the husband gets the house. We often work out separate deals for husbands and wives in hostile situations that require it. We buy a lot of inherited houses and houses that are part of estate sales. We assist with the Probate process when necessary and are very familiar with the process. From minor repairs to major rehabs we buy it all! So selling your house quickly is no longer a problem.

For fastest service visit us on the internet at 1800CashOut.com or call us now at 1-800-Cash-Out! If you need to sell a house fast, please call now. We buy several properties per month, and depending sometimes our options are limited. Thanks for you time.

To know more visit us at 1800CashOut.com.

If You Have a House You Really Need to Sell Fast in Hattiesburg, Mississippi, You’ve come to the Right Place!

You’re probably asking, “How can I sell my house in 7 days? That would be a miracle!” You can sell your house fast in Hattiesburg Mississippi by selling your house to us! You see, we’re not Realtors® who simply want to list your house for a commission and hope it sells one day. Instead, we’re a group of Professional Home Buyers who buy and sell houses in any condition or price range all over the Hattiesburg Mississippi area, including Petal, Oak Grove, Purvis, Sumrall and throughout Forrest and Lamar Counties. If you’d like to sell us your house faster than you ever thought possible, please take a moment to complete our Seller Questionnaire.

“What kind of houses do you buy?” We buy houses every day from homeowners just like you in Hattiesburg Mississippi just like yours and buy them as-is. We buy pretty houses needing few repairs and ugly houses in need of major repairs. We buy all sorts of houses including single family homes, multi-family homes, condominiums, town homes and even mobile homes. We buy homes in Hattiesburg, Purvis, Petal, Oak Grove, Sumrall, and all over Forrest and Lamar Counties and throughout Mississippi.

“How can you buy my house so quickly?” If your house meets our purchase criteria, we can pay all cash, take over your mortgage payments or lease-purchase your house immediately! As Professional Investors we specialize in finding creative solutions that meet your immediate needs. And, unlike traditional home buyers who must qualify for a bank loan to buy your house, we use private funds and/or owner financing to close on your house fast. We’ll handle all of the paperwork, make all the arrangements and close within a few days if necessary. You’ll get a quick sale with no hassles, so you can put your home selling worries behind you once and for all. Tell us about your house for sale today!

“How do I know if my house meets your purchase criteria?” To see if your house meets our purchase criteria, please take a moment to complete our Seller Questionnaire . Tell us all about the house you are selling and one of our Professional Homebuyers will get back to you ASAP about buying your house fast!

“Can you buy my house if it’s in foreclosure?” Absolutely! If you’re behind on payments or facing foreclosure and can’t afford to get caught up, and you need to sell your house and sell it fast, we can help! If you complete our Seller Questionnaire before it’s too late, we may be able to buy your house by negotiating a reasonable payoff with your lender(s) or catching up your back payments. Take action now! There are more options available than you may realize. We also work with homeowners who want to save their home.

“What does this cost me? This sounds too good to be true.” Unlike a Realtor who charges huge commissions to sell your house, we don’t charge any fees for our services. As Professional Home Buyers we don’t make any money until after we purchase your home.

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Mumbai Extravaganza offered a unique platform for international real estate institutions as well as developers to launch and promote new products. Apart from high net worth individuals, the high life show also attracted professional advisors such as lawyers, bankers, brokers, top management and decision makers of Mumbai´s leading corporations, successful entrepreneurs and celebrities.

Mohamed Binbrek, CEO of Dubai Properties, said: “We were pleased with our presence at Mumbai Extravaganza. The event gave us an opportunity to present investors with instant information on the latest developments from Dubai Properties, as well as introduce our latest project launches to a new market.

“Indian nationals are amongst the top investors within the booming real estate market in Dubai. The geographical proximity of India makes it an increasingly attractive sector for property developers in the UAE to contemplate. India itself is an emerging and credible market that boasts many international conglomerates and high-net worth investors with whom we are keen to meet and conduct business with.”

In 2007, Indian Nationals spent AED 4 billion on real estate in Dubai, and over the past 10 years, Indian Nationals have spent a total of AED 6.5 Billion on the Dubai Real Estate sector. While the majority of these buyers were Indians living within the UAE, 10% of them were living in India or otherwise, proving the existence of a substantial demand for Dubai real estate from outside the UAE.*

Dubai Properties was presented in the luxury event by Shorex Ltd. the award-winning London-based wealth management event specialist.

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=

Brazil has long been synonymous with a relaxed lifestyle in idyllic surrounds, living up to the expectations of visitors and investors alike. The attraction of the Brazilian real estate market has developed over the years with incredible strength, proving to be an optimum emerging market option.

Brazil’s real estate market and economy continue to strive towards its full potential, offering various distinct advantages. These advantages are continuously proving their capability for assisting the country to reach an exceptional position in the world market. Many features and benefits of the Brazilian market generate interest from a variety of investors, with the strongest attractions being in the following areas:

Reformed Economy and Political Environment

Over recent years Brazil has started to emerge as a potential super power in the world’s economic market. Unlike many other developing nations, Brazil is not solely reliant upon growth in tourism to achieve economic growth. As a nation rich in oil reserves and bio fuels, maximising the full potential of the country’s economy can produce incredible financial wealth.

Reforms in the government over the past five years have assisted the expansion of the Brazilian economy, enabling the nation to experience a turn-around in several sectors. Wages have increased along with employment opportunities, assisting with the emergence of a middle class society. Increased disposable incomes and a reduction in interest rates have generated an internal demand for property.

Presently positioned as the largest economy in South America, the continued development and expansion could potentially enable Brazil with one of the largest economies in the world. The Brazilian government is also focussing on the growth of the tourist market and all areas of foreign investment, including within the real estate sector.

Strong Rental Yield and Capital Growth Potential

Over the past few years the Brazilian real estate market has been aimed at attracting foreign investors, excellent gains have been obtained. In key areas of interest such as Natal in the north-east, growth of around 20% per annum has not been unusual. The lack of restrictions to non-resident buyers and the growth of the tourist market have assisted with the expansion and demand of the sector.

Prices continue to rise as demand increases and development of infrastructure in the region expands to accommodate the influx of buyers. Resort style projects located in idyllic settings, convenient to reach and with a strong appeal towards holiday makers have attracted buy-to-let clients for the rental potential.

Initial development of the region has enabled land prices to be available at their lowest, allowing for the strongest possible growth potential. The convenience of improved flight connections from major cities around the world, connecting with Brazilian tourist hotspots, has helped with the growing interest in the destination for holiday makers. Demand for self catering accommodation is on the increase worldwide, improving the potential gains from short term rental properties.

Exceptional Emerging Market

The attraction of Brazil’s real estate market has developed over the relatively short amount of time the market has been open to foreign buyers. Continuous interest in the property market from North American and European investors has assisted in the steady growth of real estate and tourism in the north-east of the country.

High quality developments in a stunning location have been increasing in prices along with the growth of the market. Although property prices are growing as the market expands, Brazil continues to present exceptionally low priced real estate opportunities. Excellent capital returns and yield potential can be generated from Brazil’s emerging market as interest continues to expand.

Buyers have been entering the market for short, medium and long term opportunities, along with lifestyle purchases and retirement homes. The buy-to-let market has been one of the most sought after sectors of Brazil’s investment market, taking advantage of holiday maker’s strong demands for self catering property. Brazil’s emerging property market is also set to boom in line with the huge domestic demand, having developed from government reforms to enable continued future growth.

Government Encouragement towards Real Estate and Foreign Investment

For many years interest rates on mortgage in Brazil were at 25%, amongst the highest in the world. The government initiatives to reform the real estate market, creating accessibility to the domestic market and permitting foreign buyers to easily access the sector, has proven to be extremely successful. A dramatic drop in interest rates to around 11%, combined with an expectation for the rates to drop further, has enabled a new confidence in the government’s active interest in reforming the real estate market for both local and foreign buyers.

New infrastructure throughout the north-east of Brazil has enabled improved accessibility to the area. Expansions of airports, new bridges and highways are being carried out, benefitting all who live in or visit the areas. Considering the few years that Brazil has permitted foreign property investment without restrictions, the sector has developed at an incredible pace. The attraction of the Brazilian real estate market has proved its staying power for strong continuous demand and future growth.

Returns on investment have been exceptional from the varied ranges of opportunities available. Early entry to the market is providing the best returns with the steady growth and demand, expected to boom further with the opening of the mortgage market to foreign buyers. The government focus on the housing market, infrastructure reforms and tourism has been long overdue. The success of the reforms for economic growth has created immediate and long term benefits to the Brazilian community.

Strong Tourist Growth and Expansion of Infrastructure

It is easy to see the attraction of Brazil as a sought after holiday destination, especially with the continued easing of access to the newly developed holiday resort locations. Natal, located along the north-east Atlantic coast features a year round destination with a tropical climate. Around 8 hours flight from Europe and North America, visitors are likely to spend longer than a few days in the area, creating improved potential to the buy-to-let rental market.

Considered one of the safest areas of the country to visit, Natal and the surrounding areas feature some of the best beaches in South America, with a superb climate. Accessible by direct flights from several major cities such as London, Barcelona and Lisbon amongst others, the new international airport in Natal has been designed to cope with the predicted exceptional growth of the region’s tourist and foreign investment markets.

Price increases in property have been growing directly in line with the demands of the tourist market. This growth has been assisted through government reforms and initiative towards increasing awareness and expansion of the tourist sector. All of the incentives developed for the growth of the tourism sector and attracting foreign investment, have been very successful in creating an exciting and attractive new investment market.

Continued interest, growth and demand of Brazil’s real estate market have not slowed, leading development companies to maintain construction to meet the strong demands. The growing internal market provides additional incentives to buyers, allowing for further exit strategies and continued interest in the market. The stunning natural attractions of the vibrant location are expected to continue drawing visitors from around the world. Following the release of the Goldman Sachs BRIC report, a new fascination in Brazil began to emerge. As confidence in the market has not waned over time, ever increasing numbers of investors are keen to experience the market for themselves.

A well respected US magazine recently claimed Monaco has the most overpriced real estate in the world, claiming the rental returns as part of their figures meant the tax haven’s property costs were unduly high.
In response a Monaco internet site says the American magazine are wrong, and have forgotten why Monaco’s property prices are high in the first place.
‘The error they made was comparing Monaco with places like Rome, Warsaw, Los Angeles and Vancouver, and they also overestimated closing costs. While admittedly high in Monaco at around 11 per cent, it’s not common to be 20 per cent that their research was based on.’
The comparison of 50 financial centres assumed the property was not a main residence and looked at rental returns – another error when calculating Monaco’s property prices according to the Monaco internet guide.
‘By law in Monaco rentals are a minimum of one year, so it’s obvious that rental returns are going to be less than places where weekly and six monthly rentals are possible. To gain residency in Monaco via renting the residency office needs evidence of a twelve month contract, so Monaco is in a unique position when compared to other leading financial centres.’
‘There is a shortage of available property in Monaco and high demand that shows no sign of slowing down – given all these factors we just think the US magazine’s analysis of the Monaco real estate scene has been done without taking local factors into consideration.’
Typical property prices in Monaco at the moment include a second floor studio apartment at 1,100,000 Euros, a one bedroom apartment in Monte Carlo at 2,150,000 Euros, and a three bedroom two bathroom apartment at 5,500,000 Euros.
As well as buying a property, to gain residency in Monaco a bank account needs to be opened in the Principality, with account opening deposits varying between 100,000 and 500,000 Euros.
One thing that could put the brake on the number of Brits looking to move to Monaco was announced after the magazine’s claims about Monaco real estate prices were published.
The amount of time British tax exiles can spend in their home country is being limited by the British government, and it could impact the British economy, claim a company who specialise in tax haven property and residency.
Up until now a British taxpayer could avoid paying income tax by taking residency in a tax haven such as Andorra or Monaco, and be allowed to spend 90 days a year in Britain before falling foul of the Iland Revenue. Importantly both the day of arrival and departure into the UK didn’t count as a day.
So technically, a tax exile living in Andorra could drive to Barcelona airport for a 7am flight to London, and given the hour’s time difference between Spain and the UK, be comfortably in an office working by lunchtime.
Equally, the same tax exile could leave the London office at 6pm Friday for Barcelona en route to Andorra – and importantly those five days in the UK would count only as three of their ninety day allowance as the day travelling to and from the UK aren’t counted. Which allowed business men and women to commute from the tax havens of Andorra and Monaco thirty weeks a year. Some would do Monday to Thursday and could do that virtually all year and still stay on the right side of the British tax man.