Monthly Archives: May 2016

Current News About the Real Estate Market in Cuenca, Ecuador

vReal estate in Ecuador is ranked as some of the best in the world; at least for retired individuals who are looking for property investments abroad. The country is friendly to expats, the prices are affordable, the process is simple and fast and best of all, Ecuador is one of the best countries to retire in. This is one of the reasons why retirees are flocking to this country and starting to buy available properties in Cuenca.

The Cuenca, Ecuador Real Estate Scenario

Before you invest in anything, you have to look at the current situation of the real estate market in Cuenca, Ecuador. We have come across an article that discusses the Ecuador real estate scenario; specifically in the city of Cuenca.

The article revealed the following facts about the real estate market:

    • There are so many unsold properties in Cuenca that new construction could be stalled or delayed; at least, those outside the dozens of construction projects that are already underway.

 

    • The slowdown in real estate sales is attributed to the unforeseen increase in prices in recent years, especially since 2007.

 

    • Ecuadorians who are returning from other countries have fueled the increase in home sales, specifically in the condominium market. This trend is slowing down and this means there will be fewer property investors available. In the last decade these overseas workers have come home or relocated to Cuenca but this trend seems to be slowing down.

 

    • The large inventory in the condominium market is due to the wrong assumption of the builders that the homecoming of Ecuadorians will continue.

 

    • Other causes of the rising cost of homes are the increase in land prices, expensive building materials and labor cost. The land prices in Cuenca have gone up from $50 per meter to $160 per meter. The cost of concrete and steel has risen by more than 150% since 2007. Labor costs have increased due to new government regulations and because of a 40% increase in the minimum wage since 2008.

 

  • New rules that have been imposed regarding funding and permitting could compromise the construction of new homes, especially for small builders.

All of these factors make it difficult for builders to maintain the price of $30,000 to $40,000, which is the usual amount that Cuencanos can afford.

What does this mean for expats wanting to buy real estate in Ecuador?

As much as things are looking depressed in the real estate market in Ecuador, experts are saying that it does not seem like it is leading to the same housing collapse that happened in the US. The article mentioned that although foreigners have reduced their real estate investment by 50%; developers have come up with a new strategy. They will allow buyers to defer 70% of their respective payments to closing; at least this is true for those that are still under construction.

The experts also believe that home prices will not be declining soon and might still continue to rise, but only in the 3% to 4% range. And they are also saying that the government regulations, although affecting the price of homes, are imposed for the protection of the market.

So if you are retired and you wish to invest in Ecuador real estate property, you may want to proceed with caution for now. When inventory is high and the market does not seem like it is interested in buying a home; buyers will be in a better position to negotiate with sellers and property representatives. And if you can afford to buy a property now, it is encouraged that you invest in a rental property. The article mentioned that the rental market is growing; since most people cannot afford to buy new homes.

4 Things That Will Help Fetch the Right Resale Value for Your Property

vSo, you have decided to part with your home. Wondering how to get the best deal that will justify holding it is an investment property until now. Before you put up a notice for sale, or start passing the news to your near and dear, consider the fact that the reality market is some parts of the country has been sluggish.

Hence, it is worthwhile to put in a little bit of effort that will make your property look a lot more attractive to potential buyers. Here are some expert tips that will help enhance the resale value of your home by tens of thousands if not few lakhs.

Pep up the exteriors

As soon as a home is bought, homeowners spend time, money and energy in designing the interiors to their whims and fancy. What they miss to see is that, the exteriors play a major role in creating an impression in the minds of a potential buyer than the interior. It is the exterior that is first seen before they take a walkthrough of the interiors. Hence, pay attention to pepping up your exteriors in equal measure to the interiors to get a better resale value.

Creating additional space

An extra room is fine, but what if it serves no purpose? Moreover, what if that extra room does not fit into the ergonomic layout of the home properly? Instead, think of ways to increase the space inside the home. There are plenty of architect firms with interior designers and vasthu consultants who help altering the physical dimensions of any home to make it appear spacious and airy. A spacious home will fetch a higher resale price than one which boasts about a tiny and ill-fitting extra room.

Setting right minor repairs

Like drops of water that collect together to form a messy puddle, a number of unattended minor repairs can wash away a significant portion of your property’s resale value. A prospective buyer will be more interested in knowing the present physical condition and the expected longevity of the house before making a final decision.

The scene of leaking walls, falling patches and plumbing problems can definitely take a hit on the property’s sale worthiness. Hence, make sure all minor repairs are attended to on a regular basis.

Keep a cushion for price negotiation

Indians are ruthless negotiators. We love to bargain for the best deal in every transaction. Especially when it is about buying a new home expect the negotiation process to be fiercer than what you can imagine. Hence, make sure you price your property with some cushion for reduction during the negotiation process.

You might want to take into consideration the existing market rate of similar properties and how the deals have ended before fixing the price or agreeing to the price offered by the buyer.

The resale value for a property is highly dependent on various factors. Location, floor space, number of rooms and furnishings all play a major role in determining the resale price. However, other factors like well-maintained exteriors, perfectly functioning plumbing and sanitation, additional space for storage, etc. can help further increase the resale value to a higher denomination.

Sparkling Future For Estate Agency

dsvThese days the growth factors have been taking a very vast and quick turn which is entirely leaps and bounds and coping with these immediate changes is something very challenging for the different industries. Every industry has its own setup and this may move according to the demands made and the changes evolving. The technology industry needs a very quick response if a business needs to be in the market for a future intent. However, the property and estate agent industry has now been on a steady position and there are bright chances for it to remain income generating in the future. On the other hand, the internet service providers which used to offer the card system have become extinct.

When it comes to focusing on the real estate business specifically one may expect the brightness of future for a number of reasons a few of these reasons may include the following:

Boom of Residential Spaces

These days at every point what we see is the construction of a new residential space which may be a bungalow or a huge building. The population is increasing day by day and with this the demand of residential properties is also increasing with the same pace. Therefore the future of estate agencies here may prove being a very outstanding one because when it comes to the sales and purchases of these residential spaces there is a major chance of the business of real estate to take a boom. The relation between the real estate and the residential properties is a direct one because people need a home for shelter and real estate may give a perfect deal.

Trend of Shopping Malls

Another very commonly increased concept all over the world is the prevailing concept of shopping malls. Previously people accustomed to run after the differed shops in different corners but with the passage of time these malls are taking very significant place in the lives of every individual. In this regard, the development of malls may leave out numerous shops and stores on individual basis which may need a selling agent and here the role of the real estate is something essential. Many builders may approach different agents for the purpose of either purchasing the individual shops left out or the builders working over the mall projects may move towards real estate agents for huge lands. In every case, the future of the real estate agency is a brighter one.

Why Are UK Property Funds a Good Investment?

davInvestors seek profits on the exceptional housing demand. Fortunately, public and private programmes synergistically encourage home building.

“Everyone needs a home over their head at the end of the day.”

This is what a UK residential property fund manager said in January 2015 to Professional Pensions, a website dedicated to institutional investors who are tasked with achieving the highest returns for their clients.

The fund manager (from M&G UK Residential Property funds) described being involved in the property market with built-to-let properties as well as participating as an investor in the development of new-build homes. The 25-34 age group is a focus of this funder, which means they target properties that are near public transport.

That particular age cohort is indeed important, not because of where they stand in wages but more because they represent pent-up demand. With tight lending in the UK – particularly after the 2008 financial crisis – homebuilders were reluctant to construct new homes at the entry level for first time buyers. In the past decade, this has slowed housing formation altogether or put people into the rental class who would likely be owners under other circumstances (working people who rent now comprise about 19 per cent of the market, up from 11 per cent a decade ago).

Homebuilders and developers are fully aware of this demand, but were waiting on the sidelines because of the difficult financing matter. Today, there are several factors addressing this blockage to building – which have spawned creativity in the private sector as well as from the government:

Help to Buy programme – First time buyers and home movers are provided equity loans on properties with purchase prices up to £600,000. Buyers need to contribute at least 5 per cent of the property price for a deposit while the Government provides a loan up to 20 per cent of the price. The buyer then needs to qualify for a 75 per cent mortgage loan. No loan fees are charged for the 20 per cent Government loan for the first five years of home ownership.

Starter Homes programme – Available at a 20 per cent discount to under-40 buyers, this housing bill is targeted at increasing the UK housing stock by 200,000 residences. All homes will be built on brownfield (previous use) land. It is favourable to self-builders and smaller home construction companies with reduced bureaucracy and a streamlined neighbourhood planning process.

Property fund management of strategic land – From an investor’s perspective, this is a way to help increase the country’s housing stock while achieving asset growth. their skills are in designing homes, building and then selling them. With increasing frequency, they are able to buy lots on streets that have utilities installed and planning approvals already cleared, thanks to the work of developer-investors. The investors, typically working in joint venture partnerships, identify where homes are needed most and find land that can increase in value if allowed a use designation change by the local council. Once that is accomplished, they sell lots to builders.

Crowdfunding – Start-up investment companies are launching a global stock exchange for residential properties in the UK and possibly abroad. Launched in early 2015, Property Partner has properties in London and the South East where more than 1,000 investors have invested as little as £50 on up to £50,000 in homes, hoping to receive rental income and possibly capital growth. The shares are highly liquid and can be traded via a one-off transaction fee of 2 per cent. An additional 12.5 per cent fee is charged for advertising, letting and managing the property.

It took an improving economy to convince investors that the homebuyers and home renters were ready to jump out of their parents’ flats and into their own homes. Government programmes have had a measurable impact, but entrepreneurial thinking on the part of strategic land partnerships and others has made the private sector a good partner. With a shortage of one million homes, it will take a decade or longer to bring supply up to demand.

Investors should always be versed in the risks of their positions. Consulting with an independent financial advisor can help identify tolerable risk, particularly in relation to other wealth development goals.