Investor Attention on Goa for India Real Estate Investment

There is no doubt that the U.S. real estate and mortgage problems of 2006 into 2010 have disturbed markets around the world. Many countries have suffered, with previously robust real estate markets languishing without international investment due to current conservative attitudes. India is no exception, with residential and commercial real estate development in India slowing during the last three years.

However, international investment may be experiencing renewed interest in the country, and India itself is continuing and expanding government initiatives through housing boards situated throughout this nation of more than one billion population. Being one of the most populated countries in the world, housing is at the top of the government’s list of importance for their citizens.

However, when it comes to interest from foreign investors, tourism plays an important part. Goa, India’s smallest state, is also the fourth smallest state in population. Situated on India’s west coast in the Konkan region, it’s the richest state, with a GDP more than double that of the country as a whole. Both domestic and international tourists flock to Goa for its beaches and architecture influenced by the Portuguese. Wildlife sanctuaries, equatorial forests and beautiful beaches draw tourists, and now real estate investors and developers. With the government owning more than 80% of the forest land, greater land demand should bring upward pressure on prices for future development.

Tourists bring money, not only for temporary enjoyment, but for long term real estate purchases. Tourism is Goa’s primary industry, handling approximately 12% of all of India’s tourist visits. Goa isn’t overly dependent on tourism, as the primarily agricultural area is changing to a more mining focus, with growing discovery of locations rich in minerals and ores. But, tourism is very important when considering real estate investment, as those who return to the area will many times look for a purchase that will appreciate while providing an annual vacation retreat.

Builders and developers in Goa frequently also handle property brokerage. One developer, Riviera Constructions, boasts project completions in 12 to 15 months, well ahead of schedules. These include apartments and India vacation villas, as well as planned resort communities built with international investment as a focus. While sale is the primary goal, they also manage these properties as rentals, and buyers can factor short term rental income into their purchase decisions.

For those vacationers who enjoy pristine beaches and access to equatorial forests, wildlife and the civility of beautiful architecture, restaurants and a focus on tourism, Goa is a great destination. It also seems that it could be a great place to invest in real estate.

Japan has recorded nine consecutive quarters of economic expansion, and recorded an annualized real growth rate of 3.3 per cent during the first quarter of 2007, with the major boost coming from robust corporate capital investment. Investors remained overwhelmingly positive regarding the Japanese real estate market and most real estate indicators point to a continued upbeat market. J-REITs remained the dominant players as they added to their portfolios not only in Tokyo but throughout the country. Nevertheless, with the financial markets pricing a further interest rate increase, the 10-year JGB yield increased from a 1.6 per cent average in April to a 1.9 per cent average in June, shrinking the positive spread of NOI yields.

In Singapore, investment transactions totalling S$24.63 billion were recorded in the first half of 2007, a 70 per cent increase year on year. The robust momentum was largely driven by acquisitions of development sites. The office investment market remained brisk, with both the number and value of transactions by overseas investors increasing as private equity groups and foreign funds displayed keen interest in office properties. In the most significant office transaction in the first half of 2007, MCP Raffle, a unit of Macquarie Global Property Advisors, purchased Temasek Tower for S$1.04 billion.

Investors remained confident in the Hong Kong property market on the back of the city’s continued economic growth and upbeat economic outlook. Investment activities were particularly robust in the luxury residential and office sectors, with premium properties highly sought after by both investors and end-users. Notable transactions included the en bloc acquisition of Lodge on the Park in Mid-Levels for HK$1.0 billion by a local developer and Citigroup Property Investors’ purchase of two Central buildings, Crocodile House and the adjacent Ananda Tower, for a combined HK$1.5 billion.

Strong demand in Seoul’s office sector continued to drive positive investment momentum during the first half of 2007, with the steady increase in capital values of prime office buildings attracting both domestic and foreign investors. MAPs Investment Management was particularly aggressive, settling a forward transaction by purchasing Glostar Square Garden, due to be completed in 2010 in the CBD, for KRW 843 billion. Another active domestic investor, KORAMCO, will close the acquisition of Seoul City Tower in July, adding the CBD property to the portfolio of its KOCREF NPS 1 K-REIT.

The Chinese government continued to step up efforts to control real estate investment in the first half of 2007 in order to maintain market stability and avoid overheating in the economy. Between January and June the People’s Bank of China raised the bank deposit reserve ratio five times, from 9 to 11.5 per cent, effectively removing liquidity from the market. The Bank also twice increased the benchmark rates of bank loans and deposits.

Control over foreign investment in the real estate sector was further tightened. In May, the Ministry of Commerce and State Administration of Foreign Exchange (SAFE) released Circular 50, or the “Circular on Further Enhancing the Monitoring and Approval of Foreign Direct Investment in the Real Estate Industry”, as a follow-up to Circular 171 released in 2006. Circular 50 stipulates that the acquisition of land use rights or property title is a prerequisite for establishing foreign-owned onshore real estate entities, and seeks tighter control of foreign investment in high-end properties. Complex approval processes make it more difficult for new entrants to obtain development rights in the open market or purchase income- generating properties from local partners. Moreover, in order to control overseas investment in real estate via offshore equity transfers, the Circular requires strict regulation of so-called “return investment” – in this case, referring to local property companies setting up offshore firms to reinvest in China’s property market.

However, the macroeconomic measures aimed at curbing the overheating investment market have not led to a reduction in interest among overseas investors and institutional investors are still keen on acquiring quality properties, particularly in the office and retail sectors.

Both local and overseas developers continued to display a strong appetite for development projects in China. The review period saw Hopson Development’s acquisition stakes in a luxury residential development in Beijing for HK$6 billion stake acquisition registered as the largest investment transaction in China during the first half of 2007. Shanghai remained the leading destination for foreign institutional capital, with JP Morgan making its first foray in the city by partnering with the domestic giant China Overseas Land & Investment to develop a Grade A office building in Puxi. In Guangzhou, the land sales market remained buoyant, with both the office and residential sectors registering record high accommodation values in recent land auctions. Meanwhile, 15 industrial sites were auctioned at the opening bids prior to the release of municipal-level implementation details regarding public sales of industrial land.

The Taipei investment market remained active in the first half of 2007, recording several major transactions. Sinyi Realty bought the Yageo Corporation Building for about US$150.5 million in order to relocate its headquarters to Xinyi-Jilong, while Cathay Life Insurance purchased several floors of the CEC Dunnan Building, located in the Minsheng-Dunhua area, for approximately US$116.5 million. As the flow of projects in the construction pipeline thins, office rentals are expected to trend upward, thus enhancing yields in the office sector.

Following the escalation of interest rates and imposition of a service tax on rental income in the first quarter, real estate investment activity in India was nearly static during the second quarter, characterised by investor caution in anticipation of a correction in prices in certain segments. Market sentiment is tending towards a correction, and higher interest rates and increased prices have also dampened investor and end-user appetite for significant asset purchases.

Office space proved an exception to the rule, seeing a reasonable amount of investment activity due to the scarcity of investment-grade assets. Demand continued to outweigh supply, resulting in continued tight office vacancy rates and rental growth in the National Capital Region. Developers expressed keen interest in warehousing and logistics during the quarter and are looking for financial and operational partnerships with international warehousing and logistics companies.

Turning to Southeast Asia, REITs and institutional investors dominated activity in Kuala Lumpur’s investment market during the period under review. The office sector saw the bulk of notable transactions, in a trend largely attributable to the increasing rentals arising from tight supply. In Thailand, local and overseas investors focused on downtown Bangkok and major tourist destinations such as Phuket in the second quarter of 2007. Business process outsourcing (BPO) in the Philippines is showing clear indications of strong and steady growth, attracting much interest from developers and overseas investors. The investment market in Indonesia has continued to improve following the enactment of the 2007 Investment Law providing for equal treatment of local and overseas investors. In the second quarter President Yudhoyono signed a regulation regarding Special Economic Zones, which is also expected to spur investment.

China has already restricted pre-sales by developers, curbed loans for third home purchases and raised banks- minimum reserve requirements three times this year but none of these measures is affecting the property market at present although analysts believe they will kick in soon.

The government is trying to peel back the effects of a stimulus plan and $1.4 trillion lending binge that revived economic growth but may have now created a real estate bubble.

It may be just a matter of time, according to Brian Jackson, an emerging market strategist at the Royal Bank of Canada in Hong Kong. “The latest round of these fine tuning measures were only put in place a few weeks ago, so it is probably too soon to judge their effectiveness” he explained.

But most experts agree that more needs to be done. Developers including Guangzhou R&F Properties and China Overseas Land & Investment have already reported slowing sales in April and analysts believe that prices will start falling in 2010.

Beijing became the first Chinese city to limit residents to purchasing one new home starting this month and more cities are likely to restrict buying, according to Yang Qingli, an analyst at BOCOM International. “Prices will definitely drop this year, by between 10 and 20%” he predicted.

Prices could fall by more than 30% in the first-tier cities as supply is set to rise, according to Shen Jianguang, a Hong Kong-based economist at Mizuho Securities Asia. “This is the last month this year we see surging prices” he confidently predicted.

R&F, the biggest real estate company in the southern city of Guangzhou, said that contracted sales last month slowed because of China’s fiscal tightening. Sales by value at China Overseas fell 9.2% in April from a year earlier, the company said.

Evergrande Real Estate Group, China’s second-biggest developer by sales, said sales fell 10% last month, the biggest decline for six months and it has cut prices by 15% on 40 developments.

“The new measures will surely kick in soon, but it is likely more restrictions will be announced until Beijing can see clear evidence that prices will drop too, not just transactions volumes, and that can still take a few more months” said Andy Mantel, Hong Kong based managing director at Pacific Sun Investment Management.

But if developers need funds all they do is seek less tight credit terms offshore, it is claimed.

China Overseas Land & Investment agreed to an HK$8 billion loan in February that pays 1.45% at current market levels. “For property developers to keep growing in what is an extremely fragmented and competitive market, they have to go offshore for funds. It’s one way to circumvent tight onshore credit” explained Brayan Lai, a credit analyst at Credit Agricole CIB in Hong Kong.

The banal bazaar is the allure investment belvedere in our country. The bulk of publications and shows adherent to its circadian movements is rather staggering. That getting said, about none of them like to allocution about taxes. Why? Behindhand of how you barter in the banal market, you are traveling to pay a block of change in taxes and there is no absolute way about it. Absolute acreage investing, however, is an absolutely altered story.

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The better aberration if it comes to tax advantages amid absolute acreage and taxes is the sale-buy situation. With stocks, you advertise shares in one aggregation and buy in another. If this occurs, you accept to pay taxes on the awash shares behindhand of the actuality you angry about and fabricated addition purchase. Absolute acreage investments plan differently.

With absolute estate, you can advertise a acreage and buy addition after paying taxes. Yes, even if we are talking about rental properties. This does not appear automatically like with your primary home. Instead, this is accepted as a 1031 exchange. 1031 exchanges absorb the backup of your acreage with a like-kind one. It is a awful abstruse breadth and should alone be undertaken with admonition from a advocate and/or accountant. That getting said, the tax accumulation are so ample as to accomplish it annual the time and expense.

Getting costs for rental backdrop is abundant harder than for a primary home. As a result, there is a cogent bulk of agent costs in absolute acreage investment market. You can use this to your annual from a tax perspective. If you go to advertise your property, you can action agent financing. This is accepted as an chapter agreement. The annual of this access is you alone accept to pay taxes on your profits as they appear in anniversary year. This allows you to amplitude the tax bill out and accept added flexibility.

Real acreage advance is adequately straightforward, but taxes are in affair you charge to yield into account. Accomplish abiding you accept a tax action in abode afore affairs and again administer it accordingly.

Why does a good builder pay off? First of all, the maintenance costs are lesser than for older houses. Contemporary home and land packages are far more easier to maintain than older ones. Furthermore, the rental revenue is significantly larger if the house is well-built and thought through, as clients see it and are willing to pay bigger monthly fees. Good construction companies also take nature into account; not only the planners respect the local flora and fauna, they also incorporate green elements into houses as more and more clients have become environmentally conscious and want to live as green as possible.

To make you sure that you get a good investment for your money, numerous display homes can be seen as examples for your future investments. Display homes can help you estimate the maintenance costs so you can try and estimate the predicted costs and revenue from your investments. They also give you an idea of how easy it will be to attract customers for the house and land packages sa you purchase. Display homes tend to be prime examples of the construction company you choose, and you can get a good grasp of how good the builders are.

Housing Industry of Australia (HIA) has predicted that by 2020 Australians will experience a vast shortage of apartments (up to 500,000); that is, if the current demographic and immigration trends continue. This means that this decade will most likely be nothing short of an Australian investment golden age, and in order to secure your future investments, you have to choose the best builders for your house and land package investments. You too can ease the predicted housing crisis with home and land packages, and receive great benefits from them.

Overall, your investments are more secure when you choose a reputable builder or reseller, because not only are they more likely to attract clients, the new technologies are making them deteriorate slower than older houses. More and more Aussies will need homes, and the rental prices will likely go high-sky in every single part of Australia. That being said, quality house and land packages are the investment of the now.

Manufactured by a combination of Wall Street financial manipulation, overly creative banking practices, greed and plenty of fraud the real estate crash over the last three years has developed a whole new rule book for buying and selling property. Here are the 10 best new rules to keep in mind before you venture out into the marketplace.

#1 - First and foremost do your own research. Many people got into trouble listening to mortgage brokers, real estate agents and loan officers. The problem wasn’t that all of these folks were self-serving, but most simply didn’t have the information to recognize what the end game would be when the bubble popped. The Wall Street derivative market manufactured what seemed like an endless supply of readily available cash for mortgages until the music stopped.

#2 - Real estate prices don’t always go up. Historically housing values have appreciated since World War II at two to three percent a year on average close to the rate of inflation. Some years have been much higher of course, and many have been lower. For every person that makes money in real estate another loses.

# 3 - Mortgages aren’t always easy to get. When bankers tighten underwriting criteria the mortgage market is constrained and finding financing can be down right treacherous. It’s best to get a long term fixed rate 30-year mortgage unless you plan on moving soon for certain. After all as millions of homeowners have learned being upside down on their mortgages you can’t always refinance.

# 4 - Adjust expectations. The wisdom of buying all the home you can afford might sound nice, but the reality of purchasing the maximum mortgage can have a disastrous outcome. What happens if one of the qualifying buyers loses a job or becomes ill? You could find yourself where millions of Americans have over the last few years in foreclosure.

#5 - It’s a fools game to time the market. When real estate is booming and the economy is rolling like it seems like it’s never going to end beware. Conversely, when the market is falling it’s hard to see just how low things will go. All real estate cycles have a beginning, a peak and an end. The bottom of the market usually has a hard landing. Plan your strategy for the long run to protect you and your family from an uncomfortable ending.

#6 - Shop for homeowners insurance. Many people find out too late that homeowners insurance is far more expensive than they thought and in some cases unaffordable. Search home insurance quotes for your area on Housing Predictor for free without cost or obligation.

#7 - New home builders don’t always build. Although they’d like to, new home builders don’t always construct new modern homes. In fact, one of the major pitfalls of being a contractor is the cyclical nature of the business. When the housing market is hot they’re working hard to fill the demand with a supply of plenty of new homes, but when the economy chills hundreds of thousands of small and large home builders go bust.

#8 - Real estate is a good investment for the long haul. If you have a personality that is able to handle the ups and downs of economic cycles then it might be right up your alley. But if you have trouble handling perspective troubled tenants then property management might be right for you. A good property manager is well worth the commission, and just might keep you out of trouble with the bank. Only 15% of all real estate investors make money on their investments. That’s an old fact and it’s likely where the real estate market is headed again.

#9 - Get fully qualified for a mortgage. Buying a home or other investment property usually comes with a mortgage unless you’re in the enviable position of paying cash. These days it’s as easy as checking with a lender online. Housing Predictor offers mortgage information with a wide selection of lenders at no cost or obligation online.

#10 - Buy yourself protection. Last but far from least don’t be cheap when it comes to protecting your financial investment. Whether you’re buying a home to live in or an investment property get two appraisals from two separate independent appraisers, and make your offer on any property to purchase subject to both appraisals being acceptable to you and the lender if there is one involved.

Working with rental properties isn’t nearly as glamorous and doesn’t provide the almost instant profits that flipping houses might but it is also a great and very valid method of real estate investing that will build a steady profit over time if you plan properly. Rental properties are in demand now more than ever with so many people going into foreclosure and losing the homes they’ve worked hard to build for their families. For this reason rental properties are a good thing to own at the moment, especially those that are family homes.

There are many reasons that people rent and while there are some risks involved when renting properties, the risks are much lower than the risks involved in flipping or pre-construction investment endeavors. There are a few things you should consider when purchasing a property for the sake of renting however in order to make a wise and long lasting decision for your real estate investment.

First, only invest in rental properties in areas that people want to live in. It may be true that you can buy property cheap in a few very run down sections of town but it is doubtful that you will turn those properties into profitable rental units. It is best to pay a little more for a more attractive address for renters. You will find that your properties are inhabited more often, which will make you more money in the long run.

Second, pay attention to the types of people in the area and buy rentals accordingly. It is quite possible to turn large homes into multiple smaller apartment units (according to local zoning laws) that are ideal for college students. You do not want to do this however in an area that is geared towards family homes and won’t be friendly or tolerant of college students. Design the rentals according to the market you are attempting to attract.

Third, don’t be greedy. The goal of owning rental properties is of course, to make money. At the same time if your price your properties too high you will find that they sit empty more often than not. Every month that your property is empty is a month that you aren’t making money on that property at best and a month that you are losing money at worst.

Fourth, know the market. Study the local market for buying real estate and renting real estate. This will help with many things, not the least of which is determining whether or not any given property will make an attractive rental unit. Another thing it will help you determine is how much rent the units you are considering can bring in month after month.

Finally, when renting properties you need to keep your eye on the long-term goals rather than shortsighted goals. Property rental is a marathon rather than a sprint with the greatest profits coming at the end. You will want to pay as little interest on the property as possible and pay the property off as quickly as possible in order to realize the maximum profit potential and acquire new properties. The real money when renting properties as a real estate investment isn’t in renting out one or two units but twenty or thirty. The more rental properties you own the more money you stand to make from owning them.

A change was very much desired by the Australians who were very much disturbed with the prevailing situation. The Government had to do something regarding this. And that was when the Strata Act was introduced. According to this Act which was introduced in 1961, anybody who buys a property receives a title deed for the property. A building has different apartments which are privately owned by the buyers and some common properties. This is known as a Strata Scheme.

These apartments in different levels are known as Strata. The owner of the property gets a Strata Title which is a title deed for the strata he owns and it is the ultimate proof of ownership. This title enables the owner to lease, sell or mortgage his property. It is this title that enables an owner to become a member of the Owners Corporation, which is a body made by the owners. This means he has the right to use the common property of the building, but no owner can make any alteration or renovation in the common property without the permission of this Owners Corporation.

Naturally when many families live together in a building, a lot of issues will crop up. The common property has to maintained and certain rules and regulations laid down. So a Body Corporate is formed to deal with all these common issues and thje common property area of the building will be managed by a person appointed as Body Corporate Manager.

The cultural ethos of Cyprus attracts and warmly welcomes visitors from all over the world and has expanded its airport to an international one to cater for tourists and investment from around the world. You can already see a mix of cultures here as people form all over the world are settling in to the country. More and more residential settlers from many nations are electing to live here voluntarily. This is because of the health service, taxation as well as a low cost of living. Added to a world beating low crime rate. On all fronts Cyprus is a great location! It is now attracting property investors in their droves due to the stability of the economy and the legal system.

One of the biggest selling points for Cyprus is that the majority of the local populace speak and understand English very well. This in turn has a huge impact on tourism and the demand for property. In many ways Cyprus is a reflection of a better world which we have lost in recent times.There are many ways in which this is a great place to live. Firstly there is still a climate of respect for the elderly, neighbours genuinely care about you, kids here are still civil and you can go out till late at night whatever your age and rarely if ever see any trouble. You can go out to Ayia Napa the party capital on the Island and be surrounded by up to fifty thousand drinkers and have a pleasant and relaxing evening. There are several other great reasons for living here but the best has to be that most people can even leave their doors open at night without being robbed. It therefore comes as no surprise that Cyprus has been voted the top destination in the world to retire by Ex pats, for all of the reasons above..

The economy of Cyprus is progressive and investment friendly! A large factor that I will like to point out that has made Cyprus a property investment hotspot is the 2004 declaration wherein Cyprus was given the status of a full member of the European Union. That is why there has been a heightened interest of real estate investors for Cyprus and the activities of buying and selling property have intensified here. This has resulted in Cyprus being one of the best places to invest in property globally in the last decade.

Another little known fact is that due to the economic slowdown on the property front there has never been a better time to buy or invest in property here as the majority of expensive as well as cheap property has gone down in price by up to 25% of what it was only less than two years ago. As a buyer or investor you can get a truly amazing property here with four to five bedrooms most ensuite, a swimming pool and a truly pristine primely coveted location for under 300-00 euros including marble floors and more. A bargain in anyones language!

From an economic stand point property investors can make some tasty profits here. Tourists spend no less than 7 months to a year in Cyprus and live in rented villas or apartments.The demand for rental villas is exceptional So, anyone owning a decent property in a good location can earn serious rental income. Secondly, if anyone wants to resell a property, buyers are easily available in the form of retirees coming from UK.

This is good news for many but for some can lead to confusing encounters with mortgage brokers and serious sharks along the way. The best advice that anyone can give someone attempting to embrace the dream of real estate ownership is to deal with a reputable company when it comes to obtaining a mortgage. Even when dealing with reputable lending companies you must watch out for those who do not have your best interest at heart.

If you would like some very practical advice when it comes to getting a mortgage, then you are at the right place. First of all, avoid lenders that are encouraging you to take a loan for more money than you are comfortable repaying. Foreclosures are at a record high when it comes to the mortgage industry at the moment because of predatory lending practice on behalf of some mortgage brokers. These practices include convincing people to borrow more money than they could realistically hope to pay over time and have any quality of life as well as convincing homebuyers to take out adjustable rate mortgages in the beginning in order to procure lower rates.

Shop around before you decide to buy when it comes to mortgages. This doesn’t mean to actually apply for mortgages all over town but do the research and compare rates before applying with any one company. Talk to several different brokers and find out what they have to offer you that the other company down the road cannot or will not offer. Keep in mind that mortgage companies will offer everything under the sun from free toasters to free vacations in order to get you to go with their company. The proof is in the terms however. It is simply not worth that free toaster if you are going to end up paying a 6.9% interest rate instead of a 5.9% rate. You will have paid for that toaster many times over in the process of paying the mortgage.

Even after you’ve applied for a mortgage, if the deal seems to be going south check out your other options. There are all kinds of problems that crop up along the way. You are not marrying the mortgage broker. Nine times out of ten you aren’t even making any sort of commitment at all to your mortgage broker. You will however be living in the house you select. If there is a problem with the mortgage company for the specific home you want do not hesitate to change in order to get the home you desire for your family rather than allowing the mortgage company to dictate what kind of home you can buy.

I mention this because we had a very similar problem when we purchased our turn of the century home. The mortgage company didn’t think the home was worth the risk because of its age. We saw the beauty and the potential in our home that is coming along quite nicely and managed to be approved and financed in short order with another mortgage company. If this was the case in our situation, chances are that it will work for others as well.

In all honesty, it is nearly impossible to buy a home in this day and age without taking out a mortgage. It is best however if you see the process as a learning experience rather than an abject lesson in intimidation. This is your home and your money that will be spent in order to purchase the home. You are asking them for a loan but quite frankly, they need your business. Do not hesitate to shop around for the best deal with a mortgage just as you did when finding your home.