1. Brazil
The Brazilian property market has got a lot going for it. The country is attracting a lot of inward investment, has one of the world’s fastest growing economies, a rapidly emerging mortgage market, a general shortage of quality homes, and has been selected to host the 2014 football World Cup and 2016 Olympic Games. This will lead to the construction of new and improved infrastructures and homes across Brazil.
Property investors from around the world are flocking to Brazilian shores with a view to snapping up real estate, in anticipation of future capital growth.

One local expect projects Brazilian property prices could appreciate by up to 200% over the next decade, driven by the country’s burgeoning economy, and the pending introduction of mortgages to overseas nationals. Investment banking firm Goldman Sachs believes that Brazil’s economic growth could outstrip that of the other BRIC (Brazil, Russia, India and China) member nations over the next few years.

Brazil’s economy is widely expected to become the fifth largest in the world by the time the Olympic Games kicks off in 2016, and yet Brazil property and land prices still remain a fraction of those found in more developed nations. The Brazilian president Luiz Inacio Lula da Silva has already pledged to spend up to ??11.5bn on building a million new homes in Brazil between now and 2011. However, potential high property investment rewards are not with out their risks, as crime and corruption still remains widespread in Brazil.

2. France
In stark contrast to the relatively high risk, high return nature of investing in Brazil, the risks associated with investing in French property are far lower. France has traditionally always been a rather safe haven for property investors. The nation was the first European country to come out of recession in 2009, reflecting the fact that the global credit crunch had much less of an impact, compared to other European counterparts.

France’s strong economy is having a positive impact on its property market, which now appears to be on the road to recovery. Increasing property and mortgage transactions are boosting residential values, with the latest FNAIM data revealing that the average price of a French property appreciated by 2.8% between April and September 2009.

Although average prices remain down 7.8% year-on-year, the market is generally expected to improve further, due to France’s prudent attitude to mortgage lending. Anyone taking out a mortgage in France is generally only permitted to borrow one third of their total gross monthly income. This has ensured that mortgages remain readily available, with 100% loan-to-value home loans available at competitive borrowing rates.

Consequently, mortgage lending in France is soaring. French mortgage broker Athena Mortgages reports that there was a 21% rise in mortgage enquiries in Q3 2009 compared with the previous quarter.

The buy-to-let and leaseback sectors are reportedly attracting particular interest from investors, due to improved yields across the country. The capital city of Paris has long been identified as one of the most attractive European cities for investment, and is typically the most popular place to buy a home in France, along with Cannes, Marseille and Nice, which are all located along the southern Mediterranean coast.

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Moody’s Investors Service says that the recently proposed consolidation of Dubai’s two largest master real estate developers, Emaar Properties (Emaar, rated Baa1) and the real estate activities of Dubai Holding Commercial Operations Group (DHCOG, rated A3), would create a dominant entity in Dubai’s property market that would control the market as well as benefit from economies of scale and stronger bargaining power vis a vis contractors.
The ramifications of the transaction are discussed in Moody’s Special Comment, ‘The Dubai Property Market in the Wake of Consolidation’.

‘Moody’s recognises that consolidating Emaar and DHCOG’s real estate interests into one entity will create a new giant in Dubai’s market, with unrivalled access to a sizeable land bank,’ explains Martin Kohlhase, an Associate Analyst in Moody’s Corporate Finance Group based in Dubai and author of the report. ‘Furthermore, several drivers — such as the opening of Dubai’s Metro (public transportation system), the inauguration of Burj Dubai (the world’s tallest skyscraper) and the end of the school year/beginning of the summer period – will shape Dubai’s residential property market in the near term and lead to greater differentiation within Dubai’s residential areas, from which Emaar and DHCOG’s real estate divisions may benefit.’

However, following the announcement of the merger, Moody’s placed both Emaar’s and DHCOG’s long-term issuer ratings on review for possible downgrade on 30 June 2009.

‘Larger government ownership in Emaar may not be sufficient to mitigate the detrimental impact that the merger would have on the company’s fundamental creditworthiness,’ says Mr. Kohlhase. ‘Furthermore, ongoing market weakness and the prospects of weaker cash flow over the near to medium term will impact the combined group going forward.’

Moreover, Moody’s notes that the Dubai residential property market generally remains oversupplied, and the downward trend in the market is unlikely to stabilise before Q2 2010. Furthermore, large-scale lending has not resumed and property developers have recorded a number of buyer delinquencies.

Moody’s review will assess asset valuation, government ownership, dividend policies, the new capital structure and strengths of the combined cash flows, as well as the liquidity profile of the new entity.

many banks and financial institutions are ready to offer mortgage loans to people with good credit history. Moreover, they are ready to offer different types of mortgage loans that suit different people with different needs. The following points present some of the different varieties of such loans that banks and financial institutions offer :

1. Term Loans with Fixed-Term Repayment : These are normal term loan schemes where you get a loan for a fixed duration. The rate of interest can be fixed or can vary based on some benchmark rate.

2. Overdraft-Loan : These are loans in the form of current account overdraft where surplus funds can be parked and therefore interest burden can be minimized. Every month, the overdraft limit is reduced as per the Equated Monthly Installment (EMI) amount.

3. Flexible-Loans : These are loans with a fixed rate of interest for one part of the loan and a floating rate of interest for the other part. It can be designed as per the convenience of the applicant and up to what is allowed under the rules of the bank/financial institution

4. Fixed Interest Loan: These are loans with a fixed rate of interest for the entire duration of the loan. It is well protected against market rate fluctuations. Generally, these rates are somewhat higher than the market rate.

5. Floating Interest Loan: Floating rate of interest is the rate that is linked to the Central Bank’s (Federal Reserve) prime lending rate. If the Central Bank increases (decreases) the prime lending rate, then the bank/financial institution also increases (decreases) its interest rate.

Generally, it is advisable to go for floating rate of interest as the rates will be lower when the economy.

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Phuket Property Market Today

In 1990 CD Ellis Richards started selling resort properties in Thailand. They had started in Thailand with the Laguna property where they managed the planning and sales of the residential condo units. For those who have never been in Phuket or know the area of Laguna. The property used to be an old tin mine before it was converted into one the Thailand’s better resort developments. It has been stated that it was this development in 1990 that was the start of the Phuket property boom!

Phuket real estate

Even through tough times, prices of property in Phuket have risen steadily over the years. Prime areas such as Kata, Patong and Bangtao (Where Siam Legal has its Phuket office) has experienced some of the highest growth. A parcel of land on the west coast of Phuket now reaches more than 40 million Baht for a rai of land. Beach front property in Phanagnga the land costs now in the region 20 million baht per rai. This of course depends on the location of the land in the area.

The East coast of Phuket has now seen the new Yamu (a GHM-managed hotel) and Jumeirah Phuket Private Island being developed. Thereis also furhter developments in the pipeline for Phuket such as the construction of a Four Seasons hotel and a Park Hyatt. Property prices in Phuket are boiyant with the starting price for some of the best property starting at USD 5 million and many reaching USD10 million. Property prices in Phuket have reached dizzying heights as it is in such high demand. Driving these prices might be that more purchases of property in Phuket are now investment driven as the yeilds and capital appreciation is higher than the average property in Thailand.

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Phuket Investment – Best Western, one of the worlds largest hotel chains, has confirmed the September 2009 opening of Best Western Sawazdi Patong Hotel, Phuket, which will be the brands fourth resort on the island.

Phuket Property market

Some observers are concerned that the 2008 global financial crisis may affect the Thai real estate market. Many see similarities between the current US crisis and the 1997 Thai crisis, particularly in the role played by an over-built real estate sector. To properly analyze the 2008 global financial crisiss impact on the Thai real estate market, we should first look at the current Thai real estate environment. The Thai real estate industry has grown significantly since the 1997 financial crisis. Although speculation is prevalent in some sectors, we have not experienced a 1997 bubble-like boom. Generally, a real estate bubble occurs when property prices rise quickly in a short period, primarily from speculation – resulting in a supply-and-demand imbalance. When property prices are rising faster than the cost of money and banks continue increasing loan-to-value ratios, funding becomes easier – propelling additional speculation.
Being a developing country, the cost of property in Thailand is much lower than in the more developed European markets. But, on the other hand, prices for Thai property, in general, are rising at a much faster rate.
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