subject: 10 wise investment moves in real estate [print this page] 1 WAIT FOR ROCK-BOTTOM PRICES 1 WAIT FOR ROCK-BOTTOM PRICES
Watch out for rock-bottom prices from prime market to newbuilds. Throughout the world, except in a few spots, sales volumes and average property prices are falling. In some places in Europe and the United States, properties carry reduced prices of up to 44 percent. Choice spot: Now is the time to buy into New York real estate. It may never be as low as it has dropped these past few months.
2 BORROWERS BEWARE
Obviously, inthe credit crisis, there are no two ways about it, Building societies will be lending less; borrowing will cost more. Borrow less and dig into --- or liquefy --- your other assets to buy real estates.
3 PUT MONEY ON INNOVATION
Find the areas that will outperform their neigbors. Now is the time to beextra creative, very innovative. Find projects that stand out despite the crisis.
4 NO TIME FOR GREENHORNS
Now is the time for part-timers and gamblers to bow out. Or, for those who have lots of money but little expertise, make sure you get good advice from a professional.
5 BANK ON SOLID VALUE PROPERTIES
Property prices are sliding -- and the slide is steep. Those who need to sell must reduce the price keenly to make it stand out in a sticky market. In a crisis, fewer are ready to make speculative buys, So brokers only the properties with solid, provent value.
6 SELL PROPERTIES WITH A DIFFERENCE
Property consultancy fIrmswarns: the riskiest market is the mono-culture, mono-tenure developments or condos, flats and house-and-lots thatall lookk the same. these properties will have a slow go.
7 BE EXTRA CANNY OUTSIDE ASIA
Much lower growth is expected in development countries outside Asia. So the whole game will be about adding value to the property you buy and looking for uplift in value in areas where the government bailouts work first to unfreeze credit. These are areas where prices will increase by five times, at least. This will require a different type of investor with a different type of risk and gearing.
8 CHOOSE YOUR AGENT WELL
Some 70 percent of customers say agents are not helpful when it comes to finng the right house, and 69 percent saythey are not professional or good value formoney. But a good, well-informed agent can help you go a long way.
9 TARGET THE LUXURY MARKET
If you are at the top end of the market, you're lucky. that's where you are likely tostay, The"uber market", inhabited by global millionaires, has enjoyed a 35 percent increase in the price this year and will continueto be strongest sector next year,with a likely rise of eight percent, analysts say.
10 BUY IN THE COMFORT ZONE
What are the best buy's? Low-cost housing never loses its demand. Another tip-follow the migration routes. Migrating families need homes to stay in. And where there is a demend, prices will tend to stabilize.
