World Cup Impact on Property Investment

From the opulent millionaires' row on Cape Town's beachfront to the modest homes of Soweto township, South Africans are dreaming of a bonanza of cash from next year's World Cup.

Some are preparing to move out of their homes in the hope of renting them to well-heeled visitors for a one-month flood of foreign cash.

Prices for some private apartments in Johannesburg and elsewhere have rocketed recently to three, four and even six times normal, even before most fans have decided where to stay.

In Cape Town's "golden mile" along the beach, some owners of luxurious mansions overlooking the sea and Table Mountain were looking for rents of 90,000 rand ($12,100) or more per day, said Samuel Seeff, one of South Africa's top estate agents.

Such homes, offered to big corporations and in particular World Cup sponsors, would house five or more executives and provide swimming pools, jacuzzis, home theatres and decks from which to admire the stunning views, he said.

The spectacular houses are also protected from South Africa's frighteningly violent criminals with state-of-the-art security measures that are routine among the wealthy here.

At the opposite end of the scale, owners who converted their houses into bed and breakfasts in the historic center of Soweto township are also expecting plenty of World Cup tourists next June and July, but plan to charge as little as 350 rand ($47) per night, with none of the huge price hikes seen elsewhere.

"I don't have World Cup rates," said Dolly Hlophe, who runs a neat bed and breakfast from her home, shaded by a beautifully tended garden on a street in Soweto near Archbishop Desmond Tutu's home.

BIG PROFITS

Although big profits are undoubtedly there to be had -- 450,000 visitors are expected for the World Cup -- experts say the hopes of some property owners could be misplaced as demand slumps below expectations in certain cities, depending on where big teams such as Brazil, England and Germany play.

Like everything else about the World Cup, including plans for where to deploy a fleet of planes, trains and buses, everything is hanging on the tournament draw on December 4, when the location of each team's first-round matches will be decided.

Even before the draw, authorities and some more thoughtful South Africans are worried that too much greed will alienate the visitors and dash hopes that a successful World Cup will stimulate a flood of future tourists by introducing fans to spectacular sights from game parks to glorious beaches.

Commercial Investment Property Overseas: London Property Investment; London Rental Property Market Remains Bouyant

Commercial Investment Property Overseas: London Property Investment; London Rental Property Market Remains Bouyant

European Property Market

RICS has launched the 2009 version of the European Housing Review with an event at the National Liberal Club in London. The Review is now in its eleventh year and draws together what is happening in residential property markets across Europe. It paints a gloomy picture of Europe’s housing market in 2008 and key points include:
• House prices are static or falling across Europe
• The chances of core European housing markets escaping marked downturns in 2009 are now slim
• House prices in 2008 fell significantly in 2008 in central and eastern Europe, Ireland, France, the UK and amongst Nordic countries
• Markets are experiencing rapid falling demand due to the impact of the credit crunch and recession in major economies
• New build markets in the major cities of central and Eastern Europe are at a standstill with a rising tide of unsold properties.
What can we do to address these problems? RICS is calling for action from Governments to increase the supply of mortgage lending. There must be more Government guarantees for mortgage backed securities, as recommended by the Crosby Review in the UK. Banks that have been nationalised or have greater levels of state control in the UK, Ireland, Germany and the Netherlands must also be used to provide a sensible increase in access to credit.
Other steps can also be taken including the establishment of Government supported savings schemes for first time buyers where buyers are encouraged to save a deposit which is topped up by a Government contribution. There must also be a greater use of shared equity and rent to buy schemes.

RICS published a 15 point plan in September 2008 outlining key measures we believe will help the residential property market.
Hopefully if action can be taken by Governments across Europe, the 2010 European Housing Review will start to show some signs of recovery.
http://www.rics.org/ASPNetForums/blogs/padefaultaspx/archive/2009/03/05/gloomy-housing-markets-across-europe.aspx

Munich overtakes London as top European property destination

Munich, followed by Paris, have emerged as the two most attractive European cities for property investment for commercial real estate owners and investors on a medium term outlook, as per LaSalle Investment Management’s eleventh.
European Regional Economic Growth Index, according to a report in the Financial Times.
While London’s size and wealth kept it in the top 10, it was knocked from the top spot for the first time since 2005 - underlining the city’s exposure to the financial downturn relative to rival business hubs.
http://www.wealth-bulletin.com/portfolio/content/1055268273/

Caymen Island Investment Property

Little Cayman

In little Cayman raw land has been the big seller so far this year. It appears more and more people are seeing the appeal and value of owning a piece of this tranquil paradise.
There are a number of houses currently under construction and the local builders are getting new projects started as soon as one is finished. Prices are still relatively low compared to other destinations but people are beginning to realize that this will not last forever.

Cayman Brac

Raw land has also been the top seller in Cayman Brac this year with incentives of having the stamp duty waived if you build within 2 years of purchase, and not adding taxes on building supplies. With direct flights from Miami later in the year - Now is the time to buy before this mostly undiscovered gem of an island becomes better known.

Overall

Prices are increasing for land purchasers. We are seeing prices rise as much as 10 % from this time last year. Little Cayman is growing in popularity and word is spreading about this relatively untouched paradise. Cayman Brac land prices have also increased dramatically, A quote from Coldwell Banker "The Cayman Brac has been experiencing an upswing.. interest in bluff land - house lots and acreage has soared".
With all the money the Cayman islands Government are putting into the sister islands, I.E modern infrastructure, international airports to increase tourism, direct flights from Miami, new Hotel's, bars, restaurants and villas getting built everywhere, to accommodate all the recent activity, this has to be and is the worlds most exclusive Caribbean emerging market.

Flexible Property Investment?

If the idea of owning a luxury asset to use occasionally appeals or if your budget does not stretch the whole way, fractional ownership may be for you. For a fraction of the price of the whole, you can own part of the asset. For many, this investment vehicle offers the gateway to investment in luxury (including property investment), allowing those without seven-figure bank balances to enjoy high-end assets.

Flexible freehold ownership, also known as fractional or collective ownership, has been a popular concept in the US for many years because it offers an innovative alternative to investors. Not surprisingly, the idea is fast catching on in the rest of world.

Flexible or fractional ownership involves buying part of an asset (usually luxury) – for example, property, private jets and cruisers, racehorses or even a vineyard – for a small part of the cost of the whole asset. Investors purchase a part and can sell, donate or bequest this at any time. Since investors are direct owners of the asset, they also benefit from increases in the value of the asset should they decide to sell it.

Although fractional ownership is sometimes confused with timeshare, it is radically different. Investors in flexible ownership directly own a part of the asset. Participants in a timeshare scheme do not own any part of the asset – just the right to use it at an allocated time – nor do they benefit from any increase in the asset’s value. Timeshare is a cost, not an asset.

Another fundamental difference between timeshare and fractional ownership is that no financing options are available for timeshare. On the other hand, many banks and financial entities will provide loans for purchases of fractional ownership. Since fractional ownership is an asset owned for perpetuity and is ‘sellable, giveable and willable’, it is no different from outright ownership.NUBRICKS

Commercial Investment Property Overseas: Estate Agents Websites

Commercial Investment Property Overseas: Estate Agents Websites