You're in... Property
The property market has been a one way wager for the past decade and rising prices have meant fortunes for many. Now the market is cooling, all bets are off.
You're EARNING...
Jobs in this area include estate agency (28.000 pounds) and commercial property development managers (40.000 pounds). Top estate agent's bonuses rose with the market: last year some of Savill's staff received more than 1 000 000 pounds.
Your MENTOR SAYS...
1) The way to make money is to create value, that is to say with places that need upgrading.
2) Buy to let is going to drop. I wouldn't get into this now.
3) Do your homework. Hire the right legal team and look at the downside of what you're getting involved in.
4) You need a good building team, and work to fixed price, turnkey scenarios.
5)Identify assets the big operators want.
6) Do business the right way. Be straight.
7) although there is still money to be made, you might want to sit it out for a year or two.
Andrea Panayiotou founded the ability Group in 1996. From its small beginnings in east London, Panayiotou created a company and worth more than 1 bn pounds.
Wednesday, March 12, 2008
Tuesday, March 11, 2008
Property: Phil Spencer on Housing Market hopes and fears over the next year.
Last year was a remarkable one for property. There was unprecedented demand at the top of the market and record prices. The influx of foreign money coupled with the strong financial markets in the first half of the year created a new level of demand at the top end, the like of which has never been experienced before. Even with the downturn in the economy in the latter half of the year and sensationalist headlines in the press about "booms" and "busts" _ the top end of the market remained relatively untroubled.
The numbers provide the perspective: the five major house price indices (halifax, Nationwide, RICS, Land Registry and Hometrack) show an average of a ten per cent growth rate for the market as a whole; whereas the market for 5m-plus homes has grown by 48 per cent. Everything else falls in between. Seeing as the average house price is around 230,000.00 livre, the more you invested in one property, the greater should have been your return. The top end has been leading the field by a mile and it shows just how polarized the market has become.
The financial turmoil that began in August took the froth out of the market as concern over interest rates and the introduction of Home Information Packs undermined sentiment. Confidence has been diluted, but there is no evidence of the cataclysmic market collapse that was predicted.
The dynamics behind the whole market have turned upside down. The housing market in this country has traditionally been pushed from the bottom; first-time home buyers joined the bottom rung ans pushed things along. But over the few years the market has been stretched from the top. There's been an explosion of wealth and this had let to serious rise in demand. This factor, coupled with the fact that most of us aspire to live in the same types of homes means that there's an increased number of people chasing a finite supply of top quality homes.
In 2008, I expect we'll see a slowing in the rate of growth, as opposed to an actual decline. In the first instance a slowdown usually affects the sentiment of sellers as they wait for better conditions before putting their homes up for sale. This means supply of fresh stock to market decreases, which in turn increases the demand for each available property. This is the ever-shifting see how between supply and demand that either drives or restricts our housing market.
We should try to remember that it's not possible to understand property markets simply by looking into the numbers. Housing is a place to live, it provides shelter and a roof over our heads; where we live has a bigger impact on our quality than any other expenditure. It follows that the behaviour of homeowners doesn't lend itself easily desktop analysis by academics or economists.
Finnaly, caution is the watchword if you're in the market early in the year. Contrary to popular punditry, it is perfectly safe to be buying at the moment-so long as you're doing so for the right and with a slightly longer term view than in previous years. Most economists are saying interest rates have peaked, so it seems there is little to be gained by waiting a few months. While I believe prices will rise across the year, the market will certainly not be racing away- which means there is no pressure for buyer to reach decisions, Concentrate on finding quality, You can expect a greater choice of property going into the spring, but that will bring competition from other buyers... If you can find what you're looking for before that happens you'll stand a better chance of a better deal.
The numbers provide the perspective: the five major house price indices (halifax, Nationwide, RICS, Land Registry and Hometrack) show an average of a ten per cent growth rate for the market as a whole; whereas the market for 5m-plus homes has grown by 48 per cent. Everything else falls in between. Seeing as the average house price is around 230,000.00 livre, the more you invested in one property, the greater should have been your return. The top end has been leading the field by a mile and it shows just how polarized the market has become.
The financial turmoil that began in August took the froth out of the market as concern over interest rates and the introduction of Home Information Packs undermined sentiment. Confidence has been diluted, but there is no evidence of the cataclysmic market collapse that was predicted.
The dynamics behind the whole market have turned upside down. The housing market in this country has traditionally been pushed from the bottom; first-time home buyers joined the bottom rung ans pushed things along. But over the few years the market has been stretched from the top. There's been an explosion of wealth and this had let to serious rise in demand. This factor, coupled with the fact that most of us aspire to live in the same types of homes means that there's an increased number of people chasing a finite supply of top quality homes.
In 2008, I expect we'll see a slowing in the rate of growth, as opposed to an actual decline. In the first instance a slowdown usually affects the sentiment of sellers as they wait for better conditions before putting their homes up for sale. This means supply of fresh stock to market decreases, which in turn increases the demand for each available property. This is the ever-shifting see how between supply and demand that either drives or restricts our housing market.
We should try to remember that it's not possible to understand property markets simply by looking into the numbers. Housing is a place to live, it provides shelter and a roof over our heads; where we live has a bigger impact on our quality than any other expenditure. It follows that the behaviour of homeowners doesn't lend itself easily desktop analysis by academics or economists.
Finnaly, caution is the watchword if you're in the market early in the year. Contrary to popular punditry, it is perfectly safe to be buying at the moment-so long as you're doing so for the right and with a slightly longer term view than in previous years. Most economists are saying interest rates have peaked, so it seems there is little to be gained by waiting a few months. While I believe prices will rise across the year, the market will certainly not be racing away- which means there is no pressure for buyer to reach decisions, Concentrate on finding quality, You can expect a greater choice of property going into the spring, but that will bring competition from other buyers... If you can find what you're looking for before that happens you'll stand a better chance of a better deal.
Thursday, March 6, 2008
Building permits continue moderate trend ( March 3, 2008)
(Red Deer, AB) Once again, fewer residential building permits were issued in February compared to last year. This downward trend in single family housing construction reflects the slowdown of housing development across the Province. Commercial permit vakues remain steady with numerous ongoing tenant improvements.
"Althought residential permit numbers appear low for this period, developers have indicated to the city that expectations of a great year is ahead of us for building in 2008", states Joyce Boon.
"Over the past few months there have been numerous building permit applications applied for in the commercial sector which will serve to bolster building stats in the near future".
"Althought residential permit numbers appear low for this period, developers have indicated to the city that expectations of a great year is ahead of us for building in 2008", states Joyce Boon.
"Over the past few months there have been numerous building permit applications applied for in the commercial sector which will serve to bolster building stats in the near future".
How to get a quick, fair sale on your home, published in "Calgary Herald" the 01/03/2008
As the srping real-estate season approaches, there are a number of things you can do to improve your chances of selling your property at the best price and under the best terms.
- Choose the right agent: you want to see your house advertised weekly in the newspaper. The agent you're considering prefers to work his or her Rolodex. You expect to be updated after every visit. She / he commits to one update a week. Are these differences you can live with?
You don't have to be best friends but you do have to work together.
Expectations_should be clear from the beginning.
- Be wary pf "stars": We've all seen them, those confident faces beaming from big ads that proclaim "I'm no 1!" What that tells you is that super Agent is able to generate transactions. Bravo! But will this agent be too busy to take your calls or show your gouse? Will he be too busy to get you the best price? If you want personal service, a top agent might not be for you.
- Price your house correctly: Some agents will promise you the moon to get the listing. Don't be dazzled. Interview several candidates before selecting.
An experienced agent will present you with a market analysis showing the sale prices of comparable properties in the area in the last year. You might be surprised to discover that the neighbour who bragged about the killing he made on his house inflacted the actual sale price. You might discover that the house that sold next door has a new heating system and, thus, really is worth more than yours.
- Don't take it personally but... Who needs funky pet and cigarette odours when you're trying to woo buyers? Clean sells better than dirty. Tidy sells better than cluttered and fresh sells better than fusty. Consider hiring a stager to rearrange the furniture and remove clutter. Two hundred dollars worth of paint could translate into $5,000 more on the sale price.
- If the price is right, stand firm: Once you agree on a listing price, don't be too quick to knock that price down if a buyer comes in with a lowball offer.
Ther's an old saying in real estate that the first offer is often the best offer. True, but not of the offer is way off the market value. A $5.000 drop in price translates into a $300 drop in commission to your agent. Ask yourself who really pays the price for a lowball offer?
- What's in it for the other agent? Your agent asked for a seven per cent commission and you talked him down to six. Way to go1 But there' one more question you should ask. What is the other agent's cut?
If you think that isn't your concern, think again. If your agent is keeping the lion's share of the commission, why would another agentwant to snow your house to prospective buyers?
If necessary, spell the commission split out in your brokerage contract.
-Let your agent do the talking: No matter how much of a people person you pride yourself on being, this isn't the time to be chatty with buyers.
Be prepared for the pointed question wrapped in a velvet compliment.
"This is such a lovely home. Why are you moving?"
No matters how innocent the answer, you don't want to cloud the potential buyer's enthousiasm by mentioning how much work the yard is or that you need more space. It goes without saying that serious issues like divorce, financial difficulties and illness or death in the family are nobody's business.
-An open house for whose benefit? Showcasing your homecan be a great idea, if you live in a hot neighbourhood where demand outstrips supply.
A smart agent might hold back on visits until an open house is scheduled as a way to create competition among bidders. More often, an open house offers rubberneckers a free pass.
They are, however, a great way for agents to meet new clients.
-Tell the truth: every house has its defects.
The problems begin when you tryto hide defects from potential buyers. If there is a defect, declare it up front. You'll sleep better knowing you won't be slapped with a lawsuit by an aggrieved buyer.
- Choose the right agent: you want to see your house advertised weekly in the newspaper. The agent you're considering prefers to work his or her Rolodex. You expect to be updated after every visit. She / he commits to one update a week. Are these differences you can live with?
You don't have to be best friends but you do have to work together.
Expectations_should be clear from the beginning.
- Be wary pf "stars": We've all seen them, those confident faces beaming from big ads that proclaim "I'm no 1!" What that tells you is that super Agent is able to generate transactions. Bravo! But will this agent be too busy to take your calls or show your gouse? Will he be too busy to get you the best price? If you want personal service, a top agent might not be for you.
- Price your house correctly: Some agents will promise you the moon to get the listing. Don't be dazzled. Interview several candidates before selecting.
An experienced agent will present you with a market analysis showing the sale prices of comparable properties in the area in the last year. You might be surprised to discover that the neighbour who bragged about the killing he made on his house inflacted the actual sale price. You might discover that the house that sold next door has a new heating system and, thus, really is worth more than yours.
- Don't take it personally but... Who needs funky pet and cigarette odours when you're trying to woo buyers? Clean sells better than dirty. Tidy sells better than cluttered and fresh sells better than fusty. Consider hiring a stager to rearrange the furniture and remove clutter. Two hundred dollars worth of paint could translate into $5,000 more on the sale price.
- If the price is right, stand firm: Once you agree on a listing price, don't be too quick to knock that price down if a buyer comes in with a lowball offer.
Ther's an old saying in real estate that the first offer is often the best offer. True, but not of the offer is way off the market value. A $5.000 drop in price translates into a $300 drop in commission to your agent. Ask yourself who really pays the price for a lowball offer?
- What's in it for the other agent? Your agent asked for a seven per cent commission and you talked him down to six. Way to go1 But there' one more question you should ask. What is the other agent's cut?
If you think that isn't your concern, think again. If your agent is keeping the lion's share of the commission, why would another agentwant to snow your house to prospective buyers?
If necessary, spell the commission split out in your brokerage contract.
-Let your agent do the talking: No matter how much of a people person you pride yourself on being, this isn't the time to be chatty with buyers.
Be prepared for the pointed question wrapped in a velvet compliment.
"This is such a lovely home. Why are you moving?"
No matters how innocent the answer, you don't want to cloud the potential buyer's enthousiasm by mentioning how much work the yard is or that you need more space. It goes without saying that serious issues like divorce, financial difficulties and illness or death in the family are nobody's business.
-An open house for whose benefit? Showcasing your homecan be a great idea, if you live in a hot neighbourhood where demand outstrips supply.
A smart agent might hold back on visits until an open house is scheduled as a way to create competition among bidders. More often, an open house offers rubberneckers a free pass.
They are, however, a great way for agents to meet new clients.
-Tell the truth: every house has its defects.
The problems begin when you tryto hide defects from potential buyers. If there is a defect, declare it up front. You'll sleep better knowing you won't be slapped with a lawsuit by an aggrieved buyer.
Wednesday, March 5, 2008
Alberta Home listings surge nearly 43 per cent, published in " Calgary Business" the 03/01/08
Average price increases despite slide in sales.
MLS sales in Alberta plunged 24.8 per cent in January compared with a year ago but new listings soared by a staggering 42.9 per cent, the Canadian Real Estate Association reported Friday.
Dollar volumewas also down by 17.9 per cent, but the average sale price increased by 9.2 per cent.
The association's report said new national MLS residential listings surged to a record in January, making the resale housing market more balanced than at any point in the past seven years.
Across the country, new listings were up 8.5 per cent from a year ago in January and sales dropped by 8.6 per cent. But the average price increased by 9.6 per cent _ the smallest year-over-year price increase since April last year.
In January, the average sale price of a home in Alberta was $357.574 while in Canada the average was $309.448.
"The overall increase in new listings stemmed mainly from a jump in listings in Western Canada", said Gregory Klump, chief econmist for the real estate association.
Association president Ann Bosley said weather also had an impact on Markets in January and pointed to a different housing picture in the US.
"The Mls residential sales report for January again shows the differences between the Canadian and US markets," she said.
"In january, there was an 8.9 per cent drop in the year-over-year housing price index in the United States. That was the largest decline in 20 years, while the average residential MLS price in Canada rose just over nine per cent on an annual basis."
In Alberta, the dollar volume of sales for January was $1.4 Billion, sales were 4.021 units and new listings were 11.567.
Nationally, total dollar volume of sales for January, up 0.1 per cent from a year ago. Sales were 27.465 units and new listings were 72.749.
Also on Friday, a report by TD Canada Trust said individual women homeowners in Calgary and Edmonton are more driven to get a foothold in the real estate market than in any other major city in Canada.
Two-thirds of women in the Alberta cities cite wanting to get into the housing market as a reason for buying their fisrt home, compared with an average 54 per cent of women respondents across Canada, says the Women and Home Ownership Poll. More than half of Calgary and Edmonton women (54 per cent) say they wanted to buy a home while it was still affordable compared with an average of 36 per cent across country.
Nationally, more women chose condos (42 per cent) over houses (34 per cent) for their purchase. Other choices were townhouses ( 13 per cent) and duplexes, triplexes and fourplaxes ( six per cent).
But in Calgary and Edmonton, the condo-house choice was more closely split, with 31 per cent opting for condos and 33 per cent for houses. Other options for individual Calgary and Edmonton women buyers were townhouses (23 per cent) and duplexes, triplexes and fourplaxes (10 per cent).
The poll was conducted by Ipsos Reid.
MLS sales in Alberta plunged 24.8 per cent in January compared with a year ago but new listings soared by a staggering 42.9 per cent, the Canadian Real Estate Association reported Friday.
Dollar volumewas also down by 17.9 per cent, but the average sale price increased by 9.2 per cent.
The association's report said new national MLS residential listings surged to a record in January, making the resale housing market more balanced than at any point in the past seven years.
Across the country, new listings were up 8.5 per cent from a year ago in January and sales dropped by 8.6 per cent. But the average price increased by 9.6 per cent _ the smallest year-over-year price increase since April last year.
In January, the average sale price of a home in Alberta was $357.574 while in Canada the average was $309.448.
"The overall increase in new listings stemmed mainly from a jump in listings in Western Canada", said Gregory Klump, chief econmist for the real estate association.
Association president Ann Bosley said weather also had an impact on Markets in January and pointed to a different housing picture in the US.
"The Mls residential sales report for January again shows the differences between the Canadian and US markets," she said.
"In january, there was an 8.9 per cent drop in the year-over-year housing price index in the United States. That was the largest decline in 20 years, while the average residential MLS price in Canada rose just over nine per cent on an annual basis."
In Alberta, the dollar volume of sales for January was $1.4 Billion, sales were 4.021 units and new listings were 11.567.
Nationally, total dollar volume of sales for January, up 0.1 per cent from a year ago. Sales were 27.465 units and new listings were 72.749.
Also on Friday, a report by TD Canada Trust said individual women homeowners in Calgary and Edmonton are more driven to get a foothold in the real estate market than in any other major city in Canada.
Two-thirds of women in the Alberta cities cite wanting to get into the housing market as a reason for buying their fisrt home, compared with an average 54 per cent of women respondents across Canada, says the Women and Home Ownership Poll. More than half of Calgary and Edmonton women (54 per cent) say they wanted to buy a home while it was still affordable compared with an average of 36 per cent across country.
Nationally, more women chose condos (42 per cent) over houses (34 per cent) for their purchase. Other choices were townhouses ( 13 per cent) and duplexes, triplexes and fourplaxes ( six per cent).
But in Calgary and Edmonton, the condo-house choice was more closely split, with 31 per cent opting for condos and 33 per cent for houses. Other options for individual Calgary and Edmonton women buyers were townhouses (23 per cent) and duplexes, triplexes and fourplaxes (10 per cent).
The poll was conducted by Ipsos Reid.
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