We are in recession and have just began to chip away at the tip of an iceberg that is credit crisis. Former Treasury Secretary Larry Summers recently stated, "We are facing the most serious financial stress that the U.S. has seen in at least a generation." I think to call our economic situation a recession and the subprime bubble a credit crisis is a gross understatement.This is just the beginning - an opinion shared by Satyajit Das, a...more
Let's admit it; we all want to be more, do more, and have more. When you ask people if they would like to be happier, healthier, or more prosperous financially, you are certain to get an affirmative response. This is because every living thing in nature is programmed with a desire to improve. We are most certainly a part of nature. Since the beginning of time, our deep instinct of wanting to be more, do more, and have more has been one of the...more
It has been said often enough in recent times that buy-to-let has two notable characteristics at present. One of these is that there is a determination on the part of most investors to make their investment a long-term one, eschewing the notion of making a quick profit and seeking instead to enjoy the long-term gains the industry can bring.Secondly, there is perhaps a shorter-term aspect where demand for letting and the increase in rents have both risen rapidly, making possible higher returns and ensuring properties do not lie idle for lack of willing tenants.These two factors are, of course, two sides of the same coin. Both reflect the state of the residential property industry at this point. With the credit crunch seeing mortgage choice reduced and the uncertainty that has gone with it also slowing the market, house prices have ceased to rise in the way they have been doing for the last few years, meaning that the short-term option of investing, letting for a while and then selling the property at a profit is no longer viable.Yet at the same time this slower market has led to the increase in demand from people who would otherwise be looking to get out of rental accommodation and...more
The news earlier this week from the Council of Mortgage Lenders (CML) that the number of buy-to-let mortgages taken out last year was higher in the credit-crunch blighted second half than the roaring first six months may have surprised many. But it appears this has not been the only news indicating that the continued strength of buy-to-let is only...more
Portugal has always been a popular destination for Britons wishing to purchase a holiday home abroad or to buy a place in the sun for their retirement. Pure investment purposes have also been behind such foreign property transactions, but according to one expert, it is the quality of life that is making Portuguese property investment such a...more
Buy-to-let investment in the UK is set to go from strength to strength in 2008, it has been suggested by one industry commentator.Malcolm Harrison from the Association of Residential Letting Agents (Arla) has claimed that this year could be yet another healthy one in terms of returns for landlords. He highlighted two "important factors" that lead him to believe that landlords are set to continue enjoying strong returns. Rental demand is increasing all the time, according to Mr Harrison, who said the reasons behind this trend are "demographic". These factors include things such as more flexible working, increasing migration and rising divorce rates, which lead to more single households being created. Another factor highlighted by the Arla spokesperson is the fact that house prices - after an extended period of sharp rises - are softening. "Traditionally, every time you have house price softening you get increased rental demand," Mr Harrison said. His comments come after statistics by Birmingham Midshires showed buy-to-let investors enjoyed returns of 16.3 per cent in the 12 months leading up to December 2007. This was up from the 13.5 per cent they typically received in 2006. Last...more
Those who believe the Spanish market is past its best may be barking up the wrong tree. Not because there hasn't been a property market correction, not because there isn't a global credit crisis and not because many investors looking for new hotspots...more
If the talk of the property industry in the last year has been Cape Verde, the issue of how much property can be crammed onto those little volcanic islands in the sun may become an issue before too long.Or perhaps it won't. According to Simon Walker,...more
Those looking at property investment in France will soon be aware that there are many possibilities, as the country is large and offers different attractions to suit numerous tastes. With Alpine ski property, the winelands, the glamour of Paris, the...more
In times of economic gloom, it often seems to be the north which suffers most, with recessions seeing many people in grim northern towns kicking their heels as the factories shut. Stereotyped as this image may be, it contained a kernel of truth, for...more
The property market in Spain has been a vexed area for investors recently. The end of the boom years, the credit crunch and recent demolitions of homes that breached planning regulations are all major hits from which some markets might not...more
The last week has brought back a little ambiguity to the property market among those looking for hard evidence of trends. First there were the figures from property portal Hometrack, which found that this month's house prices were down by 0.2 per...more