Over the past few years just about everyone is talking about the real estate market in Mumbai. It has seen tremendous growth and development. High rise buildings, malls galore and developement in just about every corner of Mumbai where there is space for it. Prices have risen, no doubt due to the fact that there is hardly any land available, and whatever is there, seems to be up for grabs. With the increase in prices, customer expectations have also risen. People are ready to, ‘pay through their nose’, but definitely expect plenty more than just a apartments or offices in return. Ambience, amenities, quality – these are a few of the many things that people are looking for, while investing in property.

But in the midst of all this great real estate growth and development, one thing clearly stands out – a definite lack of planning and infrastructure. As D. Subbarao, Union Finance Secretary, rightly puts it, “ONLY good infrastructure stands in the way of Mumbai being a world-class city”.

Plans are well on its way, to make Mumbai, the Shanghai of India. Is that possible? Well, there is no doubt that Mumbai is Hot Property, but Shanghai….it sure has a long way to go…! Taking into account the traffic, pollution, over-population..does not look very likely in the near future.

But let’s not be so pessimistic, it’s the end of the year and the new year looks full of promise. So, as another year ends, we hope that the new year brings for Mumbai, the begining of a much needed makeover!! And with that, wonder what the booming Mumbai property market look like? Let’s wait and see, shall we

We’re all vulnerable to ‘get rich quick’ schemes as we want to live a comfortable carefree life in exchange for little or no effort. You know the type of thing - where the wealthy share their secrets - and then give them away. The truth is - you can make a fortune in property very quickly and for very little effort - BUT.  If you want to make money in real estate and become a property millionaire – you must put in the ground work and get your hands dirty. Experience takes time – you can learn from others, you must listen to others – but be prepared to put the effort in. If you’re prepared to do that – you will make a fortune.

Understand this – everyone has an angle – and it’s usually money. So when you are offered something that appears too good to be true, or offers you instant wealth with free advice – it probably is too good to be true.

Always listen to advice, and evaluate it. As a property investor – as in life – you have to work out what’s good and what’s bad, so take your time. Take baby steps – not giant leaps. I watched the last Michael Parkinson show just before Christmas, where one of the guests was Michael Cain. He said he never gives advice because of the advice he received when he was starting out, which was ‘give up’. Just as well he didn’t. In my opinion – you should listen to advice, evaluate it and see if it makes sense to you.

Successful property investment is a process that has many stages. You need to do your sums and work out how much money you have available. You need to work out the type of property that interests you. Are you going to be hands on, or do you need somebody else to sort things out for you? Do you want to hold property and become a Landlord or do you want to trade property by buying and selling?

Don’t dive in – there really is no need. Build solid foundations – research locations, look around, and find out what development is planned. Then best of all – negotiate your own deal. Negotiation is easy – you just ask.

This is our angle in case you wondered. We sell advertising space for Property Listings and Banner Advertising. But most of all – we love new build, pre-construction property. It’s what floats our boat.

Please leave a comment. If you want to ask me something in private you can contact me here.

It’s being reported in the UK press and on the BBC that first time buyers are struggling to make the first rung of the property ladder, as the average UK property price is in excess of £175K. Even the most affordable location of
Bootle in Merseyside has an average price of just over £112K or four times average earnings.

First time buyers purchasing a house for the average price of £175,000, need a salary of at least £41,300 according to the Charcol mortgage calculator.  Mortgage payments will be slightly less than £900 per month and will rise to £1,079 after 36 months if the base rate stays the same. This is on an interest only basis.

Anyone with an income of £906 per week is in the top 10% of earners, as reported in the 2007 report into ‘hours and earnings’ by National Statistics Online. When annualized this equates to a salary of just over 47K, which isn’t a million miles away from the salary you need to purchase an average UK property.

So wouldn’t it make sense to relax the lending rules on Buy-to-let and allow first time buyers to get on the property ladder as Landlords? Although at first this may appear strange, it would make the property market more accessible to all.

The barrier to borrowing is significantly lower for landlords than it is for owner occupiers. Buy-to-Let mortgages are offered on the capital value of the property and its projected rental income. This is referred to as ‘ring fencing’. Each buy-to-let mortgage is considered on it own merit.

First time buyers beware says the Guardian, but why not say Lenders Help! Help to make it possible for first time buyers to get on the property ladder as Landlords.

Kolkata, the city of joy has in her core a lot to give for different people from different genres. It may be from the very rich to the very poor. With the emerging prosperity of the city, Kolkata is busy to shelter all her future endeavors. Here comes the effectiveness of different authentic builders who are ready to invest at hand to not only make their own benefit but also decorate and place the city as a brighter figure in the map of the world.

Today it is easy to find real estate broker and agents who will help one find a dream house or sell apartments whatever the condition may be. Detailed information may be collected from them with authentic papers to hold or sell the property.

Eminent builders like ‘Shrachi’, ‘Merlin Group’, ‘Surekha’, ‘DLF’ and many more today have invested heavily in building apartments, shops and showrooms, multiplexes, offices and several others. Other than their investment, Kolkata would not have proceeded further to become an important real estate city.

After independence, the Government of West Bengal espoused the socialist manifesto and for this reason, Kolkata lost its title of being the preceding commercial capital of India. Adoption of such an idea made Mumbai the current commercial capital.

According to JLLM, Jones Lang LaSalle Meghraj, the office space market in Kolkata has received a tremendous change. Today the land area for the office purpose is to increase to 12 million square feet by 4Q 2008 from 3.7 million square feet in 3Q 2007.

The emergence of the IT sector in Kolkata has made Salt Lake and Rajarhat a place for the prosperous and the NRIs. But places like Chowranghee, Camac Street, Park Street, AJC Bose Road and old Dalhousie do not boast more land for further development. All the buildings here are old and can be classified as Grade B space. It is believed that Salt Lake and Rajarhat are going to have an addition of 8 million square feet area for the upcoming IT companies.

Shopping malls, the other name of real estate is presently seven in number. It is assumed to increase with 16 new-fangled malls. Five among these are proposed to have been built in Rajarhat. Speaking about the real estate market, it has come to focus that the foreign investment is rapidly increasing in the field. Foreign bankers are ready to endow money for the growth of these real estate buildings and important sectors. 

Eminent UK based company REIT Asset Management Limited has tied up with the Kolkata based Eden Group to give the city a brilliant look, especially in the parts of Maheshtala. Property values of high range are increasing the emergence of foreign investors. Appearing of the industrial companies in West Bengal has also increased the values of real estate. Apart from becoming an IT hub, it has also stretched its arms to make Kolkata and the suburbs a place of whooping infrastructure.

Thus, it can be estimated that Kolkata is becoming a most important city in the Real Estate Market, adding an impressive feather in its crown.

If you’re looking to invest in foreign property, Cambodia might not be the first place that springs to mind – but perhaps it should. According to some property experts, this south-east Asian country could have a lot to offer the discerning investor.

Cambodia is regarded as one of the world’s emerging property markets. This means that interest in property is beginning to grow and is showing signs of great potential, but it’s still at the early stages and prices still reflect this. A one to two bedroomed property in the popular French Quarter of the capital city of Phnom Penh, for example, costs from as little as £29,150.

Over the past 40 years, there have been many changes in Cambodia, not least a massive increase in the population. The political situation has stabilised, the economy is already doing well with the aid of foreign investment and tourism in Cambodia is increasing. In fact, predictions suggest that by the year 2010, there will be over three million tourists a year visiting the country and providing an annual income of $2.35 billion USD.

There are international airports at Phnom Penh and Siem Reap and a new international airport is underway at Sihanoukville, which is expected to boost tourism even further.

For savvy buyers, there are already good rental opportunities in the capital city and, if the early indications prove correct, there could be profits to be made.

At this time of year, the predictions for the best foreign property buys for the coming year begin to roll in. So where are the experts suggesting we buy in 2008?

Martin Bowen, from Profile Europe (UK) says his top three favourites for 2008 are Dubai, Portugal and India.

Interest in property in Dubai has been increasing over the last few years and there are numerous new and luxury developments taking place. According to Martin, the property picture is looking incredibly rosy. ‘Investors into this market will see tremendous capital growth towards the end of this decade. They can rest assured that the rental market in a city – and one that expects upwards of 15 million tourists each year – will be one of the most profitable ever,” he says.

Portugal may be a surprise prediction to some people, as it’s a long established market and prices in some areas are relatively high. However, Martin believes that Portugal has “come into its own” and is on the “crest of a wave which will see regions increase dramatically over the next five years.”

As for India, where property prices are low, early indications suggest things could start to improve. “I predict the Indian property market will start to move forward in the New Year,” says Martin. “Infrastructure and a financial awareness is now the driving force and I anticipate that this market will grow significantly over the next 10 years.”

So these are the views of one expert, but where do you think the profits are to be made in 2008?

Buy-to-let can provide that beneficial long term investment - unlike shares which are up and down quicker than you can click your fingers. Part of the best asset class for the last five years, investors have long since realised the benefits of property over shares; and despite the negative press in 2006 buy-to-let is here to stay. The supposed forthcoming property market crash has put many people off buying property for themselves. It’s great news for investors though as individuals priced out of the property market are looking to let for longer.

The buy-to-let market is set to inflate as rental rates are continuing to increase – for many investors it is just a matter of choosing which kind of property to invest in. The increase in demand for rental properties means that, according to recent reports, buy-to-let is set to ‘prop up’ the property market. The influx of migrants and young workers unable to get on the property ladder are choosing to rent for the foreseeable future, as it is often more financially viable, and they have the added bonus of a landlord to take care of any repairs.

Maintenance can be the biggest concern for many landlords as older properties usually require more frequent attention. Buying off plan on the other hand can provide an excellent investment opportunity as new builds come complete with a structural guarantee for added assurance. Buying off plan is often perceived to be a risky business especially as a lot of localities are already over subscribed, however with strong research into up and coming areas, off plan property can alleviate the maintenance issues landlords want to avoid.

Remarkably – in the fickle property market - buy-to-let is a growth industry and can provide capital assets in the long term even if the day to day costs are not covered in the first instance. Unfortunately for those looking to make a quick buck, buy-to-let investment is not just for Christmas – investment commentators suggest a 10 year (minimum) venture from the outset. One thing is for sure; in this market it is important to do your research.

For many first time buyers the property market is simply not worth the hassle. However, shared ownership schemes are becoming more popular and for individuals looking to make those initial steps; it can be the only feasible option.  

Although initially developed to help people buy their council house, the schemes have undergone a transformation. They are now attracting young professionals who were ordinarily priced out of the property market. Purchasing a new build with one of the improved shared ownership schemes, enables first time buyers to climb on the first rung of the ladder without compromising on the all important location location location (not to mention fabulous interiors).  

New builds (already increasing in popularity with first time buyers) are upping their profile with shared ownership schemes directed at those otherwise unable to get on the property ladder. First introduced in 1990 specifically for key workers such as nurses, teachers and police officers; these schemes have since had their boundaries widened to include professionals on a low to moderate income. They work in much the same way as buying shares, and allow the consumer to rent and buy at the same time. The buyer initially purchases 25 – 75% of a property and can then acquire the rest in stages; a process which is known as ‘staircase buying.’ 

In a captivating twist, shared ownership schemes reduce exposure to rising interest rates and are available to buyers with a household income of up to £52,500. As first time buyers shy away from other forms of mortgage, banks and building societies are looking for new ways to attract them. Yorkshire Building Society, for example, has collaborated with the government to reach first time buyers and is offering interest free loans of up to 15% of the property for the first five years; whilst the government proposes a further loan of 17.5%. 

With property prices soaring - the aim is to keep those all important first time buyers in the market, (all important because without them there are no second time buyers and so on and so forth). The innovative combination of buying off plan and shared ownership is, for many, the only chance to buy their own home. And combined with the increased popularity of new builds, these schemes provide a potential ‘double whammy’ to get first timers back in the game. All in all, the off plan market is set to thrive.

India’s real estate market is growing by leaps and bounds. Growth and development has pushed India’s financial and commercial capital, Mumbai, to being one of the most expensive cities for setting up office. New Delhi, figures on the top ten list as well, coming in eight. London tops the list according to research conducted by Real Estates Broker firm CB Richards Ellis.

While this illustrates the development and growth of the economy, it also shows that there is definitely a dearth for office space. Moreover because of such high rates, investors should think twice before investing in Mumbai or Delhi. The cost in square feet at Mumbai’s Nariman Point has risen 55 per cent over last year to $189.51 (occupation cost in US $/sq ft/annum).

So, what is the general consensus out there? Many are not too happy with the news. Of course this means shelling out more dough. And no one in their right frame of mind would want to do that. Most of us do not trade in property, but we would need the extra space for expansion of our business. This will squeeze liquidity and cash flow. The government needs to take charge, develop more infrastructure, reduce property prices.Moreover, Mumbai will loose out with all the BPO’S and KPO’S who won’t be able to afford the high rents and so will set up base in smaller cheaper cities.For now, the bottom line is - you might want to think twice before setting shop in Mumbai or Delhi since obviously setting up an office in Dubai or New York is cheaper. Tsk!Tsk!

Most Expensive Commercial Space by City

(Source: CB Richard Ellis Global Research report Global Market Rents, November 2007.)

At the beginning of 2007, the government in Switzerland placed a ban on foreigners buying property for one year. But buyers interested in the popular Swiss ski resorts will be pleased to hear it’s now been lifted - although there is still a slight sting in the tail. The state council in Valais imposed the one year ban due to an influx of foreign buyers purchasing in resorts such as Verbier, Zermatt and Saas Fee that were causing queues of two years or more for obtaining foreign permits. The queue was so long that many foreign buyers had already signed their purchase contracts and were occupying their property, yet still hadn’t received the permit and weren’t registered as the owner in the land registry records.

Since the ban was imposed in January 2007, the backlog has been reduced. But even though it’s now lifted, the council have decided not to issue so many new permits, which means fewer foreigners can buy here than previously. What’s more, they’re only allocating a certain number of permits to buyers that fall into certain categories.

In 2008, there will be 330 new permits available to the Valais Canton and they will be allocated as follows:

• Fifty per cent (165) will go to projects where the buyer has an obligation to rent out their property through a tour operator, therefore increasing tourist opportunities in the area.
• Forty per cent (66) will be allocated to buyers who are already in the queue; they will have signed a purchase deed in the last two to three years, but hadn’t already received a permit.
• The rest of the 99 remaining permits will go to new buyers wishing to buy second homes and will carry no obligation for them to rent out their property.

An additional new rule prevents notaries from signing the sales deed unless the developer has received a building permit from the Commune and a foreign purchase permit from the Canton. With Canton Valais, you’re also not permitted to resell within 10 years – except in special circumstances, such as illness – which can be rather restrictive for some people.

Swiss property can make a great investment, especially if you’re buying in a ski resort and are considering letting out your property. If you’re interested in buying in the Swiss Alps, then do keep in mind that these rigid restrictions only apply in Valais.
Other areas are much more flexible when it comes to foreign buyers and have more permits available. One example is Villars, which is easily accessible from Geneva Airport, and is a good old round resort.

Simon Malster, managing director of Investors in Property, says, “We’ve always had strong demand for property in Villars as it’s an attractive dual season resort less than 90 minutes from Geneva Airport. As Villars is in Canton Vaud, where foreigners can buy freely today and sell tomorrow, we expect demand and prices to continue to rise.”