Canada’s Resilient Property Market

It wasn’t so long ago that when the US caught a cold, Canada caught pneumonia. But Canada’s financial prudence has helped it sidestep the sharp home price declines being experienced in countries including the US, Britain and Spain.

In the past decade, prices of existing homes in Canada have risen by about 55 per cent, while new-home prices have risen by about 27 per cent. Most economists are forecasting a small increase in prices this year despite the turbulence next door.
It is indeed a much different story in the US, where home prices dropped by 14.1 percent year over year in the first quarter of 2008; a record price decline occurring five times faster than the last US housing recession.

But unlike the US, Canada’s housing boom was the result of supply catching up with pent-up demand that followed the downturn of the late 1980s and early 1990s. And the country’s conservative mortgage culture has helped protect Canada from the excesses seen during the US boom where subprime mortgages have crunched the market.

Canada is in fact posting a very different scenario. And Sheryl Kennedy, Canada’s central bank’s deputy governor, said this week: “The Canadian housing market does not appear to be characterized by excess supply at this time. The proportion of unoccupied, newly built dwellings in most cities remains below historical averages, suggesting that a major widespread reversal in house prices is unlikely in the near term."

David Stanley Redfern has two properties in Canada. The Rouge River Development is part of a resort voted best in Quebec eight years running. Investors can choose from a selection of land plots on which to construct a custom designed property or new lodge or chalet. Around 100 miles of the Rouge River runs through the resort, with fantastic trout fishing, kayaking, canoeing and white water rafting. While a 100 mile bicycle track weaves through the forest along the river bank, through the woods. In winter the bicycle track becomes a cross country ski and skidoo trail.

In Toronto, David Stanley Redfern, has a new property designed by world renowned architect Peter Clewes. The Pier at Queens Quay is an innovative pair of 12 storey towers topped with a three level bridge containing dramatically different penthouse suites.

All units will have a large balcony, or terrace, and residents will have access to extensive indoor and outdoor facilities including swimming pool with cabanas and panoramic views of the lake.

Toronto is one of the only places in the world where rental yields rise in line with property size, and Canada is the only established market in the world which has average yields of around 8 percent.

Find out more about property Canada and buying property in Canada.

About DSR Asset Management Ltd

DSR is an overseas property investment specialist, working directly with developers in more than forty countries. All properties are exclusive to DSR , giving an unparalleled selection of resale and new builds.

Please direct all media queries, requests for press information and editorial details, to media@davidstanleyredfern.com

David Redfern is the director of DSR Asset Management Ltd an overseas property investment specialist. David works closely with developers in more than forty countries and oversees the DSR education programme which lectures individuals and organisations on property investment. Advertise Your Private Overseas Property

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© 2009 Footprints-SEO.com

Invest in Albania's Long-Term Growth and Stability

Albania's government has told the International Herald Tribune that it has taken out a 66.2 million euro loan from the Japanese government to modernise and overhaul its canal system and build a sewage treatment plant. The deal, which gives Albania a forty year period to repay the loan, was signed June 30 2008.

This is just the latest in a series of major financial commitments made by the Albanian government, including a 25 million euro loan from Austria at the beginning of last month to help Albania meet its requirements for EU entry, and another major loan taken by the Duress port authority from the European Bank for Reconstruction and Development to renovate the existing quays and build a new terminal at Albania's largest port.

All loans taken out by Albania are directed at improving the country's infrastructure with a view to aiding its flourishing track record for economic growth, which has been almost constant since it left Communism behind in 1992. It is a testament to Albania's economic performance since 1992 that it is taking out loans as oppose to receiving grants, it has had the economic power to take out such loans since the World Bank upped its designation to a middle-income country in 2007.

The Albanian government has an exemplary record for managing the country's economy, maintaining strong growth while keeping inflation low. The fact that it is taking out these major loans is a major indication of their forecast for the Albanian economy, which they clearly expect to continue growing strongly. And they are not the only ones; David Stanley Redfern's head of international research, said:
"Albania is one of the best places in the world to make a long-term property investment, not only is the government proving their competence time and time again by generating substantial economic growth in its own right while maintaining low inflation. But Albania is all set to become a full member of the EU in 2014, EU loans during this period will bolster the economy and continually aide schemes to develop the infrastructure, which then aides further economic growth, and then Albania's economy will be further boosted by reduced trade tariffs, repatriations from Albanian's going abroad to work, and a whole host of other benefits of EU membership."

One impressive factor that has come from Albania's economic growth of this decade is that a quarter of the population's poorest were brought out of poverty between 2002 and 2006, and unemployment continues to fall, at the same time as wages rise. As Albania's internal wealth and affluence continues to rise, living costs rise, and property values are continuously pushed up. But another benefit is that there will be plenty of Albanian's looking for homes, when investors decide to collect on their long-term investment gains. All round Albania is perfect.

Find out more about property Albania and buying property in Albania.

About DSR Asset Management Ltd

DSR is an overseas property investment specialist, working directly with developers in more than forty countries. All properties are exclusive to DSR , giving an unparalleled selection of resale and new builds.

Please direct all media queries, requests for press information and editorial details, to media@davidstanleyredfern.com

David Redfern is the director of DSR Asset Management Ltd an overseas property investment specialist. David works closely with developers in more than forty countries and oversees the DSR education programme which lectures individuals and organisations on property investment. Advertise Your Private Overseas Property

FootPrints SEO is search engine marketing and online marketing agency based in the UK.
© 2009 Footprints-SEO.com

Germany a Stable and Safe Investment

While house prices in many industrialised countries have shot-up at staggering rates Germany’s housing market has remained stagnant; an average detached house in Germany costs virtually the same as it did 10 years ago. Now investors, lured by remarkably low prices, are snapping up German real estate, especially in Berlin.

To understand why Germany’s market has remained stagnant while others have climbed to dizzying heights, one has to go back to the 1990s. In June 1991, eight months after reunification, a law designed to revive the economy of former East Germany, called the Fördergebietsgesetz, came into force. It offered incredibly generous tax incentives to property investors: Anyone who renovated or built real estate in the former East or Berlin, could write off the entire cost of the investment from their taxable income over 10 years.

Many wealthy West Germans leapt at this once-in-a-life-time opportunity, pouring money into real estate, and buoyed by the generous tax breaks they helped create a real estate bubble. Effectively, the tax incentives were so generous that people over-invested; in the rush to take advantage of this incredible tax break, many investors forget to ask themselves whether there really was demand for the property they were building and renovating, or not.

When the tax incentives expired in 1998 it was clear investors had built over and above market demand. And as the housing market bubble burst, investor exuberance turned to gloom. So while other Western countries experienced their own bubbles (and bursts) in the last few years, Germany has remained immunized against the euphoria over house price rises that gripped many Western industrialised countries.

Admittedly, Germany also struggled with periods of sluggish economic growth in the last decade – actually going into recession in 2001 – and has seen record unemployment. And as the German economy has recovered in the last few years, so too has the country's housing market. Since 2004 the price of buy-to-let flats in big cities has especially increased.

Yet because the international housing market boom bypassed Germany, property has become relatively cheap – a fact that hasn’t gone unnoticed by large-scale property investors. The German market now looks like a dream opportunity for investors. Prices are low compared to many other European countries, and home ownership is one of the lowest in the industrialised world.

The incredibly low home-ownership rate of 43 percent -12 percent in Berlin – presents a unique opportunity: Rents, which have been kept artificially low by large public housing companies that once owned large swathes of housing, are likely to rise as state governments are forcing these companies to sell property in order to offload some of the states' debts. And as rents rise, more people will want to buy their own homes. On top of that, too few new homes are being built to meet future demand.

There is going to be a shortage of housing, and this shortage will mean rents will have to rise. As they do so it becomes more economical for people to invest in housing, and so Germany will see rising prices as well as rising rents.
This isn’t going to happen overnight however, and is likely to take 3-5 years to follow through, but those looking at a safe, stable and strong investment before the boom in Berlin should contact David Stanley Redfern.

Find out more about Off Plan Property and Emerging Property Markets.

About DSR Asset Management Ltd

DSR is an overseas property investment specialist, working directly with developers in more than forty countries. All properties are exclusive to DSR , giving an unparalleled selection of resale and new builds.

Please direct all media queries, requests for press information and editorial details, to media@davidstanleyredfern.com

David Redfern is the director of DSR Asset Management Ltd an overseas property investment specialist. David works closely with developers in more than forty countries and oversees the DSR education programme which lectures individuals and organisations on property investment. Advertise Your Private Overseas Property

FootPrints SEO is search engine marketing and online marketing agency based in the UK.
© 2009 Footprints-SEO.com

Under-Supply of Koh Samui Property Drives up Prices

Under-supply of resort property on Thai islands like Koh Samui and Phuket is generating substantial growth in their respective resale markets. The under-supply has been caused because of developer's reluctance to go ahead with new projects in case government restrictions on foreign ownership hinder sales. It is hoped that the government will soon raise the percentage of property that can be bought by foreigners.

None the less the under-supply presents investors with a fantastic opportunity. The under-supply is primarily on condos and apartments, but has stunted sales, which means there are still some great developments to choose from. Significant resale price growth is another arm to the opportunity presented by off-plan property, because the immediate value rise on completion is all the greater.

Head of international research for overseas property specialists David Stanley Redfern had this to say about the Koh Samui opportunity:
"The latest news from Koh Samui does nothing more than make it an even better opportunity. Luxury villa prices rose by 50% per year in 2006 and 2007, and have always been expected to continue growing strongly. The current under-supply issues will only serve to maintain high demand, or even cause demand to grow for luxury resort property on the tropical island with some of the world's best unspoilt white sandy beaches."

As far as off-plan opportunities go, David Stanley Redfern's Maenam Hills development on Koh Samui is one of the best in the world.

Maenam Hills consists of 2 bedroom off-plan resort villas priced from only £100,000. The great thing is that the developer is offering non-status 50% LTV interest free finance on the villas over a period of 48 months, on the spacious villas. The Maenam Hills villas also come with a 6%p.a. uncapped rental guarantee for the first two years.

David Stanley Redfern are also marketing off-plan apartments on Koh Samui. The Siranya development offers 2 bedroom apartments with sea-views and rental management from just £103,000. The expected yield is 8% for owners who take rental management on their property, and the development also has a restaurant, clubhouse and spa.

Find out more about Thailand property and buying property in Thailand.

About DSR Asset Management Ltd

DSR is an overseas property investment specialist, working directly with developers in more than forty countries. All properties are exclusive to DSR , giving an unparalleled selection of resale and new builds.

Please direct all media queries, requests for press information and editorial details, to media@davidstanleyredfern.com

David Redfern is the director of DSR Asset Management Ltd an overseas property investment specialist. David works closely with developers in more than forty countries and oversees the DSR education programme which lectures individuals and organisations on property investment. Advertise Your Private Overseas Property

FootPrints SEO is search engine marketing and online marketing agency based in the UK.
© 2009 Footprints-SEO.com