Jabong Mailer (CPA)
Showing posts with label real estate market. Show all posts
Showing posts with label real estate market. Show all posts

Thursday, 17 December 2015

Data Centers: Where Big Data Meets Real Estate

Which of the many technology companies should you bet on as an investor? As the next big thing becomes outdated faster than you can swipe a smartphone, it’s not always easy to predict which specific company will have staying power.

But one thing we can probably agree on is that high-tech, including cloud computing, is a pretty solid bet, given that it undergirds pretty much everything we do these days — and it can even be an environmentally friendly move as well.

I recently wrote about how Big Data is changing finance. Now I’m here to tell you that Big Data isn’t just a way to come up with smarter investment strategies through, for instance, transparency and risk analysis, two of the issues I discussed previously. Big Data can also be an investment strategy itself.

Saturday, 12 December 2015

Realtors upbeat over easing of FDI norms

Real estate industry expects inflow of foreign capital in the sector to be more than 15 per cent after the government eased FDI norms, a survey by industry body FICCI said.
With the real estate industry facing a huge slowdown for the past 2-3 years, the government last month relaxed foreign direct investment (FDI) norms in construction sector by removing two major conditions related to minimum built up area as well as capital requirement.
“According to FICCI survey, industry is happy and satisfied with current FDI reforms in construction development sector and has shown high level of confidence and optimism towards future flow of foreign capital into realty sector,” the industry chamber said in a statement.
The survey amongst various stakeholders comprising developers, investors and consultants was conducted to assess the mood of real estate industry and their perception on relaxed FDI norms for the real estate sector.
“Respondents were optimistic and felt that FDI reform measures will certainly increase flow of FDI into realty sector in coming months.
According to DIPP, Indian real estate has attracted about $24.16 billion FDI in construction development sector during April 2000 to September 2015.

Friday, 11 December 2015

Real Estate News: Sellers are Not the Only Ones to Benefit in Home Remodeling

The primary goal of homeowners to remodel their houses is to make their homes more appealing when they are listed in the market, but a recent report from the National Association of Realtors has revealed that home remodeling can also benefit homeowners that don't have plans to sell their homes.

"Realtors® know that certain home upgrades and remodels can be beneficial to get more buyer eyes on a property, potentially bring in more offers or gain more equity from a home," said NAR President Tom Salomone, broker-owner of Real Estate II Inc. in Coral Springs, Florida. "But remodeling projects are just as valuable to homeowners who simply want to get more joy out of their dwellings. Regardless of the situation, Realtors® know what remodeling projects bring the biggest bang for the buck and what projects are most likely to improve a homeowner's impression of their current place."

Hollo School of Real Estate ranked No. 1 nationally, No. 2 globally

FIU College of Business’ Hollo School of Real Estate ranked No. 1 in the United States and No. 2 globally for its faculty’s real estate research in a study that will be published in the Journal of Real Estate Literature this month.

The Real Estate Academic Leadership (REAL) rankings highlight the authors and institutions demonstrating achievement in intellectual contributions to the field of real estate over the last five years.

FIU outranked the University of Wisconsin-Madison, Massachusetts Institute of Technology and Cornell University. Internationally, the real estate program placed second to National University of Singapore.

“This ranking mirrors the pride we take in our rigorous, relevant, cutting-edge research,” said William G. Hardin III, director of the program. “In this way, FIU’s Hollo School helps practitioners throughout the world understand the market determinants of success and failure in real estate.”

The real estate program offers graduate, undergraduate, dual degree and online degree programs, including a Master of Science in International Real Estate (MSIRE).  Its unique combination of face-to-face classes and Internet-based live Classroom Capture Technology has led many international real estate leaders with extensive travel schedules to pursue the MSIRE degree. The College of Business program has five full-time faculty members and 93 enrolled students.

“The Hollo School is spearheading innovative research for noted economists and worldwide leaders of the real estate profession,” said Jose Aldrich, acting dean of the College of Business. “Congratulations to director Bill Hardin and this top-notch group of faculty scholars, who bring their expertise and passion for the field of real estate to our classrooms.”

The rankings are based on the number of publications in the top three peer-reviewed real estate journals – the Journal of Real Estate Finance and Economics, the Journal of Real Estate Research, and Real Estate Economics – from 2011 to August 1, 2015.

10 Incredible Numbers from Canada’s Real Estate Bubble

Canada’s Real Estate Bubble Is Jaw-Dropping
Canada’s housing market is overpriced and the nation’s real estate bubble is due to burst at any moment. At least, that’s what we’re told.
This message has been repeated so often that many Canadians have tuned out the conversation altogether. But lately, the country’s housing market has defied reason. Despite years of stagnant wages and a slowing economy, real estate prices continue to soar at a nearly double-digit clip.

Regardless of your views on real estate, the nation’s two-decade-long housing boom has produced some jaw-dropping statistics. Here are 10 incredible numbers from Canada’s real estate bubble.
1. $1,226,300
A shortage of listings and intense demand is driving up prices beyond any bounds of reason. In Calgary, the average detached house sold for $509,392 in November. In Toronto, just a semi-detached home will set you back $750,608.
However, Vancouver’s real estate market really takes the cake. According to the Real Estate Board of Vancouver, the benchmark price for a detached house in the Metro Area increased 22.6% year-over-year in November to $1,226,300.

Washington’s top real estate developer is painting murals in your neighborhood. Is it art or marketing? Or both?

It has long been an act of rebels, activists and, indeed, criminals to plaster the walls of a city with a can of spray paint. And it remains the pursuit of outsiders who do their work out of sight or in the dead of night.

Even for those who made a name for themselves in street art, such as Britain’s mischievous and scathing graffiti legend Banksy, the reward has often been to see one’s work quickly scrubbed or painted over by authorities.

Locally, there is an aggressive new commercial campaign to promote street artists and muralists. One painted a 65-foot portrait of F. Scott Fitzgerald, with a silhouette of his wife, Zelda, on the side of an apartment building. Another spray-painted an abstract array of bright polka dots and stripes on a brick wall in Rosslyn. A third blanketed the wall of a parking garage at the National Cancer Institute with images of the United States and Native Americans.

A group of painters is making over drab corners of the Washington area with large-scale murals, each bringing their own talent and inspiration to a genre popularized in the United States by graffiti artists. But all the new pieces share the same origin: the anonymous gray office building on Willard Avenue in Chevy Chase, Md.

People Walking Away From Deposits; Real Estate Agent Predicts

In 2016, it won't come as a shock if people will be willing to walk away from the deposit they place on pre-selling apartments, Phil McCarroll of Your Investment Property reports.

Douglas Driscoll of Starr Partners real estate agency is predicting that an addition from the present concerns with this year's off the plan sales will be that buyers will begin to find their prospective purchases as overvalued.

"In 2015, we saw a lot of developments granted planning permission but I think heading into 2016 we will see them feel a bit of pain because some purchased their sites on such narrow margins.  As market levels fall away slightly, some developers might struggle to cover costs," Driscoll said.

"Towards the end of 2016 we might start to see some investors potentially walk away from their deposits because they perceive that they paid too much for it in 2015 and see that it's no longer worth the risk," he said.

According to Driscoll, this tendency is a "knee-jerk" action which he doesn't recommend, but Mark Mendel of iBuyNew off the plan consultancy firm would like to disagree with Driscoll's forecast saying that it is a little off target.

"I think we would only see that if prices in Sydney had a rapid fall. If you look at the history of Sydney property cycles we have a period of strong growth for three or four years and then a period of six or seven years where things slowdown a bit," Mendel said.

"I don't think people are at the point where they're ready to lose their deposits, I mean something like $70,000 or $80,000 is a lot of money. I think people will be more likely to take the rental return and wait until capital growth picks up again," he said.

For Mendel, the walking away is a nonissue, but he recognizes the possibility that some projects may never eventuate.

"I think we'll see a drop in the level of activity. A lot of the developers who bought sites on option aren't going to go through with it and they'll hand the land back.

"We'll see construction drop off, but the bigger boys in areas like Green Square will keep going though."

Global regulators target capital charges on "buy-to-let" mortgages

LONDON: Banks would have to set aside more capital to cover "buy-to-let" mortgages and place greater emphasis on a borrower's ability to repay a home loan under draft rules from global banking regulators on Thursday.

The Basel Committee of banking supervisors from the world's main financial centres published revised proposals for banks using the so-called standard approach, rather than in-house models, to determine how much capital they must set aside to cover the risk of a loan turning sour.

This so-called credit risk is the single biggest calculation made by banks as it covers between 60 and 90 percent of the risk-weighted assets on their books.

Thursday's second consultation on credit risk is aimed at simplifying Basel's suite of complex capital rules in order to iron out large differences in how much capital banks from different countries set aside to cover similar risks.

Basel unveiled key changes, such as introducing a clear delineation between types of home loans when it comes to capital charges.

Real estate reaps smart technology paybacks

Smart buildings could be characterized as a venue for colliding cultures as real estate moves away from a tradition of proprietary systems and IT takes on a growing role in operations. A seminar at last week’s PM Expo in Toronto even presented that theme in an energy management vs. building automation context, albeit largely as a teaser for a discussion of the broader linkage of technologies to deliver high-performance buildings.

“I think we’re at a point where it is no longer a conversation about a building automation system or an energy management system or about water management. It’s a conversation about the environment,” observed Chris Piché, a principal with the engineering and green design firm, Integral Group, and one of the seminar presenters.

Elsewhere at PM Expo, real estate owners/managers and IT service providers likewise explored how smart technology and innovation are transforming buildings, as part of a panel discussion sponsored by the Building Owners and Managers Association (BOMA) of Greater Toronto. They pointed to the efficiencies and savings that can come with real-time monitoring and operational responses, which also support asset value and competitiveness in the marketplace through enhanced ability to attract and retain tenants.

“I suspect the evolution of technology in our buildings is going to come rather quickly,” mused the discussion moderator, Lachlan MacQuarrie, vice president, real estate management, with Oxford Properties Group. “My advice would be: you probably don’t have as much time as you think you have.”

Network infrastructure figures prominently in the first steps to get open systems converged on a platform for collection, integration and dispersal of data. From there, it becomes something of a discovery process for data applications — ranging from the obvious, such as energy-use monitoring and verification, to the perhaps more esoteric.

Romania's Prince Paul detained in big case of alleged real estate fraud

BUCHAREST, Romania –  Prosecutors on Friday detained Romania's Prince Paul in a case of alleged real estate fraud involving a top aide to a former prime minister and a newspaper editor.

Prosecutors ordered businessman Remus Truica, the former head of Cabinet of ex-Premier Adrian Nastase, be put under house arrest Friday. Truica has been charged with setting up a criminal group in 2006 that is alleged to have fraudulently acquired 170,000 square meters (1.8 million square feet) of state-owned land for Prince Paul. The fraud is estimated at 136 million euros ($150 million).

Paul was questioned Friday afternoon and later handcuffed and detained in the central city of Brasov, where the probe is being conducted. He denies wrongdoing and says he is a victim of Truica.

An anonymous short-seller called a company a 'Ponzi-like real-estate scheme' and the stock has crashed 65%

An anonymous short-seller called a company a 'Ponzi-like real-estate scheme' and the stock has crashed 65%

Read Full Story: An anonymous short-seller called a company a 'Ponzi-like real-estate scheme' and the stock has crashed 65%

Residents of posh Paris island rake in cash on Airbnb

PARIS: Homeowners on the Ile Saint-Louis in central Paris, which has some of the city's most expensive real estate, are being kept in style by Airbnb rentals, a survey showed Thursday.
Conducted by a tourism industry association it showed that nearly two thirds -- 63 percent -- of the 214 buildings on the tiny island of film stars, scribes and sheikhs "have at least one Airbnb apartment or similar".

A total of 314 residential units, representing 17 percent of the island's stock, are available for rental on Airbnb or other home-sharing websites, the survey said.

Only about one-third of dwellings on the smaller of two islets in the Seine river, next to the Ile de la Cite where Notre-Dame Cathedral is situated, were inhabited by the owner.

The survey took place as Parisians express growing frustration with the never-ending stream of Airbnb tenants carting luggage up the stairs of their apartment buildings.

Real Estate Investment: When Do You Buy And When Do You Sell?

Sam Zell knows more about real estate investing than anyone else and according to him, it is all about timing. Zell sold his real estate firm Equity Office to Blackstone Group for $39 billion during the peak of the market in February 2007. This was just months before real estate credit markets begin to plummet.

Timing is really important and it pays to know when to buy and when to sell. Zell did this not just once but twice! At the end of October, his Equity Residential real estate fund sold more than 23,000 apartment units to Starwood Capital for $5.4 billion. His company plans to see another 4,700 units sometime soon. Most of the proceeds will be returned to investors next year in the form of dividends, an article from Business Insider revealed.

Zell's technique is to cash out of non-core assets and rather than re-invest, most of the cash is given to investors.

So how does Zell know when to sell?

REITs (real estate investment trusts) are considered to be lucrative sectors after the 2008 credit crisis. REIT prices are up 286 percent from their March 2009 low, compared to 209 percent for the S&P 500 over that same period.

According to Real Capital Analytics data commercial property values reached an all-time high on record in August--up 14.5 percent and even surpassing the previous numbers.

China property firms' debt issuance jumps, more to come

China's real estate companies have sharply increased the amount of funds raised from debt so far this year compared with 2014 as borrowing costs hit historical lows, and they are planning to borrow more.

Property developers have raised 495 billion yuan ($77 billion) from domestic Chinese bonds, almost double 2014 levels, Barclays Capital estimates.

Goldman Sachs suggests property companies have issued more than 400 billion yuan ($62.5 billion) in domestic bonds, over seven times total issuance in 2014. It uses a different set of companies as the basis of its estimate.

"Conditions are great for these developers who should take this opportunity to strengthen their balance sheets and deleverage in a disciplined manner, rather than leverage up," said Dhiraj Bajaj, a fund manager at asset and wealth manager Lombard Odier Singapore.

Q&A: David Behin, CEO of CityFunders, Talks Title III And Real Estate Crowdfunding

For David Behin, co-founder and CEO of CityFunders, proving real estate investment opportunities for accredited investors, his goal was to help bring real estate investing to the masses. Fast forward to now, and the pool of real estate investors has noticeably increased, with the passage of the JOBS Act, Title III. The new law contributes to CityFunders’ purpose: enabling the majority of people to invest in what was once only available to the elite.CityFunder

With a potential outpouring of money coming into the marketplace–Title III just received the SEC’s approval in October–David believes that regulation will beneficial for the industry. But Title III’s benefits are, of course, not limited to the real estate crowdfunding; Pensco Trust Company’s CEO believes Title III retail crowdfunding may benefit from IRA money retail crowdfunding may also benefit from IRA money. Steve Wallman last month shared his thoughts on Title III’s equity crowdfunding rules, informed by his background as a former SEC Commissioner.

Recently, Crowdfund Insider caught up with David about his thoughts on what the passage of Title III means for the future of real estate investing and crowdfunding.

Midori Yoshimura: Following the recent passage of Title III, how do you see regulation as benefiting the crowdfunding industry?

David Behin: The new regulations will vastly expand the number of eligible investors.

Midori: What do you see as the short-term and long-term effects of Title III?

David: I don’t expect much to happen in the short term, as these regulations won’t become actionable until mid-2016. Further down the line, I do expect increased regulatory involvement on the industry at large.

Midori: Given the expansion of eligible investors, how much of a bump might we expect to see in funding in the equity crowdfunding marketplace?

David: I think a significant bump will come, but it’s important to remember there will be a learning curve which will affect adoption. On the platform side, this consists of new processes and paperwork, as well as significant fees associated with opening portals up to non-accredited investors. Investors will have to research the different platforms and deals available to find what works best for them.

Tokyo real estate prices plummet as ghost homes on outskirts of city lie abandoned and unsold

It used to have the most expensive real estate in the world but prices in Tokyo have plummeted, with millions of houses unable to be sold.

Chinese middle classes, mainly from Beijing and Shanghai, are coming in for the cheap takings and buying up apartments in central Tokyo.

But on the outskirts of Tokyo, in Yokosuka, houses lie abandoned all over the place.

Some look as if they have been deserted for years and others as if the inhabitants suddenly upped and left.

The Japanese call them ghost homes.

In the 1970s and 1980s people came to Yokosuka to buy affordable real estate and escape the boom time prices of central Tokyo.

Now 14 per cent of homes lie empty and across Japan a staggering eight million are unoccupied.

Real-Estate Agents’ Over-the-Top Gifts for Home Buyers

When Christophe Choo helped a couple purchase a $15 million Los Angeles home, he wanted to buy them a closing gift that was equally impressive. So instead of leaving a bottle of Champagne in the fridge, he and his wife ushered them onto a chartered jet bound for Vegas.

Mr. Choo, a real-estate agent at Coldwell Banker Beverly Hills, said he spent about $30,000 to accompany his clients on an all-expense paid weekend in Las Vegas, which included suites at the Encore Resort at Wynn and a visit to Tryst nightclub. Mr. Choo said his over-the-top closing gift strategy, which includes giving the most lavish gifts to clients who spend over $10 million, pays off. “My business is 70% repeat clients,” he said. “Creating memories is important.” He declined to say how much in commission he earned on the sale.

Reactions to the Real Estate Bill

The recent Cabinet approval for the Real Estate (Regulation and Development) Bill has been hailed by developers and industry experts, saying the move would set the benchmarks in consumer rights protection. But the ‘good’ cannot go with imperfections in its smaller details. So it is pointed out that if speedy project approvals are not brought into its ambit, it could lead to project delays and even rise in costs. The Union Cabinet approved the Real Estate (Regulation and Development) Bill, 2015, and it will now be taken up for consideration by Parliament.

Industry reactions:

Shishir Baijal, CMD, Knight Frank India

It is a welcome move for the entire industry and the amendments are likely to lift overall sentiments. The amendments are in the right direction, but they should be implemented within the time frame and we should not lose the momentum now. With the Cabinet nod, the Bill is very much ready to become an Act, post which the onus will be with the States on how they adopt and implement it.

Anshuman Magazine, CMD, CBRE South Asia

The Bill will prove a game changer, protect the consumer and encourage every buyer. However the ease of doing business needs to be implemented in the real estate sector through a time-bound approval mechanism by the government/local/ urban bodies. The government bodies also need to be held accountable for ensuring reforms in laws and timely project approvals.

Farook Mahmood, President, FIABCI, World Council of Brokers, & CMD, Silverline Realty

It’s a positive step that would offer a fillip to the market. But having taken a closer look at the details, I would think it would need a little tweaking with respect to broker penalty. In the event of builder/promoter not adhering to rules, how can a penalty of nearly 10 per cent be slapped on the broker community? We hardly get 2 per cent in our dealings, where is the reason for such high penalisation for brokers?

Tuesday, 8 December 2015

Real Estate Tips: How to Create Your Own Comfortable Home Office

In this age of internet and world wide web, working from home is the most preferred option of many, especially for freelancers such as bloggers and online workers. In fact, many have their own home office in the comforts of their houses.

Designing your own home office can be tricky since you want to feel and be productive in that particular area, where you will be spending most of your time for work.

Realty Times listed few tips on how to create your own chic and productive home office. Here are some.

Keep it minimal and organized.

You would want to work in a place that is so serene calm and very orderly. Clutter on your desk, on the floor, or even on the wall could affect your productivity by having you focus on other details of the office than the work. So keep it organized and very minimal as possible.

Real Estate Tips: Why 2016 Is The Best Year To Invest In A House

If you have been having doubts about investing your hard-earned money on a house, 2016 is the perfect time to finally make an investment. Experts have given some real estate tips you may want to consider.


For a while now, mortgage rents have been moving up and down. They are predicted to start going up but despite this, you still have a chance to get a good deal on a house. You may not be aware, but a number of factors are coming together to make 2016 a great time to make a wise purchase.

Real estate values are expected to slow their pace next year. According to Zillow's Chief Economist Svenja Gudell, prices are expected to make a 3.5 percent increase. This slowdown can lead to a flood of buyers. Realtor.com Chief Economist Jonathan Smoke is predicting that six million home sales will be made through the months of April to September.


Likewise, the price appreciation will urge more home owners to list their homes giving buyers more properties to choose from. Recently, builders have been focusing on building starter and middle-range homes. This move boosts the inventory of the home market giving buyers a great advantage. With more homes, bidding wars will become uncommon and prices could ease down.

However, not everyone can take advantage of this situation. Zillow still expects prices to outpace wage growth making it difficult for lower-income buyers to acquire a home. Also, prices in the country's hottest real estate markets such as San Francisco, Boston and New York City aren't expected to experience a slowdown in real estate values.

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