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Sunday, April 29, 2012

Santiago - 8.16%, Vina Del Mar - 4.31%

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Chile Rental Yields-Buy a small apartment to rent out in Chile | Global Property Guide CLOSE XRegister - if you don't have an accountYour Name:User Email:Password:Confirm Password:Yes! Sign me up for Global Property Guide's fortnightly email newsletter.

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Chile

Financial OverviewOverview Price History Rental Yields Taxes and Costs Buying Guide Landlord and Tenant Inheritance Living There Useful Links Country Statistics DirectoryRealtors Accountants LawyersProperty SearchAll Property Residential Commercial Land for Sale Luxury Homes For Sale by OwnerGlobal StatisticsHouse PricesRegional StatisticsSq. M. Prices Rental Yields Rents Price/Rent Ratio Price/GDP per Cap Buy/Sell Costs Rental Income Tax Capital Gains Tax Landlord & Tenant Law GDP Per Capita GDP/Cap Growth 1 yr GDP/Cap Growth 5 yrs Economic Freedom Ec. Freedom 5 yrs Competitiveness Property Rights Index Currency +/- Value
Nov 29, 2010 Buy a small apartment to rent out in Chile
Last Updated: Nov. 29, 2010SANTIAGO -
ApartmentsCOST (US$)YIELD (p.a.)PRICE/SQ.M. (US$)TO BUYMONTHLY RENTTO BUYMONTHLY RENT45 sq. m.79,920655 9.83%1,77614.5570 sq. m.103,810882 10.20%1,48312.6090 sq. m.137,790982 8.55%1,53110.91120 sq. m.225,0001,331 7.10%1,87511.09 225 sq. m. 570,600 3,254 6.84% 2,536 14.46 450 sq. m. 1,175,400 5,729 5.85% 2,612 12.73VALPARAISO -
Houses100 sq. m.104,600579 6.64%1,0465.79175 sq. m.199,675n.a. n.a.1,141n.a.350 sq. m.189,200700 4.44%9463.50VI?A DEL MAR -
Apartments40 sq. m.83,6405087.29%2,09112.7060 sq. m.90,060581 7.74%1,5019.6885 sq. m.124,950753 7.23%1,4708.86 120 sq. m. 263,040 1,074 4.90% 2,192 8.95200 sq. m.495,2001,276 3.09%2,4766.38Santiago: Providencia, Pedro de Valdivia Norte, Vitacura, Las Condes, El Golf, Lo Barnechea, La Dehesa, La Reina and ?u?oa
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

Buy a small apartment in Chile ? the return on your property will be twice as high as for a large apartment. Gross rental yields for medium-sized apartments in Santiago are now above 10% - that?s for apartments around 70 square meters.

These are the highest yields we have recorded for Chile during the Global Property Guide?s 6 year existence. ?Six years ago, when we first began to study Chile, the highest yields were to be found in larger houses in the North (Antofagasta, San Pedro de Atacama), and also in the Centre (Valparaiso, Vi?a del Mar) (though Santiago had a more classical ?small = high yields, large = low yields? configuration). ??

Yet increasingly the realities now favour buying small properties rather than large, as during 2010, rents have moved up sharply for smaller apartments. ??Small residential property is where the ?returns juice? is strongly concentrated in Chile.?

Chile is one of those countries where data on house prices is not collected by the authorities, despite the high state of development of its institutions

Chile - more data and information » How expensive are houses in Chile, compared to the rest of Latin America? » How much rent can be earned from Chilean property, compared to the rest of Latin America? » How much tax must foreign owners pay when they rent out their Chilean property? » Where to by property in Chile

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Strong housing market recovery in Iceland!

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Iceland Overview | Global Property Guide CLOSE XRegister - if you don't have an accountYour Name:User Email:Password:Confirm Password:Yes! Sign me up for Global Property Guide's fortnightly email newsletter.

Iceland

Financial OverviewOverview Taxes and Costs Buying Guide Inheritance Living There Useful Links Country Statistics DirectoryRealtors Accountants LawyersProperty SearchAll Property Residential Commercial Land for Sale Luxury Homes For Sale by OwnerGlobal StatisticsHouse PricesRegional StatisticsRental Income Tax Capital Gains Tax Price Change 1 yr Price Change 5 yrs Price Change 10 yrs GDP Per Capita GDP/Cap Growth 1 yr GDP/Cap Growth 5 yrs Economic Freedom Ec. Freedom 5 yrs Competitiveness Property Rights Index Currency +/- Value
Last Updated: Jan 10, 2012
Strong housing market recovery in Iceland!

Iceland’s house price index rose 6.28% (1% inflation-adjusted) over the year to October 2011, according to Statistics Iceland. This was the ninth consecutive month of annual house price rises since prices started to fall three years ago. House prices are now just 7.6% below the levels seen in Q1 2008.

Iceland’s house prices started falling in October 2008, when the Central Bank raised its key policy rate by 500 basis points to 18%. The hike was implemented to stabilize the Krona, and was one of the International Monetary Fund’s conditions for granting a US$2.1-billion loan, sought when Iceland’s three major banks all collapsed in the span of one week. Iceland’s house prices had previously risen by 16% between Q3 2006 and Q1 2008.

From January to October 2011, the number of sales transactions in the country’s major metropolitan areas increased by 60.3% from the same period last year. In addition, the total value of real estate transactions almost doubled to ISK108.83 billion (US$903 million) from ISK66.13 billion (US$548.5 million) over the same period.

The collapse of the banking industry in 2008 threw the economy into recession, with GDP shrinking by 6.9% in 2009 and by another 3.5% in 2010.

However, the Icelandic economy is now recovering, thanks to increased exports, consumer spending and fixed investments. In the third quarter of 2011, annual real GDP growth was 4.8%, according to Statistics Iceland. Iceland’s economy is projected to expand by 2.6% in 2011 and 2.4% in 2012.

Standard & Poor’s has recently raised its outlook on the country from negative to stable.

Iceland, home, house prices

Iceland’s central bank, Sedlabanki, announced in early-December 2011 that it will hold the key rate unchanged at 4.75%, as the economy is recovering and inflation is above target. The key rate was raised by 25 basis points in November 2011, the second rate hike since August 2011, as the government tried to shield the krona from shocks fueled by the ongoing Eurozone debt crisis.

Consumer prices rose by 5.2% y-o-y to November 2011, more than twice the central bank’s target. Iceland’s inflation rate was 5.4% in 2010, from an average of 12.2% from 2008 to 2009 and 4.7% from 2000 to 2007.

Iceland’s economic and housing market recovery is expected to continue, though the euro debt crisis will likely slow growth.

RENTAL YIELDSLast Updated: Dec 31, 1969

Research on-going.

TAXES AND COSTSLast Updated: Jun 29, 2011

Rental income taxes are moderate in Iceland
Rental Income: Nonresidents earning rental income are taxed at a flat rate of 18. Only 70% of the gross rent is taxable for income earned from leasing residential properties.

Capital Gains: Capital gains are taxed either as business income at 24.10% for assessment year 2010 (tax year 2009), or investment income at 18%.

Inheritance: Inheritance, tax is imposed on the share of the beneficiary at 10%, with an exemption for the first ISK1 million (?6,012) of the share.
Residents: Residents are taxed on their worldwide income.

BUYING GUIDELast Updated: Aug 01, 2007

Very low transaction costs in Iceland
Round-trip transaction costs are very minimal from 1.92% - 2.52%. The buyer shoulders all costs when buying property, which include real estate agent's fee, stamp duty, and registration fee.

LANDLORD AND TENANTLast Updated: Dec 31, 1969

Research on-going.

ECONOMIC GROWTHLast Updated: Jan 10, 2012

Healthy economic growth in 2011 and 2012
Iceland, GDP, inflation rate

Iceland, with a population of only 323,000, is one of the wealthiest and most developed countries in the world. GDP per capita was US$39,025 in 2010, according to the IMF. The small country has low taxes compared to other OECD countries.

Iceland’s economy is heavily dependent on fishing, which provides about 40% of export revenues and employs 7% of the total workforce. However in the past several years, the country diversified into manufacturing and service industries.

From 2004 to 2007, Iceland’s average real GDP growth was 6.4% annually. But the economy fell into deep recession when three of its largest banks—Glitnir, Landsbanki, and Kaupthing—collapsed in 2008, defaulting on US$85 billion of debts.

Iceland’s external debt ballooned to ISK14.34 trillion (US$118.7 billion) in 2008, up by 93% from a year earlier. It further rose to ISK15 trillion (US$120.4 billion) in 2009.

These figures are huge compared to Iceland’s 2009 GDP of US$12 billion. In the third quarter of 2011, the country’s external debt fell slightly to ISK13.6 trillion (US$113 billion), according to the Central Bank of Iceland.

Iceland’s economy is now recovering, mainly driven by increased consumer spending, fixed investments and export revenues. In the third quarter of 2011, annual real GDP growth was 4.8%, according to Statistics Iceland. Iceland’s economy is expected to expand by 2.6% in 2011, and 2.4% in 2012.

Consumer prices rose by 5.2% during the year to November 2011, more than twice the central bank’s target. Inflation was 5.4% in 2010, down from the 12.2% average during 2008 to 2009, but higher than the 4.7% average prevailing from 2000 to 2007.

Unemployment is expected to fall to 7% in 2011 and 6% in 2012, from an average of 8.1% in 2009 and 2010, according to the IMF. During the period 2000 to 2008, the average unemployment rate was just about 1.97%.

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Too early to say: 'housing market crisis over!'

9:59 PM Admin No comments

Feb 26, 2010

The world's housing markets are (mostly) recovering, according to the Global Property Guide's latest survey of residential property time-series. During the last quarter of 2009, house prices rose in 22 countries, of the 34 countries for which quarterly house-price statistics are available, and fell in only 11 countries.

However, if we look at year-on-year figures, 2009 has not been a happy year. During 2009, 18 countries' housing markets experienced price declines, while only 16 countries experienced house price increases.

In other words, though the last two quarters suggest that recovery is now taking place, in most countries house prices are down on the year.

The Global Property Guide's statistical presentation uses price-changes after inflation, giving a more realistic picture than the (more upbeat) nominal figures usually preferred by real estate agents.

Source: Various series, data descriptions and sources here

Even in the limited sense described above – a Q3 and/or Q4 recovery - the present recovery is uneven. Some countries in Asia are rapidly recovering. But housing markets in some of the world's worst-hit countries have continued to decline.

Hard-hit Lithuania and Ireland's housing markets fell sharply during 2009 (-29.29% in Lithuania, and -11.09% in Ireland), and during 2008 (-19.22% in Lithuania, and -11.89% in Ireland). The last quarter offered no respite to either country (-5.83 in Q4 in Ireland, and -4.87% in Q4 in Lithuania).

Ireland's latest quarterly drop of -5.83% is the worst since the Irish time-series began. Back in the boom years, Ireland enjoyed steep house price appreciations, peaking at 26% during the year to Q1 1999. Now there is still no sign of respite. The economy shrank 7.4% y-o-y to Q3 2009. Irish unemployment increased to 11.6% in 2009, from 6.4% in 2008.

Bulgaria's housing market was badly hit during 2009 (-26.36%), and its house-price decline continued during Q4 (-2.26% on the quarter).

Slovakia is another country which experienced a steep decline during the year 2009 (-12.70%), and whose housing markets were still heading down in Q4 (-2.09%).

Spain is a similar case, added to which Spanish statistics are widely believed to understate its house-price declines. By end-2009, Spanish houses were back to their 2004 values. House prices fell 6.42% during 2009 and 1.62% during the last quarter.

Portugal's recovery in mid 2009 proved to be short-lived. House prices were up by a meagre 0.91% in 2009. But over the last quarter of the year, house prices were down by 1.06%. Portugal, like Italy and Germany, is something of a special case, because these countries entirely missed the housing boom that swept through the world.

In Kiev, Ukraine, house prices fell 30.22% during the year and 3.67% during Q4 2009. Kiev had enormous increases during the boom years, peaking at 75% y-o-y to Q3 2005. Figures for Ukraine are in nominal terms.

Russia's housing market has been in crisis since Q4 2008. Over the year to Q3 2009 (the latest quarter for which data is available data), house prices in Russia dropped by 19.97%.

House prices in Greece (data is for cities outside Athens) declined by 1.39% y-o-y to Q3 2009 (the latest quarter for which data is available).

Source: Various series, data descriptions and sources here

The biggest price-declines in the world during this crisis have taken place in Riga, Latvia (down 50.22% in 2009, after a fall of 36.98% in 2008), and in Dubai, UAE (down 43.29% in 2009, after a surge of 42.66% in 2008).

Both Latvia and UAE are now enjoying modest recoveries, with rises of 4.61% in Q4 in Riga and 0.88% in Dubai. Dubai's figure is stated in nominal terms because inflation-adjusted quarterly figures are unavailable.

In the United States, house prices fell by 0.31% (seasonally-adjusted and inflation-adjusted) in Q4, or by -2.61% over the year 2009, according to the FHFA's purchase-only index, the most authoritative US index.

This downward movement was something of a surprise. However what really matters is that the annual house price depreciation was less during the year to this quarter, than in the year to each of the previous four quarters – i.e., the direction of change has been increasingly positive.

The seasonally-adjusted Case-Shiller index rose by a meagre 0.14% during the last quarter of 2009, and fell 3.87% during the entire year of 2009. But again, this was in the context of an overall improvement in momentum, as measured by y-o-y figure as taken each quarter, so that the Case-Shiller index also shows an improving situation in the US.

Canada experienced a house price decline of 2.23% during the year to end-2009. However, the house price index stopped falling in September 2009, so recovery is in progress.

Much of Latin America is experiencing a house price boom, but, with the partial exception of Colombia and Argentina, Latin American countries publish no house-price data.

Israel's house prices have been rising strongly ever since Q4 2008. During 2009, prices rose 15.52%, the highest increase in 10 years. Israel ranked third in this quarter's survey.

Lebanon is also enjoying a house price boom, though it has not yet published figures for 2009.

Hong Kong and Taiwan have been Asia's top two performers. Hong Kong's house prices are back above pre-crisis levels. Hong Kong's housing market experienced a quick turnaround when prices surged 20.81% during the entire year 2009, after suffering from a 15% decline in the first quarter of 2009. In Taiwan, house prices were up by 18.29% during 2009 and 4.70% during Q4. Investors' confidence in the Taiwanese market has significantly improved, after a number of economic agreements were signed with China.

In Singapore, after a painful decline in 2008 (-9.59%), the year 2009 was a roller-coaster for the housing market. After price-falls in the first half of 2009, Singapore's house prices surged 14.30% in Q3 2009, and 6.58% in Q4. During the entire year, house prices were up 2.12%.

The Singaporean government was quick to react against speculative buying by tightening credit rules, introducing a seller's stamp duty, and lowering the loan-to-value limit for housing loans.

Australia and New Zealand have sustained the increases they experienced during the middle of 2009. Australia's house prices increased by 11.28% during 2009 (4.63% during Q4), while New Zealand's increased by 4.86% (3.40% during Q4).

Recovery is coming slowly to Japan. The average price of existing condominium sales was up by a meagre 0.80% during the year to end 2009. The increase is only evident when prices are adjusted for inflation. However, there was an increase of 3.55% during Q4.

Thailand's house prices slumped by 15.56% during 2009, but rose by 1.97% during the last quarter.

References:
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The global house price slump

5:27 PM Admin No comments

by GLOBAL PROPERTY GUIDE

Dec 15, 2008

In 2008, the crash of the world’s housing markets, which began in the US in 2007, precipitated the world’s most severe economic crisis since the Great Depression.

Inflation-adjusted house prices fell in more than 21 countries out of the 29 for which Q3 figures are available. In no country is there cause for strong optimism. The latest quarterly figures bring grim news, even in countries which recently saw price rises.

House prices fell by more than 10% in the UK, the US and Ireland during the year to end-Q3 2008. House prices also fell in Austria, Japan, Luxembourg, Israel, Norway, Malta, New Zealand, and Portugal. Although the latest figures are not yet available, house price falls are also expected in economic powerhouses such as France, Italy, Germany, South Korea and Russia.

House price falls in Europe are widely anticipated to worsen, including those in Estonia, Latvia, Slovenia and Greece.

When house prices are adjusted for inflation, countries with house price declines include South Africa, Iceland, Indonesia, Finland, Spain, Sweden, Australia, Canada, the Netherlands, and the Philippines.

Compared to the previous quarter house prices have also fallen in Hong Kong and Singapore in Q3 2008, which saw strong rises late last year

The core of the crisis is the United States, where house prices fell 20.75% during the year to end-Q3 2008 in inflation-adjusted terms according to the Case-Shiller house price index. This was after a 6.62% fall during the same period last year. Prices in many regions, such as Arizona, Nevada, California and Florida, have fallen much more.

In the United Kingdom, house prices fell 14.44% during the year to end-Q3 2008 in inflation-adjusted terms, after rising 7.59% during the same period last year.

House price falls in the UK seem to be accelerating. The figures show house price declines of 6.67 % (inflation-adjusted) during the latest quarter in the UK. This is the largest quarterly fall among the countries where data is available.

Ireland saw its second year of falling house prices, with a decline of 13.74 % in inflation-adjusted terms, after a 6.38% fall last year.

House prices were significantly up on the year to end-Q3 in Slovakia and Bulgaria. But in each case, prices were stagnant or fell slightly during the latest quarter, in inflation-adjusted terms.

The entire world’s property markets now move in a synchronized manner, highly affected by the US economy and US interest rates. This is the culmination of a process which began in 1971, with the end of the Bretton Woods fixed exchange rate system.

The global housing slump comes on the heels of a decade-long house price boom, unprecedented in terms of synchronicity and magnitude, caused mainly by loose monetary conditions. Now that global credit markets are frozen, housing markets around the world are suffering.

Housing markets around the world can broadly be classified into two: 1) those where house price falls led to economic recession and 2) those where the global economic slowdown led to house price falls. The first group include countries such as the US, the UK, Ireland, Spain and Estonia. These countries suffered from excessive house price bubbles which triggered the global credit crunch and a financial meltdown.

Housing markets in the second group, on the other hand, have stronger economic and financial market fundamentals. Their economies and housing markets suffered mainly from contagion and the confidence crisis which have afflicted almost all housing markets. These countries include Canada, the Netherlands, and Norway.

Nevertheless, there are several countries which cannot be classified into the two groups above. There are countries with structural problems in their economy, the housing markets and/or the financial system, making them vulnerable to external economic shocks. These problems were magnified with the global financial meltdown. They include Japan, South Korea and Germany.

In response to the crisis, central banks have been rushing to drop interest rates:

On October 29, the US Federal Reserve dropped rates to 1%, the latest in a series of cuts which have reduced rates from 5.25% in September 2007;On October 31, Japan cut its interest rates for the first time in seven years, to 0.3%;On November 25, the People’s Bank of China cut its main borrowing rate by 1.08pc points to 5.58%, its fourth interest-rate cut in 10 weeks;On December 2, the Reserve Bank of Australia cut its cash rate to 4.25%, its fourth cut in four months;On December 4, the European Central Bank, the Bank of England, Sweden’s Ricksbank, and the Reserve Bank of New Zealand all slashed their interest rates – to 2.5%, 2%, 2% and 5% respectively; On December 6, the Reserve Bank of India cut interest rates for the third time in less than two months, bringing its repo rate down to 6.5% from 7.5%.

In addition, very significant fiscal stimuli are planned for the US, UK, China and several Eurozone countries.

The Global Property Guide expects 2009 to be a deeply unpleasant year. Research shows that house prices are most affected by three influences: economic growth, momentum, and interest rates. Unfortunately, all these 3 influences are moving in the same direction – downward.

Economic growth. The deep recession now beginning will have strongly negative effects on house prices. Not only do people have less disposable income, but the uncertainties are pushing them to raise their saving rates – leaving less money available for spending on houses.Expectations and price momentum are strongly down in many major markets. People tend to derive their impression of what is likely to happen to house prices, from neighbours and from the news, and the news is bad. This increases the likelihood that things will, actually, get worse, on the (well-established) basis that one of the strongest predictors of property price movements in Period T, is what happened to property prices in Period T-1.Interest rates. Base rates have been reduced, but mortgage lending rates have not fallen. The UK is typical here. Banks and building societies are refusing to lower mortgage interest rates, despite the Bank of England’s base rate cuts.

The two areas where the Global Property Guide is most optimistic about are Latin America and the Middle East, because gross rental yields in both these regions are still high. Yet because both regions are highly dependent on commodity sales (which suffer in recessions) even here, caution is required.

The Global Property Guide continues to be very negative on Europe, almost in its entirety, with the exception of Macedonia (where yields are good), and possibly Moldova. The feels the continent is entering a longish period of downward house price adjustment.

Price/rent ratios need to fall significantly before a recovery in prices takes place in Europe.

The Global Property Guide expects strong price declines to continue in the UK, Ireland, and Spain. Recovery for much of EU will depend upon the effectiveness of the planned ?200 billion stimulus package.

The UK is expected to go into recession in 2009, with an economic contraction of 1.5%. However house prices may bottom in 2010, the big hope being that construction spending for the 2012 London Olympics may help propel the economy and the housing market to recovery.

Among developed economies in Europe, house prices rose most in Ireland and Spain. In turn, these two countries have also been among the worst affected by the global house price slump. Housing gluts in Madrid and in coastal areas of Spain continue to pile up. Ireland is expected to stagnate longer as the government is focusing more on balancing the budget, than on stimulating the economy.

The Global Property Guide expects growth throughout Eastern Europe to be impacted by the recession in developed countries in Europe. There are two islands of good value in Eastern Europe. In Chisinau, Moldova, apartments can return high rental yields, in the mid-teens. However, the risks are high.

A more likely prospect for most buyers is Macedonia, which has been enjoying a house price boom, thanks to a stronger economy and a more stable political environment. Gross rental yields in the capital, Skopje, are around 10%.

Prices fell in most of Asia in the second half of 2008, because of inflation, interest rate increases, and contagion from the financial crisis. The Global Property Guide believes that the downward trend will continue in 2009.

In China, the post-Olympic slump has added to the overall economic slowdown. Plummeting sales figures are reported, although official and unofficial statistics provide conflicting views.

In Shanghai, newspapers report huge discounts. However, figures from e-homeday still show an impressive 24% y-o-y house price increase from a year earlier. We believe that house prices will continue to fall, as rental yields in China are moderate, according to Global Property Guide research.

Japan and South Korea are both quite dependent on electronic and automobile exports to Europe and America, and their economies are now in recession. The situation is expected to deteriorate in 2009, and house prices expected to fall further.

In Hong Kong and Singapore, finance-related job cuts are following the collapse of major US and European financial institutions. Local demand is also likely to weaken as exports fall. Dwelling price falls are expected.

In the Philippines, the real estate boom at the top-end of the market was financed by Overseas Filipinos, mainly those in the US, Europe and Japan, now in recession. A significant amount of new supply is expected to be completed in 2009, which may lead to overhang and more price falls.

In Vietnam, Cambodia and Indonesia, a construction boom financed by South Korean firms has abruptly stopped as South Korea enters recession. The South Korean won is Asia’s worst performing currency, and Korean firms have been asked to pull out their foreign investments. Risky real estate investments in Southeast Asia have been among the first to be withdrawn. These countries are also prone to be affected by the global economic slowdown.

In Thailand and Malaysia, political problems are pre-occupying governments. Although the situation in Bangkok is much worse than in Kuala Lumpur, the political uncertainty has frozen the housing markets in both countries (and will continue to keep housing markets frozen for some time).

In India, the recent attacks in Mumbai will muddle the situation for some time but housing markets will definitely suffer. The overall economic slowdown it likely to hurt luxury house prices in several other key cities, such as Bangalore and Chennai.

House prices in the US are likely to fall further until end-2010 or mid-2011. Coastal states with huge housing overhang such as Florida and California are likely to experience the most prolonged house price slump.

The housing market’s recovery will depend a lot on the effectiveness of the government of the incoming president Barack Obama in dealing with the crisis.

Canada‘s economy is in better shape than that of the US, but is still expected to fall into recession from Q4 2008 to Q1 2009, due to financial market turmoil, declining exports and weaker commodity prices. Nominal house prices are expected to start falling in Q4 2008, and to continue falling until 2010.

The previously hot markets of Western Canada, including Calgary, Edmonton and Vancouver, will experience the largest drop in sales and house prices in 2009.

Both Australia nor New Zealand are likely to see house price declines in 2009. Both countries have had significant house price booms, so that houses are now on relatively low yields.

Dubai is a great idea, superbly executed and publicized. But four factors militate against it just now:

Gross rental yields have already fallen from 10% to 5% over the past 18 months, according to Global Property Guide research. Dubai property was undervalued 18 months ago, in fundamental terms. No longer.Many Dubai residents have lost a lot of money in the Indian or regional stock market crashes, or are feeling poorer as a result of the oil price falls.The luxury segment demand from Europe and America has been severely affected by the global credit crunch and the economic slowdown.Dubai is a trading centre, and will be impacted by the global downturn.

Dubai is a front-runner: whatever Dubai does, other countries in the Gulf will likely emulate. However, we believe that Abu Dhabi, Kuwait, and Saudi Arabia are in a much stronger position, as there are severe housing shortages in all these locations.

Yields also continue to be spectacular in parts of Cairo, Egypt (12% in Maadi), strong in Amman, Jordan (around 8.5%) and in Morocco (Marrakesh apartments yield around 7%). The Guide believes these Middle East housing markets are relatively secure, for the moment.

Global Property Guide recommends investment in Cairo, Egypt although foreigners may encounter some difficulty acquiring property.

Many Latin American countries are significantly less expensive than 3 months ago, due to currency declines - Mexico, Brazil, Chile, Uruguay, and Colombia, particularly. There have been more moderate currency declines in Peru, Argentina, and Guatemala.

The danger is that Latin America’s strong economic performance may have been an end-of-cycle growth spike. Yet yields are excellent in many Latin American countries, such as Panama, Peru, Uruguay and Argentina. This is still a good opportunity to buy.

Panama is widely believed to be overbuilt, a mini-Dubai in the making. But Panama’s gross rental yields average 10.6% (inland apartments) and 9.9% (beachfront apartments), according to Global Property Guide research. When property is producing such good returns, it rarely happens that investors completely desert a market.

Argentina’s capital Buenos Aires has very high rental yields, ranging from 8% to 10.75%, but a fiscally irresponsible government.

Peru’s capital Lima enjoys spectacular yields of 10%-12% in prime areas such as Barranco, Chorrillos, La Molina, Miraflores, San Isidro, and Santagio de Surco. It has also experienced 3 years of strong economic growth, with annual GDP growth rates nearing 10%. The government has become increasingly unpopular, however, which is dangerous.

Uruguay’s capital Montevideo enjoys high average gross rental yields of 7.8% for apartments, and 8.9% for houses, according to the latest Global Property Guide research. There was a 13% rise in the average price of apartments in Montevideo in 2007, according to the Buenos Aires research house Reporte Inmobiliario. More rises in value are likely.

Colombia’s yields are quite good (average gross rental yield of 7.62% in upscale districts of Bogota). Yields in Brazil’s Rio and Sao Paolo are good, but not spectacular.

In summary, Uruguay, Panama, Peru, and Colombia continue to be recommendable.

The Caribbean seems likely to take a pause this year, as demand for high-end Caribbean high-end housing is mostly in the hands of US buyers, who are most affected by the housing crisis and the stock market fallout.

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Recovering housing market in Honduras

2:26 PM Admin No comments

Honduras residential Villa House Property for sale Roatan<br />beachfront oceanview

Honduras' house prices started picking up at the beginning of 2010 from a low base, following the traumatic military coup of 2009, which ousted the leftist former president Manuel Zelaya.

Soldiers took Mr. Zelaya in his pajamas early in June 28 2009 to an air force base, where he was put on a plane that carried him to Costa Rica. The Honduran Congress voted for Zelaya's ouster later that day, replacing him with Congress president Roberto Micheletti.

The main cause behind Zelaya's ouster was a dispute over rewriting the 1982 constitution, which Zelaya believed had helped worsen the country's widening poverty gap. However the Supreme Court, as well as the National Congress and all other democratic institutions in Honduras opposed Zelaya's plans, arguing that the attempt to eliminate presidential term limits could initiate one-man rule like that of his friend, Venezuelan President Hugo Chavez.

The Honduran military, acting on the orders of the Supreme Court, conducted the coup to preempt a referendum on a constituent assembly.

In the aftermath, Zelaya’s ouster was condemned by the United Nations, Organization of American States (OAS), and the European Union, and Honduras was suspended from the OAS. However the new government did have a friend, as The Guardian comments: “Although no hard evidence has yet emerged that the US government was directly involved in his overthrow, the Obama administration did everything it could to help the coup government to survive and then legitimate itself through elections that most of the rest of the hemisphere, and the world, rejected as neither free nor fair.”

A typical Central American country, peace and order problems in Honduras centre on maras (gangs) and drug cartels. There is long history of military, civil and political conflict, massive corruption and government inefficiency, inequality, and poverty. Volcanic activity, earthquakes and hurricanes have periodically devastated the country.

As the global financial crisis struck in 2009, Honduras also suffered an economic contraction, with a 2.1% GDP decline. Honduras’ export-oriented economic growth is dependent to its largest trading partner, the United States. With more than 90% of remittances coming from the US, which was in recession in 2009, the amount of remittances dropped to S$2.5 billion.

"2009 was a disastrous year for anyone wanting to sell," said Janine Goben, the owner of Re/Max Bay Islands.

Honduras Roatan houses Half Moon Bay luxury 2 3 storey villas beachfront oceanview properties real estate for sale for rent

Most things are different in the Bay Islands, a group of islands – the biggest being Roatan, Utila and Guanaja - in the Caribbean Sea off the north coast of mainland Honduras. Their location makes the islands relatively safe and secure.

Roatan’s real-estate development started in 1991 with a road extension opening up West End beach. In 1995, land on a beach was three thousand dollars per acre. Now it exceeds three hundred thousand dollars per acre, with much of the property appreciation occurring after 2001. “The changes in the island of Roatan have been astonishing,” says Maria Monterroso of Island Properties.

Roatan has grown to a full-fledged tourist area from being a scuba destination. “At first it was all retirees, but now there are many younger buyers and developers,” Monterroso adds. The International Airport can now offer direct non-stop flights on TACA airlines from Houston and Miami. Short connecting flights are also available from TACA Airlines, American Airlines, Continental and Iberia. Another development is the newly opened $62-million Mahogany Bay Cruise Center constructed by Carnival Cruise Lines which can accommodate 4,500 ships.

Along with improved infrastructure, new real estate developments including the Pristine Bay Resort and Spa. which has a 155-slip marina, a Sky Lounge and 19th Hole restaurants, and an 11-hole, 7,179-yard, Perry and Pete Dye designed golf course named Black Pearl at the Pristine Bay Resort.

Utila and Guanaja islands are less developed and properties are half the cost – but few properties have road access, so almost everything is by boat.

Development on Roatan has become very controversial, as scattered single-family houses on beaches and hilltops are rapidly being replaced by condominiums. “The environment has suffered, there is no getting around it,” says Monterroso.

According to Marci Wiersma, broker and owner of About Roatan Real Estate, house prices were about 40% off their peak or even higher, by the end of 2010. Most buyers looked for properties ranging from $200,000 to $250,000 that could already get them a beachfront condo o a three-bedroom house on a hill.

Due to issues such as security and infrastructure, tourism on the mainland is still very much underdeveloped. Honduras has the highest murder rate in the world: 82 killings per 100,000 people, according to the UN.

There are 200 kilometres of beaches on the Honduran mainland, mostly empty. Coming from Guatemala, Omoa has the first attractive beach, dotted with houses built by wealthy Hondurans. At the large harbour of Puerto Cortes there are nice beaches, and then, before Tela, government-owned white sand beaches (Los Micos and Miami).

After the beautiful (but beachless) lagoon, the next good stretch is near La Ceiba, especially to the south where excellent beaches stretch all the way to Trujillo, now part of a North Coast sustainable development project being funded by the World Bank. One of the main developments is the Los Micos Beach and Golf Course, a $200 million plus private tourism project that started in January 2010. Two hotels will be included: a 150-room five-star Westin, and a 250-room four-star Conrad. There will also be an 18-hole Gary Player golf course, plus 459 residential villas, a golf club and a shopping centre.

Honduras Utila villas houses properties for rent for sale The Bay Islands real estate beachfront

La Ceiba's Boulevard del Oeste will also undergo a $50 million modernization as part of a Honduran government Public-Private Partnership (PPP) cooperation with the World Bank’s International Finance Corporation (IFC).

“La Ceiba offers 100 miles of white sand beach with only scattered fishermen, an international airport, immense cloud forests with waterfalls and kayaking and rafting, clear water rivers, plantations, excellent medical care, a really little great city (with mall and third superb restaurants),” says Kent Ownbey, a property developer, who owns Honduras Real Estate.

Trujillo Bay also had some residential projects, including the Alta Vista Beach (Desarrollos Vision de Vista), and the Banana Coast Cruises in the Black River Area.

“The picture of Honduras as a violent, underdeveloped country is just not true,” says Ownbey. “People have no idea how safe it is! It is such a sophisticated place. La Ceiba, a town with a pop. of 100,000, there are thousands of 3,000 sq. ft. (279 sq. m.) houses.

“True, some sections are like East Los Angeles,” he admits. “But that is no different from the US.” Words of wisdom indeed.

The buyers are of two main types, he says: People who recognize the close similarities between the Honduran environment and that in Costa Rica, and those who think Roatan prices have peaked, and want to sell, and start again.

The Honduran constitution (Article 107) prohibits foreign ownership of property in Honduras that lies within 40 kilometers of the Caribbean Sea, Gulf of Fonseca or the international borders of Nicaragua, El Salvador and Guatemala and on any of the islands belonging to Honduras.

However, the Honduran National Congress passed Decree Law 90/90 in 1990, which permits foreign ownership of coastal areas under two different parameters. Firstly, foreigners can acquire a single property not in excess of 3,000 sq. m. in size to build a private residence. Secondly, foreigners may purchase as much land as they want for approved tourism projects. All purchases must be approved by the Ministry of Tourism.

Although the Supreme Court has upheld the constitutionality of Decree Law 90/90, the US Embassy warns buyers of the risks inherent in purchasing real estate in Honduras, citing the problems of fraudulent and lack of titles, weak and inefficient judicial system, squatting, and other property disputes.

Title problems are overblown, argues Ownbey, though he says that large lots should be bought through a company structure, which can be 100% foreign-owned. “Honduras has a registry system like the US. It gives you a certificate, and you get a certificate from the Municipal Office that no taxes are unpaid. You can get title insurance..." Ownbey added.

The crisis seemed to draw to a close when the newly elected president, Porfirio Lobo Sosa, of the right-wing National Party, was inaugurated on January 27, 2010, replacing Micheletti. The political situation was somewhat stabilized. President Lobo has announced attempts at reconciliation to pave the way for Honduras' readmission to Organization of American States (OAS).

Zelaya was allowed to return to Honduras last May 28, 2011 in an agreement between him and President Lobo that corruption charges against him would be dropped. Lobo also formed an international truth commission to look into events of 2009, and appointed a human rights adviser, moves intended to pave the way for Honduras' readmission to the OAS.

However the political situation seems to be deteriorating. Shortly after Zelaya’s return, the truth commission ruled that his removal had been a coup, illegal, and not a constitutional succession as some opponents argued. However it also ruled that Zelaya’s referendum on constitutional change had itself been illegal.

There has been an enormous escalation of human rights abuses, with more than 17 journalists killed during the past 2 years. Government officials have also been targeted, especially those linked to the fight against drug trafficking.

Recently former anti-drugs adviser Alfredo Landaverde was shot dead in Tegucigalpa. Landaverde accused police officers of being behind the murder in 2009 of the country's head of anti-drug trafficking operations, retired Gen Julian Aristides Gonzalez.

Murders of students have multiplied, and the US has been forced to withdraw its Peace Corp program.

In November, President Porfirio Lobo sacked his top police commanders and deployed troops to combat crime, but the use of the military has itself been cricitized.

Despite all this, Honduras' economy bounced back in 2010 with 2.8% growth. With the increase of domestic demand and a more favorable outlook for the US, Honduras’ largest trade partner, it is expected that the economy will grow by 3.7% in 2011, and 4% in 2012. The Honduran government was able to fulfill the conditions in 2010 under the $202 million stand-by arrangement with IMF. Policymaking is directed to fiscal reforms putting public finances back on a sustainable path.

Due to increasingly high workers' remittances, it is also expected that private consumption will rise during 2011 to 2012. Unemployment is expected to slightly drop by 4.3% this year as compared to 4.6% in 2010. This year, Honduras is expected to face supply-side inflationary pressures due to rising food and fuel prices, with inflation of around 7.8%.

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Spectacular yields in Panama!

9:53 AM Admin No comments

Panama Rental Yields-Panama: stable prices, yields strong | Global Property Guide CLOSE XRegister - if you don't have an accountYour Name:User Email:Password:Confirm Password:Yes! Sign me up for Global Property Guide's fortnightly email newsletter.

Panama

Financial OverviewOverview Price History Rental Yields Taxes and Costs Buying Guide Landlord and Tenant Inheritance Living There Useful Links Country Statistics DirectoryRealtors Accountants LawyersProperty SearchAll Property Residential Commercial Land for Sale Luxury Homes For Sale by OwnerGlobal StatisticsHouse PricesRegional StatisticsSq. M. Prices Rental Yields Rents Price/Rent Ratio Price/GDP per Cap Buy/Sell Costs Capital Gains Tax Landlord & Tenant Law GDP Per Capita GDP/Cap Growth 1 yr GDP/Cap Growth 5 yrs Economic Freedom Ec. Freedom 5 yrs Competitiveness Property Rights Index Currency +/- Value
Nov 10, 2010 Panama: stable prices, yields strong
Last Updated: Nov. 10, 2010PANAMA CITY ?
Inland apartmentsCOST (US$) YIELD (p.a.)PRICE/SQ.M. (US$) TO BUYMONTHLY RENTTO BUYMONTHLY RENT90 sq. m.147,8701,114 9.04%1,64312.38120 sq. m.185,8801,406 9.08%1,54911.72 150 sq. m. 225,900 1,650 8.76% 1,506 11.00200 sq. m.302,0002,242 8.91%1,51011.21 350 sq. m. 509,950 3,658 8.61% 1,457 10.45PANAMA CITY ?
Beachfront apartments80 sq. m.175,7601,2538.55%2,19715.66120 sq. m.223,2001,736 9.34%1,86014.47160 sq. m.276,0001,931 8.40%1,72512.07 225 sq. m. 344,925 2,300 8.00% 1,533 10.22 350 sq. m. 550,550 3,686 8.03% 1,573 10.53 PANAMA CITY?
Beachfront houses 450 sq. m. 916,200 n.a. n.a. 2,036 n.a.Districts researched
Beachfront Neighborhoods : Marbella, Punta Pacifica , Punta Paitilla, Avenida Inland Neighborhoods: El Cangrejo, La Cresta, San Francisco, Dos Mares, La Alameda, Obarrio, Bella Vista
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

Prices in Panama have remained very stable over the past year, with little sign of impact from the crisis in the US.? Beachfront apartments sell for around US$1,500 to US$2,200 per square metre (sq. m.), or US$140 to US$205 per square foot.?

Apartments away from the beach sell for slightly less.

Gross rental yields remain good, ranging from 8% to 9.3%, with not much difference between apartment sizes.?? Gross rental yields have somewhat declined over the past 2 years on smaller apartments, but have arguably improved on beachfront apartments.? ?

Panama - more data and information » How expensive are houses in Panama, compared to the rest of Latin America? » How much rent can be earned from Panamanian property, compared to the rest of Latin America? » How much tax must foreign owners pay when they rent out their Panamanian property? » Where to by property in Panama

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