Mortgage defaults are climbing

Kenneth Heebner, the manager of the top-performing real-estate mutual fund over the past 10 years, said the economic damage from high-risk mortgage defaults is going to get worse.

"We have a trillion dollars of subprime mortgages and we're going to have huge defaults," Heebner, 66, said in a telephone interview from his office in Boston. "If you're looking at the housing market, it's not the darkest before dawn, it's the darkest before pitch black," Heebner said.

Heebner, cofounder of Capital Growth Management LP, has been selling shares of real-estate investment trusts that buy apartments because they are no longer cheap. At the end of 2006, his CGM Realty Fund had 35 percent of its assets in REITs. He's made a "significant reduction," though he wouldn't be more specific.

Real estate investments likely to fall

Private equity players investing in the real estate market may not be a happy lot, with abundant commercial and residential supply likely to hit the market in 2007, as returns on real estate investments are likely to fall, reports CNBC-TV18.

The lucrative real estate market may not remain as profitable for private equity investors or developers as it has been in the past two years. The higher dividend distribution tax and the 12.36% service tax on commercial rents imposed by the Budget will eat into returns of investors. This comes on top of surging land prices, which have sharply reduced the margins of developers.

"There is too much liquidity foreign funds chasing the limited land supply so automatically the prices of land are very high and as a result of high land prices returns or margins of developers, investors, private equity players have fallen drastically" says Subodh Runwal, Managing Director, Runwal Group.

How To Avoid Rookie Real Estate Investing Mistakes

When Robert Kiyosaki, author of the Rich Dad book series, bought his first property he was, of course, ecstatic. Finally, he had done it. He had taken that first important step in truly building his wealth that the man he called his "rich dad" so often touted--investing. He knew it was very important to become an investor and make his money work for him.

The trouble was, the property he purchased was a losing deal for him. He didn't see this at first, thanks to a smooth-talking real estate agent. But when he took the contract to his rich dad, he learned what a mistake he had made. According to that deal, he would be losing money each month. He thought it would be all right because he had been told that lost money was an investment in the future appreciation of the property.

Investors eye rewards where risks are higher

The finding comes from the 2007 International Property Rights Index published by the Property Rights Alliance. Covering intellectual as well as physical property rights and the legal and political environment, the index is based on opinion surveys within 69 countries.

Norway is the country with the best perceived overall property protection in place, Bangladesh that with the worst.

Norway is also ranked first on physical property rights, with Bangladesh again last. The top five countries for physical property rights are: Norway; Sweden; Netherlands; UK; and Finland. The bottom ranked are: Egypt; Bolivia; Poland; Nicaragua; and Bangladesh.

By region, western Europe gets top ranking for physical property rights, followed by north America, Asia/Oceanis, the Middle East and north Africa, Latin America and the former Soviet Union states, and finally Africa.

Valuation among key factors in real estate investing

Real estate, in general, has traditionally remained a safe haven for investment dollars, and the southwest Missouri market is no exception. All classifications, from income-producing to residential properties, have seen steady appreciation throughout the past two decades.

For individuals who are contemplating investing in real estate, and

specifically investing in income-producing real estate, there are several important steps to consider.

The first step is to enlist help. Contact a real estate professional who specializes in the sale of income-producing properties.

The multiple categories of real estate make it difficult for a real estate professional to claim proficiency in all categories. By selecting a real estate professional who adheres to the Realtors Code of Ethics and specializes in a specific real estate category, a prudent real estate investor should be assured of a knowledgeable adviser.

Investing in a Bahamas Property

Exuma is a string of islands and cays, home to forgotten hideaways, natural harbors, secluded beaches and a coastline of over a hundred miles of clear, blue water. Exuma is a nature lover's paradise preserved in its original pristine setting. In recent years, The Bahamas has become one of the world's financial centers, with over 400 banks located in Nassau, its capital. The country's open economic policy has drawn capital from around the world, and is now a hot real estate market. Bahamas property has become of great interest to investors and a haven for those wanting to own private homes surrounded by the wonders of nature. Local realtors see no end in sight with regards to the increasing demand for Bahamas property.

Buying Bahamas property

In 1993, the Bahamas government enacted a law encouraging non-Bahamians to acquire real estate in any of the 21 districts.

Windham may take landlords to court if their tenants break the law ...

Village officials are meeting with rental property owners today to discuss possible legal action, including property forfeitures, if a felony offense is committed on the property by a tenant.
Mayor Jim Moore, Police Chief Ed Perdian and Rental Housing Inspector Jack Murphy will meet with several rental property owners at 10 a.m. to discuss two recent drug activity ordinances recently passed by council as well as other proposed changes to ordinances affecting rental properties.
Perdian said Tuesday his hope is to see more property owners taking responsibility for what happens on their properties.
"Ignorance is not an excuse. Turning a blind eye is not an excuse," he said. "I'm trying to put people to the task of caring for the community like they should.

Rental squeeze spreads to suburbs

After a weekend of foraging, thousands of people around the country are waiting nervously tonight to find out if they've been approved for a rental property. Most will be disappointed, in what has been described as the tightest rental market since World War II. Today there's yet more evidence of the depth of the crisis, with more to come, after analysts BIS Shrapnel predicted apartment rents in Sydney will rise by more than 40 per cent over the next five years. The squeeze appears to be spreading beyond the inner cities to the outer suburbs, with stories emerging of the staggering lengths to which people are prepared to go to secure a lease. Ben Knight reports. BEN KNIGHT: It's Saturday morning, and the race is on. Each week, the queues of people looking through rental properties are growing longer.
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Inflation clues in lending

A SURGE in lending to property investors spurred on by strong employment levels and rising rental values is another indication that inflationary pressures may be building up in the economy.
However, economists and analysts say interest rates are likely to stay on hold at 6.25 per cent until the end of the year.
For a second consecutive month, home-loan approvals grew -- but below the expectations of economists. The 0.3 per cent rise in borrowing by owner occupiers was overshadowed by the major rise in lending to investors.
The strength of the rental market, which has vacancy levels of about 2 per cent nationally, helped increase loans to property speculators by 4.6 per cent to $6.1 billion.
St George chief economist Steve Ryan said that after two years of weakness the most encouraging aspect was the lift in loans to investors.

Commercial Finance Program Blows the Roof Off "Ugly House" Investing

Real Estate investor training goes to a different level with this commercial finance program. This commercial finance training is a home-based business that goes beyond "We Buy Houses."
Real Estate investing as a business strategy has skyrocketed in recent years, mainly because of late night advertisements promising the freedom to live the life of your dreams for only a few hours of work if you take their real estate training. These strategies have been proven time and time again to be effective for generating wealth in a home based business. Recently a whole new industry has been created by the success of this one strategy -- "ugly house investing." This type of real estate investing is also known "flipping" distressed properties and renovating them into sellable properties.

Property investors in Spain told not to be put off by legal issues

British property investors in Spain, which includes those operating in the buy-to-let market, have been advised to be aware of legal issues but not put off by them.Pierre Williams, a spokesman for property investment education firm Inside Track, said that what buyers needed to do was be aware of the issues and check things out thoroughly.He said: "The issue of developments going up without planning permission has been well aired and anybody buying in Spain should be aware of that. Any development which they consider must have this checked to see whether or not they are likely to have any difficulties in the future and to avoid buying in those areas."Once a property has been established as meeting all the legal criteria over planning permission, the buyer is in a favourable position, with the numerous advantages of buying in Spain coming to the fore.Included in these, he said, were the climate, infrastructure, good health service and well-established expat community, all favourable to British buyers.

Bigger property play for TA

TA ENTERPRISE Bhd, which is well known as a stockbroking and financial services group, wants to beef up its exposure to other more profitable ventures, especially property development and investment.
For the financial year ended Jan 31, 2006, stockbroking and financial services contributed 45% to group earnings while property made up 35%.
Another 20% of the earnings are from its offshore division that is involved in real estate investment of office buildings in Vancouver and Johannesburg, a hotel in Sydney and a stockbroking outfit in Hong Kong.
We want people to know that TA Enterprise is more than a stockbroker and the headway made by the property division bodes well for the groups plans to grow into a conglomerate with diverse and profitable business interests, executive chairman Datin Alicia Tiah told StarBiz.
Tiah said while stockbroking was still a lucrative business, especially during a buoyant stock market, the cyclical nature of the market made it necessary for the group to diversify its earnings base to achieve greater financial stability.

How To Avoid Rookie Real Estate Investing Mistakes

When Robert Kiyosaki, author of the Rich Dad book series, bought his first property he was, of course, ecstatic. Finally, he had done it. He had taken that first important step in truly building his wealth that the man he called his "rich dad" so often touted--investing. He knew it was very important to become an investor and make his money work for him. The trouble was, the property he purchased was a losing deal for him. He didn't see this at first, thanks to a smooth-talking real estate agent. But when he took the contract to his rich dad, he learned what a mistake he had made. According to that deal, he would be losing money each month. He thought it would be all right because he had been told that lost money was an investment in the future appreciation of the property.

Read More...

Foreclosures: A Real Boom for Investors

The climate is ripe for an increase in the number of American homes going into foreclosure. Interest rates are on the rise, mortgage payments are continuing to increase and home values are staying stagnant in some places and falling in others.Now, instead of refinancing to get their hands on quick cash, many homeowners are finding themselves in financial trouble with little or no equity in their homes, and are walking away and letting the lenders foreclose. According to RealtyTrac, the nation's leading online marketplace for foreclosed properties, 318,355 properties entered some stage of foreclosure nationwide during the third quarter of 2006, a 17 percent increase from the previous quarter and a 43 percent yearly increase from the third quarter of 2005.But the news is not all bad. Foreclosed properties have turned into a windfall for savvy investors like Michael Johnson of Chicago, Ill., who have learned the tricks of the trade