Menorca Real Estate Prices Set For A Price Crash

A sunshine Spanish Mediterranean holiday home for many Europeans, but especially the British, has been an aspiration achieved by many since the early 1980’s, when the UK allowed the free flow of capital, and property price gains allowed many to sell up in Britain and move to Spain and her islands – Menorca for example.

A slow down of Brits buying abroad happened in the early 90’s when recession hit the country, but overall the pace of number of people buying a home and often buying a business too has been relentless.

And with a growing number of British moving abroad, the UK’s financial infrastructure followed them, with British banks setting up branches in Spain and the Spanish islands like Menorca (ironically some of the British banks have now been taken over by Spanish ones), mortgage companies tailoring products for overseas home purchase,low cost airlines providing flights to Menorca and insurance companies offering building and contents cover.

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Foreign Condominium Ownership In Thailand And Sale-able Floor Area

Foreigners are not allowed to own land in Thailand in their own name but foreigners are allowed to own and buy condos in Thailand freehold in their own name. Buying a condominium in Thailand is a popular real estate investment for foreigners but foreign ownership is limited to a quota. Foreign ownership in a condominium or condominium development project is limited to 49% of the sale-able total floor area within that condominium. The remaining 51% of the floor area in the condominium must be owned by Thais.

An important aspect of a condominium purchase is the fact that the unit falls within the 49% foreign ownership quota within such condominium.

With sale-able floor area is referred to the floor area of the condo, and not the common areas within a condominium. The floor area of a condominium unit is stated in the condominium unit title deed, which again relates to the voting rights in the condominium juristic person and co-ownership in the common areas.

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Condominium Rules Being Changed

Condominium buyers have to abide by fresh lending rules. This has compelled many developers to scrap new projects. They fear many buyers will not be able to buy condominiums.

The Federal Housing Administration has put a limit on the number of buyers who can avail of loans. There are also restrictions on apartments where there are many delinquent owners and tenants too.

The strict lending norms have been designed to safeguard FHAs financial health. It may be noted that around 18 per cent of loans are in foreclosure or delinquent. FHAs cushion reserve has dipped below the minimum level required by FHA. This move has come as a blow to condominium buyers as FHA is the main source of financing.

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Leveraging Property To Buy Property

Many lucky homeowners are using equity they gained during the recent bull market in real estate to purchase second homes. Leveraging one property in order to acquire another can be a solid investment strategy, as you increase your investment portfolio one step at a time, and one house at a time, by using each new asset to help pay for another one.

Banks will normally scrutinize credit reports and income documentation more stringently when you borrow to buy a second home, because they want to make sure that both of your mortgage obligations can be paid each month without a problem. And they may require larger down payments and charge slightly higher loan fees or interest rates than they did when you bought your first home. Nevertheless, many homeowners find it easy to qualify for new loans, and this is especially true for those who maintain excellent credit ratings. With the potential to profit from your purchase through equity appreciation, the repayment of a second mortgage is often easier than it was for a first mortgage.

For those who plan to use the second home as an income-producing property, there are also available tax deductions. As a landlord, you can usually deduct such things as repairs, utilities, and even routine trips you take to visit your property and check on its upkeep. Many investors combine their use of the second home, so that it is rented or leased sometimes, and at other times it is used as a personal vacation home. When you arent making money by leasing it to others, you save money by not having to pay for hotel lodging at vacation time. A qualified tax planner can help you find all of the various tax advantages to spending your vacations in your own second home.

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Vadodara The Emerging Real Estate Hotspot

Vadodara is the 3rd largest city in Gujarat after Ahmedabad and Surat. It is popularly known as the cultural city of Gujarat. The city is rapidly emerging as an IT hub and hot property destination in Gujarat. Being a reputed educational center, the city attracts students from various cities in India. Vadodara is well-connected to other major cities like Delhi and Mumbai by road, rail and air. This advantage has given Vadodara another name of the ‘Gateway to the Golden Quadrilateral’ that adds to the commercial value of the city.

The boom in the real estate sector of Vadodara is escalated due to the spurt in the economic and industrial activities in the city. It is home to a large number of reputed large scale industries and public sector units like Indian Petrochemicals Corporation Ltd (IPCL), Oil and Natural Gas Corporation (ONGC), Gujarat Alkalies and Chemical Ltd (GACL), and Gas Authority of India Ltd (GAIL). The emergence of huge projects in the form of specialty townships, SEZ, gated residential communities, multiplexes, hotels, shopping malls, and integrated townships has uplifted the value of realty market in the city.

A large number of builders have become a major part of Vadodara real estate. Some of them include Raiyani Group, JK Consultants, Pusti Estate Agency, and Ashok Geelani. The city has various locations that are ideal options for property investment. These include Vasna Syed Road, Fatehgunj, Akota, Harni Road, Makarpura, New Sama Road, Nimeta Garden, Bhavpura, Chanakyapuri, Gotri and New Alkapuri. For buying commercial real estate, areas like Kareilbaug, Alkapuri and Jaisalpur are suitable options. Gotri is located in the western part of Vadodara. Property like 2BHK, 3BHK and 4BHK flats in Gotri are available at attractive prices.

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