Property Magazines

The world’s housing markets are showing signs of recovery, according to the latest survey of world-wide house price indices prepared by the Global Property Guide.

Seven countries have emerged from the house price slump (see below). However, most countries suffered sharp house price falls during the year to end-Q2 2009, so that the general situation remains negative. The Global Property Guide uses price-changes after inflation, giving a more realistic picture than the (more upbeat) nominal figures usually preferred by real estate agents. After experiencing declines in 2008, house prices in China, Portugal, Australia, New Zealand, France, Sweden and Hong Kong rebounded during the latest reported quarter, Q2 2009.

 

Seven countries are in recoveryIn Shanghai, China, house prices were up 1.96% during the year to end-Q2 2009. These gains occurred entirely during Q2 2009, when Shanghai’s house prices rose 2.09%. China’s house prices started falling in the last quarter of 2008, but a strong increase in government spending revived both the housing market and the economy, which has seen 7.1% GDP growth during the first half of 2009. Chinese  property prices are now widely expected to increase further.

 

Average house prices in the Algarve, Portugal, at EUR1,429 per square metre, were up by 2% during Q2 2009.  House prices in Portugal as a whole rose 1.01% during Q2, and were down only 0.43% on the year to end-Q2 2009, compared to -7.24% during the year to end-Q2 2008.  New construction orders in Portugal increased 12.3% during Q2 2009.

 

Australia and New Zealand saw house price increases of 3.73% and 3.31% respectively during Q2 2009. All regional capital cities in Australia registered quarterly house price increases, ranging from 2% to 5%. However, over the year to Q2 2009, there was a price decline of 2.80% in Australia. In New Zealand, the annual change is still negative at -3.07% in the year to end-Q2 2009. But in July 2009, New Zealand  had the first yearly house price increase since 2008.

 

After falling for the last five quarters, house prices in France were up by 3.31% during Q2 2009, thanks to government subsidies. In Sweden, house prices were up by 3.16% during Q2 2009. Hong Kong’s house prices increased by an average of 8.9% during Q2 2009.

 

The US housing market is strongerThe Case-Shiller house price index was up 0.35% during Q2 2009, from a decline 6.46% during the previous quarter, Q1 2009. Over the year to end-Q2 2009, house prices were down by 13.96%, an improvement from 18.51% fall year-on-year to Q1 2009.

 

The FHFA’s purchase-only index was however down by 1.74% during Q2 2009, somewhat worse than the 0.04% drop during Q1 2009, so the signals in the US are mixed.Over the year ending in the second quarter of 2009, seasonally-adjusted prices fell 5.03%.This was a lesser fall than in the year to end-Q1 (-9.16%) and than in the year to end Q4 2008 (-9.69%) (all figures inflation-adjusted).

 

Some countries avoided the crunchIsrael’s housing market has continued to sail through the global recession. The average price of houses rose 8.40% year-on-year to end-Q2 2009. But the quarterly increase in Q2 2009 was down to 1.02%, a drop from 5.52% in Q1 2009.

 

Switzerland saw an increase of 4.90% over the year to end-Q2 2009. However, house prices barely increased during Q2 2009.

 

The momentum signals improvement A key indicator of improvement is the market’s momentum, i.e., the number of countries that did better this year, than during the previous year.  Nine countries improved their year-on-year performance to end Q2-2009, compared with the previous year.   In contrast during the year to end-Q1 2009, only six countries did better than the previous year.

 

Many countries are still sufferingThe Latvian housing market continues its extraordinary decline. Riga, the capital city, saw the average price of standard-type apartments drop 60.81% (inflation-adjusted) during the year to end-1H 2009. Prices dropped 26.75% during Q2 2009.  Demand for houses and apartments has been affected by high interest rates, which in June 2009 stood at 17.72% for credits to households.  Residential construction has been dismal since 2008, but in Q2 2009, the value of housing construction plunged 71.6% in comparison to the previous quarter.  Latvia’s overall economy shrank 18% y-o-y to Q1 2009, and its recession is predicted to continue until 2010.

 

The house price index for Dubai, UAE, fell 49.9% during the year to end-Q2 2009.  But quarterly data indicates that Dubai’s downward house price spiral is moderating. House prices fell 8.92% in Q2 2009, much less than the 42% drop in Q1 2009.

Double digit year-on-year declines were also experienced in Bulgaria, Singapore, Iceland, UK, Japan, Denmark and South Africa. Most recent quarter declines in these countries range from 2% to 10%.

 

Nearing recovery?The International Monetary Fund has declared that global recovery has started. The three big economies of Japan, France and Germany have recently exited from recession. The emerging economies of Asia have revived, with China leading the pack. Whether this recovery will be sustained is the big question.

 

 

###

Description:  The Global Property Guide is an on-line property research house.

 

Terms of Use: On-line newspapers, magazines, sites, etc wishing to use material from this press release MUST provide a clickable link to www.globalpropertyguide.com. Sites and newspapers found not to be providing a link to us will be removed from our press list. 

 

Requests for Comments:Requests for comments are best made by telephone to 44-117 973 5492.

 

Publisher and Strategist:Matthew Montagu-Pollock

Phone: (+632) 867 4220

Cell: (+63) 917 321 7073Email: editor @ globalpropertyguide.com

 

Address: Global Property Guidehttp://www.globalpropertyguide.com  5F Electra House Building115-117 Esteban StreetLegaspi Village, Makati CityPhilippines 1229info @ globalpropertyguide.com

 

 

House prices have begun to fall in the Greater Riga area – a fall of 3.5% in the month of June 2007, following a fall 1% in May 2007, according to the leading Latvian real estate agent Latio. Prices have fallen “for the first time in history”, says Latio, which if not quite accurate, emphasizes the sense of shock.

These figures are consistent with recent warning signs. But they are all the more shocking in that year-on-year to Q1 2007, Latvia was Europe’s strongest performing housing market with house price rises of 44.23% during the year, according to Latvia’s Central Statistical Bureau.

The Global Property Guide (www.globalpropertyguide.com) believes these latest figures signal the end of the Great Baltic House Price Boom. Estonia started falling before Latvia, as is normal in the Baltics. We have long suggested that low rental returns in the Baltics mean that investors should be very cautious.

The decline of house prices also reflects several serious economic problems which have accumulated in Latvia:

• The current account deficit rose to 26.3% of GDP in 4Q 2006, from 15.2% a year earlier.

• Inflation was sharply up at 8.9% in April 2007, up from 6.5% last year, and 1.9% in 2002.

• Loans to residents grew 60.4% in the year to Q4 2006 (58.2% and 61.7% in the previous two years).

• Long-term interest rates are sharply up.

(See the Global Property Guide’s coverage of Latvia)

In February Standard & Poor’s (S&P) put on negative watch its rating in Latvia’s long-term forex-denominated liabilities, and then on 17 May lowered the rating from A- to BBB+. This brings Latvia back to the rating it held in 2002.

The Lats, pegged to the Euro since January 1, 2005, came under pressure in February in response to the S&P revision, and the Bank of Latvia had to intervene. The Euribor interest rate on Euro variable rate loans jumped to 10% in June 2007, from 5% this January. Obviously, this rise in interest rates has had a substantial effect. So too have government attempts to cool the market through the banking system. So too have recent legislative changes, e.g., the imposition of a 25% tax on personal income from real estate sold within a year of purchase. Painful adjustments needed

Till recently Latvia was Europe’s No1 house price performer. Now Latvia is in deflationary mode, with house prices falling and spending restrained.

Local players can be expected to adjust to the new realities, but with a delay, which can be expected to exaggerate the downturn. In June, 2007, 19 new housing projects were announced, after 15 projects in May, April, March, and January this year (February saw a spike in apartment project launches to 26). This means that by historical standards, a very large number of new apartment projects continues to come on to the market. Lower residential returns signal stop!

The price of good quality used apartments in prime locations in Central Riga ranges from €2,900 to €3,143 per square metre, according to the Global Property Guide (survey conducted 24 Nov 2006). Houses in similar locations are slightly cheaper, ranging from €2,521 to €2,700 per square metre.

These prices are high relative to Latvia’s GDP per capita, being on a par with Scandinavian countries.

In Riga, city centre average prices rose from around €1,264 per sq. m. in August 2004, to around €3,011 at end-2006 – a 138% increase in just over two years.

Meanwhile, in Riga average monthly rents have risen, but not nearly so much, from around €8.20 per sq. m. to around €12.64 per sq. m. – an increase of around 54%. Riga rental income returns (average for all sizes) have therefore fallen over the past two years, from around 7.85% to an average of 5.04% (the figures in the table above represent not average yields, but yields for apartments of 120 sq. m.).

These yields are not unreasonable. However in the particular situation of Latvia, such moderate yields, in the context of a continued very strong stream of new apartment offerings, and a sharp uptick in local long-term price of money, would make us very cautious.

Unless the economic cycle has disappeared from economics, it would seem to us that a cyclical peak has approached, and that for the moment investors should pause. Publisher and Strategist:

Matthew Montagu-Pollock

Phone: (+632) 867 4220

Cell: (+63) 917 321 7073

Email: editor@globalpropertyguide.comAddress:Global Property Guidehttp://www.globalpropertyguide.com

5F Electra House Building

115-117 Esteban Street

Legaspi Village, Makati City

Philippines 1229

info@globalpropertyguide.comDescription:

The Global Property Guide is an on-line property research house. Terms of Use:

On-line newspapers, magazines, etc wishing to use material from this press release MUST provide a clickable link to www.globalpropertyguide.com.

Weighed down by the credit crunch and high inflation, the global house price boom has ended, according to the latest Global Property Guide survey of house price indicators.

Only 13 countries in which dwelling price indices are regularly published saw prices rise during the year to end Q1 2008, while 21 countries saw dwelling prices fall in real terms, i.e., after adjusting for inflation.

In most countries where house prices are not falling, they are clearly losing momentum.

The biggest house price fall was in Latvia (Riga), down -38.2% by May 2008 from a year earlier, after adjusting for inflation.

US prices also fell during the year to end of Q1, by anything from -4.2% to

-18.1%, after inflation, depending on which index is used.

In Europe, significant real house price falls took place during the year to end-Q1 2008 in Ireland (- 13.2%), Luxembourg (-5.8%), Portugal (-4.3%) and Malta (-4.9%).

UK house prices were only slightly down at end-Q1 from a year earlier, the house price crash having begun in earnest in early 2008. House prices fell during the first quarter by between – 0.7% to -2.1% (inflation-adjusted), depending on the index used.

In Japan, the housing market is now losing momentum once again. The urban land price index for 6 major cities was up only 4.1% year-on-year (y-o-y) to H1 2008 in nominal terms (2.9% after inflation), down from 7.8% over the same period in 2007 (7.9% after inflation). The national index for Japan fell by 0.7% y-o-y to H1 2008 (-1.9% after inflation).

Inflation woes

In nominal terms, 28 countries saw their housing prices rise during the year to end-Q1 2008, while only 6 saw prices fall.

However when property prices are adjusted for inflation, the picture looks entirely different. Skyrocketing oil, food and commodity prices have pushed inflation up around the world.

In Ukraine for instance, nominal house price growth was sharply down from 79.5% in the year to Q1 2007, to 18.2% in the year to Q1 2008. But when adjusted for inflation, property prices actually fell by -6.4% y-o-y.

In real terms, property prices fell y-o-y to end-Q1 2008 in Norway, Spain, Greece, South Korea, New Zealand, Indonesia, South Africa, Israel, Estonia and Lithuania, despite nominal price rises in all these countries.

House-price booms elsewhere

On the other hand, strong house prices increases were observed in a handful of emerging economies. Ahead of the pack was China (Shanghai), with an enormous 40.5% nominal house price surge during the year to the end of Q1 2008.

Other countries with impressive nominal house price increases y-o-y to end-Q1 2008 were Bulgaria (31.6% y-o-y), Hong Kong (31.1% y-o-y), and Singapore (29.8% y-o-y). Strong house price gains also took place in Cyprus, Australia and Taiwan.

Again, when adjusted for inflation, many of these price rises look much less impressive. The world’s top-performing housing market (after inflation) was not China or Hong Kong or Singapore, but Slovakia, where real house prices rose by 29.3%.

Causes of the downturn

There were arguably three main factors behind the end of the housing boom:

· After a very long boom, house prices had become stretched in many countries. The main indicator of this is the price/rent ratio, which compares the relationship between the buying price of a dwelling, with its rental price.

As the boom progressed, buying prices become high (in relation to rents and financing costs) in many countries, leading to decisions by some buyers to rent instead of buying. Mortgage-holders also came under extreme pressure as interest rates rose. A key lesson is the critical importance of monitoring price/rent ratios, to ensure that house prices valuations stay within reasonable limits. (Declaration of interest: The Global Property Guide produces comprehensive price/rent ratio estimates, globally).

· Inflationary pressures forced central banks to raise interest rates. This particularly impacted European countries where mortgage loans were primarily made on variable interest rate terms. Countries with heavily indebted households are also vulnerable when interest rates increase.

In developing countries, the overall economy (which strongly sways the mood of the housing market) is sometimes very sensitive to interest rate changes or to direct intervention by the monetary authorities. In some countries, mere threats of interest rate hikes are enough to shake the stock market and scare away foreign investors. But conversely, developing countries typically have smaller mortgage markets, reducing the impact on housing markets.

· Unsound regulatory and banking practices in the US and elsewhere led to over-lending by mortgage providers which, when these unsound loans began to go bad, caused a financial crisis. The bad news spread both by a panic contagion effect, and because many banks outside the US turned out to be more exposed than initially expected.

Prospects

Inflation remains an extremely challenging problem for the world’s central banks. In addition, the financial shocks to the world’s banking systems resulting from house price falls remain to be worked through (historically, most banking system collapses around the world have been caused by falling house prices).

Until these financial systems feel more confident that their problems are behind them, loan volumes are likely to fall. Therefore, it seems likely that the world’s house price momentum will continue to go down.

Description:

The Global Property Guide is an on-line property research house.

Terms of Use:

On-line newspapers, magazines, sites, etc wishing to use material from this press release MUST provide a clickable link to www.globalpropertyguide.com Sites and newspapers found not to be providing a link to us will be removed from our press list.

Requests for Comments:

Requests for comments are best made by telephone to +(63) 917 321 7073. UK-based callers should telephone before lunchtime. Our local time is Hong Kong time, i.e., standard time + 8.00

Economics Team:

Prince Christian Cruz, Senior Economist Phone: (+632) 750 0560 Cell: (+63) 917 735 2228

Email: prince@globalpropertyguide.com

Publisher and Strategist:

Matthew Montagu-Pollock Phone: (+632) 867 4220 Cell: (+63) 917 321 7073

Email: editor@globalpropertyguide.com

In a recent Woman’s World Magazine entitled “Hollywood’s hot new
FAT-MELTING BODY WRAP! Try it at home!”, three natural
ingredients to create an in-home body wrap were listed. The
article explained that you can do your own Spa body wrap in the
comfort of your own home inexpensively.

Body wraps have been offered for years by health spas, fitness
spas and franchised facilities. Some reported spending as much
as $150 for this treatment. After a wrap, spa clients have
reported that their skin felt softer, their skin felt
tighter,experienced a diminished appearance of cellulite and
even a loss of inches. Results varied for each person.

Danielle Sims of WrapYourselfSlim.com has been an advocate of
making body wrap formulas at home for over 4 years. She provides
an ebook titled “Wrap Yourself Slim: Body Wraps Exposed” which
contains recipes, instructions, and other supporting information
to successfully acheive a spa-style body wrap. The book has been
available online since October 2000 and has been very popular
among health enthusiasts and “do-it-yourselfers”.

Danielle says: “It’s wonderful that more and more, people are
realizing that they can acheive the same spa body wrap
inexpensively at home with simple ingredients. When I first came
out with my book in 2000, it was not that well known. Now we are
seeing articles in mainstream magazines.”

About ten years ago, Danielle explored her library of
alternative health, herbal books, and aromatherapy books and
created a blueprint for making her own body wrap formulas. She
discovered that some of the natural supplements on the market
possessed the same benefits as the body wrap formulas.

“I have always enjoyed creating and preparing my own cosmetics,
lotions, and potions so this was just one more thing that I
wanted to learn how to do. It was years before I realized that I
can provide others with information to make their own body wrap
too.” says Danielle.

Wrap Yourself Slim gives detailed information on the body wrap
process as well as giving the reader recipes or “formulas” for
making them at home. This book describes the readily available
natural ingredients that are used in these body wrap formulas.
It contains a quick reference chart that lists each ingredient
and charts their properties related to body wrap benefits.

The book is only available via the internet as an electronic
book. Two easy to read formats are available; PDF and an
executable webpage version. This format allows instant access
after purchase. The reader is able to print the book or read it
on their computer.

You can find out more information on Wrap Yourself Slim: Body
Wraps Exposed at http://www.wrapyourselfslim.com.

Asian property markets, though still relatively unaffected by the credit crunch, will soon be affected by inflation and higher interest rates, warns the Global Property Guide, because of rising food, fuel and other commodity prices.

“Higher food, fuel and other commodity prices affect the housing market negatively in several ways,” says Prince Christian Cruz, senior economist at the Global Property Guide.

“At the micro level, households may postpone their decision to purchase a new house or spend on renovation if they anticipate higher prices. At the macro level, higher food and fuel prices push inflation up. Monetary authorities typically raise key interest rates to stem inflationary pressure,” Cruz explains.

Asian households are particularly vulnerable to recent rises in food prices. The price of rice, the staple in Asian diet, has risen by more than 90% during the last year to March 2008, according the UN Food and Agriculture Organisation (FAO).

The price of other food also has increased significantly. Wheat was up 160% in March 2008 on a year earlier; soy bean oil by 104%, corn by 37%, and sugar by 26%.

Food prices are a key component in the Consumer Price Index (CPI). Their proportional weight ranges from 28% in Singapore, to 33.2% in China, to almost 50% for urban workers in India. High food prices will persist until 2009, according to reports by the FAO, World Bank and the International Rice Research Institute.

The price of almost all commodities is increasing, not only food. The price of light sweet crude oil surged to US$115 a barrel in April 2008, up almost 80% from a year earlier. NYMEX crude oil has been above US$100 per barrel since March 2008.

Many Asian economies which have recently experienced residential real estate price surges such as China, Singapore, Philippines, Hong Kong and India (all of which registered double-digit house price increases in 2007) are under significant inflationary pressure (see table). Higher inflation and interest rates

Monetary authorities typically raise interest rates to combat inflation. They can also increase the cash reserve ratio (CRR) of banks or sell bonds or other financial instruments to reduce money supply.

The Reserve Bank of India (RBI) raised the cash reserve ratio by 50 basis points in two stages to mop excess liquidity and contain inflationary pressures. The CRR will be 7.75% effective April 26 and 8% by May 10, 2008.

The RBI, similar to other central banks in Asia, left key interest rates unchanged during the first half of April.

However, most analysts indicate the key rates might be hiked in May if inflation continues to be above the official targets

Fears of interest rate hikes cropped up in several Asian countries, particularly in Indonesia and China.

High interest rates affect housing markets in two ways:

1. By discouraging investment and consumption and causing the economy to slow, higher interest rates reduce people’s willingness to spend on housing

2. Higher interest rates discourage borrowing for housing loans.

“The situation is unfortunate because most Asian housing markets have not yet fully recovered from the effects of the 1997 Asian Financial Crisis,” Cruz notes.

“Even with strong house price gains in 2007, property prices in Asia are still below their pre-Asian Crisis peak levels. Despite 31% nominal rise in the over-all residential property price index, Singapore’s prices are still about 10% to 20% below their pre-Asian crisis peak level in real terms,” adds Cruz.

“In the Philippines, even with the 15% increase in condominium prices in 2007, it is still about 47% below its peak level in real terms,” he continues.

The housing markets most likely to be affected by monetary tightening seem to be China, India, Singapore, Philippines and Thailand, which have experienced the largest increases in inflation. Will Asia tango together?

“With global financial markets interconnected, the world’s economies tend to move together. The synchronicity was observed with the global housing boom – never before in recorded history did so many countries experience so much house price growth all at the same time,” Cruz notes.

“The housing market slowdown may also be synchronized,” he adds. “Inflationary pressures are likely to cause Asia’s central banks to raise interest rates, and slow their housing markets,” he says.

However convergence will not be universal. Where currencies are pegged to the US, housing markets are likely to diverge somewhat from the global adjustment.

Countries such as Hong Kong and the Gulf must follow US interest rates. Unless those countries re-peg their currencies, their central banks cannot raise interest rates. This may lead to higher inflation including in the housing market.

###Description:

The Global Property Guide is an on-line property research house. Terms of Use:

On-line newspapers, magazines, sites, etc wishing to use material from this press release MUST provide a clickable link to www.globalpropertyguide.com. Sites and newspapers found not to be providing a link to us will be removed from our press list. Economics Team:

Prince Christian Cruz, Senior Economist

Phone: (+632) 750 0560

Cell: (+63) 917 735 2228

Email: prince@globalpropertyguide.comPublisher and Strategist:

Matthew Montagu-Pollock Phone: (+632) 867 4220

Cell: (+63) 917 321 7073

Email: editor@globalpropertyguide.comAddress: Global Property Guide

http://www.globalpropertyguide.com

5F Electra House Building

115-117 Esteban Street

Legaspi Village, Makati City

Philippines 1229

info@globalpropertyguide.com

Foreclosure is one of the dreadful things that can happen to your home.  Anybody can experience this, especially to those with bad credit history.  However, for compulsive buyers of real estate, foreclosure is the best thing for them.  They just want to take advantage of the cheap price than buying a brand new.  Even though it sounds bad but foreclosure is favorable for them.

If you are looking for a probable lot, you can find many listings of foreclosed properties from newspapers, classified ads from magazines, web sites of the real estate companies, Federal Housing Administration of the United States, and the department of Housing and Urban Development.  Look at the recent foreclosed properties in the city or town wherein you intend to acquire a property.

The best option for you in purchasing such properties is to buy the same from a private homeowner.  In this way everyone, the seller, the buyer and the lender can get equal advantage from the transaction.  The seller gets out of the loan without adversely affecting his credit record, the lender saves more time and expense related to foreclosure and the buyer gets a property cheaper than the market value.  Another alternative is to buy properties directly from financial institutions such as banks.   In most cases, banks satisfy those applicants who want to purchase foreclosed property.  This is because you are assured to have a clear deed of sale of the unit you want to buy.  Usually, the banks assign a trustee to handle the foreclosure sale.  Ask the person about the details of the foreclosed property and the minimum bid requirement that the bank asks from the buyer.  As much as possible do not buy properties from foreclosure auctions route because they are risky.

Before you decide to buy, perform a thorough inspection of the property.  These properties are normally available on “As is, Where is” basis and thus it is important to get a good fair estimate of the cost involved in the necessary repairs and maintenance on the property.  You can compare from all other foreclosed properties available in the area where you plan to buy.  Seek the advice of a real estate broker who knows more about foreclosure transactions.  Bear in mind that you need to be an educated buyer in order for you to buy the property at your desired price.

Property professionals are being urged to update their records relating to enquiries over building protection and preservation.

Noted for its training and technical expertise, The Property Care Association (PCA) represents the UK’s structural waterproofing, wood preservation, damp-proofing, flood remediation and structural repair sectors.

Formerly the British Wood Preserving and Damp-proofing Association (BWPDA), the PCA has, since 2006, been a stand alone association.

It still incorporates the BWPDA, which has been in formation for more than 75 years, but specifications and enquiries should be directed to the PCA.

Yasmin Chopin, executive director of the PCA said: “Property professionals have for many years contacted the BWPDA for advice on damp and related matters.

“We still find that enquiries come to us in the name of the BWPDA, and would urge people to come directly to the PCA.”

The Association has developed a range of initiatives for property professionals, including a specifier-led magazine Property Care, and the availability of technical documents online at http://www.property-care.org.

The PCA has also recently introduced two new RIBA-approved CPDs detailing key issues in building protection and preservation, covering Flood Remediation, as well as The Treatment of Rising Damp and the Preservation of Timber.

Of interest to architects, the CPDs are also aimed at a wide-range of people working in the property sector, including surveyors, construction managers, local authority and social housing professionals, facilities managers and heritage specialists.

The PCA is also a major training provider, with a well-established training educational programme in place.

Find out more about what the PCA can offer at http://www.property-care.org or call 0870 121 6737

ENDS

Noted for its training and technical expertise, The Property Care Association (PCA) represents the UK’s structural waterproofing, wood preservation, damp-proofing, flood remediation and structural repair sectors.

It incorporates the British Wood Preserving and Damp-proofing Association (BWPDA), which has been in formation for more than 75 years.

The PCA is a member of TrustMark the scheme supported by the Government, to help property owners find reliable and trustworthy tradespeople to make home improvements.

Its contractor members are all carefully vetted before being awarded membership – and are then subject to rigorous auditing procedures once admitted to the Association.

As well as delivering a trusted repair procedure, PCA members are able to carry out specialist surveys as part of the house-buying procedure  to identify potential problems – as well as a range of other services  designed to preserve and protect homes and buildings across the UK.

To find a PCA member log on to http://www.property-care.org and select the ‘Find A Member’ service.

Press release issued by Jane Shepherd of Shepherd PR Limited, 01538 308685, mobile 07985 129315.

Buying rental properties are quite the trend of today. Because of the declining prices, people are lured to join the craze. Who wouldn’t want to get more assets, build equity and earn additional cash just by investing on affordable properties? Everybody does. So why shouldn’t you? 

One of the many challenges in buying rental properties is the selection process. Yes, you would go about the same steps in purchasing your personal home. You would still have to take out mortgage, go through home inspection and complete the crucial steps. But those things would not matter much unless you have found a marketable property to offer. This is because it will all boil down to your reason why you engaged in rental business: to earn money. 

Therefore, you should start your search in finding the most attractive rental properties that your target market would not miss. 

Beginning the search 

Finding the best rental property need not to be a difficult task. Pretty sure, there are hundreds or even thousands of them being offered across the nation. However, you need a property that you can manage. It should be something within your reach so you can minimize operational cost and increase income. 

You can start your search from these sources: the newspaper, real estate magazine, World Wide Web, brokers or real estate agents and for sale by owners. 

Selecting process 

After finding your prospect, you would have to pay a visit. Doing this allows you to make a more reasonable selection. If you have doubts, you can always seek the advice of various real estate professionals. 

To help you out in the selection process, here are some tips to follow: 

Go Discounted 

Grab an opportunity to invest small while being assured of good returns. How to do this? You should know that there are many economical deals out there. Try to purchase them but you have to make sure it is of good quality. The best way to get economical deals is to ask for discounts. To do this, take advantage of these situations: 

Estate agents and property developers have sold, leased or rented properties to customers in the same traditional method for quite some time.  Small photographs in the property section of newspapers and specialist magazines, 2 or 3 photographs on a company website and feature displays in their office windows.

However in the USA, Canada and Asia real estate sellers have embraced the power of video to advertise commercial and residential property to a global audience.  With 80% or buyers starting their search for property online using the internet, it’s a logical step to take.

Property videos can be viewed by potential customers where ever they are in the world, 24/7 365 days a year. Instead of the usual 2 or 3 photographs, a slideshow video can incorporate 20 to 30 photos and those with a bigger budget can have their property professionally filmed. A property filmed from the customer’s point of view (POV) allows the buyer from the comfort of their home or office to have a virtual tour of the property and surrounding area as if they were there.

Titles and banners can incorporate more information about the property, music, voice-over  or narration and even presenters can add that extra professional touch to engage the buyer to sell them their perfect property.

Property videos are the essential first viewing. They save the estate agent, property developer and buyer time and money from wasted viewings.  

Property Videos can be embedded onto the estate agents website or uploaded on to popular video hosting websites such as Youtube and many more. The URL links can also be emailed to clients to view at their leisure.

So imagine a buyer is in New York, Dubai or Hong Kong. They can view a number of property videos from their desktop or mobile phone before they fly to London knowing that what they’ve seen online has given them a fuller picture of their investment and are ready to buy their new home in the UK’s capital.

The Internet, magazines and newspapers have over the years become the most popular resources for advertising property. Whether you are displaying your property ads on the Internet or the relatively more expensive option of print media, it is imperative that your ads are as well-written and attractive as possible. This, along with quality images, is what will influence a potential buyer’s choice to inquire or not. Here are some tips to keep in mind when writing a property description for a property ad:1. Sell The Area First
Focus on information regarding location in your description, such as the fact that it is close to the beach, or 20 minutes from the city center, close to schools in the area and other amenities. This will give the potential buyer a better idea of where the property is, what lifestyle it offers and why it is such a good buy. If you don’t have a dedicated area to add features and facts about the property you can use bullet points to highlight the amount of rooms, bathrooms, garages etc.2. Be Catchy
When writing a property ad, keep in mind that you have a limited period to grab a potential buyer’s attention. The subject line is where you make the firs2.t impression and it is essential that it is eye-catching. Don’t use words like “3 bedroom” or “2200 sq. ft.” or the property’s address in the subject line, as this information will be displayed in the property features and facts section. Rather use descriptive words like spacious or roomy to describe this feature. The subject line shouldn’t be long, so use your words wisely.3. Stress the Positives
Words like “small garden” imply a lack of space. Instead of stressing the negative, rather turn that into something positive like “easy-to-maintain garden”.4. Words to Avoid
A recent study showed that words like “curb appeal”, “move-in condition”, and “landscaping” are better to use than words like “motivated seller”, “good value”, “as-is”, “clean” and “quiet”.5. Stay Away From Boring Cliches
Words like “gourmet kitchen”, “luxury bath” “bargain” and “cosy” are very commonly used. To stand out from the crowd you need to be unique in your presentation. Concentrate on choosing words that perfectly describe the features of the property.6. Use Good Language and Grammar
Show your professionalism by ensuring that the language and grammar you use are correct. Let someone proofread you copy and run it through a spell checker before you publish it.7. Combine Well-Written Ads With Good Images
A picture is worth a thousand words! By combining quality images and good copy you are creating a successful property ad. It is vital that you include as much information as possible and keep in mind that a well-executed property ad, along with good images, has a good chance of resulting into a sale.
Present all content in your property ad in a way that will be attractive to buyers. Remember that you don’t have to be a professional photographer of acclaimed writer to create a good property ad – just some common sense and a dash of creativity.