Monday, March 31, 2014

The price of homes in the U.S.. returns to its biggest rise in seven years

The price of single family homes in the United States again recorded in May for the most up -on-year in seven years , according to the consulting firm Standard & Poor's ( S & P) , who said that these data indicate that the housing market " continues to strengthen ."

The Case- Shiller , which prepares the firm to study the evolution of housing prices , index rose 12.2% in May compared with the same month last year in the twenty largest cities. The advance was 11.8% in the ten largest cities.

In both cases these increases are the largest recorded since March 2006, before the bursting of the housing bubble in this country, although experts had calculated a slightly steeper climb .

Moreover, when compared to the levels that were in April, prices of single-family homes in the twenty largest cities have advanced 2.4% and 2.5% in the top ten .

Two of the twenty cities surveyed by S & P , Dallas and Denver, in May reached levels not seen since they began developing this index, also before the peaks reached before the start of the housing crisis.


In annual terms , San Francisco registered the highest advance with 24.5 %, followed by Las Vegas ( 23.3%) , Phoenix ( 20.6%) and Atlanta ( 20.1%).

" The housing prices continue to strengthen ," he said in announcing this information the chairman Indices S & P's David Blitzer, who highlighted the changing trends shown in this report , as the case of the cities of Miami and Tampa , which "It is falling behind compared to western cities ."

In any case, since hitting their peak in June and July of 2006, housing prices in both the twentieth and the ten largest cities in the United States accumulated a fall of 25 % and 24 % , respectively.

Saturday, March 29, 2014

It's the end of the housing recovery in the United States?

"In the last 12-18 months , virtually all U.S. housing market indicators have improved remarkably prices rise , construction recovers, mortgage delinquencies is down and credit conditions , although still restrictive , have improved " . So Mark Allan optimistic economist AXA Investment Managers , shown in the last report of the Management . "However , the pace of new construction has slowed in the last couple of months and mortgage rates have increased. In this situation , some people wonder if we are at the end of the recovery of the sector , "said the expert.

In AXA IM believe that housing starts will accelerate in the second half of the year. " The approximate indicators are recovering economic growth , access to credit for SMEs - a crucial factor in the construction sector has improved and residential - promoters show higher levels of confidence thanks to, among other things , the rise the interest of buyers , which could translate into sales growth , "says Allan .

For the expert, the best prospects, along with the rapid increase in prices , will support the increase in construction activity in 2013 and 2014. "In May , seven of the twenty cities covered by the Case- Shiller index recorded an annual growth of housing prices more than 15 %." However, Allan warns that these figures may offer a distorted view : "Nationally , average prices are still 25% below the peak of 2006 , and between 30 and 40% in states where the bubble burst " . So for AXA IM economist , " the recent inflation of housing prices respond to supply shortage and not a credit bubble ."

According to the data handled by the manager, to date much of the excess accumulated in the balance sheets of banks has gone into the hands of investors supply, but this could change soon by reducing inventories of properties from foreclosure and said rising prices. " If we expect supply to grow in the second half of the year and is expected to investor demand is weak, it is necessary to increase the demand for it" .

Threats to recovery

According to Allan , the request would be threatened by two factors: a sharp increase in mortgage interest rates and high unemployment , leading to potential buyers to doubt his ability to deal with the mortgage. "Since the sell in May, interest rates have gained about 75 basis points ," says the economist. "However , actual rates range around 2% for a 30-year mortgage at a fixed rate , so you can say that are still low by historical standards ."

" At AXA IM believe that the Federal Reserve will begin to limit its quantitative easing program in September and will continue with the gradual normalization of rates over the next two years. It is clear that this process will affect mortgage rates , but do not expect others to increase over 70 basis points by the end of 2014 , "says Allan . What if the increase was sharper ? " Most likely , in that case, the market reacts by reducing supply , but we do not expect further price declines ."

With respect to the unemployment rate , the data in recent months are encouraging. "The number of vacancies in companies increases progressively , workers return to be willing to change jobs and consumer confidence shows a slight improvement." AXA IM is optimistic : "We expect the unemployment rate to fall further in the next eighteen months so , if credit conditions do not prevent it , we can expect a similar upturn in the housing market ."

Thursday, March 27, 2014

Offered for sale the Empire State, New York skyscraper icon

The legendary Empire State Building, icon skyscrapers of New York , the scene of hundreds of movies , series and books and undisputed star of the postcards of the city , will soon be put on sale in what could be one of the largest real estate operations U.S. history .

It is expected that the sale starts next week : there will be calls to investors around the world.

About Us Empire State Realty Trust expects to raise U.S. $ 1.05 billion .

As reported in Bloomberg , the company plans to offer on October 1 about 70 million shares for between $ 13 and $ 15 each.

Located on Fifth Avenue and 34th Street , the Empire State Building was the tallest building in the world for over 40 years since its completion in 1931 until 1972, when the construction of the North Tower of the World Trade Center was completed.

The transaction includes 18 other properties Malkin , the family that runs the Empire State Building in Manhattan and surroundings.

Monday, March 24, 2014

U.S. on alert for a new housing bubble

In September, compared with 2012 , the annual price increase was 12.8% . In some states like California or Nevada the rise was 20 %.

The Case - Shiller index that produces the recently awarded Nobel prize -winning economist Robert J. Shiller , sounded the alarm in April when calculated that the rate of increase in housing had reached its highest level since the ferocious bubble burst in 2007 - 2008 .

Shiller is not only a Nobel prize. He was one of the few who predicted the collapse of the subprime or high-risk one year before to precipitate the fall of Lehman Brothers and the global recession of 2008.

And the most powerful alarm signal was the voice of an official of the U.S. central bank, the chairman of the Federal Reserve Bank of Dallas , Richard Fisher : "I'm starting to see signs around the country that we are entering , again , in a housing bubble , "he said .

The Circular Ruins

The much- quoted phrase of Karl Marx on history - as tragedy occurs and is repeated as farce - is irrelevant.
The Estate 2008 financial crisis focused on subprime mortgages granted to people who often did not even work.

Now the social sector that is more fuel the bubble is the high and low income through the medium called jumbo mortgages or mortgage giants .

The regulation stipulates that U.S. mortgage market lending standards for a family home can not exceed the $ 417,000 limit that to more expensive as New York or Los Angeles areas , increases to $ 625,000.
If you want to take a loan above that figure enters the realm of "jumbo " which normally require higher interest rate (typically , 0.25 % more).

But now banks are promoting 30-year jumbo mortgages that cost less than the standard family loans .

Peter Zalewski of Condo Vultures , a consulting real estate market in Florida, says it is a narrower speculation.

. "In the previous teachers bubble , firemen , businessmen , taxi drivers, all were involved in the market What we see now are niches : the property worth about a million dollars, for example , to access or foreigners the very wealthiest Americans and institutional investors , "he told the BBC .

Not all are equal

Thus, it is a bubble with a distinct spatial distribution .

In cities like New York , Los Angeles, San Francisco , Miami and Washington pressure on prices is much higher than in other areas. In Sacramento , for instance, the increase exceeded 34.1 %, in Las Vegas, or 33.3% in Riverside , California , 31% .

But the real estate consultant Zillow estimates can not yet speak of a nationwide bubble because people are spending on average 13% of their income on mortgage payments , well below the 20 % of other times .
This cost-revenue relationship is important because it creates a "cushion" designed to absorb sudden increases in interest rates that may unbalance the individual budget and jeopardize payments .

Zillow notes, however , that the national average changes radically in hot areas of the market.
In places like San Francisco or San Jose mortgage payments exceed half the income.

Still, the consultant estimated that next year there will be a moderation of increases do not exceed 3.8%.

The Book , the main actor

Regardless of whether this projection is accurate, economic and social impact will depend on a key actor. Sea tragedy or farce , the story of the bubbles of the last 15 years has there been a major player : the Federal Reserve ( the Fed ) .

In the subprime crisis and the cheap - credit - existent regulation encouraged the stampede price . In the present , the interest rates on the floor , has been added called Quantitative Easing , quantitative easing or printing money electronically .

With this issue , which has been this year of about $ 80,000 million per month , the central bank purchases financial assets from banks for these entities have more funds to lend to producers and consumers through credit oiling economic recovery.
By one estimate, the Federal Reserve now owns 12 % of the mortgages in the country.

The vice president of financial HSH.Com , Keith Gumbinger , said that his intervention is key to sustaining the mortgage market.

" With interest rates at today's prices and quantitative easing , the Fed has provided liquidity and the mortgage market has revived " Gumbinger the BBC said.

But it is also playing with fire. In an economy like the U.S. the line between a sharp rise in prices and a bubble is very thin.

The credit - addiction

The Federal Reserve is part of an economic model that has been struggling with a new disease : the credit - addiction.

In 1978 the average U.S. wage was equivalent to about U.S. $ 48,000 (in present value ) . Today it is $ 33,000.
If the U.S. consumption remained a driver of growth in these decades was largely thanks to the credit card supplied by very low rates.

The subprime crisis of 2007-2008 marked a limit to this economic pathology of everyday life .

According to the deputy director of the Center for Economic and Policy Research in Washington, Dean Baker , the system has not changed.

"The growth of the last ten years has been based on bubbles. 's Amazing that the Federal Reserve has not seen . Regulatory system has hardly changed," Baker told the BBC.

Not everyone agrees . Keith Gumbinger analysts say the regulatory system is much more strict, but others say that even if it did, the bubble will continue to grow .
"Capitalism is the creative - destructive capacity There are many people watching get the hang of regulation it is our story from the 20s onwards . . . Boom followed by implosion not going to change ," he told BBC News Peter Zalewski of Condo Vultures .

Friday, March 21, 2014

Estate franchise: SOLVIMO opens its seventh branch in Seine-et-Marne

Solvimo, real estate network, opened a new office in Seine-et-Marne. This is the seventh in this department. After Melun (77) Montévrain, Provins, Meaux (Saint-Soupplets), Avon and Ponthierry, the network has been set up in Nemours.

Established in 2001, develops real estate Solvimo duty since 2003 and now has nearly 160 branches including one unit in Miami, USA. In the medium term, the company hopes to have 400 branches in France.

Friday, March 14, 2014


Whether the United States in Florida or Australia, Coldwell Banker group, specializing in luxury real estate around the world offers paradisiacal islands for sale.

Daydream Island, for sale by Coldwell Banker Australia U.S. $ 50 million , is located on the Great Barrier Reef, north - east Queensland Australia 1200 km north of Brisbane and 600km south of Cairns , in the Whitsundays Islands . The island is composed of 16.5996 hectares resort and marina of 1.8968 hectares. Very popular for honeymoons destination since 1940 , it was completely renovated in 2001 and is now listed on the resort 4 stars .

Black's Island, for sale by Coldwell Banker Schmitt Real Estate Co to ​​€ 23 million is in the heart of the Bay of St. Joseph on the north -west coast of Florida. Only accessible by plane or boat , this island offers 7 acres 26 luxury bungalows with stunning views of the bay.

Tuesday, March 11, 2014

More sales and fewer rental industry in United States

In the housing market have recently shown signs of optimism : the home sales show mortgage rates historically low upward trend, the builder confidence has increased and , together with the sharp fall in house prices in relation to family income , have driven rates housing affordability to record highs. However, many potential buyers and sellers remain outside : the default rates of the residential sector and foreclosures remain persistently high , credit conditions remain tight , unemployment is high and the national indices of housing prices continue to fall . From its peak six years ago , the national average house price has fallen about 34 %. So many lenders , investors, buyers and sellers do not even notice the rebound . We believe the residential market in 2012 will remain under stress in many areas of the country , but in the growing markets opportunities for buyers to take advantage of record affordability, made ​​real estate investments and avoid rising rents arise . " "

As a result of the drop in housing prices , the subsequent increase in foreclosures and the conditions under tighter credit , many families choose either inadvertently or not, rent rather than buy . The percentage of home ownership continues to decline and our analysis predicts that percentage dropped to 65% within 2-3 years. In a risk scenario , it could fall even faster, up to 64% , a level not seen since the early 1990s. This trend indicates that rental demand will remain high at least in the next five years. According to forecasts of household growth and the fall in the percentage of home ownership , the market will need about three million more rental units in 2016. " "
The fall in the percentage of home ownership supports low demand observed in the housing market . However, home sales and housing starts and seems to have bottomed last year , as we anticipate that these measures will continue its upward trend this year , albeit at a weak pace. The value of the construction of new single-family homes is on the rise year on year, and residential investment is finally making a positive contribution , however small, to GDP growth in early 2012 . Smaller stocks support new housing construction activity : monthly supply of new homes came to be about 6 months and still pointing downward with increasing sales rate . The return to a monthly supply of about 4 months is more consistent with a sanitized new housing market : a 23% average annual growth in the pace of new home sales combined with another 13 % drop in new home inventory would to place the figure of the monthly offer at 4% at the end of the year.
" " Prices continue to fall due to high inventory levels hidden

Despite the improvement in the pace of home sales and construction of new housing price index of existing homes will continue to fall throughout 2012 and possibly 2013. The pressures on housing prices are derived from the large inventory of seriously delinquent mortgages and foreclosed properties , which has reached record highs and has only recently begun a downward trend . The shadow inventory consists of nearly four million homes : there approximately 1.9 million homes are in some stage of execution, 1.3 million seriously delinquent (over 90 days), and 500,000 to 800,000 housing units in hands real estate that have completed foreclosure. Foreclosures attract buyers and investors, as approximately 25 % of all home sales corresponds to distressed properties (over 40 % in California and Arizona ) . How are you Properties are sold at substantial discounts of between 30% and 40% , it is expected that rates of aggregate housing prices continue to fall . However, property prices show stability without financial difficulties , but any price increase will be minimal and certainly negative in real terms .

" " It has erased a decade of real appreciation in prices

The real appreciation of housing prices observed over the past decade has been effectively nullified . The price indices adjusted for inflation have returned to their levels of 1998 - 1999 , and their continued combined with rising rents fall means the rent money should reach the above average to 2000 of 5.25 % in late 2012 . Both are positive signs for the housing recovery in late 2012 and 2013: the low mortgage rates today and the most favorable prices allow buyers to avoid inflation and rising rents . This is a reality that has not been overlooked by potential buyers : the leading indicators of trends in Google with respect to interest buyers show an increase in early 2012 .

The affordability at a record high demand supporting , while credit constraints could be an obstacle

The double-digit drop in housing prices relative to household income and combined with low mortgage rates have pushed housing affordability to unprecedented limits. Therefore, the data suggest that the market could fall more than ever first home buyers , as long as the buyers can get credit .

Certainly , lenders have tightened credit conditions for first-time buyers , loans and grants should continue to increase as to decrease the unemployment rate and the perceived risk of job loss is reduced. However, mortgage applications remain rare , indicating that despite record affordability , many potential buyers prefer to rent to buy. Possible reasons for the low demand expectations of further price falls , a history of underemployment , lack of savings to give an initial entry and over- growth of consumer credit are included . The deleveraging process continues in many homes while restoring their balance sheets, as income growth lagged consumption growth in late 2011 , now is moderating the rate of consumption .

" " The quality of the residential assets continues to improve slowly in the balance sheets of banks, but the high number of foreclosures remains a concern to many lenders

It is likely that strict credit conditions persist for some time, as delinquency rates for residential mortgages have remained stubbornly high and the flow of foreclosures fixed interest rates and low risk was not significantly moderate standard. Thus, evil can banks , Fannie Mae and Freddie Mac will loosen credit conditions to accommodate a larger number of buyers. We anticipate that the default rate will continue to fall throughout 2012, but will remain above 8 % until 2014. In addition , lenders are concerned , rightly, that more foreclosures occur because about 25 % of debtors ( some 12 million mortgages) owe more than their home is worth and 8.6 million are aware of your payments . Of the remaining 3.4 million who are behind on their payments, approximately 1.3 million are at serious delinquency . The risk of further falls in house prices and that more job losses puts borrowers with negative equity to the brink of default occur.

" " The federal government's efforts are focused on stem the flow of foreclosures ; aid and incentives for homeowners and lenders will be expanded. The Federal Reserve believes that the transmission channel its flexible monetary policy to housing market is under-performing , as sales and mortgage originations remain low. The Federal Reserve released a white paper in January explaining the pros and cons of the policies that the government can promote to help homeowners . These projects range from policy modification programs mortgages to plan large-scale conversion of real estate into the hands of the government and banks in rental properties. In line with this analysis , the current government is expanding programs to help homeowners , as refinancing program for affordable housing (HARP for its acronym in English ) , which aims to boost refinancing activity , and the program of affordable home mortgages (HAMP for its acronym in English ) , whose purpose is to encourage private lenders to modify mortgages and reduce the principal balances . Refinancing activity has picked up due to the extension of the scope of these programs, and the recent enlargement has been proposed HARP , the program will include investors and debtors whose relationship between the loan amount and the value of the property exceeds 80 % . Thus , borrowers with a loan -to-value ratio above 100 % could benefit from refinancing combination with principal reduction , so that would be creating equity. In recent weeks , a new ad has attracted the interest of investors : FHA has approved the program of own property rentals of Fannie Mae and Freddie Mac is developing a similar program that will allow investors to buy properties in large quantities and convert them into rental housing. Investors are attracted or big discounts on the purchase of these homes from foreclosure : rental units could generate positive returns due to rising rents and the possible sale of the property at a higher price. The two entities and government -sponsored FHA own about 215 thousand distressed properties that need to sell. According to the forecast demand for rental properties in the coming years , this program could help to moderate the rising rents and boost supply to meet new demand . However, this conversion program in rental properties will only have a positive effect if people want to live in areas with the highest number of foreclosures. Many of these areas are affected by high unemployment , low growth and limited employment opportunities for residents. During the housing boom , the flow of investment residential new construction stimulated the local economy by increasing tax collection and spending. Today , some of these communities are struggling with falling revenue from property taxes and the output of residents .

" " The high refinancing activity represents an opportunity for banks, but the direct economic impact will be minimal refinancing Because mortgage rates are exceptionally low , many borrowers refinance seems sensible to them their existing mortgages to lower monthly payments. The total volume of refinance originations was higher than of new mortgages over the past four years, as both interest rates and sales have experienced sharp declines . However, some borrowers can not refinance their loans either because loan -to-value ratio of the property is too high ( perhaps even negative equity ) or because the initial costs of the operation does not make refinancing worthwhile. Therefore, the federal government has proposed expanding the refinancing program (HARP ) allowing refinancing its loans to residential investors and removed initial disbursement of refinance for borrowers . There is no doubt that these changes will stimulate activity and may help lenders to charge fees and capture market share . Programs refinancing and mortgage modification are intended to encourage economic activity on two fronts. First, proponents argue that programs to reduce monthly payments will help to avoid default and subsequent foreclosure debtors on the brink of that situation. However, the evidence that the refinancing avoid foreclosures are unenthusiastic because the savings from refinancing can not totally replace the lost income of a job . Second, to reduce the monthly debt obligations , refinancing frees family income and allows consumers to spend more on the market, thus encouraging economic activity. However, the scope of the stimulus caused by the effects of first and second order , is minimal. Obviously , the loan for the purchase of a new home that puts $ 250,000 on the market has more than an effort refinancing saves the homeowner $ 100 to $ 300 a month impact. At the peak of the housing boom in 2005 , our estimates indicate that lenders were injecting to $ 300 billion ( $ bn) annually into the economy to buy new homes when both prices and sales of new homes shot . In 1995 , before the boom , lenders injected just under 100 billion dollars annually. Therefore, the direct cumulative effect of increased sales and prices was a boost to the economic activity of about $ 1 billion between 1997 and 2007. Since much of this money is reinvested in the housing market for new construction and therefore creating jobs, the second order effects were substantial and resulted in a sharp rise in economic performance and asset values ​​. Although refinancing efforts reached 12 million borrowers with capital losses and will save each family $ 3,000 per year , only collective debt service in 36 mmd a year would be reduced well below the surplus of 200 billion dollars figure lenders were injected each year into the economy when housing was booming . In summary, although the refinancing federally backed mortgage modification program and conversion of own property will help reduce the debt burdens of homeowners and ease the inventory of distressed properties , the effects on economic growth in the short term will be minimal . However, reducing the inventory of distressed properties because rents and conversions to fewer foreclosures could contribute to the transition of the housing market towards equilibrium . In all the major U.S. regional variation in market fundamentals will determine the pace of home sales and new residential investment

Although house prices have fallen in all U.S. markets over the past four years, the collapse has been most acute in Arizona , California , Florida and Nevada . Recent indicators show that housing activity is picking up in Arizona and California: delinquencies fell steadily in 2011 and employment in the construction sector remained positive in annual terms for most of last year. Although the rate of new foreclosures remains high , more than 1% , showing a downward trend . The inventory of foreclosures also declined steadily in these states , through the impetus of investor demand and short-term sales . Nevada now start to experience the improvement that has occurred in California and Arizona , but the percentage of total loans in foreclosure is twice that of those two states . However, the improvement of these conditions contrasts sharply with the situation of housing in Florida , which is the worst in the country . Although inventories of foreclosures fell in many states in 2011, increased during the year in Florida, and still above 14 % of total loans , double the rate of inventory Nevada . Therefore, in local markets , inventories of resale homes may well exceed a monthly supply of 16 to 24 months if we include these foreclosures. To the extent that inefficient foreclosure process have hampered the improvement of the market , measures to expedite the completion of the foreclosure process , the transition of the properties to the inventory of own property and connecting with buyers or investors are only remedy to reduce levels of distressed properties .

" "

High oil prices support energy production and exploration : the demand for housing increases in North Dakota While initial declines in these markets have spread to the Midwest , rising energy prices and the strengthening global demand have prompted a new wave of investment in exploration and production of energy in the U.S.. Much of this activity has been concentrated in the center of the country , from Texas and Louisiana to North Dakota and Idaho. Mining and industry support activities have led to advances in the use of these states therefore have experienced the influx of new residents. Economic activity in North Dakota is experiencing a rapid expansion and, therefore , employment in construction has risen 20 % in residential investment and took the lead. This structural change is clearly shown in the following table : between 2007 and 2010 , five of the 10 markets that experienced an increase in total number of households are in Texas. Unlike New York City , where he has been a decline in household property and a transition to the holiday , owned homes rose in metropolitan areas of Texas. Thus, in certain markets where employment is growing , buying a home is attractive given the low current borrowing costs .

Monday, March 10, 2014

Investing in Orlando: Get a constant annuity and secure

In these times of market crisis , financial investments in real estate rental Floridian are a good way to get a secure monthly return : Investing in Orlando is a good solution for your investment .

Invest in Orlando , this is foremost invest in real estate future with a city and a region undergoing demographic and economic growth.

Investing in Orlando is taking advantage of the lowest prices in all of Florida , and thus move towards a significant added value in a few years ( 5-7 years).

Investing in Orlando is also secure a monthly income from substantial rents ( between $ 1.000 and $ 1.500 ), with high returns in individual homes ( 7-10 % ) due to low condo fees compared to apartments and condos ( 3-6 % ) .

We expect for 2014 still a significant number of opportunities bank attachment , so you will have the opportunity to build wealth in Florida with a good return for a sum of between € 80,000 and € 130,000 ) purchase price including , fees, work and the incorporation of a company and a bank account. (at a current rate of 1 € = $ 1.30)

Real Estate: increased taxation, non-resident investors will they flee Côte d'Azur?

The new government has proposed in its Amended Finance Act for 2012 that real estate income, rents or capital gains received by individuals ( French or foreign) who are not tax resident in France , are subject to social security contributions . Therefore, the measure aims to eliminate unfair tax advantage held by subjecting income derived by non- residents from immovable property situated in France social deductions combined statutory rate of 15.5%.

These households may for example be foreign investors without special relationship with France, or expatriates , active or retired people living abroad , who retained their property in France . Concerning rents, the government considers that the imposition involve about 60,000 households receiving an average of 12,000 Euros per year on their property income property in France .

The measure will apply to capital gains from the entry into force of the law but with retroactive effect from 1 January 2012 for rents . The government hopes to recover 50 million euros this year and ME 250 per year from 2013.

This tax increase should primarily concern the luxury real estate in areas like the Riviera and to a lesser extent Paris continues to dream wealthy foreigners. The Chairman of the luxury real estate network Coldwell Banker France and Monaco , Laurent Demeure , is also convinced that this will lead to a decline in investment from the French non-residents generally choose to prepare their property back in France for their retirement.

" This bill will result in a lower final sales volumes in geographic areas such as Cannes , Nice, Toulouse , Bordeaux and Nantes, prized by those investors who typically buy at a higher price than the market , Laurent Demeure analysis. According to him, this will also divert the real estate investment destinations like Miami that already count more than 30,000 French pensioners living on site , or as Morocco, which also count about 30,000 French retirees.

Saturday, March 8, 2014


One of the main dangers of extremely loose monetary policy in recent years is that ' free money ' provided by central bankers is used to artificially increase the price of all kinds of assets. In other words , central bankers do not actually qu'alimenter bubbles that will inevitably burst. It is sufficient to convince them of the extent of the danger , to rethink the implications of the technology bubble in the second half of the 90s and the housing bubble in the middle of the last decade.

However, detecting a bubble is also extremely difficult. There is thus clearly in the current climate, several elements suggest a bubble : home prices increase by 10 % per month in London, sees his Twitter during double from its IPO of 100 million euros for paintings by Francis Bacon, spectacular success of Bitcoin ... None of these developments seems to have any lasting nature. And even if they were to turn into bubbles, it would not be there bubbles could derail the global economy when they explode . This kind of bubble can develop only in the major asset classes, the usual suspects in this case being the U.S. housing market and U.S. equities.

House prices in the U.S. rise again quickly. Since early 2012, house prices in the U.S. rose by almost 20 % on average. However, the only price increase does not necessarily mean that a bubble is being formed . The current rise in house prices is in fact due to the severe correction in 2007-2008 . Overall, the U.S. home prices remain far from their peaks in 2006. More importantly , relative to household disposable income , house prices are almost the lowest in 30 years. As always, it is quite possible that some exaggeration in house prices is growing again in some areas. But overall, the U.S. housing market remains far from the bubble. Several more years of sustained higher prices could certainly bring the real estate market bubble , but this is clearly not the case at the moment.

Investing in real estate in the United States remains one of the most profitable and promising investments . We can invest in direct property purchases or buying shares of investment funds . Invest abroad , however, remains a complex task that must be carried out by professionals to avoid pitfalls and to take advantage of many economic and tax benefits.

Friday, March 7, 2014

Brickell Key

In 1870 , William and Mary Brickell established their post at the mouth of the Miami river on Biscayne Bay .

On the death of William Brickell , his wife developed land along the bay and a neighborhood of houses on the water gradually spread over wide tree-lined avenues , which was later called the millionaire's row ( Millionaires Row) .

Over the years , they were replaced by tall office buildings occupied by large law firms , banks and international companies. Later, condominiums made ​​their apparition.Proprietes Miami - Brickell

The proximity of the Port of Miami Brickell supported the development of an international banking and business center , like New York.

This dynamic environment , and the demand for luxury housing , causing a second wave of construction, largely residential luxury buildings .

Beautiful visual framework waters of the bay, near the Coral Gables , Key Biscayne, Coconut Grove and Miami Beach were additional elements of growth in the area of Brickell .

Miami real estate agency - Brickell Key

Brickell Key :

In 1896 , Henry Flagler began to dredge a channel 9 feet deep at the mouth of the river. The earth removed was used to create two islands . In 1943 , an investor , Edward N. Claughton , bought them , and combined them to form a triangular island of 44 acres. It was acquired by Swire Properties in 1970 , and this is what is now called Brickell Key, one of the most " chic " Miami locations.

miami apartments - Brickell

Within the deep international diversity Brickell , South American and European cultures predominate. It might be an exaggeration to call it the "Wall Street of the South" , and this could affect its kind image , but the mix of business , leisure, and chic cheesy has the essence of attraction Brickell .

Concentration consulates, federal and local courts , chambers of commerce, banks , commercial real estate firms , export offices, and financial services firms , has made this an area of the nerve centers of Florida

Miami Real Estate , Apartment Miami, Brickell Real Estate

The line of the horizon on the waters of Biscayne Bay has changed dramatically , with more than 4,000 apartments, built from 2000. They were intended to be occupied by young professionals and foreigners rich, but most of these properties was absorbed by investors and speculators.

This naturally puts pressure on Brickell real estate market , but it is obvious that the land increasingly scarce, and the constant influx of buyers , absorb this surplus, in the very near future.

Apartments Miami - Brickell

New entertainment areas have flourished in the shadow of skyscrapers. Mary Brickell Village is a meeting point and nightlife , with a good selection of bars , restaurants and some elegant shops.

If the brilliant cultural life is added in centrse culture such as the Vizcaya Museum, Miami City Ballet , New World Symphony, The Florida Grand Opera, Miami Art Museum , the Gusman Center, and the new Adrienne Arsht Center and grandiose for the Performing Arts, you have all the ingredients for an excellent residential area .
Brickell Condos - Miami

Sports, Arena, Miami Heat , the Marlins ballpark under construction .

And we must mention the curious transportation system Metro- Mover and Metro Urban Tri- Rail,

Miami Real Estate - Miami Apartment

and the Port of Miami with its towering cruise ships.

Bal Harbour

Arrive in the evening , driving your car in the city of Bal Harbour, along Collins Avenue between beautiful palms illuminated on one side and the other coconut is almost magical.

Of all the towns along the coast of the South Atlantic ( the 65,000 so-called " Gold Coast "), you will not find a more elegant and romantic than Bal Harbour.

Bal Harbour Real Estate - Beach

Called the origin Bay Harbour , this small oasis between Haulover Beach Park and Surfside, is a paradise of lush vegetation, white sandy beaches , and stunning views of the Atlantic Ocean to the east , and the Bay Biscayne West.

Romantic would, I believe, a good word to define Bal Harbour. Culture, opulence , sports, restaurants, to sunbathe , and what can we compare the munificence of a day of shopping in Bal Harbour?

 Apartments in Bal Harbour

The Shops at Bal Harbour, a sophisticated trail " Design Shops " shows off the world's best collections; nothing is missing : Armani , Prada , Cartier, Ungaro , Dior, Hermes , Tiffany Gianfranco Ferre , Louis Vuitton, Roberto Cavalli , Versace, Chanel , Jaeger , Valentino, Zegna , Bvlgari , Yves Saint Laurent , Gucci, Ferragamo, they are all there.

Buildings for Bal Harbour

Department stores Saks and Neiman Marcus will undoubtedly be the epilogue of a memorable day " shopping " .

All this in the shadow of graceful palm trees, and a rich tropical vegetation together. Elegant cafes and bistros outdoors add to the enjoyment of a day of shopping in Bal Harbour, which is also considered the number one shopping center in USA .

 Bal Harbour Real Estate - Bal Harbour Shops

The main artery of Bal Harbour stretches along nearly one mile high buildings of condos, and splendid hotels . New buildings in incredible luxury, are added to the traditional real estate Bal Harbour, such as the St. Regis which is built on the site of the former Sheraton Hotel , or the One Bal Harbour, has the northern tip of the city.

Bal Harbour Real Estate

It consisted of very large buildings , luxury flamboyant, facing the sea Great apartments, sophisticated services , and everything that represents an exceptional standard. Much of these properties have South American and European foreign owners .

According to the census of 2000 , the population of Bal Harbour was about 3,300 . A little meadows 3,150 homes and 1,908 families. The per capita income was $ 67.680 .

I 'd be happy to help you find a condo or a house in Bal Harbour. Our experience in Bal Harbour is your best guarantee .

Monday, March 3, 2014

Investing in the U.S. or Spain: Foreign Brick under the microscope

The notion of " good family " varies according to time and circumstances. So is it for investment . Risk and balance, better now putting money into foreign brick guaranteed return on a savings account . But not anywhere.

Can we still consider putting money on a savings account or government bonds , which relate yet less than inflation , a commendable attitude to a father who takes care of his family ? Convinced of the contrary , more and more investors - cautious for the majority - are moving to other forms of investment and choose to invest in real estate abroad, particularly in Spain and the United States, two countries where the recent discount multiplies opportunities for solid gains.

But be careful not to drop the substance for the shadow . With the help of Jean- Marc Goossens, Brussels Bar specializes in the sale of real estate in the U.S. , here's something to help you ask the right course .

To identify the best possible risks before proceeding to act, we have taken as revealing six key market parameters .

1 . The real estate prices and the importance of their recent discount

In Spain , the latest figures show a 35% decline since late 2007. In the United States , prices have declined on average to the same extent . " But its size and disparity, the U.S. housing market has however experienced in some cities even stronger variations and allows a much larger choice of products and varied ," says Jean- Marc Goossens . Finally, despite its difficulties, the euro remains strong against the dollar on the foreign exchange market. And the current parity increases its purchasing power in the United States . "In addition, during the subsequent resale of the property, the investor will have the opportunity to stay in dollars and euros will return to when the rate is favorable ," said the lawyer.

2 . The current price trends

In Spain , prices continue to fall. This year is still expected a decline of about 8%. In the United States, the average price of new homes is ironed in one year from 260,000 to 313,000 dollars , annual home sales rose 60% ​​, building permits from 25 to 70 %. "I see more and more requests for funds that enable diversified investments from " small " amounts ( $ 50,000 ) . The typical client is an individual with modest incomes or who seeks an institutional performance , " says Jean -Marc Goossens .

3 . Forecasts of capital gains term

The austerity policy in Europe shows its limits , but Spain has seen more alternative financial fragility: incentives for home ownership have been removed and demand is sluggish, more than one two young people is unemployed and therefore excluded from acquisitive market. Industry professionals believe it will take five years to stabilize the market and hope for a return to bullish values.

With a seemingly more lenient policy , the United States fared much better. Growth remained around 2% , deficits are reduced : they still exceed 5% of GDP currently , they should fall below 3% from 2015. Job creation and the housing market still confirms a steady recovery for months.

4 . The rental income

In Spain , the rental market also suffers the brunt of increasing flexibility in the labor market and the declining purchasing power of families , especially in cities where rents were significantly increased before the crisis. Given this uncertainty the side of the financial security of a significant proportion of tenants, many owners do not reach that yield the floor.

"In the United States, it is very easy to rent a quality property . Americans move and move a lot , but unlike the Spaniards forced to do to get a job at a discount, if they do not hesitate to thousands of miles for a job, it is often by choice, to improve their standard of living , and their common language facilitates this flexibility on a huge space. Furthermore, since the subprime crisis , they get very difficult credit and praise even more so by swelling demand and prices. Net rental yields are obviously variables given the extent of the market, but they are usually between 3 % and 15% , "explains Jean- Marc Goossens .

5 . Legal certainty

In Spain in crisis, the risk of failure is great promoters . "The profession of estate agent does not require access to the profession and notaries have no obligation - as in Belgium - check if the property is secured by a mortgage or if the owner has tax debts. In addition, the tenant is protected by law in relation to the lessor. Permanent assistance of a lawyer is essential , "says Belgian lawyer .

In the United States , by cons , the market is in the process of sanitation, professions real estate agent, closing agent ( attorney acting as notary) and title company (which guarantees the title) are strictly regulated . And overseas , it is the owners who are very protected.

6 . taxation

Spain :
acquisition costs amounted to approximately 13% of the purchase price ( notary fees, registration fees , stamp ) .
rental income is taxed at 24%.
the gain is taxed at 21%.
property tax (IBI ) is about 1% of the assessed value ( undervalued ) with a fee of 0.2 to 2.5 % on assets above 700,000 euros .

United States :
fees to the purchase does not exceed 3% .
rental income is taxed at 15 %, but deductions are so numerous that they virtually erase the tax.
the gain is taxed at 15%.
Property Tax ( Property Tax ), allow approximately 1-2 % of the value according to the states.
U.S. out yet big winners in this comparison six points. Should we therefore not recommended to buy in Spain? This obviously depends on your goals . If you wish to make a financial investment with maximum security and aim at a quick profit (yield + capital gains ) , the United States is an ideal destination today. But the statistics are improving from month to month , the windfall decreases in proportion to the lower financial risk.

If, against , looking for a relatively close second home that you personally want to enjoy and you intend to keep (very) long-term investment in Spain may be preferable. But in this case , do not rush : prices continue to fall. Whatever side of the Atlantic selected , a real estate investment abroad is always a complex and risky operation , which requires the advice and assistance of a specialist. It can also provide information on the benefits of the possible constitution of a company , on the possibilities of tax and estate planning ... and , if necessary , on immigration opportunities.