Detroit: a city for the fearless investors

Michigan’s largest city, the cradle of the automobile industry in the United States, enjoyed its heyday in the early part of the 20th century, when Ford, General Motors, and Chrysler concentrated most of their production there. After the Second World War, the city began its decline.

Detroit, with a population of 1.85 million in the 1950s, now has only 673,000. The real estate crisis and the crisis in the automotive sector from 2008 onwards dealt the final blow, and the city had to declare bankruptcy in 2013, with more than 18 billion dollars (15.53 billion euros) in debt.

Signs of revitalization

The Democrat Mike Duggan, Detroit’s first white mayor since 1974, was elected to put the city back on its feet. In his job, several Detroit-born billionaires helped him. Thanks to their investments, the city center is regaining its color. Dan Gilbert has spent over $2 billion since 2013 to buy about 100 buildings in Downtown, 70% of that neighborhood.

The Ilitch family, the owner of Little Caesar’s pizzerias chain, also spent $2.1 billion on a massive sports complex (the Little Caesars Arena) that houses hockey (the Red Wings) and basketball (the Pistons) franchises.

Another positive signal, Ford confirmed in August its intention to invest $740 million in restoring one of the city’s most emblematic sites, the Michigan Central Station railway station, to house its teams dedicated to the car of the future. In recent years, several major groups – including Amazon, Google, Microsoft, and Ikea – have also decided to locate in Detroit.

Strong net profitability

The recovery is underway, but it promises to be long and arduous. There are still about 80,000 abandoned houses in Detroit: a third of the city is fallow, which corresponds to the surface of Paris. Already 14,000 have been demolished since 2014, and the town hall plans to destroy as many each year.

Despite a 400% increase between 2014 and 2018, the average price per square meter does not exceed $682 (‘588) in Detroit, when it peaks at $4,417 (‘3,808) in Miami.

These are highly attractive figures, but they must be considered with caution. Rent taxation in the United States is low: most rental charges can be deducted, and landlords who rent benefit from an allowance of $6,000 per year. However, finding a solvent tenant is not always easy given the high vacancy rate (23%) and the poverty of the inhabitants.

Besides, the rented housing can be degraded by its tenant, thus undermining the profitability of the investment. And the cheapest homes are generally located in neighborhoods where the reputation of schools is not so bright, a critical factor in property appreciation for Americans.

Mistakes to Avoid To Succeed A Real Estate Investment

afsfrtttttttteweeeeeezsssssssssssBuying a property to invest can be the most profitable action of your life. But it can also become a financial and emotional nightmare. I would, therefore, like to address in this article 8 some of the worst mistakes that can be made by investing in real estate, and suggest how to avoid them.

Buying a property to invest can be the most profitable action of your life.

But it can also become a financial and emotional nightmare.

It all depends on how you act. And the way you act depends on what you know about this area.

Unfortunately, many potential investors do not have a thorough knowledge. Worse, some of them are based on erroneous information.

I would, therefore, like to address in this article 8 some of the worst mistakes that can be made by investing in real estate, and suggest how to avoid them.

Error #1: Not doing enough background research

Before buying a car or television, most people compare different models, go to various stores and ask questions to make sure that the purchase they are going to make it worth the money spent. Well, the research work to do before buying a property should be even more rigorous! (see the article How to Buy Your First Report Property)

It is usually because they neglect this point that many beginners in real estate investors make bad decisions. They do not do, or insufficiently do, their research work about the property they would like to buy, legislation or real estate market conditions. As a result, they end up spending all their savings because the house is in need of major renovations or they cannot sell or rent it.

Some beginners wonder why they waste money on buying books or taking training, and think that the best thing to do is to buy the house first, and then learn on the job as you go along.

But that’s probably the worst advice you can give to a novice investor!

Finding the money to buy a property that represents a good deal is relatively easy. But it is only when you have learned enough about your business that you will be able to distinguish what is right business from what is not!

Error #2: Buying in the wrong area

You’ve probably heard the famous saying that in real estate there is only one rule :


The most straightforward rule is to look for areas where employment is growing.

When a place is economically healthy, many people come to work there, and these workers need housing.

However, when an area is in economic decline, people tend to leave it to seek work elsewhere. It’s as simple as that!

Error #3: Paying too much for it

The first reason why investors do not earn money is simple: they pay too much to buy a property.

The potential profit is immediately determined and locked in when the investor buys a property. Because of mistakes he made in analyzing the property, he paid too much for it and was later surprised when he realized that he was not making any money.

Always remember this basic rule: in real estate, you make money by buying!! Use the services of a real estate appraiser in Perth to find more!

Error No. 4: Not enough planning

In real estate investment, it is the numbers that matter. Emotions, on the other hand, must be kept away from the purchase decision.
When you buy a house to live there personally with your family, you do it by subjective criteria that correspond to your tastes. For example, you will favor (if your means allow it) a villa four facades, a garden facing south, a large kitchen, the presence of an open fire, the possibility to make a vegetable garden, etc…

This type of purchase is therefore based on your emotions: you will opt for the property for which you have “a crush.”

But it’s quite different when it comes to buying real estate as an investment! If you decide to buy a property for sale, it’s because you are looking for a good return on your investment. It’s the only thing that matters.

The right investment is, therefore, the one with the right profitability figures. And it may well be that a building has excellent potential profitability figures, but it doesn’t match your ideal home at all!

So, I repeat: to evaluate an investment, only the numbers count!

Investing in real estate in the Netherlands will be less profitable.

real estate holland

According to the Dutch government agreement, the tax niche for companies investing in real estate in the Netherlands will disappear. What are the consequences for the Belgian CRSs WDP, Aedifica or Xior?

Dutch brick will pay less. Taxation of companies investing in real estate in the Netherlands will become less favorable, according to the government agreement between the parties forming the new Dutch coalition in power.

According to “Het Financieele Dagblad,” which unveiled the information on Monday, investment companies that invest directly in real estate in the Netherlands will have to take the form of companies subject to corporate income tax of 21%.

Currently, institutions investing in Dutch real estate are exempt from tax if they distribute all their profits to shareholders. This tax advantage is based on the idea that these dividends are subject to the withholding tax of 15%. However, as the Dutch Government intends to abolish this withholding tax, the exemption from the benefit of these institutions would no longer be appropriate.
What about the Belgian CRSs exposed to Dutch real estate?

The abolition of this tax advantage will affect not only real estate investment institutions but also pension funds, according to Financieele Dagblad, which states that listed real estate funds such as Wereldhave and Vastned will have to pay a corporate income tax of 21% from 2020 onwards.

The 5 Best Tips to Cleaning Your House for Smooth Inspections

‘First impressions count’, and in no situation is this mantra more evident than when trying to get a great deal on your house. You know that creating the right impression isn’t easy; you have to price it right, lighten it up and seriously deep clean it among other things. But if you get the cleaning bit right then getting the other things right should be a walk in the park.
Check out these five house cleaning tips to help your home make a good first impression.

1. De-clutter

get your house ready for inspectionsIf you are like most homeowners, your house will most probably have items that you no longer need taking up valuable space. Cleaning a house with distracting clutter is arduous. So before you get down to tidying up, go through the whole house from closets and drawers to cabinets and floorings taking out whatever you don’t need. Donate the old stuff and dispose of all damaged appliances and furniture. De-cluttering will leave the house spacious something that every buyer loves. And it will also make it easier to clean and keep it clean while on the market.

2. Create a Checklist

Organization is of great importance when deep cleaning house. Because unlike when doing regular cleaning, you will need to go a notch higher to make sure you impress potential buyers. Creating a checklist is the best way to ensure that nothing is left out.

Make a simple and exhaustive list of all the areas in your house starting from the entryway, kitchen, bathroom, bedrooms, laundry room, garage, etc. along with all the surfaces and items that need cleaning in all of those areas such walls, tiles, and countertops. Once you have made a list, you can now begin cleaning as you check off each item which will make for a seamless cleaning process.

3. Use steam cleaners

To deep clean your house till it’s in tip-top shape, you will need the right piece of technology. Traditional mobs will mostly disappoint on this task forcing you to expend a lot of energy not to mention that mobbed floors and surfaces take forever to dry. That’s where the steam cleaner (nettoyeurs vapeur pour la maison) comes in. It instantly eliminates all the disadvantages that go with traditional mobs and sprays. You will save on cleaning detergents and sprays; the floors will dry faster, and you will make your house shine exceptionally in readiness for the market. And if you have stubborn mould underneath your carpets, a steam cleaner is exactly what you need to eliminate them and sanitise all surfaces.

4. Use rugs and mats

To ready your house for those random, unexpected visits by buyers, rugs and mats are a handy option. Instead of leaving your entrances and flooring exposed to dirt and germs, consider having entry rugs and floor mats in critical areas of your house like living rooms and the kitchen. Rugs and mats keep entrances and floors clean by removing dirt and grime from shoes hence sparing you the need for random cleaning sessions. They also come in various colours and designs that will enhance the beauty of your house and lure buyers.

make sure you declutters these carpets

5. Paint Interior Walls

You might not have considered it, but painting interior walls could be what your house desperately needs for that fresh, captivating look. Using quality paints will not only curtail odours and fume but also reduce dust. On top of that, the painting will help you to de-personalize the house — because no buyer wants to live in a house that conforms to the interest of someone else. Painting your house in neutral shades will make it appealing to more buyers and give the eventual buyer an easier time personalising it to their unique tastes.

Pros and Cons of being a real estate agent

Inside Secrets of a Real Estate Agent

The Real Estate Bubble in Brazil

Since 2009, Brazilian real estate price increased by almost + 209%.

The Rise in Prices Keep on Growing

Brazil, also known as the largest country of Latin America sees its real estate price increase of + 9.10% over the last 15 months and + 0.46% on January.

The Number of Loans Granted Explode

Thus, the total amount of the loans granted by the banks to the Brazilians rose by $ 879 million in 2005 (at the current exchange rate) to $ 53.2 billion in 2014 according to the Central Bank.

Brazil has also experienced a strong economic expansion. In fact, in the past few years, there are nearly 38 million people who joined the middle class. With better income that part of the population has gained access to loans for the first time in their life. As a consequence, the real estate demand “compressed” for so many years has exploded while the high interest rates drastically dropped.

Population Growth

beaches in rio de janeiroThe demographic growth of Brazil is also another factor determining the recent developments in the real estate prices. The population is expected to increase to 78 million homes in 2021, with an average of a million weddings per year (for 240 000 divorces) and an important increase in the national life expectancy.

A National Program of Housing Construction

In Brazil, president Lula launched several months ago a program aiming to build a million new homes for the new middle class Brazilians.

The Experts’ Opinion

According to the socioeconomic experts it is only a matter of time for the prices will go even further down. By how much and when they still don’t know but it will happen. Furthermore, several magazine specialized about economy also consider that the growth of the Brazilian real estate market has been very intense and fast and therefore presents with the characteristics of a real estate bubble. According to other experts Brazil is currently facing a real estate bubble because the prices are already high, but people continue to buy because they fear that they will keep on increasing, which is the logic of a real estate bubble.

Key tips for improving the quality of your real estate services

An article about open houses was recently published by the US blog reference Inman News. This practice is widely used in English-speaking countries where all potential customers visit at the same time a property to sell in order to shorten the time of sale, generating interest among buyers and give them the impression that they are not the only ones interested. This technique is almost non-existent in Europe, some agents have recourse because of the many ask visits but this is rare and only concerns the rental. Getting back to the article, it puts forward four expert advice to improve the quality of open house visits:

– Show your knowledge of the area
– Invite the neighbors
– Be prepared almost “too” prepared
– Complete the drinks fridge

These ideas are interesting but clean enough to the American context. We could inspire us to improve our individual visits to Europe, which are sometimes a little too “light” for the presentation of goods and the level of information transmitted. Buyers are now very aware, so we must redouble our efforts to satisfy customers today. To do so, here are our four tips to score customers mind and ensure to make a sale:


Property visitsIn Europe, you would not go so far as to make a video about the neighborhood or offer chocolate bread bought at the bakery of the corner, it would even be misunderstood. By cons, everyone asks himself vis-à-vis the localization issues. Therefore, it may be convenient to discuss the topic, prepare a map of a good quality (minimum A4) on which would be placed:

The property for sale
Access to public transportation
Other points of interest such as recreation

In parallel, you might even have a tablet on a table with the Google Map application opened with the address of the property. This would allow visitors to make their own research on time to ask you questions and you answer them by removing certain bottlenecks. WARNING: Make sure to get the codes of the owner of the Internet connection! If there is no connection for any reason; use your 3G connection or planning a paper plane.


Much of buyers already living in the neighborhood for property for sale. It is adjacent to rent or seeking to expand or whose needs have evolved over time. The neighbors therefore a target should not be neglected. Further to our article on real estate advertising flyers please prepare a flyer upstream from the sale of the property and distribute it at the beginning of the sale 150-200 nearest neighbors. The ERA real estate network in Belgium has such a special mailing called “Magic” to alert the neighbors of the sale of a neighboring house. How to distribute this tract? In almost unanimously reflex will drop it in a mailbox but take the time to do this distribution yourself at least a few key people. You will be surprised that you will get back on the history of the item for sale on potential interested persons, etc.

Another idea similar to the agents who have a residents emails files, they can send an e-mailing announcing the sale. Must of course remain careful not to spam your contacts but assayed; it can be an effective way to inform a sale in the area and hope that this e-mailing or transferred to other people. Neighbors are always curious about life in the neighborhood, so it is very likely that these flyers or e-mails are well accepted.


Come well prepared for a visit, basically you never know what can be discovered on the property to sell at the time of a visit. Go ahead check that everything is in order, open all components to make the bright place, ventilate if necessary, etc. To be sure not to forget anything, prepare a “visits kit for the realtor” in which you put your list of items to check, a meter measuring the flyers you have prepared, tablet, some household products (if the scene were soiled during a visit to welcome the following clients), toilet paper (always useful if the property sold is empty), etc.


In the US, we could propose a drink and cookies. In other countries, buyers have the impression of being “bought”. For plan against some little touches that will make pleasant visit:

Coats: make sure that the doors coats are free to ask the coats visitors or there is a convenient place to do it.
Strollers: again if visitors come stroller, they must be allowed to drop easily from the start to avoid saying on arrival “This place is really not practical …”.
Traffic: visits are usually made with the agent and the buyer’s side 1-2 people or more times. You may find yourself quickly to be a small group and the traffic can be a bit tricky in places.

So plan to identify the areas of movement because the size of a dwelling is a subjective perception all, you only have to walk around furniture to move in a large space to feel that the space is small. You can be only advise to follow some rules of Home Staging to optimize the item for sale.
Refresh if the visit takes place in the summer without offering a glass of champagne, offering a cool drink of water can be a very good starting point for a visit. So remember to put the expenses a jug of water that is a nice and clean design.

Finally, be a good real estate agents as you know to be, that is to say, attentive and tuned to capture the needs of your buyers and therefore best meet their expectations. What other advice relative pros visits do you have to share to other real estate agents?

Real Estate in Japan, What to expect in 2015

The case of the Japan as a real estate market is quite particular and different from our US market. Old real estate is worthless in Japan. After having reached stratospheric prices, the price of the estate to the Japan has been declining for more than 18 years.

History of Japanese real estate prices

housing sector in JapanJapanese real estate market has undergone two real estate crises since 1970 and he has still not recovered from the last real estate crisis… dating from 1990!

After a first peak of achieved prices in 1973, the Japan real estate fell as fast to the price at the beginning of the 1970s in 1978.

Japanese real estate later departed on a bullish cycle for 12 years, reaching completely crazy prices in 1990.

As trees do not rise up to the sky, the market eventually backfire. This reversal of the housing to the Japan market was brutal and since 1990 prices continue to drop, they have achieved their lowest price for more than 35 years.

From these graphs, the period of falling real estate prices coincides with a sharp increase in the number of retirees and dependents. It is also the case for many other countries.

Old real estate properties are hard to find

Another very striking fact in the Japanese real estate is that the old real estate there is little or no. Indeed, the quality of buildings do not allow Japanese properties last, they degrade quickly and rapidly lose any value.

A Japanese will buy so practically nine real estate and when a family leaves a House, the latter is shaved to make room for a new construction.

Real estate in 2014 Japan: cautious recovery

With strongly prices fall the Japanese can buy larger housing. The number of construction remains above demand and even if the market starts slowly, the Japanese are not rushing to buy. Good many of them are still marked by bankruptcy only to lead to the bursting of the bubble of the Japan in 1990 and the number of suicide that followed.

Drones in the real estate market : what is the future?

The evolution of drones

A drone, known as UAVs (Unmanned Aerial Vehicle) is a remote aerodyne with a camera (the vast majority of the time), which was initially designed for the military. In November 1937, the United States successfully realize the first flight of an unmanned aircraft for military purposes to “monitor” and “information”.

Today, this device has greatly democratized; it has recently become a fad, sports, professional practices. They multiply in the sky and the trend is increasing. The drone of talk in all media; many professionals would like to use them for various reasons. What about real estate? That mask the apparent ease offered by mainstream drones?

Its use in the real estate sector

aerial views of a town in franceAt present, many realtors have heard of drones and some would use them to take aerial photos and videos, which remained out of reach of the property there is another 10 years apart the luxury real estate. The use of drone supply in some situations a clear interest: locate a house in an environment, providing an aerial view of a property, offer original views with, for example, the transition from outside to inside on a same plane or flying over a cliff terrace.
The discovery of a well thanks to the views taken by a drone is clearly an original approach that can enhance well as a beautiful villa by the sea. We can even introduce a drone inside a house. In some cases, if the indoor control is possible, which is not always the case, the drone can develop a large room with a beautiful high ceiling and a mezzanine for example, effectively restoring the effect of space and part of the volume.


For an estate agency:

The drone has many benefits for your real estate agency: new added value perceived by your customers, original photographs of very good quality and finally a virtual tour like no other.
This type of service is a plus to offer your sellers when taking an exclusive mandate for example. It is a way to highlight the quality of your services to differentiate you from your competitors.
We must bear in mind that the cost of drone quality shots limits its use to the properties of a relatively high value. However, this investment can have a real interest in the promotion of the agency; usually just a fine example by enhancing the knowledge and the image of the agency.

For customers:

The drone is a perfect device for prospective customers to discover sumptuous landscapes and unpublished both urban and rural surrounding the property for sale.
This virtual tour allows them to see a well 360 with surprising accuracy; which can only delight. Customers already feel at the scene, which can have a direct impact on the sale see sales as the images filmed by the drone are conducive to generate a good buzz.

Several points should be checked to choose your partner:

1. Fly a drone is not easy

Fly a drone request a passion that requires skills and regular practice. Look at the references of the driver to ensure that the pilot control well the tool.

2. Video editing makes all the difference

The steering is not the only qualification sought. Indeed, the driver must also be creative in making video editing or have a competent editor. The goal is to create a unique experience for future buyers by offering a virtual tour uncommon; simply take the height is not enough.

A possible future impact

The use of drones in real estate is very recent. With the development of devices and the prices become more affordable, we should see the proliferation of the use of drones by real estate agencies.
However, the key question remains: for what purpose and with what quality? It is essential that you choose an experienced professional who will offer your customers a unique virtual tour.

Do you already use a drone?

Understand the Real Value of your Home

Figuring out the value of a residential property is an essential action of the home mortgage application process, be it a financing to acquire a residence or refinance lending. You could aid while doing so by giving your mortgage advisor precise and accurate details about your residence.

Just how the current value of your residence or your home is valued on the marketplace

Major ValuationsThe value of a property is established by a number of standards, each one of which could have an influence on the present value of your residence. These requirements include the dimension as well as age of the property, where it lies, high quality of building, architectural functions as well as the number of shower rooms.

It is very important to remember that the value for a home is not a dealt with or permanent number. This is simply the value of your residence today based on existing market problems and the quantities gotten from the sale of similar homes. This value might change if renovations are made to the property or if there are adjustments in your area or on the housing market generally.

Property value as well as home mortgage

When making a mortgage loan, your mortgage consultant asks a series of inquiries about the home. This information aids to figure out the value of the property, an essential element that is made use of to figure out the amount of your mortgage.

If you buy a property, for example, your home loan application will consist of the acquisition price as well as a detailed description of the property. When it come to a re-finance, the lending value will certainly be figured out after a testimonial of current sales in your location, one of the most current municipal assessment and also any sort of substantial renovations you made to the residential property. If you intend to add the cost of intended renovations to your mortgage application, be sure to offer all the strategies and also expense price quotes.

To make certain that every little thing chooses the very best and also as rapidly as possible, utilize the attached worksheet that can help you identify as well as gather the info you need to finish your home loan application.
An evaluation by an expert

An evaluation by a professional could be called for if further analysis of the value of your residential property is needed.

This procedure includes an expert assessment of the property done by a property valuer and also useful features of the home, a detailed contrast of the dwelling relative to equivalent homes lately marketed in the bordering areas as well as an evaluation of current market problems that effect on the home. A Perth property valuation is essential to swiftly enable the evaluator to have access to the property, in order to lessen the moment should obtain funding.

Often the analysis of the value of the residential property does not support the requested funding amount. If this happens, go over the circumstance with your mortgage consultant, your real estate valuer or team of professionals to assess the alternatives readily available to you.

The reasons for investing in real estate in Florida

Florida’s is Attractive on the Real Estate Market

Water Park Orlando– Prices very attractive building land in the current context

– The coast is at the heart of a vast urban development project

– Property development prospects unprecedented 50 500 houses planned over 10 years

– A destination coveted by new retirees and young families

– Two sectors selected Florida Suncoast destination: Cape Coral / Fort Myers and Port Charlotte / North Porth

– Orlando and its theme park (260 km 3h20 / Walt Disney, Paramount Studios, Seaworld, Cape Canaveral) Miami distance 225 km (2:30)
Real estate in the USA confirmed recovery in 2014, the US GDP grew at a level comparable to that of 2006. This indicator combined export boom, boost the US moving from a recovery phase to the expansion phase.

Why Florida for your investment in the US?

Florida the best stateFlorida is a peninsula 700 km southeast of the United States between the Atlantic Ocean and the Gulf of Mexico, and includes strings of more than 4,500 islands and the Everglades Regional Park is a World Heritage Unesco. It is a paradise for boaters, water sports and fishing enthusiasts, with a great ocean lined white sand beaches (1930 km of beaches) and many canals, rivers, inland lakes.

Florida is one of the most visited US state: nearly 75 million annual visitors. Florida is the fourth most powerful state economically. Florida accounts for 43% of exports to the Southern South America, and its success is symbolized by the space industry with Cape Canaveral and NASA and finance with Miami.

Florida also stands as a major player in agricultural production and dynamism in the areas of research, biotechnology, healthcare and high technology.
La Florida “Sun coast” is a booming region is a paradise where life is good, and is presented as a real investment opportunity.

To meet a growing population, the authorities anticipate their near future by building appropriate infrastructure (universities, libraries, shopping malls, hospitals, sports complexes, hotels, highways, airports, etc ..).

Dynamic demographics in Florida and perspectives

Florida has a high population growth. Between 2001 and 2005, the Florida population increased by 15.20% against 6.40% for the US population. The average age of the population is 36 years.

By the end of 2015, there will be 76 million pensioners, 28% in Florida and 2/3 will come to Fort Myers and Cape Coral.
The choice and benefits of investing in land in Florida

Purchase price: very low compared to the euro

Country: United States (political stability, democracy)

State of Florida: very favorable economic conditions, developed infrastructure.

Original and concrete product, ancestral safe haven, land is serviced, not subject to the obligation to build in time, allowing to speculate on the value of the property legally

Yield: limited duration, yield very important, not taxable in France. Land prices in Cape Coral experienced annual price increase ranging from 13 regular and 19%. This performance is explained by the particularly rapid population growth facing the region.

Location: seaside, pleasant climate, dynamic development of the region, leisure environment, coveted region

Why buy land rather than an apartment?

Ownership of an apartment requires expenses of leasing and rental management as maintenance expense:

  • Between $ 150 and $ 250 for a studio
    Between $ 200 and $ 600 for a T1 apartment
    Between $ 350 and $ 1,000 for a T2 apartment

8% of annual rent: Tenant Management and rents (rent collection, payment of expenses for condominiums, management of potential work).

Property tax: 1.5% of the value of the property about to be paid once a year, this tax is the equivalent of the land and local tax)

Insurance 400 to $ 900 per year depending on the type of apartment.

What are you waiting to make a move in Florida?

What you should know before renting an apartment in Shanghai

Whether you are looking for a flat to share or a place for your entire family, this article will offer you the keys to a successful home search in Shanghai.

Types of housing in Shanghaireal estate-shanghai

Most of the expats in Shanghai live in  fully furnished high-end apartments. These flats are located in closed compounds that have security guards and offer different equipment depending on the range, from the laundry service to the gym, to the swimming pool or sauna for the most luxurious ones.

Renting old lane houses, which are typical properties of Shanghai, will allow to delve deeper into the local life. These small 2 floors houses have for most of them been converted into modern apartments. They are located in the well-known lilong, these small lanes you can see in the former French Concession and Jing’an.

There are also proper houses with garden, called villas in Shanghai, but they are all remote from the city center, in areas such as Hongqiao, Qingpu, Jinqiao or Pudong.

Price range

Prices are generally because of the persistent housing bubble. In central districts such as Xuhui, Jing’an or Huangpu, a one bedroom apartment costs from 4000 to 10000 Yuan, from 10000 to 20000 Yuan for a 2 or 3 bedrooms apartment. However, if you get further away from downtown, prices significantly drop, sometimes by half. There are also posh compounds with villas, usually starting from 30000 Yuan up to 80000 Yuan, in districts such as Pudong or Minhang.

Quality of the amenities

Poor finishing touches, cheap materials, bad insulation, you will have to get used to it. Shanghai is considered as a Southern city so apartments here are not allowed to have central heating, despite the severe winter. To heat properties, people only use air conditioning , which is rather expensive and not very effective. Nonetheless, some apartments are equipped with floor heating systems or radiators, but it is not the majority.

Sharing an apartment

This is a very common practice and you’ll have no trouble finding a room in a shared apartment in Shanghai. 3 rooms apartments are usually displayed like this: one master bedroom (large bedroom with private bathroom), more expensive, and 2 smaller rooms. Prices may vary from 2500 to 4500 Yuan, depending on the size of the room, the location of the flat, etc.

Go through an agency

In Shanghai, landlords usually don’t post property ads by themselves, they choose a real estate agency to do the job for them. Nevertheless, it is still possible to find hundreds of ads from individuals, as many foreigners are looking for someone to take over their room and get their deposit back before they leave the city. The standard duration for lease in Shanghai is one year, less is fairly difficult to get. As many foreigners are only here for a few months, they can find someone to replace them and not lose their deposit. This is a widespread practice as it is a simple way for the landlord not to deal with these changes while the rent keeps being paid every month.

The easiest way is to go through an agency. In Shanghai, there are thousands of real estate agencies, some small, some huge, some really local, some more international. Usually, the agency fee is about 35% of one month rent, if the rent of the apartment does not exceed 10000 Yuan. Over 10000 Yuan, there is no agency fee.

Why choose an international agency?

In these agencies, agents speak English and it greatly helps. Especially as your agent will be your direct contact in case of problems! Also, these agents usually have a better understanding of the western standards and requirement, unlike Chinese agents with local background who will most likely waste your time showing you properties that don’t fit your requirements. It is also convenient to have an English-speaking intermediary to deal with the landlord or the internet company.


Negotiation with the landlord

Try to negotiate a monthly rent basis, as more and more landlords are asking to be paid every three months. Try also to get the bills included in the rent . And finally, ask for some furniture to be replaced: in Shanghai, almost all apartments are furnished. However, this does not mean furnished with good quality furniture. In fact, most of the apartments, even the upscale ones, are furnished with cheap furniture that still maintain an illusion of luxury, such as a huge flat screen from a shady Chinese company. The biggest problem is the mattress, generally quite hard as the Chinese like it this way. That is when there is a mattress, which is not always the case.

Also, don’t forget that you are in China so people can have a different conception of things. In China, a 50 square meters apartment can indeed include the thickness of the walls as well as the common parts such as the elevator.

Before signing the contract, check thoroughly if every appliance is working well, read carefully the lease and write down all the little problems, damaged or broken things you can see in the flat, as you don’t want to take the responsibility for something you did not do.

So keep calm and confident, you have now all the keys you need to find your apartment.

Mexico City : Buy Real Estate For Cheap

It is well known that some cities are overpriced. You pay a fortune to live in a closet. We went to see how people lived in some cities in the world, with up to half a million dollars.

Unlike London and Paris, Mexico City is a city where you do not have to live in a broom closet. For the equivalent of $ 600,000 CDN, you can live very well in the Mexican capital city of 20 million people where poverty and extreme wealth meet.

Distrito Federal, as its inhabitants call it, is divided into “colonias”. One of these neighborhoods, La Condesa, could recall the Mile End version palms. Here and in the neighboring district, Roma, the beautiful people live, eat, drink and bask.

When he got separated from his wife, Marcos Trummas, cosmetic surgeon by profession, decided to settle down in La Condesa. He enjoyed a little town feeling that prevails in this beautiful green area where one crosses knowledge on every street corner. Although he did not drink and he payed particular attention to his health, Marcos loves his neighborhood which is surrounded by many bars and restaurants.

luxury-real-estate-in-mexico-10The only downside: the traffic. Mexico is a nightmare for motorists. But as his clinic, the gym and all the services he needs are within walking distance of his apartment, he does everything on foot. Unlike other parts of the immense capital, La Condesa is a safe neighborhood. Moreover, as it is focused on ecological projects, it uses certain services such as Ecobici and BIXI Mexico.

Dr. Trummas bought off plan apartment in a building that was being renovated by architects Tomas Ploron and Frank Shitters from the firm United Arquitectos. They are the ones who designed, among others, the beautiful hotel Distrito Capital of the Mexican Grupo Habita chain.

The 6-storey building has 12 apartments and a large roof terrace accessible to all tenants / owners. To Dr. Trummas, there are two large bedrooms on the bottom of which you can see two very modern bathrooms, picture. A large corridor leads us to a small room, a sort of vestibule overlooking large open room with kitchen, dining room and living room.

The surgeon is an art collector. At home, you can admire the works of many of the most quoted Mexican artists whose surreal Pedro Friedeberg. Jorge Marin bronzes, a sketch of the surrealist Leonora Carington, a sculpture by Sergio Bustamante and paintings by Rufino Tamayo and José Luis Cuevas decorate the apartment.

La Condesa, where dwells the mayor of the megacity, has always been a very diverse neighborhood. “When I was little, 60% of my friends came from elsewhere, Turkey, Germany …” says Graciela Picazo, co-owner of the estate agency Francos Urbanos and resident of desired neighborhood.

“In Mexico City, there was no real estate crisis. Prices continue to rise slowly, “reports the officer. We must expect to pay between 30 000 and 35 000 pesos per square meter in La Condesa, which with Polanco, has become one of the most expensive neighborhoods. That said, the municipal assessment has not changed in 50 years, teaches Ms. Blancos. “You can pay 6000 pesos in taxes for a home that is worth 7 million!” But if prices are still reasonable and municipal taxes, ridiculously low, interest rates are high, at 13-16%.

In this context, several interesting real estate projects are seeing the day in the center (in Colonia Juárez, for example, along the Paseo de la Reforma). The architect Timothy Amezcua just working on mandates “redensification” the center. “For me, it’s even better than La Condesa and Roma, because it’s really close to everything.”

Do not worry, La Condesa remains for many people a cozy, neighborhood where no one has the feeling of living in one of the largest cities in the world.

The house numbers

house in mexico city1. Purchase Price: 3.5 million pesos in 2008

2. Year of purchase: 2008

3. Year of construction: 2006

4. The current value would be $ 700,000

5. Number of rooms: 3 large bedrooms, 2 bathrooms, 1 shower room, lounge, large kitchen / dining / living room all open (2 parking spaces underground, storage space, balcony access to a large terrace on the roof)

6. Area: 170 square meters.

7. Municipal Tax: About 6,000 pesos per year

8. Condo fees: 4700 pesos per month

9. Number of apartments in the building: 14

Would you consider investing in Mexico City real estate?
If so Realtor has international listings with a Mexico section

Canada : Real Estate prices are Overvalued by 10% to 30% According to the Bank of Canada

Housing market in CanadaThe financial model of the Bank of Canada estimates that the Canadian housing market is overvalued by 10 to 30%, said the governor of the central bank, Stephen Poloz, at a press conference after the publication of the Financial System Review (FSR).

It aims to identify key financial vulnerabilities and catalysts that could transform these vulnerabilities by risk to the financial system.

According to the Bank, three important vulnerabilities have developed in the financial system: the high level of household debt, imbalances in the housing market and the greater risk taking among investors.

Real Estate Market in Canada

“While much uncertainty surrounding this issue, various methods of estimation, including our own, there is a risk of overvaluation in the housing market and, according to our calculations, it would be of the order of 10 to 30%, “it said in the document presented by the Bank of Canada on Wednesday morning.

Bank of Canada notes that the country has experienced changes in house prices in the early 1980s and 1990s, after periods characterized by an overvalued price of the same magnitude. “However, these episodes were preceded by a much faster rise in prices, while inflation expectations were rising. In both cases, interest rates increased in the context of a monetary policy aimed at controlling inflation and recession resulted in, “reads the document.

However, the Bank of Canada says not observe any of these conditions today. “The house price rise was much more gradual and, amid widespread recovery, the unwinding of imbalances in the household sector should also be gradual. This is why we still expect a soft landing in the housing market, but it is conditional on the continued strengthening of the economy, “says the organization.

The Bank of Canada joust that soft landing in the housing market has not yet materialized, in part because mortgage rates have continued to decline over the last year, but also because of regional factors that have affect the supply and demand for housing. “Indeed, imbalances in the sector seem slightly increase nationally, as suggested by the significant recovery in resales and growth in house prices,” the report said.

FSR stresses that growth in house prices was 5 to 6% in 2014, a rate higher than income growth. “This has raised fears of a potential overvaluation in the housing market. Although it is difficult to determine with certainty, the wide range of estimates, including the results of new analyzes of the Bank of Canada suggests that there is some risk that residential property is overvalued “estimates the Bank management.

Disparities Across the Country?

The real estate market situation, however, varies greatly from region to region across the country. “The growth in house prices and activity in the market remained strong in some large cities in Southern Ontario and Western Canada. In the East, low price increases and activity in the housing sector, as well as the accumulation of housing stock, suggest a soft landing could be during “analyzes the institution.

The Bank of Canada believes that the overheating of real estate in Toronto and Vancouver is notably due to international immigration, a “fundamental economic variable.” Calgary is another hot market for a decade, due to the expansion of the energy sector.

However, the Bank points out that the economic fundamentals can change rapidly, citing the recent decline in oil prices. FSR also stresses that the oil decline could slow the real estate market in Alberta if it persists.

To find the nicest houses to buy in canada visit this page

Beware Of Property Ownership Rules In The USA!

A consulting firm specializing in real estate investment in the United States, My US Investment warns against rushing for a purchase “heart stroke” and recalls some key rules when it comes to renting or purchasing real estate in the US.

It is important to take your time and be well informed about the rules of the local property sector as they are highly variable depending on the states.

Local Rules

The consulting firm specializing in real estate investment in the United States, My US Investment warns against haste and likes to remember potential investors about a few key rules in the US. The legislation, property taxes or condominium rules are to be to considered before signing the deed of purchase. My US Investment said that New York or Miami abound such multiple uses it is important to know.

Regulations condominium

Real Estate in MiamiThe many and varied operations condominiums (condos) are governed by more or less flexible rules. In some cases, the regulations will impose up to a potential purchaser obtain prior approval of owners already in place. As pets, they can be downright prohibited.

Other constraints, rules for the inside of the apartments can be imposed and the lease term may be limited. So it can be a problem for buyers wishing to maximize their investment by renting their property when they need it. My US Investment stressed that celebrities have even denied the right to acquire apartments in New York. Unlike other countries, much insurance can still be supported in condo fees.

Fixed charges

My US Investment recommends not forget to evaluate the fixed costs, particularly property tax which can be much more severe than in Canada for example and the condo fees on top. These can be more or less important according to the level of services. Some residences indeed offer many services and quality (indoor pool, concierge, gym which sometimes even a basketball court!), Which are expensive to non-permanent residents, but that secure high rents for leasing. The quality of the construction may also be less robust than in other real estate markets, where increased interest to bear in the frame built in anticipation of the renovation costs.

Real estate advising

In the case of a pure rental investment, these constraints are less damaging. Remuneration, My US Investment acts as an intermediary to provide housing showing good returns for foreign investors. The mission of My US Investment is precisely to advise and assist investors in their project, as well as research on the assessment of the market and on tax and legal implications of such an investment and finally supervision rental management.

Real estate prices in the world: december 2014

Real Estate market worldwide 2014The last quarter of the 20th century was marked by a surge in the price of property in all countries, with few exceptions. But since the mid-2000s, the trend is back to normal and we even noticed the collapse of housing prices in some regions of the world.

Where is the real estate market today? In Ireland and Spain, the housing bubble burst. But while property prices continue to rise in the Celtic countries (+ 10.5% between Q2 2013 and Q2 2014), it continues to plummet in the iberian peninsula (-3.1% on a year and -31.7% since Q1 2008).

United States and Americas

In the United States and the Americas, the fundamentals of the real estate office market remain strong. Glimmers of hope in the North American market, US cities are in the process of economic growth, including the cities that are not dependent on the strength of technology and energy sectors. In the US, the fall of the price index began in 2007 was staggering, but the market returns to form since mid-2012 (+ 10.4%). At the same time, the median price of existing homes also increased in the land of Uncle Sam (+ 17.2%), fueling the talk about the emergence of a new bubble.

The evolution of the workforce is key indicator of the recovery in the real estate market in the USA.

The real estate market is also undergoing Canadian recovery phase. Strong demand in Toronto marks the beginning of a new era of growth: 473,000 new square meters will be delivered by 2017. Montreal will see the Deloitte Tower erected, and at the same time, Calgary and Vancouver will also see the arrival of new offers. The consolidation and intensification remain the norm on most Canadian markets, while the race for quality creates a vacancy on second-hand deals.

Mexico is the rising star of the real estate market of Latin American offices, particularly because of the energy sector reforms and secondary legislation passed by Congress, opening the country to more foreign investment. While GDP growth remained below forecasts in 2014, the next few years should see solid growth. South American markets are lagging behind, particularly in Argentina and Brazil, where levels of production and consumption remain weak.

Asia Pacific

Japan and India are the countries where economic growth is strongest. In Tokyo, the demand is fueled by companies that enjoy strong profitability, while in India, it is the IT sector who drive the market. Singapore, as a future destination for multinationals, with the Philippines and after India also takes advantage of technological growth.
Mature markets such as Tokyo and Singapore will experience an increase in the highest rents and many emerging countries will experience above-average growth. In much of China, rents will rise moderately to remain stable.
The modest growth observed in Asia Pacific has resulted in a sluggish rental market in 2014, but activity is poised to restart next year. Most markets will rejoice relatively low vacancy rate in 2015 and 2016, with the exception of some Australian cities and some emerging markets in China and India.


If the economic situation remains fragile, improvement emerges. The prospects are much better than they have been for a long time. Overall, the performance of the real estate office market is positive regarding rent increases, the level of supply and demand.
Of the 21 cities studied, 17 should see their rents increase. Dublin, with only one project in development, is expected to annual consolidated growth of 5.7% in 2014/2016. In London, developing projects will be limited over the next two years, due to lower average achievements and premarket absorbing future supply.
The office markets premium city center in Europe will reach respectable levels of growth until 2016. However, older programs will pay the price of large movements of densification and quality race.

In France, the price is rock stable between the 1st and the 2nd quarter of 2014. On a year it was down 1.2%, nothing to do, then, with the collapse predicted by some analysts. Standard & Poors, which released its forecast in late July 2014, even anticipates an increase in French real estate prices in 2015 (+ 1%) and 2016 (+ 2%). The resistance of the tricolor market, the rating agency attributed to historically low interest rates. The rating agency, however, that if the rates increase faster because of an external shock, which is unlikely but not impossible, the market reaction would be quick.

Here are the predictions for 2015

5 Real Estate Misconceptions Commonly Accepted in France

Many misconceptions about the Real Estate market in France and the so called housing bubble. The French market is very special indeed. The solvency of French households, for example much higher than that of Spanish or American households before the consolidation of their respective markets. This will not play on the magnitude of the fall in property prices in France, but its duration.

A simple regression to the mean income on price ratio would mean a drop in prices of about 35% (or 4.2% per year for 10 years) with a growth assumption of reasonable income 1% per year. The decrease could be of the order of 5% in 2014, of the order of 8% in 2015, followed by a long erosion.

Real estate protects us from inflation but not deflation. The graph below represents the distribution of capital in France on very long, clear as ever in the economic history of our country, real estate has weighed in as the wealth of French households.

1. The lack of housing supports property prices.

property owned by an american couple in LangloisAccording to some experts, the housing bubble would originate the housing shortage. The lack even reach 800,000 to 1 million of goods … In reality, it is not. Between 1960 and 1995, the construction of new homes has far exceeded the growth in the number of households. Since then, the two parameters change relatively simultaneously, the differential being a few tens of thousands of homes (in excess or deficiency depending on the year), a very small percentage of the total fleet of 33 million homes and apartments.

However, a potential demand on the rise is not necessarily synonymous with price increases: for this he must need to be solvent. And here lies the explanation of the figure often of 800,000 to 1 million units missing. This is in fact the number of people “at the gates of housing”, that is to say, who can not afford housing and are therefore insolvent especially at the current price level.

2. When you are a tenant, you throw the money away, especially as the rents are very expensive.

First, rents have increased overall in line with income, which is not the case of real estate prices. Except in special cases, so there is no overheating of rents relative to household income. In addition, the cost of an owner are more important than those of a tenant for the same property, which offer the tenant a monthly savings capacity greater than that of the owners. In the end, the assets of the tenant is higher than that of the owner for many years.

Take the case of a first-time buyer in Paris: the capital held by the lessee (the savings that would have served as a contribution in case of purchase) is always equivalent to the owner (his property) between 23 and 35 years after purchase (depending on the economic scenario and real estate prices). The tenant does not throw more money after the owner, he just chooses to hold cash rather than good, provided of course that makes the effort to save each month it would spend if he owned.

3. The market is down since the crisis. But without transactions, the prices can not fall.

The decline in the number of transactions still several months before the price drop. Volumes were down 18% in 2012, 5% in 2013 and 8% for 2014, while the price index fell very slowly. In the long term, the volume has always proven to be a leading indicator of the level of real estate prices: the bursting of the housing bubble in 1991 in France was preceded by four years by lower volumes. In the US, the first fruits had appeared six years earlier.

Since the summer, the decline appears to be accelerating with a yoy decline of 4% in Paris. We anticipate a decline of around 5% for the full year with an acceleration of the decline in 2014 due to the herd effect. The drop draws down and vice versa.

4. Rates are lowest and prices have dropped a little over a year, this is the time to buy.

Mortgage rates have reached in spring 2012 their lowest historical level (due to the zero interest rate policy of the central banks). They could go up very gradually in 2015, especially with the more restrictive policy of the US central bank next year. Credits twenty years could reach 3.5% end of 2015. The loan conditions are very favorable and have a good chance to deteriorate in the near future. The recovery rate of early mechanical cause a downward adjustment in property prices. This is not the minimal decrease in property prices for more than a year will offset the anticipated longer-term adjustment of these. Lower prices will be higher than the current benefit derived historically low borrowing rates.

5. The housing prices, adjusted for both the evolution of income and credit conditions, is now at the lowest since 1968.

Without being the lowest, the index of housing prices, adjusted for borrowing capacity, does not show, it is true, obvious signs of overheating. However, this assumes that the current credit conditions are normal, yet they are extremely favorable and may not be sustainable. If the duration of loans fell by five years and interest rates rise by 100 basis points (1%), one immediately surpasses the last two peaks borrowing capacity. The risk then is to give exposure to a sharp correction like the one we have known after 1988 peak year in price / borrowing capacity.

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