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HomeRun Homes is a centralized marketplace which helps people Find or Sell a Rent to Own Home, both Nationwide and Globally to the thriving Rent to Own Market. http://www.lease2buy.com
Showing posts with label commercial real estate. Show all posts
Showing posts with label commercial real estate. Show all posts

July 17, 2011

More Real Estate Bubble Talk

Hi Folks,

   Hope you had a nice weekend, and I'm honored to have you back with me!

   Last week, we took a look at Canada and where it stands in terms of a Housing Bubble (Canadian Housing Bubble Or An Exception To The Rule) vs. our busted bubble. Today, let's expand our reach and look at a few countries around the globe to examine whether their Housing Bubble has burst yet.

   Any conversation about Real Estate and Housing would not be complete without discussing China. In a recent Investopedia story that was aptly named, "China's Real Estate Bubble", Arthur Pinkasovitch looked at the average home prices in 2007, which, "slipped from $221,900 to $219,000" and then had a "massive 21% drop over the next two years." In contract, the author said that Chinese real estate "maintained its value through the Great Recession as property values tripled between 2004 and 2009." However, he says that "major cracks are beginning to surface within the Chinese real estate market as speculation about the collapse of the bubble has started to emerge.", and points to a drop from "stable" to "negative" by Standard & Poor's ("in anticipation of a "sharp correction" for real estate prices. Analysts are forecasting that home prices will fall by 10% within the next year.")

   Pinkasovitch points to oversupply of residential and commercial real estate in the country, and says that in order to maintain GDP growth, "the Chinese government has continued to over invest in large infrastructure projects focused on real estate development. At an average wage of $7,400 people are neither able to purchase the basic $100,000 apartments units nor invest into small businesses around the new developments.", and names some cities with residential apartment occupancy rates of only 30%. On the Commercial Real Estate end, he discusses the "Great Mall of China" which, "contains 9.6 million square feet of floor space", but, "less than a dozen active shops remain in the mall".

   Additionally, the Author points to the following fact; "According to The Atlantic, residential housing investments contributes to 6% of GDP, the same level as U.S. real estate at the peak of the housing bubble". He also says that the current prices are too high, and that "property prices in major metropolitan areas have risen to unsustainable levels".

   Robert Rubin, Editor of Safe Money Products, corroborates this, and says that China is already full of "empty cities, malls, and airports. That’s why China may not be the place for long-term safe money, despite its boom.". Rubin says that Local governments around China formed “Local Government Funding Vehicles” (to lend money to developers), but says that the finances of these "unofficial banks" are off-record, and says that the government of China "recently estimated 26% of these loans are bad, and 50% will be repaid only with difficulty.". Rubin also says that the real estate bubble "may pop when its government raises interest rates to control inflation."

   Putting the China "Bubble" on hold for a moment, let's take a look at a few other countries.

   In the Middle East, and specifically in Saudi Arabia, "A leading Saudi architect has warned that the Kingdom’s ambitious housing programmes could be scuppered by a looming real-estate bubble", says an article in Construction Week, titled, "Kingdom faces real-estate bubble, says Saudi Diyar". "The real-estate sector is ridiculously overpriced; it is a bubble", says Saudi Diyar principal Hisham Malaika on an Arab News interview. Additionally, says the Diyar from the oil rich nation that seems to build endlessly, "The cost of real estate is over inflated, and it is prohibitive for real-estate developers to finance projects for low- and medium-income families".

   In Europe, the Bulgarian Real Estate Market will return to an uptrend imminently, says an article titled, "Limited Return' of Bulgarian Real Estate Market 'On the Way'" and the "Bulgaria Real Estate Report Q3 2011" of Business Monitor International (BMI). The report cites data that an "average of 1 550 property auctions took place a month in January and February 2011, compared with a monthly average of 750 in 2010."

   The story sums up the Bulgarian market and says that the market "has a long way to go to recover before BMI sees anything like the growth of the previous decade", and that "a fundamental improvement in Bulgaria's economy has yet to be seen that would prompt BMI to upgrade the report forecasts and therefore the 2011 real GDP growth expectation is left virtually unchanged".

   Although the countries discussed here appear to be at differing stages of Bubbles and recoveries, we live in a Global Economy, which is not a cliché. As Rubin points out regarding the Chinese market; "The great threat isn’t to China, but to the commodity producers around the world that feed Chinese construction. China is the largest commodity consumer in the world. If Chinese construction wanes, demand for commodities will plunge. Commodities, stocks of commodity producers, and currencies of commodity producing nations will all be hit hard." The ripple effects of each country ultimately effects all of us, either directly or indirectly.

   What are your thoughts on this story?

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Have a Great Week, and Happy Rent-to-Owning !
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #Canada #ChinaRealEstate #HousingBubble #realestateprices #commercialrealestate #MiddleEast #SaudiArabia #Europe #Bulgaria #GDP

August 2, 2010

Commercial Real Estate...and We Need Your Input !

Hi Everyone,

   Hope you had a nice and peaceful weekend. As for me, having a toddler, the word "peaceful" does not exist !

   We wanted to announce a few new things currently and on the horizon. First, we have created a new RSS Feed with all of our Press Releases, that covers our news, press and media, regarding rent to own and real estate in general. It is freely available at this link

   Next, for those of you who have placed your buildings, stores, apartments, and land available Ads in the "Homes Available" Section, please note that your exposure would be much better in the Commercial Real Estate section. Please let us know if you would like your Ads moved over to the Commercial Property section.

   Now, we want to turn things over to you, and we have a few questions. For all of those who respond via comments on this Blog or via E-mail, we will send you a small token of our appreciation (please provide your E-mail address along with your correspondence).

Question #1: Would you be interested in seeing additional countries added to the website? If so, which ones and why?
Question #2: Are there any Social Networks that you would like to see us on that we are NOT on currently?
Question #3: What other topics would you like to see discussed on our Blog? Please be specific.

   As mentioned above: If you answer any (or all) of the above either via comments on this Blog OR via E-mail, along with your E-mail reply address, we will send you over a small token of our appreciation.

Have a Great Day and Happy Rent-to-Owning !

May 19, 2010

Commercial Real Estate Market, Multiple Properties, Charleston visit...

Hi Everyone,

Hope your week is going well. We are glad to be with you here and to make a few announcements and give you some information on the markets around us.

We just returned back from Charleston (South Carolina) for a quick 2-day conference, and we had a chance to visit the downtown waterfront area. Since this was my first time down there, I was very impressed by the way the Civil War era homes are mixed in amongst the modern architecture. Charleston is a very quaint little city, and we actually learned about the "Widow's Porch", that is standard on all homes along the waterfront, and which is an homage to the bygone era, where women would wait on the top part of their homes for their husbands to return home from sea. Of course, some never made it back, thus the name of the porch. How times have changed, as nowadays, it could also be referred to as a "Widower's Porch", had it been the wife out at sea and the husband was at home waiting for her. Nevertheless, it is a very nice city to visit, with good cuisine, fantastic architecture, and a market that is evidently strengthening.

Since we are on the topic of markets, there was a very interesting article on Inc.com, titled, "Norm Brodsky on Why Real Estate Still Rules". A construction service owner was curious as to whether he should buy or rent office space, and Norm responded along with the comment that, "I expect that the commercial real estate market will bottom out in 18 months to 24 months". Yes, we all had a feeling about this, and his respected opinion only bolsters this feeling. This is truly a valid concern. We have seen a very large part of the Commercial Real Estate market make inquiries to us regarding the potential to do a hybrid of renting and purchasing stores, buildings, lands, or lots...thus, Rent to Own. In response to these requests, we have implemented the Commercial Real Estate section, where Commercial Properties can be listed, or Commercial Properties can be viewed. We are hoping that this gives some owners and potential buyers of Commercial Real Estate another option, and hopefully, this will help them in their endeavors.

We have made a few changes on the site this week, primarily linking to this Blog from the footer on all pages of our website. Additionally, when a quote is requested for Selling Multiple Properties, we have made the E-mail that comes to the requester into a much more detailed quote format. Once again, all of these changes are being made to simplify the experience for people who are buying or selling a Rent to Own Home or other property.

We have some more improvements in the pipeline, and we will keep you updated as the week continues. Please feel free to comment here and let us know what improvements you would like to see !

NOTE: The Podcast for this Post is available at: http://www.box.net/shared/ngq38qsv5u

Have a Great Week, and Happy Rent-to-Owning !