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Posts Tagged ‘overseas’

Foreigners interested in buying property abroad in a market that appears to be well positioned to withstand the current downturn and to stage a solid bounce back once the economy improves may find a good investment potential in Canadian commercial real estate. The market for commercial real estate in Canada has performed exceptionally well in the current downturn, which has boosted vacancy rates to multi-year highs throughout the world, especially in the United States. At the same time, rents on commercial real estate investments have declined substantially, prompting owners of certain types or commercial properties to offer various rent discounts and incentives. The future outlook for commercial real estate abroad remains dismal. Yet, Canadian commercial property investments looks poised to outperform the property investments in most developed nations abroad. REMA Commercial properties specialist

Unlike in the United States, rents in the Canadian commercial real estate market have remained stable because vacancy rates have been relatively low. Office vacancy rates, for instance, have increased to about 6 per cent, which is well below vacancy rates reached in previous cycles. In some local property markets vacancies have actually continued to decline. In addition, Canadian vacancy rates are way lower than those in some other developed countries, most notably the United States. The low supply of new commercial properties in the market has kept absorption levels high and vacancies on Canadian commercial real estate investments low. This supports the good outlook for rents on investments in commercial real estate in Canada, especially in comparison to investments in other markets in the world. As a result, real estate investors buying property abroad should be able to find many opportunities in Canada that guarantee a stable return on investment.

Another benefit of investing in Canadian commercial real estate market is that the current downturn in Canada should be both shorter and milder than in most developed economies abroad. The economic recession in Canada will likely end in the second half of this year. Canada’s recovering economy will start adding employees to the nation’s payrolls much sooner than will other economies in the world, especially that of the United States. As a result, utilization rates for vacant commercial properties in Canada should improve sooner, helping the market stabilize. The only two exceptions to this positive outlook are Toronto and Calgary, which will continue to see rising vacancies and falling rents due to oversupply issues. But, as property prices decline, even the substantial downturns in some local commercial real estate markets in Canada may offer opportunities for international property investors to buy cheap properties with a major earning potential.

Commercial real estate market in Canada in the current cycle should also turn around much quicker than in previous cycles because this time the Canadian commercial real estate market does not suffer from the excessive supply of commercial properties. Therefore, the market rebound is expected to happen within two years, which is only a half of the time it usually takes for commercial real estate markets to stage a comeback from recession.

Good opportunities exist in Canada for international real estate investors considering investment in commercial real estate. Canada’s image of a stable and secure market for property investments should appeal to international real estate investors seeking refuge from the generally slumping commercial real estate worldwide. Jimco International Overseas properties specialist

Foreigners interested in buying property abroad in a market that appears to be well positioned to withstand the current downturn and to stage a solid bounce back once the economy improves may find a good investment potential in Canadian commercial real estate. Investments in commercial real estate in Canada have proven especially resilient to the current downturn, which is a stark contrast to commercial real estate abroad. At the same time, rents on commercial real estate investments have declined substantially, prompting owners of certain types or commercial properties to offer various rent discounts and incentives. The future outlook for commercial real estate abroad remains dismal. Yet, Canadian commercial property investments looks poised to outperform the property investments in most developed nations abroad. REMA Commercial properties specialist

Unlike in the United States, rents in the Canadian commercial real estate market have remained stable because vacancy rates have been relatively low. The recent increase in office vacancy rates to 6 per cent is considered modest by historical patterns. In fact, there are even some localities, such as Ottawa, which are bucking the trend. While commercial real estate vacancies have clearly increased over the past several quarters, they still remain exceptionally low compared to other countries in the world, especially the United States. What is working to the benefit of the Canadian commercial real estate investments, however, is that vacancies are increasing from a low base because, in general, there has been a limited supply of new commercial properties in most local markets. This supports the good outlook for rents on investments in commercial real estate in Canada, especially in comparison to investments in other markets in the world. As a result, real estate investors buying property abroad should be able to find many opportunities in Canada that guarantee a stable return on investment.

Potential investors in Canada’s commercial real estate should also consider that the current downturn in the market in most likely to be less pronounced and shorter than that in most other nations abroad. The economic recession in Canada will likely end in the second half of this year. Canada’s recovering economy will start adding employees to the nation’s payrolls much sooner than will other economies in the world, especially that of the United States. As a result, utilization rates for vacant commercial properties in Canada should improve sooner, helping the market stabilize. Because of local market oversupply issues and exposures to severely bruised industries, such as the financial services industry, Toronto and Calgary may see an extended slump. But, as property prices decline, even the substantial downturns in some local commercial real estate markets in Canada may offer opportunities for international property investors to buy cheap properties with a major earning potential.

Commercial real estate market in Canada in the current cycle should also turn around much quicker than in previous cycles because this time the Canadian commercial real estate market does not suffer from the excessive supply of commercial properties. With the expectation that commercial real estate in Canada will start recovering within the next couple of years, half the time it usually takes the market to rebound and much less than what is expected of the most markets abroad, foreign investors should consider investing in commercial real estate in Canada.

Good opportunities exist in Canada for international real estate investors considering investment in commercial real estate. Canada’s commercial real estate traditionally offers strong income opportunities to foreign investors that seek to make an investment in commercial real estate in the markets characterized by long-term stability. REMA Commercial properties specialist

Experience International recommends their clients base their property purchasing decisions when looking for property for sale abroad based on the following 5 key principles:

• Credibility
• Ease of Purchase
• Security
• Return on Investment
• Exit Strategy

These stringent principles should be used on every property to ensure it is priced correctly.This is even more important during the current economic climate to ensure their funds invested provides maximum returns at minimal risk. Through buying a property using these principles ensures you are buying the right property and at the right price.

Credibility
Credibility is the key to determining the current price of a property and is derived from: Location, Quality of build, Developer’s track record and other comparable projects.  By ensuring the credibility of the development gives strength and guidance on what the asking price should be.

Ease of Purchase
The purchase procedure in every country differs hugely.When reviewing the asking price of a property also ensure you are aware of all the extra costs included.operty.  These include: payment plan options, taxes, solicitors fees, notary fees, finance and mortgage costs as well as the ongoing costs once you have purchased such as maintenance and service charges. The availability of finance or mortgages should also be fully checked.

Security
As a standard procedure Experience International carry out strict due diligence on every property development that they sell, however we also advise all clients to do their own research.  Checks should include: seller has clear land title, Correct Licenses for the country, correct planning permission, Developer, banks lending criteria, valuations, comparisons against other developments and security of your deposit.

ROI
The sustainable income achieved from your property during its life time will ultimately be its future value.Purchasing real estate during the current economic climate is a real buyers market.The yield and future capital value are vital in determining the success of your investment.

Exit Strategy
A lot of the time clients do not think about an exit strategy.  The profit is always made when you buy a property not when you sell, this means purchase a property wisely. Knowledge of your exit strategy options is very important to understand such how you will sell, what market exists, how demand and supply trends are moving, your current discount to market value, long term rental market if holding along with risks, what you can do to mitigate these risks and the worst case scenario.

A Case study
Zambrone Villas in Italy is a newly completed property in Calabria development is the perfect example of a holiday home that would suit the typical British holiday maker.  

Its asking prices are from €127,500 (£113,570) which you get a 2 bed, 1 bath semi-detached villa, with terrace, garden and sea views.

Location – Zambrone is a stunning area of Calabria, situated on the coast and boasts one of the best beaches on the Costa Degli De and close to the marina and centre for restaurants, watersports and recreational activities.

Size – the total plot including internal, terrace and garden is 263.95 sqm (£430 per sqm).This is way under current market prices and comparables considering this property is located at coastal location which often carries a premium.

Quality – This completed development has been built to very high standards and is currently being offered at off plan prices.  Every unit has already been registered at the local Building Registry ensuring purchasing in this development is safe and secure.

Specifications – research properties available nearby.The Zambrone villas are a secure community with swimming pool plus all villas have fantastic sea views.

It is important to compare like for like, so be sure your comparable properties are of a similar specification in terms of the number of rooms including bedrooms, bathrooms, reception rooms, furniture included etc. 

Rental Income – When looking for a property to draw in a strong rental income many of the above points will be very important in assessing rental values.  Every factor of this purchase indicates a very strong rental potential.

If you are looking at an investment property you need to work out the potential the weekly rental rate (or monthly if targeting long term local market) and likely occupancy rate. Local rental companies are a perfect source although you cannot always be sure you are getting the full picture. The internet is now an excellent tool for assessing rental values and demand so use it well to ensure the investment stacks up and the comparables you are using for the price will also provide some rental data. So in the case of the Zambrone Villas in Italy then simply do a search for Calabria property for rent in similar locations with the same or similar features and specification.

We hope these tips help and that you find happiness and success with your overseas property purchase and investment.