Where? No, not the spicy food. The country on the South Pacific coast in South America. It appears this is a gem of a country with special and popular destinations.
More specifically these are the specialty resort areas in Chile. The relaxation of bank loans and interest rates have helped restore some interest in the real estate market again, after the large fall in values recently.
Maipo Canyon is a prime international real estate destination. The Maipo River Valley in the Andean Mountains is a favourite weekender resort for the residents of Santiago, Chile’s capital about a 50 minute drive away. For example, a luxury and self sufficient 3 bedroom wooden house, built by craftsmen, with its own spring water supply, view of the Andes Mountains and River on 3 acres sells for $630,000. And oh, yes, this is wine country.
How about Vina del Mar, a Meditteranean feel ocean-side resort style town about 2 hours away from Santiago.
Property prices have retracted by about 40% said Rodrigo Orlandi of FAF International in Santiago. But judging from the interest from international buyers, these areas are very much in demand now. The interest rate cuts is in part creating a leveling off of prices.
Charles Spencer from Spencer Global Consulting notes similarly. He represents international buyers and advices them on their real estate purchases; noting that most of the buyers are international executives working and living in Santiago’s multi-national companies.
A few years ago, an apartment with an ocean view in Viña del Mar would have cost 80 million to 100 million pesos ($148,000 to $185,000). Now, some apartments sell for as little as 50 million pesos ($93,000), while houses in the area cost 70 million to 100 million pesos ($130,000 to $185,000).
The US Real Estate is expected to roll back another 14.5%.
Should you invest in real estate? In fact, should you invest anywhere in the world right now?
Despite the bailout of American Banks by the Obama Administration, it is feared that may not be enough says Yale Proffessor Of Economics Robert Shuller.
When the “Market” predicts the real estate prices will still retract almost 15%, what would the regular real estate investor or would be real estate buyer do? Personally, I’d stay back and ride it out. Why risk my good credit and hard earned money? In the absence of positive new economic news, the general market remains lagging. Potential buyers and investors will likely simply hold back country wide based on such predictions. Here we have the makings of a self fulfilling prophesy. Read more from Tim Middleton…
Now, on the question of should investors in other countries invest at all.
Let’s take Canada for instance. Canada, just across the border from the real estate carnage of the past 2 years have not been as devastated. But then comes news that Canadians in general are declaring bankruptcy in record numbers. Add to the downbeat American outlook and you bet some people will hold back.
The Toronto Spring market was encouraging but what about the rest of the year and for that matter, the rest of the country? I doubt this actually reflects the sentiment for much of Canada. So we may have that oh, so familiar two tier real estate market. The smaller towns, cities and outlying areas away from the large populaton centres will have a fall in price but the big cities will still enjoy a relatively stable market.
What about in other financial centres?
Past tradition follows the US outlook in real estate and the stock market performance. And in Singapore and Hong Kong investors remain jittery. Prices tending to fall more quickly than they rise. However, what is curious is investors tend to favour stocks and investible paper largely for their liquidity as opposed to low interest rate mortgages and getting tied in for the long term.
This video tells alot about San Fran – Enjoy from You Tube Holiday Makers.
If you’re going to San Francisco…always those warm fuzzy memories from a different era. The band played and I sang along. As the young ladies handed out flowers so that you could put them in your partner’s hair.
Quite a lifestyle to have if you live here.
What a difference a year and a half make. Property prices had simply gone through the roof. Speculators and flippers were out in droves everywhere. Home owners trying to sell were totally annoyed with those “vultures” as a couple of friends related to me their horror stories of having their homes descended upon by bargain hunters, who outnumbered real buyers 3 to1.
It’s Fall and the kids have gone to school. The Bay area is getting a noticeable cooler swathe of air and cooler breezes. The hot summer shorts are giving way to long sleeved hoodies. The Fisherman’s Wharf is no longer filled with holiday makers.
The very fetching waitress had time to chat with us as we watched the ferries go by the Alcatraz Island, the former but still infamous prison in the sea. She looking for another job as this one no longer pays. People do not tip enough anymore and there are far fewer customers. Many people are going broke. Her own brother is now bankrupt and house prices are so low, many people owe the banks just about everything they have.
Often times in my life I tend to run into great bargains when doing something completely different. The choice was mine to take advantage of it. It appears the areas around the city and not so much within the city itself that face the greatest failure rates mortgage defaults. Many homes are now only partly built as the builders are going bankrupt along with the defaulting buyers.
But a word of caution for would be out of country buyers – the tax system and the state are not very friendly towards you and become extremely punitive in their taxation policies.
Investing in the United States is a very involved affair, but all is not lost. In fact, done right, a foreign investor can easily treat the USA as a tax haven. And California is certainly one of the more desirable parts of the country, especially near the coast. Sun, surf, gals and dudes all over the beaches with that spectacular Pacific vista. Many have moved here and never left. I can see why anyone can fall in love with this place. The weather is balmy to boot.
Ah yes, about San Fran. This is an amazingly undulating city. The entire city is built on hills and valleys. The roads can be so steep it’s a wonder the trams ever go up and down the other side.
Despite much ado about the great real estate mortgage meltdown, this is still a bustling metropolis. Their China Town is still as busy as ever. There is a plethora of older buildings and history to take in but I avoid them. The coastal park and the sights surrounding the San Francisco Bridge is far more inviting.
A prelude to WW3? What if NATO and the US stay out of it? The Sovereignty of Georgia is at stake.
This is a sure way of crashing their real estate values. Hmmm…perhaps when peace and stablity resumes, some smart spark can swwop right in and buy up prime real estate. There’s also great and valuable water front properties on the Black Sea…
They certainly are creating a lot of rubble – can’t be good for their respective economies. I mean, what will the billionaires in Moscow think? There are over 70 of them – that makes Moscow the 2nd most popular home to billionaires!
Then there’s Georgia. The break away former USSR state had claimed their own independant state. This conflict seems to have some racial/state overtones. But this scares NATO countries because Georgia was soon to be included into their fold. And besides, they do control a good amount of the oil pipeline. But if you’ve seen their black sea coast, you’ll understand why it’s a resort and recently, an extremely wealthy one.
War games and “Operation Brimstone” an often named end of the world war games was conducted in many parts of the world. Reports worldwide of sea manoeveurs with the US seventh fleet and NATO forces we’re in full swing as the Russian juggernaut attack fleet sailed right through the Mediterranian in support of their ground forces in Ossetia.
This is a common call to action “in preparation of war preparedness” according to the powers that be. Afterall, emergencies such as these simply entrenches the power brokers or within the conspiracy theorists speak, the “true ruling elites” are simply demontrating to the pipsqueak citizenry who’s boss.
Beware! Real Estate investors. Reports coming in from all over the world indicate property prices have cooled significantly. In the last few months, some countries with large specualtive price increase are actually seeing a slight reversal in prices. Ireland, Spain, most of Europe and even central London (England) are feeling the negative effects.
Check out Moscow’s Real Estate and your guess is as good as mine.
Real Estate Investors all over the world are feeling the blues, or rather, the shortage of green, as in the colour of money, causing a very serious dent in retire early plans for many investors. America Sneezed and the prognosis seems to be a foregone conclusion of something much more serious. The rest of the world has caught a very bad cold or flu like virus.
The recessive price declines of real estate in the US southern sun belt have deeepened and not expected to recover for another 2 years according to some analysts. That scares many people. However, hot spots remain in Sao Paulo, China, Moscow and even India according to Forbes, for the time being. Of course, there are other gems for investing that never go out of style it seems.
Just remember that recessive speculation is not the same as the cost of living. Sometimes, a place like Moscow despite being the most expensive city in the world to live, may actually weather the real estate fallout in the US far better because of the local wealth and the presence of the 74 billionaires in residence. Other holiday destinations like Cypress may just be slowing in large part because of holiday seasons. What ever the reason, do your homework. Do your due diligence.
Heed this heads up, travellers and off-shore investors. Watch the video.
Where? No, not the spicy food. The country on the South Pacific coast in South America. It appears this is a gem of a country with special and popular destinations.
The very fetching waitress had time to chat with us as we watched the ferries go by the Alcatraz Island, the former but still infamous prison in the sea. She looking for another job as this one no longer pays. People do not tip enough anymore and there are far fewer customers. Many people are going broke. Her own brother is now bankrupt and house prices are so low, many people owe the banks just about everything they have.
Just remember that recessive speculation is not the same as the cost of living. Sometimes, a place like Moscow despite being the most expensive city in the world to live, may actually weather the real estate fallout in the US far better because of the local wealth and the presence of the 74 billionaires in residence. Other holiday destinations like Cypress may just be slowing in large part because of holiday seasons. What ever the reason, do your homework. Do your due diligence.
