Real Estate Network

Archive for the ‘Real Estate Prices’ Category

Article by Kelly

Commercial real-estate prices fell 8.6% in April as deals were closed after having been negotiated during the dark days of late 2008 and early 2009, Moody’s Investors Service said.

“The size of April’s decline, following a 5.5% decline in January, also suggests that sellers are beginning to capitulate to the realities of commercial real-estate markets,” says Moody’s Managing Director Nick Levidy. He added more distressed sales appear to be occurring.

Real estate financiers and their development clients are some of the smartest and the dumbest people that I have ever met. What possessed General Growth to load up on such debt in their operations, and then double-down, in order to finance continued growth which they coul d not reasonably afford, such as to purchase Rouse? Have they learned nothing from the previous business cycles? Every real estate cycle for the last 20 years.The monthly decline, which leaves prices down one-quarter from a year earlier, continues the losing streak for the commercial real-estate sector, which had held out longer than residential real estate. However, commercial real estate began to feel the recession late last year, as retailers and other businesses cut back when financial markets and consumer sentiment were plunging.

Now-a-days selling our property is listed among the top most stressful life situation. A Real Estate Agent (REA)can be considered your best ally against this assault on your emotional well being. The prospect of investing in commercial real estate may prove to be daunting for novice real estate entrepreneurs…..A Realtor basically frees you from the burden and stress associated with selling your property in many ways including marketing your property through a variety of success oriented mediums(newspaper,or banner across the road) handling your associated advertising costs, handling your negotiations,providing you forms and agreements, access and assistance to real estate financing resources etc….

Article by Elli Davis

The trend

How the next price move can be predicted? How to determine when is the right time for an investment? The majority of buyers will keep their eyes on the previous direction of prices. In other words, their expectations are mainly affected by the previous movement. Should prices go up, they will expect such growth to go on, and visa versa. Unfortunately, this method does not relate to important factors that influence the price, yet it is practised. Relying on this method alone can result in very painful experiences, just as we saw not too long ago.

Primary economic factors

So what are these significant economic factors that in the end form the price?- Economic growth- Nominal interest rates (before inflation) and structure of mortgage products- InflationLet’s look at these factors in more detail.

Economic growth

The stronger the state of economics, the better it is for business not to mention real estate. One of the reasons is that when economics is stronger it raises property prices because the buyer gets reassured that there will be a rise in the demand for housing, and a rise in the value of his property which will enable him to sell it again for a profit. When considering the BIS Quartely Review, it indicates that a 1% rise of GNP is linked with 1% to 4% rise of property price after 3 years.

The nominal interest rates and structure of mortgage products

For the property prices to go up you firstly need plenty of eager buyers. One implication of the fact that house loans have to be made when anyone wants to buy property, is that there will be many buyers who will go rather for houses with interesting mortgage products that includes low nominal rates. In accordance with the same source, a decrease of just 1% in the nominal interest rate is equal to 1/2% to 1% of property prices increase after 1 year. Buyers are also extremely sensitive to any sort of drop in the nominal interest rate and as a result property prices settle. Be careful though since no rule should be strictly interpreted. To give an example, a credit crunch is the situation that arises when official interest rates start to get less important and the loan market falls under the influence of the different factors. Likewise is the real estate market.

Inflation

While the level of interest rates has such a strong impact on the property prices, the changes in the inflation rate have a strong influence in changes of interest rates. High inflation has a different impact in different countries. Countries that consider investing into property as balancing the inflation, will have their property prices increased by higher inflation (for example Germany). Such countries may be characterized with fixed interest rate loans with no equity withdrawal. Some countries see the negative effects of high inflation on property prices such as in UK where the interest rates float and in the USA that has interest rates with equity withdrawal.

Conclusion

Each rule has an exception and numbers and values mentioned don’t have to suit your neighborhood. As a Toronto realtor I have experienced bunch of unbelievable market situations. It’s realtor’s job to know the exceptions and differences. Although you should understand, there is a general system how the real estate prices are created on the market. Do not be trapped by shallow attitude. Consider all that is involved in the market.

The real estate market is showing peculiar trends these days. The sales for home properties have nearly halved as compared to the previous years’ figures. One of the main reasons is that since the Information Technology (IT) boom is over, NRIs are hardly pumping money into properties. Inspite of this, the developers have refrained from slashing prices to keep their heads above the water.

Developers say that inspite of the drop in sales; there is a little chance of the real estate prices going down. This being because the prices of labour, iron, steel, sand and cost of construction going up. The land owners are not reducing prices either and many properties are under litigations or occupied by slumlords: So it becomes infeasible to slash rates by anything more than 5-10%. Also, the cost of apartmentss are set to rise some more after the Bombay high court recently lifted the stay on recovery of service tax from customers. The service tax is 2.5% of the total cost of the property. This means that if the flat cost is Rs20 lakh, the customer has to pay Rs. 50000 as service tax.

An example of these high prices can be seen in Mumbai’s Lower Parel area, which is now rapidly becoming a hot spot for the rich. Homes in the textile mill area, which used to be sold anywhere between rupees 3,000 ($ 66) per square foot to Rs. 6,000 ($ 132) per square foot in the early part of this decade, are now priced between 15,000 rupees ($ 330) and 30,000 rupees ($ 660) per square foot as luxury homes. Also prices in the most sought after locality Bandra is not going to come down either as non availablity of open land is the major issue. Areas like Bandstand, Mount Mary, Carter Road, Pali Hill are the most expensive.

On the other hand, the demand is decreasing because property prices have gone beyond the reach of the common man and delevopers are not building any affordable homes. There is a huge demand for residential properties but people are waiting for the prices to come down. So, with the sales dropping by over 50% as compared to last year’s figures, the pressure is mounting on the developers to slash prices. Hence, discounts on property of anything between 10-15% could be expected soon.

TOWNSHIP in Pune, Maharashtra

100 Acres Township – delivering the best to Maharashtra

Real Estate Sector in India

Indian real estate in the past few years has significantly transformed itself and has been through a roller coaster situation. By 2020 India will be having the highest return in the real estate sector.

Real Estate projects, whether residential or commercial, will have 100 per cent infrastructure guarantees. This means that all projects would have quality access roads, water, electricity, connectivity, safety and security. Our cities are bursting at the seams and given our pace of development, the shortcomings of meeting infrastructure needs are likely to widen

Market capitalization is still at nascent stage. We expect the market capitalization of infrastructure companies to increase by over USD 100bn in the next 3 to 5 years

According to industry players, housing accounts for 4.5% of gross domestic product (GDP) with urban housing accounting for 3.13%

India’s property sector is expected to improve from late 2009 and may attract up to US$ 12.11 billion in real estate investment over a five-year period

Almost 80% of real estate developed in India is residential space, the rest comprising of offices, shopping malls, hotels and hospitals

According to the Tenth Five-Year-Plan, there is a shortage of 22.4 million dwelling units. Thus, over the next 10 to 15 years, 80 to 90 million housing dwelling units will have to be constructed with a majority of them catering to middle- and lower-income groups.

Profitability in the Indian Market

As per McKinsey average profit from construction in India is 18%, which is double the profitability for a construction project undertaken in the US

Indian market Player moves

DLF subsidiary firm, DLF Assets is trying to raise over US$ 492.67 million in a venture with Texas Pacific Group and Mumbai-based investment firm JM Financial

Hyderabad-based BSCPL infrastructure has announced the launch of its first residential project off Old Mahabalipuram Road (OMR). The company claimed that it has completed the structure for 600,000 sq ft. The US$ 394.27 million project is to come up on 92 acres and touted as one of the largest integrated residential township projects in the city

Maharashtra Real Estate Industry

Maharashtra (Labeled India’s “Power House”) is one of India’s most industrialized states. Its immense contribution to the Indian economy amounts to a fourth of the gross value of Indian industry, and 78.8% of the state’s GDP flows from the secondary and tertiary sector

The state enjoys a scenic countryside with diverse geographical features – the unspoilt beaches, the rugged Western Ghats and the Mumbai, the Ajanta and Ellora Caves, Lonavala and Khandala, Raigad, Matheran, Alibag, Ganapatiphule, Murud-Janjira, Panchgani, and Mahabaleshwar are popular weekend getaways accessible by an excellent road network

WHY Invest in PUNE region of Maharashtra?

Maharashtra is home to the most expensive residential and commercial properties in the country, concentrated in Mumbai, Navi Mumbai and Pune. All three cities have a mature property market, with high end residential apartments, commercial projects, luxury hotels and malls

Residential and commercial property rates in Navi Mumbai have soared ever since the Special Economic Zone and the Greenfield airport project in Panvel were announced. It is no longer a city living in Mumbai’s shadow, with its fair share of premium residential properties, glitzy malls and multiplexes, hotels and large commercial spaces

In Pune, property prices have appreciated between 10 to as much as 70% in Hinjewadi, Baner, Kharadi, Kalyani Nagar, Wakad, Pimple-Nilakh and Pimpri-Chinchwad.

Pune will soon acquire the status of being a metropolitan city in India. According to an Assocham report on ‘The 7themerging metro city in India’ it owes its up gradation to a fast development pace in the area of infrastructural facilities, friendly business environment, education avenues and employment opportunities

Contributing factors include the high real estate prices and a large population base as compared to other upcoming cities

Pune occupied first position overall though it needs to improve on transportation, social infrastructure and financial services

Real Estate Boom in Pune

Talegaon on the Mumbai- Pune expressway is also seeing fast paced development, and property developers are taking up large projects in view of Indian corporates and multinationals planning to set up manufacturing facilities here. Rates of residential property are currently as low as Rs.900 to Rs.1,500 per sq. metre and Rs. 20 to Rs. 70 lakh per acre for industrial plots

The Government notified 7 Special Economic Zones for Maharashtra in January 2007. These are:

the Serum Bio-Pharma Park in Pune,

the EON Kharadi Infrastructure Private limited in Haveli, Pune,

MIDC in Latur, Aurangabad and Nanded,

Wipro in Hindawadi, Pune, and

Royal Palms in Aarey Colony, Mumbai

Maharashtra will remain the investor’s safest bet, as the industrial climate rests on India’s most qualified, professional and committed workforce

Developments in Pune

‘Lavasa lake city’, being developed by Hindustan Construction Company (HCC) near Pune will be India’s first planned hill station. The 12,500-acre project will be ready as a complete town with a population of 1.5 lakh. The city is coming up on eight huge hillocks that surround the elongated Varasgaon dam backwaters to ensure excellent natural habitat for the city

US based INC Developers has entered the heavily Indian real estate market with a super luxurious apartment’s scheme worth Rs 100 crore, which it would jointly develop in Pune with Amar builders over next 24 months. The super luxurious apartments with 6,500 square foot size each, would be priced between Rs 5 crore and Rs 6 crore

The Township in Pune

Plan to develop a township in the area of 40 Hectares (400,000 sq.m.) land located on the outskirts of Pune

The potential of new township in Pune is a very attractive opportunity

As there is huge small and medium level earning society looking to be a part township  structure in the Pune outskirts

The rate for land applicable will be about Rs. 150,00,00 per acre

Township Structure

For any township there is development of the infrastructure, in this township the estimated cost expected is Rs. 15,00,000

The township will be structured in various categories by which it will serve the various needs of  the community

The township will have a:

Community Centre

Mosque

Recreation Centre

Club Houses

Garden and children’s park

Other common facilities

Land Allocation Structure in the Township

20% of the land will be allocated for common facilities which is about 80,000 sq.m

5% for developing High End Villa – 20,000 sq.m

5% for condominium high end flats – containing 4/6 flats – 20,000 sq.m

20% for setting up commercial spaces – 80,000 sq.m

10% for high end apartments with – 40,000 sq.m

2 BHK in 2,000 sq.ft. each

3 BHK in 3,500 sq.ft. each

4 BHK in 5,500 sq.ft. each

40% for low end apartments with 1 BHK in 500 sq.ft. built in high rise building structure – 160,000 sq.m

Township Structure – Villa

High End Villa and Plots to be developed in space of 20,000 sq.m ~ 215,278 sq.ft

Each villa can be developed in size of 30,000 to 40,000 sq.ft

These villa will be designed with various customized theme as per request of the client

These villa will be equipped with latest tech savvy gadgets, in built swimming pool, sufficient parking space

Exotic view with environment friendly concept

The villa’s will be provided on 5 year payment scheme

The space can be sold at Rs.10,000 per sq.ft.

Township structure – Condominium High

Condominium high end flats

Condominiums are more commonly known as “flats” in India. This type of housing is very common in larger cities but are not commonly found in rural areas

A condominium, or condo, is the form of housing tenure and other real property where a specified part of a piece of real estate (usually of an apartment house) is individually owned while use of and access to common facilities in the piece such as hallways, heating system, elevators, exterior areas is executed under legal rights associated with the individual ownership and controlled by the association of owners that jointly represent ownership of the whole piece

Township Structure – Condominium High

The condominium can be developed with various measures

We can take about 4 to 6 Flats in these condominium high end structure

These are to be priced in different pattern as these apartment serve the needs to top executives in the region with all equipped and furnished apartments structure

These are some high class society people looking to have there surrounding with people of there same network they belong, it is specific segment of the society

Each owner will have his privacy and space to utilize as their needs

Township Structure – Commercial Space

Commercial space is any area where you can do your retail business

As the township is developed it is very essential to have commercial setup in the township as it serves the basic needs of the society such as:

Super markets

Grocery shops

Shopping centres

Book stores

Malls

Township Structure – Apartments High End

The township will contain high end apartments which will have flats with:

2 BHK

3 BHK and

4 BHK

These apartments will be constructed in the land space of 80,000 sq.m.

It will cater the needs of all the segments who have bigger families and more space requirement

The pricing of these apartment can be from the range of Rs. 3,500 per sq. ft for 2 BHK to Rs. 5,500 for a 4 BHK apartment

The rate further rises as customer approaches flat on upper floors

Township Structure – Apartments Low End

In order to serve the mass population of the society we need have a special segment and space for medium and low income group

The space that will cater these needs is 1 BHK apartment/ flats spread in the area of 160,000 sq.m. ~ 1,722,225 sq.ft.

The 1 BHK flats will be developed in space of 500 sq.ft.

These will be high rise buildings as it will serve large number of customers

The pricing for this flat can be as Rs. 3,000 to Rs. 3,500 per sq. ft.

The rise of Vancouver real estate prices has sweetened the taste of many people, while others are scraping the pot for left over crumbs. The promises of the New Year for better housing and economic stability is off to a rocky start but the stability can be seen around Canada and the Lower Mainland region. Local residents in the lower tax bracket are not the only ones to suffer from the steep prices, many refuges that arrive in Canada are suffering from the lack of work and affordable housing.
The increasingly rise of the poor in Vancouver are scattered around like Monopoly cards. The lack of visibility to the poorer residents has been influenced by the fluctuation of monetary wealth in the city in the decades between 1970 and up. The material value of homes is rising around them, while they are shafted with expensive rents or mortgages from the transitional investments. This does not include the cost of living expenses that the residents are faced with on a normal day.

The increasing spread of poverty has hit the cities of Coquitlam, Burnaby, Surrey, Northern Richmond and Southeastern Vancouver. Yet the Canadian housing markets in those cities are stabilizing for the middle and upper class, while forcing the other residents to find cheaper housing or shacking up to afford the rising costs. The average income over the last three decades was exclusive to those cities but now with the increased cost of living and economic pressure, prices have boiled over the pot.

The local and federal government is slow to catch up with the increasing poverty levels. The Lower Mainland is cramped by the reserves, mountains and the border. The increase of poverty will affect the Vancouver housing market but with the help of local and federal governments, the real estate markets can be stabilized without much damage to the values of homes. However, the social classes are presorting themselves in respective neighborhoods.
This will help regulate property values with respect to the particular tax bracket that each family is classified under.

What does this mean for the middle class and upper class Canadian residents? The results from the rising cost of Vancouver homes and surrounding cities are only affected if there is an overwhelming shift in the opposite direction, such as a natural disaster. The only way that the train will stop is if the poor gather enough real estate around the richer neighborhoods and cause a real estate crash by underselling the homes. This is not a realistic factor for the Canadian housing market but the scenario can stem from other resources.

Pricing in the Calgary Real Estate Market.

In the Calgary Real Estate Market pricing is one of the most importart factors to consider when selling your home. What price is the right price for your home and should you price it competatively or should you price it at a price higher than its value to leave room for negotiating? In the Calgary Real Estate market as in any real estate market there are a few things you need to consider when pricing your home.

The first is what is the current market value of your home. This is different in every market however you need to know what your market value is so that you can consider if the list price that you choose is higher or lower than its current market value. This will certainly be a factor in how quickly it sells as well if it even sells at all.

There are several different prices for your home. For example there is the price the bank says your home is worth or an appraised value. There is the price that a potential buyer says your house is worth and finally there is the price that you believe your house is worth. In each case the price is different.

How do you determine current market value in your current market. In the Calgary Real Estate market as well as most real estate markets your Realtor will help you determine current market value based on several factors. One of which is competition or active listings in your neighborhood. The second is the comparable sales of properties in your neighborhood. What other buyers have paid for similar properties is one of the most compelling factors in determining Market Value. The third is the condition of the home and what features in the home are old, in need of repair or in need of upgrading.

The second factor in determining a selling or listing price for your home is how quickly you want to sell your home. If you desire to sell your home quickly you will need to price your home very competatively with market value as well as competatively to your competition. When pricing your home if you provide the most value for the money. More features or better upgrades than what your competition is offering for the same price or less you will most likely be the next property to sell in your neighborhood. Features and upgrades are considered by buyers when they are looking for a new home. When given the opportunity especially in the Calgary Real Estate Market buyers want to get the most options and features for the best price.

Pricing is not the only factor to consider when selling your home but it certainly is one of the most important. When selling your home in the Calgary Real Estate market or any market for that matter be sure to consult your local Realtor. They are there to help you!

One of the most common questions I get from outsiders who come to Vancouver for the first time is not ‘What are real estate prices like in Vancouver?’ but rather ‘We hear real estate prices are really high in Vancouver, why is that?’ People know that it’s expensive to buy property here. It has become a truly international city known for it’s beautiful mountains, water, clean air and expensive real estate. During the winter Olympics earlier this year I heard Vancouver referred to as ‘Manhattan with mountains’ which seems to be accurate on a lot of fronts.

A recent article in The Vancouver Sun business section takes a look at the factors at work determining property prices in this city. While there is a lot of talk about wealthy immigrants pouring money into the real estate market and illegal money being laundered via real estate deposits, the real underlying factor is simple economics; supply and demand. Unlike Calgary, Edmonton, Winnipeg or Toronto, Vancouver simply has no more developable land. Mountains to the north, a border to the south, ocean to the west. The only developable land lies in a narrow band of Fraser river delta to the east. The ALR or Agricultural Land Reserve excludes a good chunk of this land from development, placing further restrictions on options for new housing.

According to the article, a large percentage of the wealthy immigrants that come to Canada permanently choose Vancouver over other possible destinations. This is quite understandable. This strong in-migration fuels a consistent demand for housing regardless of what the economy is doing. During the recession of 2008/09, Vancouver’s real estate prices dropped, but not a lot compared to other major Canadian centers.

Severely limited supply and constant demand keep housing prices high in Vancouver. All the other factors that people talk about over the water cooler are valid factors but none more than basic supply and demand. People have to either commute from the suburbs or settle for less house in exchange for being near the city. A far greater percentage of Vancouverites raise children in condo’s as opposed to residents of other cities across the country.

So, if you are waiting for a massive drop in Vancouver real estate prices, you might be waiting a while. Look for deals as they are out there; find motivated sellers who want to get a deal done and avoid ‘market testers’ who are unwilling to negotiate.

There are many factors that control the real estate prices in the market. It doesn’t matter whether you are a buyer or a lender, but these market factors always play an instrumental role. Let me discuss them with you.

Interest Rates – An inverse relation exists between the interest rates and the property prices. If the interest rates are high, then the prices of the real estate property are lower and vice versa. What’s more, at low interest rates, more people can buy their first homes or second homes or investment property and as the result housing demand is created in the real estate market.

Rent Controls – State restrictions on the rent controls will automatically result in fewer buyers. The rental legislations are subject to change and modification depending on the State. You can search for the latest State rental legislations by typing the keyword, “landlord tenant law” in search engines. 

Taxes – The places where high municipal property taxes are prevalent, purchasers are delimited to purchase the real estate property in that region. If the taxes are increased, it is eminent that there would be a drop in real estate prices. There are still many State taxes like the property purchase tax or the speculative tax can also make the confidence of the buyers lose. For the federal tax legislations like the down turn in capital gain tax can also limit the investors from investing in the real estate property market of the area. Therefore, these points play a crucial role in assessing the real estate activity and the prices in general.

Economy – A positive growing economy with high buoyancy makes the investors’ and the buyers’ confidence high. There would be a high market activity marked by increased selling and purchasing of homes, and this would result in increased market prices. And if the market behaviour shows sluggish movement, converse will happen. In such a scenario, both the buyer as well as investor will lose confidence and low market activity marked by poor selling and purchasing of homes, and this would automatically result in depreciation of the market prices of the homes.

Location – A real estate property placed in good and commercially valued location will have high property value as compared to the property, which has low commercial value. Naturally, high commercially significant properties attract more investors’ and buyers’ than any other property.

Land Availability – Factors such as land shortage; zoning restrictions in the municipalities; State land-use laws; and other type of ongoing laws that restrict the land use, would make the housing prices increase.

Public Image – There is certain type of public notion build to an area or the geographical region or the residential property. This can affect the demand as well as the prices of the property to a large extent. There are certain properties located in the States that are much in public demand. Such properties always have an appreciated value.

Immigration/Emigration – A scenic topography with plenty of retiring opportunities, high scale business options; good employment opportunities; tourism etc. aids in attracting people from other countries as well as people from country within. Therefore, immigration to an area increases the property value and conversely emigration results in depreciated property value.

Vacancy Conditions – If the region shows high vacancy levels, the real estate sales can dip and this also affects the confidence of an investor. Conversely, low vacancy levels can increase the activity of first homebuyers and those of investors as well.

Seasonal Factors – There are certain months in a year where the real estate sales move down. This also results in lowest real estate prices. This is also true for the recreational properties and other types of properties.

Political Factors – The State and the municipal government rulings can affect the property prices. This in turn can also affect the demand and the supply of the real estate property.

Pricing in the Calgary Real Estate Market.

In the Calgary Real Estate Market pricing is one of the most importart factors to consider when selling your home. What price is the right price for your home and should you price it competatively or should you price it at a price higher than its value to leave room for negotiating? In the Calgary Real Estate market as in any real estate market there are a few things you need to consider when pricing your home.

The first is what is the current market value of your home. This is different in every market however you need to know what your market value is so that you can consider if the list price that you choose is higher or lower than its current market value. This will certainly be a factor in how quickly it sells as well if it even sells at all.

There are several different prices for your home. For example there is the price the bank says your home is worth or an appraised value. There is the price that a potential buyer says your house is worth and finally there is the price that you believe your house is worth. In each case the price is different.

How do you determine current market value in your current market. In the Calgary Real Estate market as well as most real estate markets your Realtor will help you determine current market value based on several factors. One of which is competition or active listings in your neighborhood. The second is the comparable sales of properties in your neighborhood. What other buyers have paid for similar properties is one of the most compelling factors in determining Market Value. The third is the condition of the home and what features in the home are old, in need of repair or in need of upgrading.

The second factor in determining a selling or listing price for your home is how quickly you want to sell your home. If you desire to sell your home quickly you will need to price your home very competatively with market value as well as competatively to your competition. When pricing your home if you provide the most value for the money. More features or better upgrades than what your competition is offering for the same price or less you will most likely be the next property to sell in your neighborhood. Features and upgrades are considered by buyers when they are looking for a new home. When given the opportunity especially in the Calgary Real Estate Market buyers want to get the most options and features for the best price.

Pricing is not the only factor to consider when selling your home but it certainly is one of the most important. When selling your home in the Calgary Real Estate market or any market for that matter be sure to consult your local Realtor. They are there to help you!

The outlook for the US economy and housing prices in particular does not look, hence the emergency 75bps rate cut. Despite this action, real estate prices still look set to decline in the near future – before they recover however there is some good news. If you want to protect yourself from declining real estate prices there are some ways of doing so and this is the subject of this article.

At present we are seeing the biggest investment in housing decline in 50 years and an increase in foreclosures and the outlook for real estate values is uncertain we are likely to see further declines will occur.

First let’s look at the background to the fall in real estate prices in the USA and why they will continue to fall further.

The Worst Decline for 50 Years

US pending home sales fell by 2.6% to 87.6, down from a revised 89.9 reading for October. Boston Fed President Rosengren has stated that the current decline in investment decline is the longest in 50-years. He highlighted that previous housing declines have led to economic downturns, and speculated that housing prices would fall more rapidly this year as the economy struggles. Rosengren also said that the continued housing investment decline has heightened risk of “significant” downturn in the economy as a whole.

Foreclosures Rise

The evidence of the downturn can be seen in the increasing number of foreclosures – almost 500,000 mortgages nationwide were foreclosed in the third quarter of 2007, which was double the number in the same period for the previous year. Some real estate experts estimate that as many as 2 million homes could be foreclosed in 2007 and 2008.

The economy is experiencing difficulties in terms of growth and this is being reflected in falling real estate values as the credit crunch bites.

How to Protect Your Properties Value

In these uncertain times there are solutions available to protect the value of your property by Locking in its value at current market prices – so that you are guaranteed at least the value you locked your property value in at. Let’s take a look at how these schemes work and the advantages they offer home owners.

Guaranteeing the Value of Your Home

Some companies are responding to the concerns surrounding the property market by offering an innovative option contract which provides you with a specific value for your property ( should you decide to sell) which can be exercised at your discretion after a period of two years and gives you protection for up to 10 years.

The advantage of this is – you will be able to sell your property at an agreed price, whether or not, there is a buyer for your property, as the company granting the option will buy it from you at the locked in value.

This of course gives property owners peace of mind – for a small affordable fee they have guaranteed the minimum price they will receive for their property, regardless of how far property prices decline.

While the real estate market looks weak at the moment and further declines are expected, we don’t know the future and prices will rise at some stage. An additional advantage the option provides is if the market should rise, then all the gains are yours.

An Affordable Solution for ALL Homeowners

In conclusion this service offers you a cost effective solution to volatile and falling real estate values:

If prices FALL, for a small fee, you are protected should you have to sell your property. On the other hand, if prices rise, all the gains are yours. This really is an option that all property owners should consider. The option is highly affordable and you can protect your property’s value for a period up to 10 years.

Today we protect a lot of our assets but not the value of our homes yet, it’s the biggest asset most people have. The companies offering these schemes allow people at affordable cost, to protect their home and their hard earned savings that have gone into it.

These schemes are affordable and can give homeowners peace of mind, if the property market turns down and also allows them to keep any increase in the value of their home should the market rise.

For a low affordable premium any home owner can now protect themselves and gain peace of mind.