Real Estate Downturn not just in the US
I just returned from a vacation to Ireland, where last week it was officially declared that Ireland (formerly the fastest growing economy in Europe) is now in a recession.
The real estate market in Ireland, which - fueled by speculation and easy credit - experienced a similar rise to that of the RE market here in the US is also in a sharp decline. Median home values in Dublin are at 353,000 Euros, down 45,000 Euros from the year before. Financing is extremely difficult to come by, with interestingly enough first time buyers having the hardest time getting financing.
Similar reports from all over the EU, Spain especially also very hard hit.
On a global scale it seems the only bright areas are Dubai and Abu Dhabi, both in the United Arab Emirates where prices are still rising rapidly, amid warnings of a bubble.
I think it is fair to say that the current crisis is far from a local one but rather and clearly one of global proportions.
When it comes to real estate investments however, the US may be in a position to reap the benefits of a low US Dollar which makes investments in the US very desirable and with an overall consensus that our real estate market may not be at the very bottom, but certainly 'near the bottom' investing in US real estate is slowly becoming a more and more exciting preposition.
Particularly with respect to bank owned properties and short sales we find both great opportunity for foreign investors as well as the need for an experienced partner to assist foreign investors in their purchase.
Our extensive experience with foreign investors shows that they are not in the least interested in overpaying for traditional MLS listings. Rather they are very sophisticated and knowledgeable about the market and specifically looking for extraordinary 'deals'.
Point in case, last week we closed on a transaction where an investor from Norway found a listing on the Internet for a short sale, and purchased the property sight unseen (other than photos and virtual tour), paying in cash.
I would love to hear your thoughts, and or similar experiences if you are a real estate professional. Clearly the Sarasota Real Estate market offers many great opportunities to investors and I think personally that we will see many more of these types of transactions in the months and year to come.
To Your Success!
Thomas Heimann, President & CEO
Bravo Real Estate Solutions
Bravo Brokers/Bravo Title/Bravo Lending
www.BravoBrokers.com
The real estate market in Ireland, which - fueled by speculation and easy credit - experienced a similar rise to that of the RE market here in the US is also in a sharp decline. Median home values in Dublin are at 353,000 Euros, down 45,000 Euros from the year before. Financing is extremely difficult to come by, with interestingly enough first time buyers having the hardest time getting financing.
Similar reports from all over the EU, Spain especially also very hard hit.
On a global scale it seems the only bright areas are Dubai and Abu Dhabi, both in the United Arab Emirates where prices are still rising rapidly, amid warnings of a bubble.
I think it is fair to say that the current crisis is far from a local one but rather and clearly one of global proportions.
When it comes to real estate investments however, the US may be in a position to reap the benefits of a low US Dollar which makes investments in the US very desirable and with an overall consensus that our real estate market may not be at the very bottom, but certainly 'near the bottom' investing in US real estate is slowly becoming a more and more exciting preposition.
Particularly with respect to bank owned properties and short sales we find both great opportunity for foreign investors as well as the need for an experienced partner to assist foreign investors in their purchase.
Our extensive experience with foreign investors shows that they are not in the least interested in overpaying for traditional MLS listings. Rather they are very sophisticated and knowledgeable about the market and specifically looking for extraordinary 'deals'.
Point in case, last week we closed on a transaction where an investor from Norway found a listing on the Internet for a short sale, and purchased the property sight unseen (other than photos and virtual tour), paying in cash.
I would love to hear your thoughts, and or similar experiences if you are a real estate professional. Clearly the Sarasota Real Estate market offers many great opportunities to investors and I think personally that we will see many more of these types of transactions in the months and year to come.
To Your Success!
Thomas Heimann, President & CEO
Bravo Real Estate Solutions
Bravo Brokers/Bravo Title/Bravo Lending
www.BravoBrokers.com
posted by Thomas Heimann at 10:58 AM
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