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Posts Tagged ‘Rent’

London and Monaco are Europe’s Most Expensive Cities for Residential Property Buyers

January 23rd, 2010 CheapFlatsLondon No comments

London and Monaco are Europe’s most expensive cities for residential property buyers. Prices in the Baltics have risen to the same level as capitals such as Copenhagen, Berlin, Munich, Stockholm, Vienna, and Frankfurt.

High rewards await property investors in some parts of Europe, according to the Global Property Guide, a residential real estate research organization (www.globalpropertyguide.com). Rental yields for apartments in several Eastern European capitals are above 10%.

Rental apartments in Moldova’s capital city Chisinau can be expected to yield annual rental returns of around 14.13%; in Poland’s capital Warsaw, 13.28%; in Bulgaria’s capital Sofia, 10.56%; and in Slovakia’s capital Bratislava, 10.06%. The higher risks of Eastern Europe may be a factor in these returns (corruption, political instability, etc).

But risks are not the only factor. The Global Property Guide believes that the relatively recent arrival of the market economy, high interest rates, and relatively undeveloped mortgage markets, largely explain the low prices in the east. To illustrate, it would surely be hard to label the historic city of Bratislava, Slovakia, as a high-risk location, yet the rental income returns are excellent.

Western Europe generally suffers from another, different disadvantage: High taxation. There are high rental income returns to be earned in Amsterdam and Paris (8.25% in both), in Munich (7.80%) and Brussels (7.53%). But all four cities are high tax environments (but so too is Poland).

Property in Prime Central London returns surprisingly high rental yields, at 7.13%. Note that this “Prime” category encompasses relatively a narrow group of super-luxury apartments in absolutely prime areas (Belgravia, Chelsea, and Knightsbridge). The high returns in these select super-central locations contrast with the significantly lower rental yields (5.79%) available in Central London’s other luxury areas (Kensington, Bayswater, Notting Hill Gate, St Johns Wood, Highgate, Islington, Highbury, and Primrose Hill). Europe’s most expensive cities

The tiny principality of Monaco is the most expensive location to buy an apartment in Europe at around €24,900 per square metre (sq. m.).

Closely on its tail is Prime Central London, where 120 sq. m. super-luxury apartments can cost £1,170,000 (€1,742,656) or £9,750 (€14,522) per sq. m. Apartments of 120 sq. m. in other luxury areas of Central London are likely to cost £580,000 or £4,833 per sq. m. (€863,880 or €7,199). The large difference is explained by London’s highly segmented top-end market, with super-luxury apartments in absolutely prime areas commanding considerable premiums.

Paris and Amsterdam follow London. A 120 sq. m. apartment in either of these cities has an average purchase price of €800,000 (€6,667 per sq. m.).

Moscow is Europe’s sixth most expensive capital for buyers of residential property. And though apartments in Moscow can be rather rewarding for buyers in terms of rental income returns, investors should be aware of the high risks (purchases are cash-based, and the authorities can suddenly turn hostile).

Dublin makes an appearance among Europe’s most expensive cities in 10th place, with a high end 120 sq. m. apartment on average costing around €600,000.

The Baltics, till recently Europe’s hottest residential investment destination, are now expensive. A high-end apartment in Central Vilnius, Lithuania will cost on average around €3,792 per sq. m (€455,000 for 120 sq. m.).

Latvia follows closely with high-end apartments in Central Riga costing an average of €3,020 pr sq. m. Rental yields in the Baltics have also dropped to very low levels.

There are still some very inexpensive capitals in Europe. Berlin, in particular (€3,167 per sq. m.), is now experiencing inflows of foreign money in response to its relatively low prices.

Even less expensive are:

Slovakia’s Bratislava (€1,292 per sq. m.)

Poland’s Warsaw (€1,175 per sq. m.)

Macedonia’s Skopje (€1,125 per sq. m.)

Moldova’s Chisinau (€917 per sq. m.) Rental returns cannot fall forever

As 2007 dawns, rental returns are lower in most locations than they have been for 20 or more years.

Nowhere in Europe are rents keeping pace with the continued strong rise in property prices. Residential real estate prices are at historical peaks in almost all countries in Europe, except Germany and Switzerland.

This is cause for concern. At the Global Property Guide, we informally consider a danger signal to be rental returns of around 4% or below.

Several European capitals offer rental income yields around or below this 4% level. In example is Madrid, where rental returns are now at only 3.15%. Rental yields in Monaco are the lowest in Europe at around 2.43%. See tables at:http://globalpropertyguide.com//articleread.php?article_id=82&cid=

Investing Into Real Estate Vs. Bank Deposits

November 25th, 2009 CheapFlatsLondon No comments

For the first time, in over eight years, making a bank deposit is starting to become more profitable than investing money into Moscow real estate

. In the begging of 2007 investments made into Moscow’s real estate are predicted to give on average no more than 5% yearly gains. According to the real estate market investigation center “Indicators Of Real Estate Market” (IRN.ru), for the last half a year an average price of a square meter in Moscow only increased by $89 to $4120 for square meter of an apartment, in the remaining half a year this price will decrease at the rate of 0.1% a month. Specialists of prestigious real estate company Penny lane Realty also agree, that average gains from investments made into Moscow’s real estate market are leveling off. Because of it, we see increasing number of properties being offered for sale. Property owners are trying to recover the money they invested into their real state. According to market analysts, in present time we are observing reduction of investments made into real estate from 20% to 5-7%, but it does not mean, that investing into real estate became less profitable in comparison to making bank deposits. Investments made into real estate remains to be highly profitable business, but only for professionals, who knows all the unique details of real estate market. “Easy” money, made from real estate investments will no longer exist.

for more info please visit my site at www.eng.realtor.ru

Property Classifieds

October 24th, 2009 CheapFlatsLondon No comments

Traditionally, property classifieds have appeared in local newspapers or in flyers that are meant to advertise estate agents. However, this is the old fashioned way to sell property and these days, you´ll find that you have far more success with online property classifieds.

You can even try to sell your property on your own, without the use of an estate agent. Advertising your house or flat online could be all you need to do to secure the sale at a fraction of the cost. This method would be a great idea if you are planning to move later in the year, you can post a classified ad and test the water. After getting a feel for the interest in your property you can make an educated decision on whether to bring in a estate agent or not.

The internet has made the entire world available to everyone. You can now list your property for sale in London and have someone in Columbia buy it! This opens up a world of possibilities for anyone looking to list property classifieds. Online is a better way to go because you expand your audience.

With property, it´s quite likely that you´ll have People interested from other countries. There are always those who dream of living in a foreign country, or perhaps a national who lives abroad and is thinking of coming home again. In either case, the internet allows you to reach these potential buyers through online property classifieds, drastically expanding your market and making it possible for you to get a higher price for your properties.

One of the big advantages of having your property advertised online is that you can often list for free, or a very low fee. Taking out an advertisement in the local paper will cost a pretty penny and if you want to take out a bigger ad with photos, etc. it will cost even more. Running a print property ad can be somewhat cost prohibitive, but going with online property classifieds allows you to have quite a few options, without having to pay a small fortune.

You will be able to list your property classifieds on more than one website, as well, ensuring complete exposure. Most people look online when they are interested in buying property these days, so you can easily make it work for you.

Tips and Tricks for Effective Property Classifieds

When you place a classified advert online, there are many advantages over print ads. For example, you have the search engines on your side. If someone is going to search on Google for property, they will probably have a specific area in mind. Using the words that they would search for in your ad will boost your chances of having people see the ad.

Not all services will allow the search engines to pick up the ad directly, but those that do will bring you some great traffic. Let´s say you have a property for sale in Cardiff, in this case you would want to include “Cardiff property” or something similar in your ad. This will help the search engines find your particular listing when someone searches for Cardiff properties and they will be taken to your property classified.

Using photos is a great way to boost your views. Most people interested in buying property are looking to see what it is like. Whether you have some land or a home for sale, your potential buyers will probably skip your property classifieds unless you include at least one photo. This gives people an idea of what the property looks like and will let them know almost instantly if they are interested in it.

Let people know in your advert if you are open to negotiation. This will open doors for you and make it possible to bring in more possible buyers who might be interested in negotiating. If they aren´t happy with your stated price, they´ll feel more comfortable giving a counteroffer if you mention it in the classified.

Using a good title will also draw people in. Don´t just say “Beautiful Property”. That doesn´t give them any reason to check it out. But using something more informative, like “4 Bdrm, 2 bath home in Cardiff” will catch their attention faster and bring in more viewers. One of whom might be your future buyer.

For anyone interested in selling their property, online property classifieds are an excellent way to go. You expand your market and make it possible to bring in clients from anywhere in the world. This makes it easier to get the price that you want, as well, since you´ll be able to pick and choose from potential buyers.