Rod Thomas blog

The oil rich countries of the world constitute the Middle East. This region is astonishingly demanding more from the real estate market and has no sign of letting things fall off. United Arab Emirates seems to be the hottest selling place among the other countries in this region. Dubai, the business capital of UAE is considered as the world hub for business and trade with people from different countries investing for higher returns here. The real estate industry in the Middle East is hot and steaming with foreign money rushing into regions including Dubai, Oman, Qatar and other regions of gulf.

The reason of booming real estate market in the Middle East is due to the tactical approach of the local governments in transforming the wealth from the oil resources to something useful and prolonged to the economy as such. Tourism is greatly encouraged in the Middle East pulling people from different parts of the world. Even the sheikdoms of the countries are involved in their share of building up the infrastructure of that place apart from expending huge sums in building huge buildings, hotels, luxury apartments as well as vacation communities.

Dubai is peddled as the Manhattan of the Middle East with the tallest building of the world, Burj Khalifa standing tall as its pride. The real estate market in the Middle East has pulled in plenty of foreign investors and thus celebrating the heights of glory. The Grand Hotel La Florida made a declaration that they will be setting up travel destinations focusing on leisure and business needs in and around the places in the Middle East. At the same time the builders of the amazing Palm Jumeira are extending their feet bringing in another amazing eight hundred million dollar project in here. Newer apartments and condos are rising up all across this region and these latest expansions are being sold off immediately after the announcement itself. The main reason behind these hot selling cakes is the distinctive amenities and other facilities offered by the builders.

With recession at its peak in the year 2006, little did it strike the real estate market in the Middle East. The entire region is back to more than normal with stronger and matured outlook towards the developments and other positive aspects widening up in this region. There is absolutely no doubt that investors who are ready to put their money in are sure to gain huge in the following years to come.

The Middle East is known for its oil reserve and the immense wealth they have acquired from it. The real estate market in the Middle East is sure to reach greater heights in the near future rewarding everyone who wisely did the job of investing.

How Far Did It Burst and What Can You Expect?

2008 was a bad year when you are talking about finance in the United States, and four years later things really haven’t started improving as of yet. With a recession that was artificially terminated, economic growth that continues to be artificially stimulated, and mortgage lenders still on the hook for sub prime mortgages that they probably shouldn’t have been handing out, what was a local crisis in the United States is starting to spill over to the rest of the world in a global residential real estate market crisis.

Foreclosure rates are still way up, people who are earning less than they were 5 years ago cannot pay their bills, and the real estate bubble has clearly burst on a global scale. What does this mean for you? Are there things which you can take advantage of in this market? And are there ways you can protect yourself?

What Does the Bubble Bursting Mean For You?

Unless you are in a very high demand real estate area such as the Silicon Valley in California, you can expect your real estate prices to be at least 20% lower than when you initially purchased your home assuming you purchased the property within the last decade. For consumers it is even worse than that – in some markets, a $182,000 home is currently worth $125,000, or a reduction of almost 33%. For many home owners, this means that their home is now “under water,” or they have a mortgage that is worth more than their home.

This means a couple important things in the global residential real estate market: 1) you’re stuck in that home unless you want to take a substantial financial hit; and 2) you won’t be able to refinance your entire mortgage if you need to be able to do so to save money or consolidate debt. This means many home owners are simply trying to ride out the tide and keep fighting until their local area experiences a recovery.

Are There Things of Which You Can Take Advantage Now That the Bubble Has Burst?

If you have the capability to purchase real estate, now is the perfect time to invest. When there is a lot of fear in a market such as there is in the global residential real estate market right now, you have the ability to put your money into something that has a huge potential of growth with very little risk. People are looking to get out of their real estate left and right because they are afraid that they will not be able to get their investment back or they’re just not able to make the payments they need to make on the home and are looking to sell instead of lose the home. With the right resources, this could very well be the time when you could make your fortune!

You can also take advantage of the historically low interest rates that are happening around the world right now. This is part of the artificial inflation of the global residential real estate market and economies in general – with lower interest rates, the theory is that people will be more inclined to spend money and boost the economy through consumerism. With the ability to get a long term interest rate under 4% in many areas, you can buy more property with the same amount of money, and that’s huge for many investors.

What Can I Do to Protect Myself As a Property Owner?

If you are a property owner who has become a victim of the global residential real estate market bursting or you are just waiting for it to hit your country, there are a couple things you can do now to help protect yourself later:

Refinance now before your property loses value. With interest rates around the world historically low, if you have not had your home valuation affected, now is the time to take advantage of a better interest rate. If your credit is less than great you should be able to lose a percentage or two on your mortgage.

Sell now before it’s too late. If you think you might be moving in the near future and your home is still positive to your mortgage instead of being underwater, then consider selling now and going to rental properties until you have the opportunity to buy. You might find valuations lower when you’re ready to buy again, and you could get more house long term than staying and losing money on a short sale.

Add upgrades to your home. When you add upgrades to your home, you add valuation, and that’s what people need in terms of home value to mortgage.

You don’t have to be a victim in the spreading global residential real estate market bubble bursting crisis. With some proactive steps and a few resources, this could be the best time in your life when it comes to financial investments – check out what you can do today in your area!

The US real estate market has been in doldrums for quite a few years now, but few doubts exist at present that the problems it faces have come to an end. There is no doubt that vacancies of residential accommodation are very high while new construction has slowed down tremendously. This might not seem to be very promising, but it has to be considered in light of the fact that residential property prices in the US are expected to bottom out in the year 2012.

There are indications that the economy will finally improve in 2012, albeit moderately. At the same time, unemployment rates will reduce to a manageable 7.5 percent. According to all indications, the US employment outlook has been improving steadily. These factors indicate that all vacant housing units will find buyers, especially since there will be limited supply of housing units. It will be relatively easy for people to buy affordable homes given that prices will drop from their currently depressed levels.

Another factor that will affect the US real estate market is the rapidly worsening economic situation in Europe. The government has also maintained mortgage rates at low levels. This gives investors greater motivation to buy residential property in the United States instead of making a gamble by taking their money to other destinations.

The US Government is putting a radical plan into effect in order to bail out homeowners who have been faced with immense financial pressure because of the current economic scenario. The Government has worked out a deal with major banks (Bank of America, Wells Fargo & Co, JPMorgan Chase & Co, Citigroup and Ally Financial Inc) whereby they will make a $25 billion settlement over mortgage related problems. The bulk of this money is to go towards loan modifications for delinquent borrowers whereas part of it is intended for homeowners who have been diligently making their payments but are unable to refinance because they owe more than their homes are worth. A part of the settlement is also kept aside to pay up to $20,000 each to people who lost their homes to foreclosure. Not because they lost their money playing roulette at the local casino, but because external conditions they could not control forced them out of their houses.  The need of the hour is more regulation on lenders in order to monitor their practices.

Americans have always liked to own their homes, and it seems very likely that will start buying homes again in the year 2012 because conditions seem very favourable since they point to what might be a sustained recovery. Besides, demand for homes has been artificially suppressed over the past few years because of bad economy. By all indications, Americans, whose appetite for risk have been reduced drastically, will bring their hard earned money to the residential real estate market in the coming year. Like poker the real estate market will not die in the USA.

The opening up of people’s purse strings when it comes to residential properties spells good news not just for the US real estate market but also for the economy as a whole because this will stimulate many industries that provide related goods and services. In other words, it seems very likely that the bad times are finally over.