Do you need short-term asset finance?

Ideal for tax bills such as VAT and income tax demands.

From £1k to £1m.

1 month to 12 month terms.

Up to 75% LTV on some asset types.

Can be arranged very quickly – within 24 hours in some cases.

All loans are non-status and can be secured against jewellery, luxury watches, gold, fine art, antiques, yachts, prestige cars etc etc.
Most loans can be redeemed at any time without penalty.

Contact us now !

Info@propertywarehouseonline.com

Tweet This Post

Our funding partner offers a broad product range with the flexibility to find that funding solution residential bridging and development finance.

Bridging Finance:
From £100k to £5m
30 days to 12 month terms.
Up to 75% LTV
From 0.90% per month on a First charge
From 1.2% per month on a Second charge
No exit fees or redemption penalties.
Interest roll-up available

Development Finance:
Up to 65% of GDV
1% Arrangement Fee
1% Exit Fee
From 7.5% per annum for senior debt.

Mezzanine Finance:
Up to 90% of costs
Priced on a case by case basis.

Info@propertywarehouseonline.com

As always, development experience and good financial standing attract the best rates for residential bridging & development finance.

Tweet This Post

Lenders аrе pumping up mortgage charges, such аѕ arrangement fees, tο cover thе hit frοm lower аnԁ less profitable interest rates, nеw research suggests.

Figures compiled bу financial information provider Moneyfacts reveal thаt charges attached tο home loans rose bу аƖmοѕt 69 per cent – οr £609 – іn 2011.
Thіѕ means thе average mortgage fee іѕ £1,498, up frοm £889 a year ago.

Last year, mortgage rates fell wіth thе average five-year fixed loan dropping frοm 5.24 per cent tο 4.57 per cent – аnԁ lenders hаνе hiked mortgage fees tο compensate.

Mortgage arrangement fee costs – sometimes ƖаbеƖƖеԁ bу lenders аѕ a booking fee, completion fee οr administration fee – hаνе shot up іn recent years.

Research bу consumer group Whісh? found thаt thе average cost іn November 2005 fοr a mortgage fee wаѕ јυѕt £411, more thаn £1,000 less thаn thе figure today.

In thе past, lenders wουƖԁ charge a fee tο cover thе costs thеу incurred administering thе mortgage. Bυt today, many lenders rely οn fees tο bring іn extra revenue аnԁ ѕο hаνе increased thе size οf many οf thеіr fees.

Borrowers wіth bіɡ deposits hаνе seen ѕοmе οf thе mοѕt drastic falls іn mortgage rates іn thе last year, bυt hаνе seen ѕοmе οf thе Ɩаrɡеѕt mortgage fee increases.

According tο thе Moneyfacts, whісh compiled thе figures fοr Thе Sunday Times, thе average charge fοr those wіth a 40 per cent deposit hаѕ risen bу 42 per cent, meaning thаt a fee whісh wουƖԁ hаνе bееn £1,098 a year ago wіƖƖ now set уου back £1,562.

Those wіth a 25 per cent deposit hаνе seen fees soar 65 per cent, frοm £969 tο £1,599.
THE COST OF ARRANGEMENT FEES:

Date Average fee
01/08/2011 £1,201
01/09/2011 £1,023
01/10/2011 £1,154
01/11/2011 £1,482
01/12/2011 £1,471
01/01/2012 £1,498
Source: Moneyfacts

Sylvia Waycot οf Moneyfacts, tοƖԁ thе Sunday Times: ‘Increasing fees іѕ a way fοr banks аnԁ building societies tο boost revenues, particularly іf thеу аrе cutting rates οn nеw deals.

‘Researching thе best mortgage ѕhουƖԁ nοt јυѕt include thе headline rate, bυt аƖѕο set-up charges аѕ thеѕе саn significantly increase thе overall cost οf уουr loan.’

Historic interest rate lows hаνе enabled lenders tο offer ѕοmе οf thе best deals еνеr, research hаѕ shown. Fixed mortgage rates, fοr example, wеrе slashed thіѕ summer tο record low levels.

Anԁ according tο Barclays Capital, mortgage payments іn England аnԁ Wales averaged £494 a month οr 15.4 per cent οf home owners’ take-home pay last year, mаkіnɡ deals аt thеіr mοѕt affordable fοr a decade.

Thе best deals аrе historically cheap. Five-year fixes аrе available below 3.5 per cent аnԁ lifetime trackers аt below 3 per cent.

Mortgage rates hаνе bееn driven down bу expectations fοr a base rate rise being pushed back аnԁ swap rates whісh influence fixed rate mortgages falling.

Lenders hаνе аƖѕο bееn kееn tο hit lending targets (аnԁ mаkе ѕοmе money) аnԁ thе Council οf Mortgage Lenders hаѕ reported thаt whіƖе funding remains tight thеrе mау bе more money tο ɡο round thіѕ year thаn expected.

Hοwеνеr, sneaky lenders continue tο increase administration fees, ѕο whеn уου compare deals, іt іѕ іmрοrtаnt tο watch out fοr thеѕе hidden charges behind thе cheap headline rates.

Tweet This Post

According to a recent report from a risk adviser to Banco Santander SA (SAN) and five other lenders, Spanish banks are currently holding 30 billion Euros worth of property that they can’t sell.

“I’m really worried about the small- and medium-sized banks whose business is 100 percent in Spain and based on real- estate growth, Pablo Cantos, managing partner of Madrid-based MaC Group, said in an interview. “I foresee Spain will be left with just four large banks.”

According to the bank of Spain, the beleaguered Spanish banks are also holding about 150 million Euros worth of bad loans, out of a total 300 million. This is after new rules last year forced banks to hold more reserves against any property taken onto its books, with the hope that this would incentivise their selling the properties rather than holding them until the market recovers.

The trouble being that there is no such incentive to buying the stuff. According to Cantos unfinished residential units, and land “in the middle of nowhere” will likely take as long as 40 years to sell.

Land in some parts of Spain is literally worthless, said Fernando Rodriguez de Acuna Martinez, a consultant at Madrid- based adviser R.R. de Acuna & Asociados.

“If there were to be a proper mark to market of real estate assets, every Spanish domestic bank would need additional capital,” said Daragh Quinn, an analyst at Nomura Holdings Inc. in Madrid, in a telephone interview.

However, according to Cantos this is largely down to the “enormous” gap between the prices banks are marketing properties at, and what investors feel they are worth/are willing to pay. This is an especially big problem in preventing the same of big portfolios said Cantos.

“Banks have already provisioned for a 30 percent loss, but if you are selling at 70 percent discount, you have to take another 40 percent loss. Which small and medium size banks can take such a hit?”

It is not only hard to see a path to recovery for the Spanish property market, it is hard to miss the fact that things are getting worse instead of better, and this looks set to continue. We all know that Italy has become the latest EU country to look like needing a bailout, but less common knowledge is the fact that Spain’s borrowing costs recently touched upon the 7% level that has marked the need for bailout money in all that have gone before it.

In terms of government debt, at 71% of GDP Spain has a much smaller problem than Italy with 120% of GDP, but when you bring in government debts, corporate debts, financial institution debts, and household debts it is Spain that looks like the burro about to keel.

When crisis struck Spanish businesses responded by taking on more debt, especially in the property and utility sectors. Household debt rose to 82% of GDP, financial debt rose to 76% of GDP, and as we know government debt rose to 71% of GDP.

Meanwhile the Italian private sector is in good shape with respect to its indebtedness. Italian business debt it at 81% of GDP, and household debt is at just 45% of GDP. So Italy’s total indebtedness at the end of last year was 313%, some 50 percentage points less than Spain’s. The fact that both their financial sectors are in debt to the tune of around the same 76% of GDP likely explains why both are in the same boiling pot where borrowing costs are concerned.

Back to Spain, 22% of the Spanish working population is unemployed, and the newly elected government must find a way to create jobs for them, while bringing down this massive debt burden. A report in the property press this week talked of hopes for a swift stimulus package for the property and tourism industries — fat chance.

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

Spanish Banks Stuck with €30bn in Unsellable Property

Tweet This Post

Unbelievable.That is the only word fit to describe the fact that the world’s tallest, most luxurious, lavish and downright most expensive single-family home has been left lying empty for what is now more than a year since its completion. People are understandably angry at the waste. But that is not the only unbelievable thing about this mammoth building built by Indian billionaire Mukesh Ambani.

The latest reason being given for the family’s failure to move into their home with its cinemas, helipads and crystal chandeliered ballroom is that it doesn’t have enough eastern facing windows. The reports say that the family fears living in the building would plunge them into a curse of bad luck, for not adhering to the principles of Vastu Shastra – a Hindu variant of Feng Shui. That is unbelievable.

No, really, it is. Ambani’s insistence on Feng Shui throughout the architectural consultations is no secret, so surely this would have been picked up then. And that is not the only reason to smell a rat either.

It is funny that we would be hearing this rumour about why the family hasn’t moved in yet, just shortly after reports emerged that the land the building sits on was sold illegally, and is therefore actually still owned by a minority group who had earmarked the land for construction of a school for the underprivileged. Speaking of smelling rats, and the underprivileged, this isn’t the first time anger has been voiced about this development.

The site is surrounded by shanty towns, street beggars, open sewers and ultimately poverty killing people while the lavish building sits empty. Looking at the comments on the latest stories, like those that went before, such a lavish display of wealth in a country that is still receiving billions of dollars in international aid (including £600 million per year from the UK) has been making people angry since construction began. This of course made worse by the waste we now see.   Whatever the reason for the family not moving in yet, let us hope that Ambani sees sense soon, knocks down the building and builds a school for the underprivileged. Heck, let’s hope he throws in a hospital as well.

Photos of the Interior

Photo credits: Christopher Macsurak Kalpita Alejandro Arce  and  Jay Hariani

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

World’s Most Expensive Family House – Antilia (Mumbai) Lays Empty! Now the World’s Biggest Waste

Tweet This Post

The global property markets are imploding, and fast. The strain that first found its footing in the U.S has now truly gone viral. From Dubai to Denmark, developers have been left reeling, while national exchequers struggle to hold ground. So, how did the housing market bring the greater world economy to its knees? What could have possibly happened that real estate the world over saw $5.4 trillion in losses over the course of one single year alone (2008-2009)? We here present a simple, 8-point lowdown on what really got that demolition ball rolling.

1. There’s a reason why it’s called a debt-fueled crisis

When credit flows run deep and wide, even the U.S. subprime are fair game. As interest rates were contrived to be at unreasonably low levels, the most coveted of properties now seemed to be within the average mans checking account. With more buyers thronging the market, prices soared, and real estate seemed like the cheapest way to make a quick buck (or many!). The home flipping soon ensued, and as bidding wars got heated, speculation ran rife, causing the so-called housing bubble to finally take shape.

2. Hysteria takes over

According to Robert Schiller; one of the telltale signs of an emerging bubble is the great enthusiasm with which the public receives news of compounding prices. The same held true here; the markets unfaltering ascent almost blinded people into thinking that a reversal of fortunes was only something that happened in movies. Even smart buyers were lured into the mix believing that soon prices shall become too restrictive for them to realize their dream of homeownership.

3. Bad assets packaged as safe bets

High on financial innovation and confident that non-stop gains in property values would not even deter the unemployed from servicing mortgage payments, banks practically handed out wads of cash to visibly distressed borrowers. With no down payments or spotty credit histories to worry about, buyers rushed to cash in on their ever-growing equities, sometimes taking out two-three loans on the same property.

4. Listings are big money

U.S. realtors make bank every time a home is sold, the higher the price, the larger their profits. So, as prices began to peak, real estate agents saw to negotiate the biggest bids, whereby driving offers even further. Prospective buyers were made to raise their bottom line several times with promises of investments being foolproof and immune to any decline.

5. Buy goes the telly

The real estate sector is a huge buyer of ad-space, and during the boom leading industry professionals such as developers and mortgage companies, regularly funneled in millions in advertising to keep the buying frenzy going.

6. Big profits attract big fraud

As lending practices became more questionable, a number of fraudulent mortgage vendors set up shop, and practically flooded the market with non-existent buyers. Forged signatures, and illegally acquired personal information were used to close deals to rake in additional profits at the expense of unsuspecting homeowners.

7. Prime equity does not mean prime income

Those investors looking to rent out newly bought homes were soon disappointed upon finding that rental incomes fell far short of their monthly mortgage payment. As more and more buyers woke up to this realization, demand cooled off (and then dried out completely) as the bubble was dealt with hefty blows.

8. Foreclosures spell death

With homeowners defaulting at record rates, foreclosed houses flooded the market, deeply upsetting the prevalent pricing structure. Buyers took heed and began to head out in droves. The bubble was now set to rupture.

Photo Credits: zzub nik via Flickr

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

Why Did America’s Property Bubble Burst? Here Are 8 Reasons…

Tweet This Post

David Cameron has finally decided to do something about Britain’s troubled housing market, but it’s not sitting pretty with analysts and investors alike. His radical new strategy (his words, not mine) includes: letting first-time buyers access mortgage funds after only putting up 5% in down payments; further pushes for the Right To Buy scheme targeted at social housing, and injecting a (deceivingly) sizable £400 million to resuscitate the country’s moribund construction sector. Also, in a bid to highlight how incredibly serious Mr. Cameron’s government is about resolving the current housing crisis, he even announced to insure lenders against any defaulting mortgages initiated under the said plan. No explanations, however, as to why none of this gloom was apparent last year while carrying out those brutal spending cuts, of which developmental housing bore the deepest gashes.

In the aftermath of the global financial fallout, U.K. banks have been reluctant to service the housing market, shutting out both owners and developers from obtaining necessary financing. The resulting inactivity is said to be holding the greater economy from recovery, and keeping Brits from realising their dreams of homeownership. The government’s offer to team up with builders and indemnify lenders against any losses is expected to ease up credit flows, coaxing banks to provide mortgages at 95% LTV a proposition they’ve largely shied away from ever since the world economy went bust (presently lenders insist on offering mortgages at a somewhat restrictive LTV ratio of 75%-90%).

The demand for housing in Britain is expected to grow at a rate of 232,000 homes/year, of which only 100,000 are being built at present. The £400 million in planned funding is intended to get developers to start working on new projects, and complete those that remain unfinished. Lack of building has cost the British economy dearly (accounting for nearly 20% of last years economic drag), and the government foresees the creation of many long-lasting employment prospects once construction efforts recommence.

Cameron’s other two propositions related to social housing are extensions of already in place, largely ineffective policies. Those currently residing in subsidised social housing would be given first-preference, and offered the opportunity to buy their present dwellings at 50% off market value. Bought homes, which no longer form a part of public housing, would then be replaced with newly built units to keep the welfare property stock at balance. The fact remains that the public will be made to spend much larger amounts to replace these sold-off units, a theory that seems at odds with the governments current austerity drive. If further cuts are instituted down the line, and construction of new welfare units becomes unsustainable, then what shall become of that segment of the population that desperately depends on social housing for survival?

The plan has largely failed to excite the markets; developers are hopeful, but their dipping share prices say otherwise. Critics want the government to do more to strengthen fundamentals, and create actual demand to help lift the property market out of the red. The Tories, however, have begun to accept one reality, the buy-to-let phenomenon is here to stay, at least for the time being; and if homeownership can’t be guaranteed, affordable renting options should.

Photo Credits: Lars Plougmann via Flickr & No 10 on Flickr

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

Cameron’s New Housing Bid: Lend, Build, and Repeat

Tweet This Post

UAE – Dubai

We already reported on how UAE’s thriving aviation industry is helping the region keep out of trouble, and now apparently it’s even flown in to revive those flat lining property markets. Rental specialists, Campaya, just cited Dubai as this holiday season’s go-to destination of choice, reporting a marked uptick in demand for rentals in the city. Thanks to the ongoing slump, prime realty is going for lowly prices. Other popular hotspots include, Egypt, the Caribbean, and Madeira – so much for a white Christmas.

Ireland

Ireland can’t seem to catch any of that holiday cheer. House prices continued to fall at record rates, and are now 45% of what they were during the boom. Apartments were hit the hardest, while residential properties saw a 13.8% decline in equity. As foreclosures persist, prices are expected to dip even further.

Chile

The Chilean property market, however, is overflowing with joy. Rising incomes have bolstered demand for luxury living, and prospects look upbeat as more people turn to housing for security against an expectedly crisis-ridden 2012.

Brazilians in Florida

Chiles neighbour and long-time ally, Brazil, is using its good fortunes to lift spirits up north. Brazilians are rocking Miami and buying up a storm, paying cash for $200,000 luxury condos, rejoicing on the backs of a strong currency. Florida shines on, but one real (R$) misstep, and the floodgates could reopen.

Canada

In Canada, the mood remained upbeat. Alberta residents in particular took seriously to building, as housing starts in the province rose against national convention. The oil rich region attracted interest from all over as more Canadians moved to Alberta to benefit from its booming natural resource industry. As jobs here open up, migration is expected to rise, and demand for housing swell further.

Meanwhile, the construction frenzy in Montreal is said to die down as developers wake up to market realities. Experts believe new units will remain vacant as mortgage rates rise in 2013 – right around the time these developments go on sale. The worsening global economic crisis is said to somewhat slow down the presently resilient national economy as a whole.

China

The Chinese might be able to offer some respite. Chinas nouveau rich has begun to invest heavily in assets abroad (to the tune of around $1.57m), buying large-ticket items in exchange for investor visas and quality living for their families. Education is a big draw for the Chinese, and most of the investment is concentrated in university and college towns. However, high processing costs, rigorous paperwork, and a strengthening Chinese economy could all bring a gradual decline in Chinese emigration.

London & the EU

Increased foreign interest in London realty got property prices soaring; non-UK parties now majorly own the City as it offers good investment prospects, generating greatest worldwide interest for its office properties. Political stability, and the properties’ safe-haven status have got buyers flooding in; while private banks line up to service low-risk, wealthy foreigners. Holdings from the U.S, Asia, and the Middle East are on the rise, while E.U. members struggle. Also, as Spain and Italy are hit hard, Brits hurry to decide whether to sell or stay put. As the euro wavers, urgency mounts; France sticks out as a star investment.

UK Housing

The Tories came out with a new plan to make buying attractive for locals. Mortgages shall now be obtained by putting up a mere 5% in down payments. Additional funds (£400m) will be targeted to encourage building of affordable housing, creating jobs, and jumpstarting the stalled economy.

Property Investing

What else? Canada outshone competition again, and was named the no.1 most desirable investment destination. Selling points: continued capital gains, pristine vistas, and endless options. Hong Kong and Switzerland rounded off the top 3; meanwhile, Kenya made a surprising entry at number 9. Apparently, wildlife resorts and beachfronts trump regional conflicts and terrorist threats.

The Rich & Famous

The week ended as Kirsty Bertarelli took the honors for Britain’ richest woman. The 40-year old singer-songwriter, and wife of pharma mogul Ernesto Bertarelli, is worth an estimated £8 billion. She’s a philanthropist, ex-beauty queen, and can be seen shuttling between her £8m chalet in Gstaad, a £10m chateau in Lake Geneva, and a modest dwelling in Knightsbridge. Yes, the rich really do have it all.

Photo Credits: Luc V. de Zeeuw via Flickr

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

OPM’s News Round-Up & Linkage – Our Hottest Picks – Dubai for Christmas Anyone? Chilean Luxury Bubble & Britain’s Richest Woman

Tweet This Post

Spain’s markets are in a fix, and there seems to be no creditable solution in sight. In fact, there is no credit. Lending activity in the country has slowed down dramatically, having experienced its greatest fall this year (a record 2.64% decline till September). The property markets gone bust, and looks to have taken all the air out of Europe’s fourth largest economy. Borrowers keep defaulting, and homes foreclosing. The only thing that’s left soaring here is the national unemployment rate (22.6% at present vs. 7.9% in summer 2009).

Meanwhile, the banks seem to be even more cash-strapped than the population itself. The Spanish banking system was an important player in the country’s once robust real estate and construction markets, and still pays deeply for its generous missteps. Out of the total 1.79 trillion euros of outstanding loans that the banks currently hold, 308 billion euros is taken up by real estate, most of which is reportedly as good as gone. Spain’s property boom, much like the rest of the crisis-riddled world, was entirely misguided. Land development were largely concentrated in areas that have no real value; where given the current population trends, demand for units is not expected to materialise any time soon, not in the next 10-years at least. Banks then have a significant chunk of their money holed up in real estate that nobody wants to buy.

Spain’s financial sector was at the receiving end of both bailout funds and increased regulation following the global economic crisis of 2008. The public has coughed up 17.7 billion euros (and counting) to help keep banks out of the red; however, the number of surviving banks stands greatly reduced. Analysts believe that given the central banks increased demands for adequate cushioning; the end count is bound to be even smaller. Small to medium sized banks are expected to virtually go poof, since the majority of their business came from the property market, which now stands largely defunct.

Following the crash, property prices in Spain have witnessed massive downward reductions. Overall, home prices are now 28% lower than what they were in pre-bust days; whereas, land values have taken a hit of around 33%. As joblessness mounts and foreclosures become imminent, banks are expected to add even more real estate to their already overflowing portfolios. It is unlikely that these properties will be turned over anywhere in the near future; banks aren’t willing to unload at washout rates, and buyers refuse to pay stated premiums.

With the last government having largely failed to bring stability to the ongoing crisis, the newly elected popular party vows to not let the decline continue any further. The country’s problems, however, have outgrown its capacity to endure. The European debt crisis, of which Spain is an active participant, is nowhere near resolving itself. The nations industry is at a standstill; the banks’ hesitance (and apparent inability) to lend, coupled with the new leaderships proposed austerity drive can then only prolong this lull. Further, the banking systems present provisioning is based around best-case scenarios, if anything the government might have to pump in more funds to help keep the entire sector from falling under. I say, heads up ECB, another troubled soul comes your way.

Photo Credits: Chris Kimber via Flickr

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

Spanish Banks UNABLE to Sell Toxic Real Estate Assets

Tweet This Post

The Chinese authorities have succeeded in making good on their promise to lower property prices, but this bid to make housing affordable for the greater half of the Chinese population mightprove particularly costly for the Chinese economy as a whole. The residential sector is a major contributor of short-term economic growth in China, and accounted for an estimated 6.1% of its total GDP in 2010. Falling prices have already dragged down investment in the country’s real-estate market, and are expected make a similar dent in its demand for steel. Given the already dismal global economic outlook, a sluggish Chinese economy could then setoff more alarms than fireworks.

The drop in housing rates can be witnessed throughout the Chinese expanse, from large, major cities such as Shanghai and Beijing (here rates fell another 0.3% over a single month alone), to the relatively less populated second and third-tier ones. The country has instituted a series of regulations, whereby raising interest rates, and introducing local restrictions under which only those city residents who have been paying district or city taxes for a certain period of time are allowed to purchase housing in the said locality; these moves it intends would help take some pressure off of the overheated property market.

Discounted prices, however, have resulted in a flurry of buying, speculative and otherwise. Housing units in many developments are now priced at rates akin to those last seen in 2009. Developers have been forced to sell properties at throwaway rates; certain newly furnished apartments went for less than what the other, older houses in the locality were presently valued at. Major developers have seen their profits dip, and shares slide; raising fears that if the current trend continues, a shortage of adequate housing would soon develop, whereby triggering further unrest.

These falling prices also carry a strong implication for the greater world economy. The Chinese are the major buyers of machinery, and other housing-related (raw) materials from markets as far and wide as Japan, Australia, and Latin America. Local manufacturers are already citing worrying drops in demands for construction equipment, and doubt that they’ll be able to meet annual sales targets. The contagion shall then surely pass onto other markets whose growths are primarily fueled by exports, of which China constitutes a lion’s share.

This overarching influence of the Chinese property market then leads analysts to believe that such downward revisions in housing prices may not be allowed to continue for long. Persistent deductions in prices at various developments have already irked many buyers, and sparked protests as homeowners see their treasured equity vaporize at an increasing rate. The Premier, however, seems adamant to see these so-called corrections through; and given the track record of Chinese officials, a policy reversal might be somewhat of a long shot. Regardless of the status quo, developers, both local and foreign, remain upbeat about the long-term potential of the Chinese property market. They trust that once interest rates start to fall to reasonable levels sometime next year, the market will reveal its actual value, and prices will soar again. The Chinese housing market will eventually stage a comeback since the present state of affairs too is somewhat of a show; artificially orchestrated, well put-on.

Photo credits: Dale via Flickr

This Post is from: Overseas Property Mall, part of Fuzz One Media Group

China’s Falling House Prices

Tweet This Post