Real Estate Investment Ideas?

Posted by: Peter Coy on October 28, 2005

Every December, BusinessWeek publishes an investment guide for the year ahead. This year I’m doing the real estate story.

Here’s the question my editors want me to answer: Are there still any real estate bargains out there?

What do you think?

Any U.S. cities where house prices still have room to rise? (Youngstown?)
Any countries where real estate is still relatively cheap? (Germany?)
Condos feel kind of pricey lately, but are there still deals to be had?
What about REITs?
If you like REITs, which kinds?

Name names, please.

Remember, it’s not enough to say that an investment costs less. You have to make the case that it’s likely to go up in price and/or throw off a lot of cash in the next year.

Be prepared to defend your choices because at least someone reading this blog is bound to disagree with whatever you say.

I’m thinking of giving a prize to the Hot Property reader who comes up with the idea that works out the best over the next year. Let’s say, either 100 acres of midtown Manhattan real estate or a paper crown labeled Real Estate Emperor. My choice.

So … send in those ideas and start arguing with each other.

Reader Comments

bradley jellerichs

October 28, 2005 6:37 PM

how about being a contrarian, and invest in the tanking market. For example, buy puts or short homebuilders and the credit agencies that have the largest exposure.

Dustin

October 31, 2005 1:30 AM

I'll start the brawling by saying that I'm pretty darn bullish on the Seattle market.

My reasoning? It's the economy... With Boeing and Microsoft doing a wonderful job of holding down the fort, and a thriving start-up vibe (in real estate alone, there is Zillow, Redfin, and HouseValues), it seems like enough of the area residents will be flush with cash for the near future to keep prices rising. And while Seattle has definitely seen some growth in the recent past, things have never gotten out of control like they have in the Bay Area.

Because I really want to win the 100 acres in Manhattan (or at least an Emperor crown!), I'll get a little more specific. I'd invest in a starter home (~$350K) in the Ballard neighborhood. Of course I'm only speculating, but I think that a home like this still has plenty of room to grow in the near future (i.e. one year).

Peter Coy

October 31, 2005 5:23 PM

OK, so far I have Maricopa County, Ariz., and Seattle. I have "short the homebuilders."
I also got a very intelligent email from someone suggesting a narrow segment of REITs--ones with low debt/equity ratios that get most of their income from leasing buildings to companies in healthy industry sectors.

What else?

the contrarian

October 31, 2005 11:04 PM


First, I have put aside some cash ($50k) in my money market account. I also have on my current house a 15-Year fixed mortgage (50% loan-to-value) with really affordable monthly mortgage payment. Finally, I have no plan to move out for at least 5 years.

Second, I opened an (still untapped) equity line of credit on my current home (200k, about half of the equity in my house).

And now, guess who will be a major player in the foreclosure market in my county after the housing boom goes bust.

Assuming a worst case scenario of a 25% decline in valuation in the years following the bust, my remaining equity stake will vanish but I compensated for that by buying $20,000 worth of premium on OTM put options (CTX Jan08 45 Put for example) on the 2 big home builders in my county.

Jim in Calif

October 31, 2005 11:06 PM

The conventional wisdom is that "as interest rates rise, real estate values must decline, and so to must REITs." The problem with this CW is that it is too simple, and it doesn't take into account the wide variation in the various types of REITs out there.

If rising interest rates and the risk of a "real estate bubble" is a concern, then it is possible to screen for REITs that minimize that risk. For example, if we look at REITs that have low debt/equity ratios and derive their income mostly from leasing properties to other businesses, those REITs will be less sensitive to land valuation and
interest rates. These success of these REITs are more dependent on the segment they lease to, such as healthcare, retail, etc.

I ran a screen looking for REITs with debt/equity ratio less than 0.5 and whose income is tied to leases. Some promising candidates include

Universal Health Realty Income Trust (UHT). Leases out 43 medical buildings in the Southwest (where there are plenty of retirees and demand for medical services), has a debt/equity ratio of 0.23. Dividend yield is 6.5% and UHT has steadily increased their dividend over the years. A similar healthcare REIT is LTC Properties Inc. (LTC), with 200 senior long-term care facilities, a debt/equity ratio of 0.23 and a divident yield of 6.6%.

Hospitality Properties Trust (HPT). Owns and leases hotel and motels to various national chains such as Courtyard by Marriott and Candlewood Suites. Debt to equity is 0.49. Has more debt than I'd like but income from operations has been increasing. Good dividend payer at 7.4%.

Correctional Properties Trust (CPV). Leases out 12 prison facilites and has no debt, with a dividend yield of 6.5%. The leases are long-term and include rent increases tied to the CPI. Given the latest White House shenanigans this may be a real growth industry.

Interestingly, there were no residential REITs that met my low debt criteria. Many of them have debt/equity ratios greater than one. I believe those REITs are to be avoided.

Frances Flynn Thorsen

November 1, 2005 6:14 AM

Ernest and Young's Steven Friedman told real estate editors at the National Assn. of Realtors annual convention that the best places to buy a condo in today's market are:

Jacksonville, FL
Austin, TX
Boise, ID

Friedman said his choices are based on job growth, affordability, and quality of life.

Peter Coy

November 1, 2005 10:36 AM

Is land still a good buy anywhere? Great comment by Boe Clark about land over on the "Land Sales Could Slow" thread (justly accusing me of being vague). Here's what he wrote:

The blogger speaks of land (improved and unimproved I assume), as if it were a homogeneous commodity. Prices are going down...in which markets? In Florida, Arizona, and Texas? Or in California and Colorado? In urban, sub urban, ag, commerically zoned, or residentially zoned land? 10 miles, or twenty miles, from population centers? In urban infill areas? With or without utilities/services?

Generalities get us nowhere...specifics you can use to make prudent investment decisions with.

Joe

November 3, 2005 1:27 PM

Here's an Idea: Wait on the housing market and slowly move towards equities. There's some bet up stocks that could bought for a song.

Dustin

November 3, 2005 4:15 PM

It probably doesn’t bode well for the real estate market that there are not a lot of investment ideas!

Peter Coy

November 3, 2005 6:00 PM

What about fixing up and renting or selling dilapidated properties in out-of-favor markets? Somebody in that business emailed me with that suggestion. Seems like it could be a good deal for people who don't mind supplementing their cash with elbow grease.

Taro Akasaka

November 3, 2005 11:15 PM

Forget the US. Japan's real estate market is rip-roaring.

Dave

November 8, 2005 6:58 PM

1. REITs holding a lot of mid level apartment buildings (where the former homeowners in CA will be moving once the number of foreclosures exceeds 100,000 in the state).

2. REITs specializing in self storage facilities. These units rent for the same price per square foot as apartments, but cost a fraction of the cost to build and maintain and are enormously profitable. Again, demand will soar as the number of foreclosures in CA exceeds 100,000.

The number of foreclosures in CA WILL exceed 100,000 now that rates are rising and the I/O speculators and such will be driven out of the market as will so many first time buyers who have been sold these disastrous loans (half of buyers in San Diego and 2/3 of buyers statewide for the past 18 months).

DaveB

November 12, 2005 4:32 PM

Are we talking about investments (say 5-7% compounding growth over 20 years) or speculation (dreams of 100% inflation over 1 year)? I like the idea of getting a positive cash flow with 20% down and then watching 5-7% appreciation over 20 years.

Summit County, Colorado, is 90 miles west of Denver and another mile higher. From 2001 to 2005, prices were flat, since demand equaled supply. Since January of 2005, demand has increased and prices are starting to climb sharply.

Summit County has a great location, great weather, and spectacular scenery, yet is much less expensive than Aspen and Vail. To me it looks like a great bet.

Dimitar Vesselinov

November 19, 2005 9:21 PM

Douglas

December 12, 2005 2:55 AM

How about India; bungalos on the beach near major cities. Bocas in Panama? Or, Tibet, near Changdu. Those are my bets.

Douglas

Garrett Swasey

January 12, 2006 2:09 PM

Here is my opinion. The great bargain out there is El Paso County Colorado. It currently has a population of about 500,000 and a median price of around $220,000. Last summers Base and Realignment Commission (BRAC) closed several bases around the country and moved several units to Colorado Spring's four military bases. We are expecting somewhere between 10,000 - 15,000 troops. Add to that Barclays (credit card call center) moving to Colorado Springs with an additional 500 jobs and Intel adding 500 jobs to a new facility here.

The bases can only house about 5,000 troops total. When 9/11 hit, Ft. Carson emptied. The rental market deflated and many units sat empty. Since then, normal growth has brought back exceptable vacancy rates.

The spin off effect of this growth is typically predicted at somewhere between 3-10 fold. For every primary position created in Colorado Springs and additional 3-10 positions are needed to keep up with demand. This means a very conservative growth spike estimate of about 30,000 plus 10,000 troops. Not huge (about 8%).

However, these people are additional to the normal growth here. Our inventory is about 5,000 new homes per year. Add another 5,000 previously owned homes. 70% of individuals in this country are home owners. Say we have 24,000 families (40,000 individuals times 60%)and 70% are home buyers. With over 16,000 homebuyers in a balanced market (equal number of buyers and sellers) of 10,000 in inventory this creates a supply challenge. Over two and a half buyers for every home (conservatively).

The Home Builders association can only build about 5,000 homes per year. This is mostly due to a limited labor pool of craftsman. The growth in Phoenix and Las Vegas coupled with the rebuild in New Orleans has created even more pressure in finding building tradespersons. So it will take over two years to meet conservative demand estimates through building new houses.

If that weren't enough, all of this has not begun yet and we are in a balanced market with appreciation in the 18-24% range. The appreciation numbers are from our Tax Assessor who gets a TD-1000 for every sale in El Paso County. This form gives the particulars about the property and it's sale price.

If the war in Iraq ends, all bets are off.

The appreciation numbers are very good right now and they diffinately have wings. So do the residential rental market numbers. My personal pick is residential real estate in El Paso County, Colorado as the next big boom town. I project an average of over 30% appreciation for the next three to four years.

Randall Wilson

January 30, 2006 12:13 AM

Just like any investment, take advantage of the growth as well as the contraction. Foreclosures are up 29% in local markets and a number of investors are lining up to work out short sales between bank and owners that are facing bankruptcy. Banks don't want to own houses and in a falling market, they may be more willing to make deals.

Randy
www.4mysales.com

David Porter

February 3, 2006 4:04 PM

Peter,

I still stand by my Maricopa County suggestion in Arizona. They created the largest number of jobs in the country last year.

Jobs = Good Real Estate

See this article from AZ Central: http://www.azcentral.com/business/articles/0203jobs03.html

RLA

April 30, 2006 10:20 AM

There are so many places to invest that it is impossible to present them all. The better question is what is the rate of return that defines a "good" investment given the risk compared to an insured savings account. Once the return desired is established and the risk determined, then the search for suitable investments in real estate begins. Ther are many areas of the country where an investor can place 20% down and have the property cash flow pay for all expenses and debt service. Factoring in a modest rental rate increase (inflation rate 3-4%) the property should be paid off in 20 years or so. The property value is up because cash flow is up. The final result being that on a $1,200,000 property with 240,000 down an owner can expect to end up 20 years from now with a $60,000 net income (in todays dollars) and a net worth of $1,200,000. (todays dollars) not including positive cash flow that was probably achieved within 5-7 years from the first day of ownership. Speculation is entirely different animal. Market timing is the key to success in that game. The beauty of long term investing with solid cash flow properties is if properties go up wildly you benefit from that but if not the cash flow and debt reduction (plus tax benefits) are adequate to provide retirement income for investors. Obviously there is risk primarily jobs in the local market but wise investors will look to invest in communities where job stability long term looks favorable (government or high demand agricultural areas etc.). I would also suggestlookin to invest in areas where new construction costs more than the property acquired so new competition is less likely. I have simplified for the purposes of this blog but hopefully the iformation is useful for discussion.

Chris Heath

May 8, 2006 8:48 AM

For investments, you could do worse than take a look at what Thailand has to offer. With the dollar value making investments much cheaper this year, property in Thailand offers some very sound investment opportunities.

After years in the doldrums, the Thailand property market has seen property prices in Bangkok increase by an average of 16% last year. The trend is set to continue, with new projects dotting the city landscape. Real estate developers will be investing over US$2.5 billion in Thailand property residential sector in the CBD alone within the next three years.

The market has received an injection of confidence from the sustained recovery of the Thai economy. Banks and finance houses that are lending money Thailand property purchases are fuelling the boom, with new advertising hoardings displayed throughout Bangkok.

Real estate companies continue to focus on luxury developments to meet the demand of Thailand's expanding middle class, but there is now greater emphasis on building houses and condominiums that meet the budget of the ordinary working family.

New starts of Bt2-3 million per unit are increasing and developers are taking up the government's challenge to build affordable homes that cost under B2 million for the army of workers previously shut out of the market.

Thai people are becoming much more demanding in terms of both the quality of building materials used and the type of property they want, with townhouses and detached homes on managed housing estates in the suburbs becoming increasingly popular.

The reason is partly improved infrastructure, with the Skytrain and the Mass Transit Subway system making the business districts more easily accessible. The downtown areas surrounding Silom, Sathorn, and Sukhumvit Roads remain the most active areas for new condominiums.

David S

May 15, 2006 3:11 AM

Reply to Chris Heath, regarding investing in Thai real estate.

Chris,

How easy is it to own real estate in Thailand? I looked into it very briefly (armchair analysis via Google,) and it seems that there are specific national laws designed to keep foreign investor money out of Thai real estate. There are some legal schemes designed to get around this, but they seemed fly-by-night.

Any insight would be interesting to hear!

Tracy - Miami Real Estate Agent

May 15, 2006 9:49 AM

I would like to focus on prospect EU members.
The real estate market is getting very hot on some of prospect countries like Turkey.
Turkey is also in a process of utilizing a mortgage system which will effect the market big time.
I think the properties in Istanbul will be very profitable..

Tracy

Nigel Morton

July 25, 2006 4:57 AM

Try not to follow the crowd!

Rather than look for property bargains...why not 'become the developer'? We are all aware that the greatest profits lie here!

You can buy a plot of French land for €50,000 build for €100,000 and the current market value is €210,000+. Add to that the 18 months growth during the build programme and you are looking at a very profitable investment.

The numbers are very real and not based on agents values. And it can all be done for your armchair.

Troy@Sarasota

August 17, 2006 10:19 PM

Buying a property in Easter Germany is still a very good investment.
Real estate prices have risen as much as 100 percent in the eight former communist states that joined the EU in 2004, driven by buyers from Western Europe. Many locals, with less than a quarter the buying power of their neighbors, have been locked out of the market, adding to frustration with EU membership and eroding support for budget cuts needed to adopt the euro.

Troy
Sarasota

Joe

September 29, 2006 11:12 AM

I think investing in Ohio's cities is the way to go. You can buy apartment buildings with a 13% cap rate in places like Cincinnati, Dayton, Columbus, and Cleveland.

Vince Thomas

October 20, 2006 4:54 AM

Here's a real estate investment idea in case anyone is interested:

Idea #1: Developing previously un-developable properties for Profit!

There are properties that were previously un-developable due to substandard soil, high water tables or any of several other reasons that made it impossible to install septic systems.

Thanks to modern septic technology, these problems have been solved today by the use of alternative septic systems.

This means that there is an opportunity for those with the desire to invest in Real Estate to profit by purchasing property that is thought to be un-developable and then develop it using modern technology.

Until just recently, such properties were thought to be worthless. These properties can be purchased at a low cost and then developed to sell for a profit!

Alternative septic systems may seem expensive when compared to conventional septic systems but are just part of the necessary cost of doing business in this case.

In other words, the opportunity to profit is made possible by these systems and does not exist otherwise.

This idea is something that I realized when I discovered alternative septic systems for myself.

Good Luck with your real estate investments!

Vince Thomas

"The short but informative article below explains further!"

The "Bad Soil" Solution
http://badsoilsolution.tripod.com

Info

November 21, 2006 2:57 PM

Poster stating that Bulgaria is the hottest real estate market in Europe is obviously not aware of the full facts around that market. Much of the sales volume being delivered there in recent times is derived from the so-called "guaranteed rental" returns attached to the new properties, i.e. the buyer is guaranteed a return (typically around 5%) for the first two years following completion.

In practice, the properties being built in beach and ski areas in Bulgaria have a short rental season, and rentals are almost impossible to find. If you could fill a typical beachside apartment for ten weeks each summer at current rates, minus all expenses, you would hope for (at best) 0.5% to 1% return on the prices sought by the developers.

The reality then is that in many cases the rental "guarantees" are achieved by simply adding the rent to the price, and giving the buyer back 5% p/a for 2 years (minus handling charges). After that, you are on your own, and you will neither be able to rent the property nor sell it at anything approaching the price you paid.

This is the type of product that is driving the Bulgarian market, and the only way for gullible investors in this market is down! The real "hot" markets in Europe, in my view, are the ones being ignored by the lemmings who flock to this area. Smarter investors have been chasing the following areas, with much more hope of real success:

1. Budapest. Hungary's capital has seen steady buying over the past few weeks, following the disastrous PR of the rioting outside the Parliamnet building and TV station in September. The austerity measures that sparked the riots are being seen by old hands in the property business as boding well for future gains. In addition, the unrest has scared off the amateur investors, making property much easier to buy in the city. Rental returns in the new-build residential sector are tipping 6% in many cases, making the wait for better times much les painful.

2. Surprise destination for a nice amount of buying in recent weeks is Spain's Costa del Sol, around Marbella and San Pedro. The planning corruption scandals in Marbella town hall have resulted in the new administration having cancelled all building licenses issued by the old administration, and threats of demolition of any such properties. The realities of the situation however are less dramatic. The Town Hall can not demolish any project that was issued with a genuine license without compensating the owners in full, and any such demolition is most unlikely in any case (except for one possible extreme example, to be carried out just before next summer's elections). Sellers are panicking however, and prices have fallen to below the total cost of site and building in many cases. With good rental returns for long term lets, a local population buying strongly for permanent residential use, and most local banks happy to mortgage properties, the outlook is sunnier than it has been for some time on the Costa del Sol.

Check our blog at http://www.blog.abodes.ie for regular updates on property snippets and research in Europe.

Carol, www.ipropertyfinders.com

December 1, 2006 11:41 AM

Strategy: Build up your cash meanwhile so as to be ready for the upcoming opportunities. Remember the past? Opportunities for those with cash. Foreclosures will hit the fan in the next year or so. Actually, it's already starting! Slowly, but starting.

Mike

January 25, 2007 11:27 AM

2 Places to invest for sure : Austin and San Antonio, Texas.... other good possibilities include College station( near Bryan and Texas A&M ) and Sugar land and Katy (Houston suburbs). Personally I would like to buy a rental home in Austin. If it is just me I think Round Rock would be a good bet as the prices are still good, great schools and lots of work, and should pencil out as a rental with 20% down. Also, I am looking for others to invest with me who want to buy 6 homes in the Austin and San Antonio area's. This way we can leverage our money and absorb vacancy and repair cost together. If anyone is interested in forming an LLC ( Limited Liability Co.) and buy, rent, and hold for 3-5 years, let me know. you can email me at spike432003@yahoo.com. I figure we will need 6 people with $25,000 - $30,000 each to start this company and purchase 6 rental homes/duplex. If there is still a safe place to invest in a good area with upside in appreciation, They are these area's. That is not to say there are not others. Lakeland, Florida still has upside and so does Raleigh, NC. But value for the buck is here. In Round Rock Texas, just north of Austin and home to Dell computer, I have my eye on a 2,300 sq ft 4+ 2 on a nice lot for $119,000? Yes, that is not a misprint. This place is not a major fixer. Some paint and carpet and its ready to rent. The only thing that irks me about Texas are the outrageous property taxes. They run between 2.5 - 3.5 % per $100,000. But the way I look at is if it pencils out as a rental and the PITI+ management and maintenance (Mort.Principal and interest, Taxes and Insurance ) is all covered by the rent, then who cares if the taxes are high? The key is to keep it rented! This may mean a tad lower than market value rent. We are banking on appreciation and covering our cost, Not cash flow. Please don't get me wrong, a small cash flow to be put aside for repairs or vacancy would be great and we should be able to accomplish that, but our priority would be to cover our cost. I am serious about this so contact me asap if your interested. Who knows, maybe we will decide to keep the company and sell and re invest the money and in 10 years sell the company and all be filthy rich? Well, thats an option. But I would be happy with the profit in 3-5 years but am open to what everyone in the LLC has to say. A friend of mine did this and guess what? He ended up selling his interest in the LLC to one of the guys who came in with him and decided to keep the company, this guy bought out everyone and sold the company and the portfolio of properties 5 years later for a HUGE profit.My friend is still kicking himself over that!

Bogdan

February 6, 2007 4:36 PM

There seems to be a wide range of alternatives proposed by the comments. I'll add my support to the ones promoting Eastern Europe. Yes, it's far from the gold rush you could see a decade ago, but real estate in Eastern Europe (particularly properties from the European Union newcomers – Romania and Bulgaria) still has loads of potential for growth. In spite of a rather infant market, with flats and villas prices likely to slow down their exponential price increases in the near future, the buy-to-let market will generate long-term steady profits in crowded capital cities. Why? Poor transport/road infrastructure is likely to severely discourage commuting and force people who work/learn/must be in the city to also live in the city.

Dave Dugdale

February 13, 2007 1:40 PM

I am surprised to recent comments on this post that was done so long ago.

Kiran Patel

February 26, 2007 1:35 AM

Any ideas on up & coming hospitality market?
I own management company that owns (a small stake) in CA & AZ. For approx. past 3 years, any new hospitality investment in CA/AZ simply does not make sense due to lack of cash on cash from operations. Unless one finds a turn around property which is either mis-managed or needs renovations.

Cory Barnett

March 13, 2007 1:55 PM

Check out www.lenderimplode.com

Cory Barnett
http://www.FreeShortSaleSecrets.com

Kelly Chapman

March 13, 2007 10:11 PM

How do I get in touch with Mike who wanted to start the LLC?

Ian Brown

April 11, 2007 5:50 PM

The Gambian Property market is currently undergoing a boom period. As an 'emerging property market' the Gambia ticks all of the boxes.


As a holiday destination the Gambia has always provided guarnteed winter sunshine. It is well served by cheap chartered flights from the UK, gambia , Germany, Belgium, Holland, Denmark, Sweden and Norway all seeking relief from Northern winter climes.


It is a four hour drive to Dakar International Airport, in neighbouring Senegal which is the international air hub for this region of West Africa.


Direct flights from here exist to Paris, New York, Torronto, Rio, Dubai, the Middle East, South East Asia and major African destinations such Kenya, South Africa and Nigeria.The Gambia is now considered a world class tourist destination.


Forty years ago there were just two hotels in the Gambia. Now there are several hundred offering a range from a few pounds to five hundred pounds a night. Saudi Arabian money is funding the building of further five star luxury hotel developments along the coast.


There is a thriving, expanding European ex-pat community which now enjoys the low cost and high standard of living here. This ex-pat community creates a market for good quality rental accommodation. This in turn is driving the investment market to meet the rapidly increasing demand.

Smitty

May 26, 2007 10:44 PM

I'm 25 and trying to come up w/an investment idea that will work.So this is what i have so far.I would like to buy a 2 fam. house in up state ny (about an hr. from the city) live in 1 side for alttle bit, then take a business loan out and start a daycare.Being that i also have 1 kid and 1 on the way and daycare being so exspendsive i figured u not.

i'd love 2 here some ideas or why i shouldn't do this.

Neil Simmons

June 8, 2007 5:34 AM

What's happening with Property in Asia - Thailand?

The property market in Bangkok for 2007 using my 6 years experience on the field, is Flat. It’s so flat that even the walls are jealous!

In 2006 market prices increased a small amount, not breaking the 10% barrier, and the 3 years prior to that saw a sharp rise in property prices, but now prices are flat as a pancake.

The only chance of an increase is going to be fuelled by ever rising construction costs on new buildings, and of course greed. Everybody wants to make a profit after all. The age old; well I bought 3 years ago so I must add on at least 15% to the price I bought at, plus another 10% to cover transfer taxes and agent fees, let’s add on 25%. It doesn’t matter to these people if the economy is going down the drain, and what’s worse, 90% of the population think this way.

So flat is the new word on the street, and Thai women are now feeling very ample in the upper body area.

Following the 1997 crash in the Thai economy, pulling most other neighbouring countries down with it prices stayed high for a year or so. There is a typical time lag when people think that things will bounce back quickly, and hold onto their high property prices until they’re really desperate, and finally take half of what they were expecting. 1999 saw the trough in Bangkok property prices, and flat was the word back then for the next 3 or 4 years until woooomm, a good 3 year period of growth.

However, this time around the ‘flatness’ is being caused by slowly increasing interest rates and a whole bunch of new stock coming onto the market (a large supply), and construction is continuing strong. There is no fundamental problem in the Thai economy, which is still showing some positive growth. Not so much growth as a few years ago, but maybe that’s a good thing. Maybe this is something a little more sustainable.

So I would not expect a fall in property prices, just a bit of ‘flatness’ for a while.

Author: Neil Simmons at Ideal Homes Real Estate Co. Ltd. www.property-bangkok.com

Shane Wilson

August 19, 2007 8:05 PM

Its a 1 and 1/2 since this blog post ran but real estate deals are easy to find right now. Its dealing with a slow selling market in the US. My properties are taking quite a bit longer to sell now then they used which has caused me to convert more to owner financing with most of my properties. As far as investing outside the country I believe that central america is a good growing market to be in particularly the costal properties. Thanks, Shane www.georgiabuyer.com

Sharon

September 10, 2007 12:08 PM

As a reader, I'd love to see you cover the impact on the U.S. commercial and residential RENTAL market, because we have multiple variables here - immune regions, but then: interest rates, tight credit, job market, declining property values. I don't see many publications getting to this - rents will naturally drive higher values on income property eventually. The rental market has been really tough that last 5-6 years and is starting to recover - but, could that be stalled now?

Briyan

September 22, 2007 2:29 AM

There are some great suggestions that have been previously posted on various real estate markets. I have recently started researching investment properties in Central America. I've found that Belize and Costa Rica have some reasonably priced pieces of raw land, condos and townhouses. However it does seem that the larger estates that are listed are comparable to the market values in the US. I'm still looking for the perfect property to purchase but I have found www.buysafecostarica.com and www.belizenet.com to be helpful during my research.

Larry Fosgate, Fund Administrator

September 24, 2007 12:44 PM

When the markets are down, buy the bargains. My fund only buys tax forfeit properties, so gets them for as little as 5% of market value. When buying property that low, it is almost impossible to not make money, as everyone knows you make your money when you buy.
My fund also asks its investors to participate and identify the best properties at their own local sales. The fund will then partner with them to give them the hard money necessary for the sale. THe fund is Sunrise Real Estate Holdings, LLC of Las Vegas, NV
www.sunriseholdingtrust.com

Neil Simmons

October 18, 2007 6:41 AM

Is Real Estate in Bangkok cheap?

There is still a lot of interest in the Bangkok property market by international investors, who still feel that real estate in Bangkok is cheap when compared to other Asian cities of a similar size.

Are these people making the right comparisons? There are a number of differences between Bangkok and other more expensive cities in Asian. Take Hong Kong or Singapore (probably the 2 main cities that the people in the group above are comparing with). Firstly, both Hong Kong and Singapore have obvious land constraints. The whole country of Singapore is about the size of Bangkok and they literally can’t keep building because they don’t have the land, unless they find a way to build on water! Bangkok on the other hand does have the land. The south of Bangkok is sea-locked but east, west and north are all there and open for the taking. The north of Bangkok is already quite developed, no doubt this being partially a result of the old international airport at Don Muang, but heading out east and west of the city you will quickly come across large open green areas waiting to be developed upon.

Secondly, the average salary per capita is higher in Singapore and Hong Kong than Bangkok. People in Hong Kong earn more. Everything is determined by supply and demand and if you get paid more in Hong Kong wouldn’t you be willing to spend more there? Would people ever be willing to pay the same price for real estate in Bangkok as Hong Kong if salaries were 5 times more in Hong Kong? Is this situation likely to change? On a similar note, I would imagine that it is easier to employ cheaper labour in Bangkok and therefore cheaper to build in the first place.

Is Bangkok a more desirable place to live in? This really depends on your own point of view. Some people might give more weighting to cheap Macdonalds, restaurants, taxis and an attraction to the opposite sex. Others might give more weighting to tidy litter free streets, pavements you can walk on, less traffic pollution and no street dogs. This is inconclusive.

I rarely hear people comparing the price of real estate in Bangkok with that in Manila, Hanoi, Ho Chi Minh or Jakarta. Is there really that much difference? Is Bangkok really that much more similar to Hong Kong and Singapore, are we comparing wines of the same vintage or is the price of real estate in Bangkok as it should be?

As a post script, we all know that this is not going to happen but what if foreigners were allowed to buy land for their own residential purposes. How would that affect the price of property in the city centre?

Neil Simmons is a director of Ideal Homes Real Estate Co. Ltd. www.property-bangkok.com. He can be reached at (02) 714 3832-3

Bangkok Property
Bangkok Condo
Bangkok Apartment

Gold Smith

January 21, 2008 6:23 AM

Hello Everyone!
I have had a brilliant property experience; they were true to their word ?Property done properly?. I was impressed as soon as I went on their website
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all their country profiles were totally free of charge, and
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International Property Brokers offered me a personal service which saved me
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I was assigned a dedicated Account Manager; a single point of contact for
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were true to their word, they advised me in all the aspects of my potential
sale and purchase for both properties in the UK and international property
developments and investments, which included residential and commercial
property.

eric

February 6, 2008 11:52 AM

Simply put, the Jackson Hole real estate market is the best in the country. I am seeing 100-200% return on my money there still. Classic supply and demand market here. Over 93% of Teton County is protected by state and Federal. Let me know if you need help to find a deal. I'm a real estate agent.

David (GO Zone) Hall

February 21, 2008 10:47 AM

My Idea is already working, Buy and Build in and around the Mississippi Gulf Coast and the Casinos where all the new construction is going on. There is a job market and no Housing for the employees as well as the displaced families from the Hurrican still. Well at least the casinos are all fixed. 30 Mins from the Casinos and Beaches as well as New Orleans. Buy one or all eight lots what ever you buy its a good deal. The last one I built i was given a $ 10,000.00 lot allowance from the bank. Bayside Park is a pre-platted residential area adjacent to Bay St. Louis and Waveland with reasonable access and drive times to Gulfport-Biloxi and downtown New Orleans. Area Investment Highlights
• Most affordable pre-platted single-family lots within the Gulfport-Biloxi MSA
• Infrastructure in place - including sewer
• The area suffered the greatest loss of homes and rental properties due to Hurricane Katrina
• Anticipated positive cash-flow and high appreciation
• Convenient to major thoroughfares I-10 & U.S. 90
• Convenient to 26 miles of spectacular beaches
• Close to major employers, planed development projects and newly created casino sites as a result of dramatic inland casino zoning changes
• Good central location in western edge of Gulfport/Biloxi MSA and neighboring New Orleans MSA (Metropolitan Statistical Area)
• GO Zone
• Hancock County is rumored to be the future home of a new international airport/terminal
• It's important to know… While Bayside Park was effected by Katrina's storm surge, it is NOT within a flood zone

This is an EARLY PHASE opportunity; however, as the community plans get finalized and casinos start operations, we expect LOT PRICE INCREASES and increases in Rents

Hldgs

April 30, 2008 12:56 PM

Of course there is still plenty of upside in the DFW market. Especially for rents now due to the subprime mess.

http://reitoolreviews.shoutpost.com

Susan Hilton - Texas Aggie Realtor in College Station Home Sales

May 6, 2008 11:57 PM

Without a doubt - Go with a college town with the stability of Texas A&M University and Blinn College and the George Bush Presidential Library! Checkout Bryan and College Station, Texas! http://www.thecenturytreereader.com

Nancy Peeters

June 2, 2008 9:36 AM

Why do people going to risky areas with Tsunamy's, religious wars, high inflation, short tourist seasons and political unrest when they can go to Brazil? All you need to invest is US$ 50K to get a residency and working permit .....

Denton Ward - eRealtyInvestors

July 16, 2008 5:55 PM

Funny enough, investors are sitting on the fence watching what is going to happen in the real estate market. It is odd to think that 95% of the time, the masses are wrong (look at the wealth dispersion in our nation). So, if you are following the crowds, you are more than likely going to get crowd results=nothing!

Like the first or second comment on this page....be a contrarian investor and you will make money in real estate. Buy smart today to earn money tomorrow.

Christine Beatty

July 21, 2008 10:17 PM

For those who have sold their home and may be receiving payments from private financing, I have a great site for you to get information on getting your money in a lump sum now. Go to www.beattysfinancialsolutions.com

If you need to sell your home, this site will tell you how to get the most money in the shortest amount of time!

Rithy

August 24, 2008 4:37 AM

How about Cambodia?

Rithy
www.procambodia.com

Jimmy Pascale

September 14, 2008 9:06 PM

Hello,

My name is Jimmy Pascale and my partner is Jimmy Herndon. I'd like to take a moment to introduce ourselves, our company, JJ Staten Homes MS LLC and the product we brought to the Mississippi Gulf Coast. Jimmy and I did a long due diligence before we ever put a block on the ground just to assure us and the homeowner that our product will outshine what's presently in place now, ESPECIALLY for the investor in the SRAP program holding for 5 years in EVERY ASPECT. Our homes will appreciate better and faster and will be much easier for resale because of the time and effort we have put into our product and the product that's out there now, with our home owners insurance because of the engineered stamped plans, the construction of our homes, building at FEMA's ABFE and the utility bill because of the spray foam insulation that goes into our homes. Take a look at what we've been up to and contact us as soon as you can so we can discuss what we can do together. I wish you all the success, success can and will bring !!!

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The Best, Always,

Jimmy Pascale - cell - 239-243-7849
email - jjstatenhomes@aol.com
Jimmy Herndon - cell - 239-462-5258
email - jimmyfishfl@embarqmail.com

JJ Staten Homes MS LLC
www.jjstatenhomes.com
4060 Nile ST
Bay St. Louis, MS 39520
Office:228-467-5353
Fax: 228-467-5352

Dr Frank Morgan

October 3, 2008 3:12 PM

I am a private investor based in the United Kingdom. I focus on seed capital, early-stage, start-up, ventures, LLC and all round completion and expansion of investment projects that need funding. I am interested to invest in your company on a long-term business relationship. If this is alright with you kindly get back to me with more details about your company.

Dr. Frank Morgan.
(Individual/Angel investor)

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BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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