Friday, April 4, 2014

Venezuelan Builders help recover real estate in Miami

More and more builders of Argentina , Brazil, Mexico and Venezuela are choosing to meet the demand for Latin American looking for a stable place to invest your money and generate revenue.

The Argentine constructor José Luis Melo watched the real estate market of Miami was affected by the housing crisis in the U.S. and thousands of apartments in the city remained unsold , and decided it was time to build.

It was late 2010 , and Melo , which operates the real estate company Melo Group with his two sons , purchased a plot of land of 1.4 million near downtown Miami.

Months later, Melo raised their first construction crane post housing bubble was in town , betting they could find buyers for departments of a new 17-story tower .

" People told us ," You are crazy . The market is crowded with units and going to build ? "He said, adding that he preferred to sell their own new building. 's 98 departments of the structure were sold in just five months.

The apartments were purchased by wealthy Latin Americans were flocking to buy real estate in Miami , helping to encourage an unexpected recovery in a market that was only three years had faced a housing crisis .

The purchase highlights the role that investors have played in some major U.S. cities that show strong signs of recovery after the crisis.

Wealthy Latin Americans have long invested in properties in South Florida, but this time the revival in Miami also is being driven by South American builders like Melo .

" I've never seen the influence that they are now taking on development and construction," said Peter Zalewski , director of real estate consultancy Condo Vultures . " It really is a period of maturity ," he added .

Driven by high property prices and rising sales , the real estate industry in South Florida faces a frenzy with over 80 announced plans for new residential projects, and Latin American builders are involved in about a third of them, according Zalewski .

The builders are benefiting from the view that Latin American realty industry in Miami is a safe haven from political and economic volatility.

The city, which has a strong Latino presence and where Spanish is widely spoken , is a popular shopping destination and resort.

Recent devaluations in Argentina , Brazil and Venezuela , and fears that currencies continue to weaken these countries are encouraging the purchase of properties, brokers said .

In 2012 , Venezuelan frightened by an economy destroyed by inflation , rising crime and local political uncertainty led all foreign purchases in Miami for the third consecutive year, representing 15 percent of all sales .

A Venezuelan purchases followed the Argentinean and Brazilian .

A sharp increase in the prices of real estate in Latin America has also made more attractive properties in Miami.

According to the website Zillow real estate , the value of the properties in Miami are down almost 50 % from a peak in 2006.

The growing presence of Latin American builders also reflects how the region has benefited from healthy economic growth and given them unprecedented opportunities to look beyond their own borders to build.

Wednesday, April 2, 2014

Mortgage Applications Increase in U.S.

Applications for U.S. mortgages rose last week fueled by demand for refinancing at low interest rates, the data showed a trade group.

The Mortgage Bankers Association (MBA, for its acronym in English) said its seasonally adjusted index of mortgage application activity, which includes both refinancing operations as shopping, rose 1.8% in the week ended April 26 .

The seasonally adjusted index of refinancing applications increased 2.8% MBA.

But reading orders credits for the purchase of houses, a leading indicator of industry sales fell 1.4%.

Mortgages 30 year fixed-rate averaged 3.60%, down 5 basis points. It was the lowest level for rates since late last year.

Tuesday, April 1, 2014

Hispanics suffer in the property market

While the U.S. housing market is recovering, many minorities are not reaping the benefits.

According to the Census Bureau , 75 percent of whites are homeowners, while only 47 percent of Hispanics have their own home.

Hispanic households lost almost half the value of their homes between 2007 and 2010 , according to a new report by the Urban Institute .

Many Hispanics bought their homes just before the recession. As a result , when the housing market crashed , Hispanics were more vulnerable than any other group , falling behind on their mortgages and ending up with a foreclosure.

Banks are another reason why minorities are losing during this recovery . They're doing it harder and more expensive for borrowers to obtain mortgages.

For example , most of the loans are now supported , Freddie Mac Federal Housing Administration and Fannie Mae . These entities sponsored by the government, have made loans more expensive for borrowers who have good credit.

Monday, March 31, 2014

Immigration reform would allow many families to purchase housing

In answering questions from the audience for a videochat dedicated to reforming the mortgage industry, Obama made ​​a mention of immigration reform as " a subject that does not seem to be related, but it is ."

"If we get immigration reform, we suddenly all kinds of families out of the shadows , paying taxes , paying fines, but also most likely buying homes and often in some of the neighborhoods that were more mortgage auction ," said the president during moderate transmission Rascoff Spencer , general manager of the website dedicated to selling real estate .

People who legalize with immigration reform " add value to the community , increase the value of the property and that is one reason why it is estimated that immigration reform would bring 3,000 million to the economy, mainly because they would buying houses , "he added .

During his speech yesterday in Phoenix on mortgage industry reform , Obama urged the audience to " encourage Republicans in the House of Representatives to stop dragging its feet ," referring to the reluctance of the Republican majority to debate the bill passed by the Senate in June.

Many Republicans not only disagree with the idea of ​​legalizing people who remain on U.S. soil in violation of immigration laws , but expressed concern that the legalization of 11 million people is likely to accentuate the unemployment rate of 7% currently records the force U.S. labor .

Obama spoke about immigration reform hours after one of the main protagonists in the Senate expressed confidence that a deal can be agreed with the House of Representatives .

" We would much rather the larger project, but we are fine any way in which the House of Representatives passed," said Sen. Chuck Schumer in an interview with CNN. "Things are moving in the right direction."

Proponents of immigration reform plan numerous events during the current electoral districts culminating summer recess the second week of September, with intent to persuade skeptical lawmakers to vote in favor of immigration reform that includes the option of naturalization for undocumented immigrants .

The intervention of Obama followed his speech Tuesday , in which he discussed the need to simplify the current regulations to reduce the frequency with which banks reject loans to families who meet the requirements established by the federal government to obtain an obstacle that plagues especially Hispanics despite signs of recovery recently exhibited by the construction sector .

The insistence of the banks to request a down payment on average 20 % of the total cost of the property is the main obstacle facing Hispanics to take advantage of low interest rates , since it is an unattainable amount for many Hispanic families.

Just 46 % of Hispanics owned housing in 2012 compared to 73 % of Caucasians , according to a recent study by the National Council of La Raza and the Center for American Progress .

The central message of Obama's speech was to bring reform to close the state mortgage banks Fannie Mae and Freddie Mac , which the federal government rescued in 2008 by 187,000 million , with the goal of preserving the supply of mortgages to 30 year fixed and avoid creating another housing bubble like the one that sparked the global recession in 2006 interest.

Speaking at Phoenix was part of a series of talks planned for August on economic policy, whose goal is to prepare the ground for negotiations to increase the debt ceiling and the federal funding that will consume Congress when restart its activities in September after a five-week summer recess . Republicans in Congress have publicly disagreed with the plans of the White House in the two cases .

Obama has pronounced economic speeches to air campaign in Tennessee , Florida and Missouri , in which he advocated funding sources for infrastructure, a reduction in the cost of loans for higher education and reform the tax system . The Democratic president has also accused Republicans of not doing enough to support the American middle class.

Saturday, March 29, 2014

Real Estate in U.S. growing 10% annually and gets dynamism than a decade

Although there is skepticism about the strength of relaunching , the IMF notes that feed signals optimism. 2013 marked the first promising signs in the U.S. housing market in several years, which has analysts hopeful that a more sustained recovery in that country would finally consolidating sector.

According to the quarterly S & P / Case- Shiller , which considers home sales across the country - to the second quarter of this year prices would already retaking the levels exhibited a decade. So , slowly the lows until early 2012 just forget .

Today, the average values ​​of real estate sales increased 10% from a year ago, but still lie 23 % below the peak reached these assets at the height of his pomp , in the second quarter of 2006.

Everything was subprime

In 2006 , fears of a housing bubble in the United States could be about to burst crashed against the reality that financial markets appeared healthy, with a devastating dynamism.

However, since 2007 , several analyst reports circulated about a category of investments that end up becoming part of the vocabulary of average world : subprime mortgages . Subprime indicating that it was financing packages that combined assets of category "A" with other riskier , but remaining well disguised by the former. These corresponded risky roles , majority interests , mortgage notes to people who borrowed taking advantage of low interest rates in the first half of that decade.

The problem is that many of these new borrowers did not have as large a capacity payment, and given that house prices rose , it was also making the amount of debts. Meanwhile, the Federal Reserve began to raise interest rates to control inflation driven by higher consumption.

When it became apparent that there were threats beyond the so-called subprime assets, the fear spread , the value of homes plummeted and borrowers found that their mortgages were worth more than the homes they were paying .

Banks and insurance papers were full of subprime , and attempting to sell out , the market sank further . Investment bank Lehman Brothers could not escape the financial tsunami and announced its bankruptcy on September 15, 2008 , marking the sign of a worse collapse than developed countries still have not recovered.


Today analysts look with greater confidence the rise in real estate assets. " The housing market recovery has been stronger than expected and giving a strong impetus to private domestic demand and economic growth ," said Jarkko Turunen , chief economist of the Western Hemisphere Department of the International Monetary Fund ( IMF).

"With the rise in property prices and the positive effects of public programs of housing finance , now there are fewer homeowners with negative mortgage assets (mortgages ' underwater ' or whose outstanding amount is greater than the value property ) or who are behind in payments, and decreased the number of foreclosures, " he explained.

There are fears , of course , as a rate hike or stop recovery optimism that both inflate a new bubble in the sector.

However, the data show an encouraging picture , with less tendency to foreclosure.

" The steady increase in housing prices is pushing all boats in this real estate market and should include the inventory of homes for sale in the coming months ," said RealtyTrac Vice President Daren Blomquist . RealtyTrac data shows that while 10.7 million owners are very stuck in their mortgages , 8.3 million could be in a position to sell favorably to 2015.

Thursday, March 27, 2014

The New York property market overheats

The developers of a triplex for sale for $ s 100 million, located in the luxury apartment tower 50 UN Plaza in New York, have their eyes on those attending the UN General Assembly in its search for potential buyers.

The companies responsible for the project , Zeckendorf Development and Global Holdings, which belongs to Eyal Ofer Israeli financier , hoping to attract the richest in the world that might be interested in owning a portion of the city skyline diplomats.

The Arthur and William Lie Zeckendorf brothers are building a 44-story tower . The project 50 UN Plaza , designed by Foster + Partners London studio , is one of the many wealthy Americans luxury residential developments that have emerged in New York City in the last two years in response to growing demand from foreign investors and seeking stable investments .

So intense is the demand for exclusive condominiums (defined as those whose value is within 10% of the most expensive apartments) that developers fail to build fast enough and the prices are starting to break previous records .

The Zeckendorf plan to build 88 apartments with prices starting from u $ s 2.5 million. The penthouse of nearly 1500 square meters occupied floor from 41 to 43 will be offered au $ s 100 million when the sale begins in mid-October . The property has 14 bedrooms and 13 bathrooms.

It was originally planned as a duplex, but the developers expanded due to increased demand for larger departments .

The record price for a Manhattan residence he got Sandy Weill , the chairman of Citibank, by his department in February 2012 . It paid u $ s 88 million.

It is believed that two penthouses of skyscrapers One57 could exceed this value when ready next year. And the tower units Extell Development are now valued at $ 90 million s . A group led by billionaire Bill Ackman , and would have bought one of these departments , according to people close to the transaction.

Wednesday, March 26, 2014

The U.S. housing sector

The real estate sector in the U.S. has been in the spotlight in recent years , first by the mortgage crisis and then by the support of the interventionist policies of the Federal Reserve , via bond purchases, which have led to artificially low rates .

This sector is particularly cyclical, having shock and similar to the evolution of the economy recessionary times. Although, if we briefly jump back in time, we see thanks to low interest rates in mid-2000 began a large residential boom, even in times when the economy went through the best of times , until the outbreak the mortgage crisis and the housing bubble burst .

This industry is divided into residential and commercial services, although some companies involved in both. Both the residential and commercial industry are highly fragmented . In fact, the 50 largest companies in residential buildings make up less than 30% of total industry revenue . Since the collapse of the housing bubble in the U.S. and a high unemployment rate under natural unemployment in the economy, the residential industry suffers the consequences of the past. The commercial segment of the industry was a little better than the residential market since the recession .

There has been talk of recovery in the sector given the rise in housing prices in the U.S. example is the evolution of the SP / Case- Shiller U.S. National Home Price Index rate since mid-2012, although it should be noted that continue a series of conditions negative as :

- The delinquency rate on single-family residential mortgages in the United States remains surprisingly high , ranking second quarter of this year at 9.41% .

- Lowering of consumer confidence indicators . The consumer sentiment from the University of Michigan has dropped to a level not seen since December 2011. (down to 72 in November from 73.2 in October)

- It has not been a widespread buying first homes , but the main buyers were institutional , representing one third of existing sales.

- The next reduction of stimulus by the Federal Reserve will raise rates as mortgages and are already pricing in the currency market will produce the appreciation of the dollar against its major crosses.

After these brief remarks about the conditions of the U.S. real estate industry , we have to analyze the companies that form part of the model EAFI Aspain 11 Financial Advisors portfolio for the Real Estate sector after scoring make America the Stoxx 600 .

Weyerhaeuser Co: is mainly engaged in lumbering and the manufacture , distribution and sale of forest products, real estate development and construction. Therefore, to be a wood products company is a convenient analyze data annually instead of quarterly as they have seasonal component. In October, the company announced third-quarter results exceeding expectations . Thus, sales increased 24 % , the profit up 105.62 % , EBITDA by 62 % and revenues by 99 % during the first 9 months of 2013 year on year .

AvalonBay Communities Inc. : dedicated operating apartment communities institutional quality in markets with high barriers to entry in the U.S.. AvalonBay Communities Inc. in October announced a net attributable loss for the third quarter of $ 10,715,000 . This represents a loss per share of 0.08 . The graph of the evolution of the portfolio we can see great value cut from the presentation of these results.

Riocan Real Estate Investment Trust : is a Canadian trust with a total capitalization of about 13.6 billion at September 30, 2013 . It owns and manages Canada's largest portfolio of shopping centers with ownership interests in a portfolio of 346 commercial properties corresponding to more than 83 million square meters, having properties in the U.S.. In mid-November Riocan announced the distribution of 11.75 cents per share for the month of November. The distribution will be payable on December 6, 2013 to unitholders of the trust .

Public Storage : a background composed and self-managed real estate investment that buys , develops, owns and operates mainly storage areas. In the results presented in November announced that they have increased revenues by 5.5% yoy to 441 million during the third quarter, while operating profit rose 7.2% to 316 million .

SL Green Realty Corp: On October 29 announced a public offering of secured 2,600,000 shares of its common stock , par value 0.01 per share. With this, the company intends to use the proceeds derived therefrom for general corporate purposes , including new investments and payment of outstanding debts.

In conclusion , the sector is subject to the evolution of the U.S. economy, where major constraints come from the hand of macroeconomic variables such as GDP, interest rates , unemployment and infrastructure spending by the State . Undoubtedly, more short-term major determinants or conditions come from the Federal Reserve, because if in the coming months adopts the decision on withdrawal of stimuli involved for the housing sector to the start of the rates artificially low mortgage .