Luxury Real Estate

Ah, home sweet home! Make that home 'small' home for an increasing number of home builders and home buyers. House construction is seeing smaller and less expensive homes because builders are not getting the same price as before for expansive, upscale properties. A few builders claim that they are not making back the construction costs.

Shrinking Size

Some builders are getting rid of homes at a loss and concentrating instead on the business of renovation. Although in uncertain economic times, neither one is a safe bet. Everything has experienced a decrease in this economy (in certain areas more than others). Everything from house appraisals to new homes to house prices is seeing a decline – and now houses are also shrinking in size.

Part of the decision to go 'smaller' is fuelled by varied events that have undermined people's confidence in the market. Such issues as foreclosure rates, flawed foreclosures, lending issues, and more, are causing a build up of anxiety among potential home buyers. Of course, home builders share their anxiety.

"It's slowing the recovery of new construction. It's sapping confidence," says Robert Filka, CEO of the Michigan Association of Home Builders

In a certain Michigan suburb, a 3,600-square-foot home with 10' ceilings, is selling at a loss for the builder at $699,000. In 2008, that same home was priced at $875,000. Within the past decade, homes in that neighborhood had sold for $2,000,000. Times have changed and builders are changing with them.

No Luxury

With unpredictable appraisals that can come in even $80,000 less than expected, luxury homes can be a problem. Appraisers have to factor in recent sales in the neighborhood. At present, neighborhood sales can include anything from a short sale to a foreclosure.

As well, home buyers are often asked for higher down payments (even up to 25%). Luxury homes may start looking less and less appealing to home buyers. Builders who have noticed that trend are opting to construct smaller homes. Maybe a less expensive home will not seem as intimidating to the potential home buyer.

Hard times force home builders to think small

Downsizing

Some people are adamant about the benefit of small houses. Cost-effectiveness, smaller mortgages, and a simpler lifestyle are a few reasons that people give for choosing smaller and less expensive homes. Even environmental reasons play into the desire for smaller homes. They use fewer resources in building and for maintenance.

Of course, buying a 'too small' home is not a wise move. A home can be as small as anything - as long as it suits your needs. If a home does not have sufficient space, it will not work for a growing family.

Perfect Fit

Yet if the size suits you, a small home might be the right choice. People have found 'small home' ownership to be an exhilarating experience. It frees up savings for travel and it frees up the precious commodity of time.

'Small home' ownership means less time spent cleaning and fewer hours required for maintenance. Smaller homes allow you to have more quality time with family and friends. Maybe though not everyone will want to go as 'small' as this home builder.

Take a look at - World's Smallest House!

Have You Been Dreaming of Building a Small House?

Would A Small Home Suit Your Needs?

Many things look good in Dubai – at least, according to tourist statistics. Dubai is the one of the most visited cities in the world. As one of the seven United Arab Emirates (UAE), Dubai is expecting to accommodate 15 million tourists by 2015.

Looking Good

Everything looked promising today as Cityscape Global 2010 (the world’s largest business-to-business real estate investment and development event) opened in Dubai. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, presided over the opening ceremony of Cityscape Global at the Dubai World Trade Centre. The city has hosted this event for the past nine years. This four-day show spotlights emerging trends around the globe.

No Problems

Within the next two years, residential property prices are expected to stabilize in Dubai. Once again, investors are taking a serious look at the city's real estate. A leading consultant firm does not foresee any problems with the Dubai market.

“As long as the property supply doesn’t surpass the demand too much, we should see a stabilization of Dubai’s residential property prices within the next two to three years," explains a major consultant firm.

New Developments

By the end of 2011, Dubai is expected to see 50,000 new residential developments. Maybe the scale of development will not reach that exact number. Yet developments are now in the works that were on hold. As well, many buyers say that they plan to stay in Dubai for at least 3-5 years. Despite the downward trend in the past six months, things are looking up for this United Arab Emirate. An industry leader offered an explanation for the decline in Dubai residential rentals and sales in recent months.

"This downturn probably was mainly due to the holy month of Ramadan and summer vacations as well as buyers adopting a wait-and-see attitude. Many of the prudent investors were in anticipation that the prices would fall further, or the mortgage rates would get cheaper,” said a top consultant.

Good News

Banks are lowering mortgage rates in Dubai – sometimes to 5.99 per cent. The good news for Dubai buyers is reflected in pockets elsewhere around the world but Dubai is the darling in development at this time. Recently, there have been major encouraging announcements including today's news that the Real Estate Regulatory Agency would work with banks to raise up to $1.36 billion to finish 48 developments.

Emerging Trend

The truth is that mature economies are finding it difficult in recent years. Heavy debt is always a major issue – whether you are an individual or a mature economy. Developing economies are not burdened with that degree of debt and, therefore, they can grow at a faster rate. Rapid growth means higher returns and that fact is not lost on investors who are eyeing the Dubai market.

Dubai's residential sector in recovery mode

Eyeing Dubai

The Dubai real estate market looks attractive to investors and, no doubt, the city is a favorite with tourists. Yet the best measure of a city is how it cares for and nurtures its residents so that 'everyone' can live a productive and pleasant life within its boundaries.

Do You Have Your Eye On Dubai?

With the official start of autumn shortly upon us, home fall shows are showing up everywhere and these annual events draw huge crowds. Some things about fall home shows always stay the same. You are bound to see warm touches and shades of pumpkin. Yet every fall season brings a new and bountiful crop of home décor trends. Surprisingly, some fall home shows even emphasize spring designs.

Spring in Fall

People who look at home furnishings in fall might be preparing to build a home in the coming spring. Therefore, it is not that unusual to see fall home shows include some spring-like styles. Maybe a few pale pastels might find themselves in the company of autumn orange.

Autumn Green

Yes, green is the color of renewal and rebirth, but fall home shows are going 'green' in more ways than one. Of course, shades of green remind those future home owners about the joys of spring. As well, autumn shows are becoming friendlier to the environment.

More stores like "ReStore' in Vancouver have booths at these events. 'ReStore' sells high-quality used (and new) building supplies such as kitchen and bathroom counters, lighting, and appliances. Home owners can find similar 'green' outlets at home shows all across Canada and the US. You will always find the latest green cleaning supplies like AspenClean - the first cleaning product in Canada to be certified by Ecocert (the European regulator of organic cosmetics and food).

Prices at home shows can be more than 50% lower than department store prices. Yet the merchandise can include top quality materials. Shoppers might pick up a cool and classic black granite countertop because someone preferred a lighter shade of granite.

If 'used product' stores did not exist, these building supplies would end up in the landfill. Since more and more people are adopting a green lifestyle, these outlets can now take their rightful place at the fanciest fall home show. 'Used' outlets are becoming the new 'cool' shopping experience with the 'green' crowd.

Design Books

Design books are now the darling of home shows. The design book booths cater to those who 'want' to learn more about design as well as those who 'need' to learn more about design. If you can't afford the designer pillows, you can buy a good interior design book that tells you how to make your own autumn pillows.

Designer books offer support and ideas to home owners. These books are an invaluable resource especially for people on a limited budget. A good quality design book is worth the investment because they offer tons of ideas for every season. Sometimes using the latest trendy colors or fabric can do wonders in recreating a designer look.

Customized Design

Home shows shine the spotlight on local artisans who produce one-of-a-kind products. Custom orders are part of the thrill of home shows. Shoppers can choose from a wide selection of unique items. Customize your home for fall and show off your harvest colors.

What Did You Fall For At Your Local Autumn Home Show?

Image courtesy of hbafm.com

The mainstream media in North America tends to concentrate on US or Canadian real estate. Yet they should not forget that North American investors are interested in international real estate. Bulgaria is one country that has sparked the interest of investors.

2009

There was never a better time to buy a home in Bulgaria. In today's real estate market, buyers in Bulgaria need less cash and have more choices. The poor economy was the final straw for many homeowners already struggling to keep their homes. This unfortunate circumstance put more homes on the market at reasonable prices.

In the first half of 2009, housing prices in Bulgaria dropped an average of 23% compared to the previous year. Homes were selling for almost 10% less in the second quarter of 2009 than in the previous three months. Prices dropped everywhere from Ruse to Shumen, from Stara Zagora to Yambol.

Even higher priced residential properties in larger centers experienced price reductions of more than thirty per cent. Apartments in cities such as Sofia still added up though to be a pricey option. The average property price for a Sofia apartment reached €895 per square meter.

Yet people considered the advantages of such ownership. More appealing lending offers and equally attractive prices lead buyers to act on the good deals. Some lenders, however, required a substantial deposit in this current economic climate.

Indeed, many superb holiday homes had lower sale prices than usual in this marketplace. The global economic slump saw some homeowners wanting to sell their vacation properties. People put their primary focus on basic needs in recession periods.

Holiday properties, as well as seaside and ski retreats, are always the first consideration in any "cutting back" process. Many Bulgarians bought back property which they original sold to UK buyers. Numerous properties went on the market around Veliko Turnovo. Housing prices dropped 38% in Veliko Turnovo.

Bulgarians who bought back these properties got an excellent investment. These properties were in ideal locations and most had also undergone recent renovations. The Bulgarian property market was once considered the top investment location in the world. The Black Sea Coast has been the most dramatically affected by the current real estate market.

During the first half of 2009, sellers were often observed dropping their prices every two week period. Housing prices, however, were expected to stabilize late in 2009 or early in 2010. Interested buyers were encouraged to act quickly to experience the current favorable low housing prices. The Black Sea capital, Varna, had the highest housing prices while Kyustendil had the lowest priced residences.

Most recent home buyers purchased finished units. Eighty per cent of real estate sales in Bulgaria from January-June 2009 were for completed projects. The most popular choice was a two-bedroom apartment selling for below BGN 50 000. The most active sales period was between May and June. Housing construction was at a standstill in the same period. The construction sector, however, was also expected to make a quick and full recovery.

The Bulgarian property market can be a profitable investment for residents and international buyers. The average property price is €551/square meter. Bulgarian prices for consumer goods and services are 51% of the average across the EU. Food prices factor in at 67% of the average EU price. Bulgarian real estate can offer the best deal in a better home for you.

2010

For the second year in Bulgaria, real estate prices favor the property buyer. Although prices are still low, that scenario is expected to change in the near future. Yet there are conflicting opinions about the state of Bulgarian real estate in the coming months. If you are an investor, you might want to act while Bulgarian homes sell for low prices.

Bulgarian Properties

Would You Consider Investing In Bulgarian Real Estate?

If you are looking for a hotel room in New York City, you shouldn't have any problem. Next year, it will be even easier again as more hotels are slated to open in the Big Apple.

NEW HOTELS

According to Smith Travel Research, 46 new hotels will have opened in New York before the end of this year. The NYC hotel industry is booming with Manhattan in May having occupancy rates of more than ninety per cent. Occupancy rates haven't been that high in Manhattan since 2004 when they came in at eighty-five percent.

CORPORATE TRAVELER

Actually, corporate travelers are creating part of the boom in the industry. Could that be a sign of a rising economy or just business people travelling further to get business? It will remain to see how that connection plays out in the long run.

As well, New York's hotel figures are often way ahead of other US locations. Let's consider how big a player New York is in the hotel business. Almost one hundred hotels will open this year in major cities across the US and we know that 46/100 will be centered in New York.

CONTINUED GROWTH

The growth in the industry is expected to continue into next year. Observers don't expect tourists to stop coming to New York any time in the near future. So with all those new hotels on the horizon, it is a good time to find a hotel room in New York City. In fact, it is a great time to buy a hotel in New York City.

Despite the talk of big business in New York hotels, the economy is coming out of a slump and, sadly, some did go down with the ship – or go almost underwater. Some fancy hotels are now going for a song – an expensive tune, in most people's eyes – but investors hear the music.

SOLD

The 16-storey, 300,000 sq ft Knickerbocker Hotel (1466 Broadway), built in 1908 by John Jacob Aster, sold for $180, 500,000. In March, Istithmar World Capital, a branch of Dubai World, defaulted on the $300 million mortgage. And, like me, most of you missed out on bidding for the "W New York - The Court" and "W New York – Tuscany." St. Giles Hotel picked up the two midtown Manhattan hotels for $78 million ($243,750 per room).

DON'T WORRY

No need to worry though as you still have lots of chances to buy a NYC hotel. Besides the luxury towers for sale, there are many more affordable hotels on the market. If hotel owners want to raise capital, they recognize that now is the perfect time to sell a New York City hotel. So in NYC hotels, it is a favorable market for buyers and sellers.

REALITY BECKONS

Of course, not everyone is overjoyed with this scenario. Many people hate to see the historic hotels (like the buildings in the Knickerbocker era) from 'America's Gilded Age' going for small change – well, not exactly, small change. Yet some romantics sigh at the change as glamour makes way for reality. Well, of course, the upscale New York City hotels are not really about reality - at least not most people's reality.

Are You In The Market For A NYC Hotel?