The quick sale scheme is a very efficient one as more and more people are opting for it, and benefiting from its quick efficient service to sell the house fast. It is no surprise though, since this financial policy is custom-designed to suit dynamic times, when you need to get on with your life fast. Who can afford to hang on with a traditional house selling method where it takes months altogether. Fortune changes within days, and so it may be that your requirement is urgent.

Quick sale is the scheme to counter the slow procedure entailed by a long sale chain when you try to sell your house in the usual way. The long chain is due to the third parties involved in the sale process. Your real estate agent has to advertise your property and try to bring in a sale by contacting potential buyers. He also contacts other agents who might be able to inform other people who might be interested in your property. Apart from this sale chain that stands to test as it can collapse anytime due to disagreements and much as failure in negotiations. This procedure is also ridden with uncertainties since there are so many people involved and laxity on the part of anyone as inability to keep up with commitments can mean more and more delay for you. And if you have any urgent debts to clear, deferred house sale and the resulting delay in cash leads to natural frustration.

The better way out is Quick Sale, whereby the special firms buy your house directly from you and hand you over the cash you deserve. As quick and simple as that. You really do not need to go through all that trouble when you have such better options to go by. The property firms have cash available with them, and they ensure that you are spared of time-wasting formalities. It is a quick affair, as you would like it to be.



Repossession

It seems like Freddie Mac CEO Richard Syron is getting the blame for the housing crisis that hit the country terribly. Former chief risk officer David Andrukonis claims that we could have prevented the crippling housing crunch had Syron listened to him in 2004 when he warned the CEO against investing in risky mortgages – loans that can cause financial problems in the future.

Years later, we found ourselves immersed in the very thing that Andrukonis warned about: a housing crisis caused by risky mortgages. From a homeowner’s perspective, it’s frustrating to know that a large-scale problem like this could’ve been avoided had concerned officials been more receptive to signs.

But there is no use in pointing fingers now. The damage has already been done; we must focus more on solving the problem and making sure that it doesn’t happen again. Fortunately, the new housing bill, which provides a number of housing assistance measures for troubled homeowners, was signed into law last month. That takes care of solving the problem.

Now, how do we make sure it doesn’t happen again?

The answer is simple. We just have to be careful with the kinds of mortgages we purchase. Now that we know how risky mortgages can contribute to the problem, we must think of ways to avoid them. And we can do that by acquiring knowledge on the different types of mortgages to eliminate the possibility of being duped by lenders. Be familiar with the following:

· Adjustable rate mortgages (ARMs) – rates change depending on the interest rates in the marketplace. The amount you pay for this kind of mortgage will depend on the interest rates on the loan, meaning, you pay more if the interest rate rises, and less if it falls. There are 10/1 and 7/1 ARM. 10/1 ARM means that your rate is fixed for ten years and then adjusts each year. 7/1 ARM is the same; your rate is fixed for seven years and then adjusts every year. This however, has a high chance that payments will shoot up drastically.

· Option adjustable rate mortgages – you can choose the payment scheme for your mortgage each month. You can either pay a low minimum payment, pay-only the interest, or choose a 15-, 30-, or 40-year amortization schedule. This allows you to base your payment scheme on your monthly budget. However, there is a possibility that you don’t build equity for your house because you’re only making small payments, making you owe more on your house at the end of each month.

· Negative amortization loans – these sometimes result from option ARMs. This type of loan doesn’t lessen your balance because you pay so little that you don’t even cover the interest, making your balance stay the same. This will make you owe the bank more money, because aside from the principal balance, the interest rate you didn’t pay is added to your loan.

· Interest-only loans – allow you to make small monthly payments, especially if you have a varying income. You don’t pay off your balance right away because you only pay for the interest, so you end up not building any equity for your home. However, this makes it possible for people to purchase more expensive homes without paying a lot. You can also customize your amortization schedule with interest-only loans.

Hopefully, you’ll be able to make a sound decision in case you are planning to buy a house, now that you have an idea of how each type of mortgage works. This will allow you to identify which type works well for you. Another thing that would greatly help is communication with your lenders and brokers. If there is something that you need to clarify, ask. It never hurts to ask especially if you don’t want to be the one suffering from all the hurt in the future.

MortagesForEveryone.com ( http://www.mortgages-for-everyone.com ) is a site that aims to provide information about mortgage-related concerns like refinancing your home, interest rates, using your home equity, down payments, home improvement loans, and many others.

Article source: http://www.mortgages-for-everyone.com/news/how-to-identify-risky-mortgages/

 

 



Sell House Quick

Buying investment properties remains the best and quickest way to increase net worth and income yearly. However, the question that investors want answered is how to find lucrative investment properties in today’s market.



The task of choosing an investment property from among hundreds or thousands of offers is a daunting one indeed. Many investors are even more apprehensive when faced with stories of loss due to misrepresentation or fraud. What every investor needs is a reliable source of information and advice to rely upon while making this very important decision.



Buyers should also of course do their own research into the suitability and affordability of a certain piece of investment property. However, it would be very useful to rely on the expertise and experience of a company that would have consultation services. In this way, possible obstacles can be foreseen and a more comprehensive study can be made.



In choosing from the many companies claiming to help investors to locate and purchase the ideal investment property, buyers need to consider a lot the overall entity. A larger company with an extensive network may be able to offer more options to choose from.



Also, investment properties need to be studied in connection with the demographics of the area. Certain key points mark areas that are offer lucrative investment properties. First of all, the demand for real estate or housing should be greater than the existing supply. This forms the basic tenet for investment in order to realize income from the property immediately.



Another key point to consider would be the consistent and significant influx of population migration into that area. This way, even with additional supply of competing properties, the buyer is assured of a regular additional injection of demand from the immigrating people.



Employment opportunities in the area should also be above adequate. This means that the people who make up the demand have the opportunity and means to afford the housing and rent that the investment properties supply. A robust local economy will allow the renters also to provide more and more jobs to the people who continue to come in. This is directly related to the next key point which is income growth. The earning power of the people in the area should steadily increase with time, so as to allow rates for rent also to be increased.



Lastly, there should be a strong demand for properties for rent in the area. Although some areas may have a robust local economy and a steady migration of new people, if the demand for that area is for owned property alone, then rented properties may not be as lucrative.



As such, finding a lucrative investment in today’s market is attainable with a little research and certain factors in play. Buyers should thus remain optimistic that there are still many opportunities for profitable investment. A little homework and the help of a reputable real estate institution would be a move in the right direction.



Sell House Quick

How To Make A Repossession Stop

There is really only one way to actually make a repossession stop, and that is to contact your creditors before the repossession process begins. In some areas and states the creditor has to legally notify you of a repossession, while in other’s they don’t. In the case of a home repossession, you will be notified regardless of what state you live in but a car or other item can be repossessed with just one skipped or defaulted payment, depending on the financing agreement and purchase contract that you signed.

Making a repossession stop usually includes being able to make a lump sum payment on the outstanding balance of the defaulted payments, paying off the loan in entirety or coming up with a schedule of repayment for the missed payments plus the future payments that the lender accepts. Using these options to make a repossession stop are the basic options, there may be others such as selling the item and paying the lender from the sale. In most cases in the “short sale” scenario the original borrower will still need to add in some cash to make sure that the loan is paid off in full.

Making a repossession stop, even if it means taking out another loan, often makes good sense if you have the ability to pay both the original loan as well as the second loan. A repossession is a huge negative on your credit score and rating and will remain on your credit record for seven years. Is some cases a repossession, especially on a large item such as a car or a house can prevent you from being able to get a loan for long after the seven years as it is likely that there have been other non-payments of loans on credit cards or other debts prior to the repossession which will often show up after the repossession occurs.

It is important under these situations that you acknowledge and proactively work towards preventing the repossession. Stop hiding or pretending that if you don’t open the letters from the creditors they will just go away. This is probably the biggest mistake that consumer’s make and it is easy to correct. Usually if you contact the creditor either before or immediately after the default in the payment they will be willing to consider your suggestions and work with you. If you allow the default payments to occur more than one payment period or simply don’t respond to their calls and letters the lender has little choice but to move towards getting their property or item back.

Getting the advice of a credit counselor, attorney or other financial expert is a great idea if you are worried about repossession. Often working with these professionals will help your lender understand you are serious about correcting the problem and have a plan for the future.

 

Where To Find Repossession Laws

When you are facing the possibility of any type of repossession it is always tough to calm down and do the research you need to find out what repossession laws apply to your specific situation. It is also common to resort to rely on information on repossession laws from family, friends and even co-workers who are not usually well informed and truly knowledgeable on the subject. In reality not all items are subject to the same types of repossession laws and each state has their own specific repossession laws.

It is not reasonable to think that repossessing a house would be the same as repossessing a car or a computer system that is not being paid for. Generally most states provide a longer grace period or resolution period for higher priced item such as houses and properties and shorter grace periods for cars and appliances or electronics. In addition the contact that you signed with the seller regarding the payment plans, fees and repossession terms are also considered as part of the legal issues around a repossession. In some contracts even one missed payment may be grounds for starting the repossession process.

Each state has their own specific repossession laws and legal requirements for seizing property or possessions. It is important, as the consumer, to understand what the repossession company can and cannot do to take back the item, as if they don’t do it right you may be entitled to compensation and damages. Ideally each consumer that is facing repossession or has had something repossessed should consult with a qualified and licensed attorney to find out what repossession laws apply in their situation and if any legal issues were breached during the process. Some states require that all repossessions be filed through the court and the borrower or consumer provided notice of a pending repossession.

Other states allow the lender to start the process immediately upon breach of the purchase and finance contract; without notification to the consumer. Knowing which option is legal in your state is simple, just use any search engine to look for sites using the search terms of your state name and the phrase “repossession laws”. In addition research books at your local library or contact the Better Business Bureau in your area that can provide specific information for your state as will as the type of property you are facing repossession on. It is critical to use only the information provided on repossession laws for your state and the type of item that is in default payments. If you have the incorrect information you are more likely to make poor decisions that may end up costing you more money in the long run.



Rent Back

If you are looking for a bigger amount, then it is preferable to apply for Secured Loans. These types of loans require your property as security for the loan approval.

To avail secured loans you are required to produce any valuable asset of yours such as home, car, stocks or any valuable documents as security against the loan amount. These assets act as a security for the lenders. The amount approved under this loan is mainly depends on the value of the property. Therefore security of higher value will give you a bigger amount.

The amount obtained under this loan can be used for various personal purposes like purchasing a car, home renovation, consolidating debts, educational purposes, holiday, wedding and many more. The lenders would not restrict you regarding the utilization of the loan.

Under secured loan you can borrow a large amount of money for your all kinds of needs. Generally the loan amount starts from £5000-£75000. This type of loan has the main benefits of long repayment periods. The amount obtained can be repaid conveniently within a period of 5- 25 years. Since you get the amount against security, interest rate of the loan is very low. Therefore secured loans are cheap in nature.

Bad creditors who are struggling with arrears, bankruptcy, unpaid debt, late payments and defaults can also avail secured loan with ease. They can pledge security and acquire the same benefits as good credit borrowers enjoy.

Borrowers can benefit a lot from an online search for this loan. Free quotes can be requested from the lenders and a comparison can be done so that the best deal can be selected from the lot.

Now you can fulfill all your financial requirements with a bigger amount of money by providing a security. Longer term of repayment and low interest rate are main advantages of these loans.



Sell House Quick

So you finally found the perfect property that a tired landlord wants to sell. You have to wonder why they trying to sell. Do they want to upgrade their property with a 1031 exchange, have all the money they need selling you a ready made money machine, or has the tenant taken control and is now driving them nuts?

You are going to want to get copies of existing leases, statements of security deposits, move-in inspection reports, rent rolls for the last year, tenant contact information, tenant applications, expenses for the last year and any warranty information for warranties in place. Some buyers even go to the extent of getting statements from each tenant as to their interpretation of their obligations under the current lease. To do the latter, you will need the seller’s permission to contact the tenants and they may not want them to know the property is selling.

Once you determine the situation and if you still feel good about going forward you then need to consider a few things. What you do next will make all the difference in the world in your cash flow going forward. If the house is rented, after reviewing the existing lease, you will want to include language in the purchase agreement about receiving current months rent and security deposit at the closing. We make the leases attachments to the purchase agreement.

We like to close on the fifth of the month, and request the seller to pay us the full monthly rent at closing. It then leaves the issue of rent collection to the seller if the tenant is late with their current months rent. It also minimizes the amount we have to come up with at closing.

The rent roll will give you payment history so you will know up front which tenants pay on time and which are habitually late. For the ones with the bad habit, you will know to take immediate action when they are late with their payment so they will know you mean business.

Last years expenses will include payments made to service providers. The list may reveal that you have to pay certain utilities such as water & sewer of trash pick up and this information may not have been mentioned by the seller in the negotiations. The last thing you want at the purchase is the seller canceling a service and the tenant being without water or trash pick up.

You will need to send a letter of notification to the tenant of the change of property management, the date of change, where to send future payments, who to call with maintenance issues and the bank account number where their security deposit is now being held. You can use this occasion to reemphasize your expectations of the tenant’s performance under the existing leases.

Use the transition of property manager to meet with the existing tenants and find out if anything is in need of repair. This goes a long way toward good will, and it gets you into the property to do a quick inspection.

Handle the transition in a businesslike manor; remember now you are in the property management business.



Real Estate Professionals

Although the problems regarding subprime mortgage may seem numerous, they are not that complicated. The core of this situation has its roots in the fact that many consumers were able to buy houses that exceeded their financial condition or worse, they could hardly afford any kind of house. The consequences of these actions were rapidly noticed and the results turned out in a level of the interest rate that is considered as unusual and hard to control and, thus an expensive mortgage payment was created.

All these subprime mortgage problems are also affecting people’s lives and the explanation is very simple. Even if the home loan of many consumers has increased quickly, their budget has not changed. But they still must look for solutions to find the necessary money and keep paying their bills. There are times when solutions are easy to be found, but there are times when answers and right decision are critical. Plus, when you are being affected by the mortgage crisis that as lowered the house value and your mortgage costs are increasing, the solutions are not so easy to be determined. This phenomenon is all over the country and what is worse is that a situation considered insignificant is now getting out of control.

Most homeowners are afraid that their homes could be caught into foreclosure. Because many lenders are stiff and not willing to cope with borrowers, until now there were millions of borrowers who have been displaced from their homes. Having this in mind, we can find many examples of problems everywhere in the country and with no matter for race or gender. Although in some parts of the country the crisis seems to have ended, there are cases in which the mortgage crisis spreading could discover older victims that had once been displaced.

The most common examples of subprime mortgage problems imply middle class borrowers, but there were also cases of upper class borrowers who have encountered problems. Some changes as the decrease of the currency and dollar value, the price of gas and many other usual household necessities have increased, but the budgets have stayed the same and do not cover the excess spending. Therefore, more and more borrowers are in the facing the difficult situation of not having the possibility to pay their payments and must find rapidly solutions to save their homes. For this reason, there are families who are trying their best to juggle payments and increasing their credit debts in order to survive.

The reality is a cruel one and in which there are many borrowers from all over the country converted into victims by the strong impact of subprime mortgage crisis. You can find examples of subprime mortgage crisis everywhere and its effects are even deeper. Besides the fact that there are a lot of homes in foreclosure, more dramatically is the case of those homeowners which been left without a roof over their heads and are struggling to find a new place so that their family could continue living. How much time this situation will last it is still uncertain, but answers are starting to be found and for homeowners, hopefully it will soon end.



Quick House Sale

 

Can you imagine paying 8 month’s rent just to move into an apartment? Oh, and none of it will be returned! Well if you come to Japan and want an apartment this is a fact. That is where this other option comes in “Gaijin Houses” also known as Guest Houses!

A guest house or “gaijin house” as we say in Japan is an inexpensive type of accommodation for foreigners, who stay in Japan for one month or longer, and who want to avoid the hassle and the expense of renting and furnishing a regular apartment.

Renting an apartment in Japan not as expensive as most people think. But there are many fees applied when you move in. This is where it becomes a hassle. There is the realtor fee, deposit, gift money to the landlord, and a few others thrown in for fun. Each fee is equal to one month’s rent. Therefore your first month’s rent could be anywhere from 4-10 times the amount of rent. Only the deposit will be returned…hopefully.

There are many guesthouses in Tokyo, but they are sprouting up all across Japan. Guest houses are a much better deal. With only a small deposit and no extra fees, they provide safe, clean, affordable accommodation while searching for a long term apartment or on a short term stay. They come equipped with kitchen facilities, Internet access and laundry facilities, and each room is usually furnished with a small fridge, TV and a futon or bed. Since the actual features and overall quality of each guest house can vary enormously, however, a resource like Gaijin House Japan can make the difference between a successful and a miserable stay in Japan.

When trying to find a guest house it can be a dreary task not all guest houses have great English websites. And not knowing the country well you may have a hard time knowing where to look. Enter “Gaijin House Japan!” Gaijin House Japan’s main feature is a continually updated series of articles on every guest house across the length and breadth of Japan. Allowing travelers to comment on the guest houses they have stayed in, thus providing an “in person” view of Japanese guest houses – the good, the bad, and the dirty!

Features of Gaijin House Japan include:



Guest House FAQ – All the common questions asked about Guest Houses.

Guest House Articles – Detailed articles on every guest house across Japan, including photos, videos and travelers comments.

Gaijin House Lounge – A friendly forum where members can talk about travel in Japan and share helpful tips.

100% FREE Classifieds – Look for share-mates, roommates, rooms, and even “sayonara sales” for selling your stuff when you leave Japan or buying stuff when you arrive.

Useful Links - Learn even more at other recommended websites about Japan.



 

 

If you are planning on visiting Japan then this is a must bookmark website!

Helping travelers find the best guest houses across Japan as easy and quickly as possible. http://gaijinhousejapan.com

 



Sell and Rent Back

Reasons can vary as to what landed you in a financially crunch situation and you may be looking for a quick remedy out of it. House sale is one of most viable solutions to take care of your cash-shortage. At such times, quick house sale gives you the facility of a guaranteed sale that is quick as which meets the time-bound demands of the situation.

In cases of contingency, it so often happens that you cannot afford to wait for too long to get a house sale. However, this is precisely what happens in traditional house selling. The affairs usually drag on for months. Unpredictability sets in upon the deal, and frustration sets in upon your mind. Such uncertainty of situation needs to be avoided in today’s dynamic times where things move fast and you ought to move fast along with it.

You can contact the quick house sale firms that not only possess the requisite expertise for the job but are also equipped with the tools to help you carry out a smooth and easy sale process. Since they negotiate directly with you, keeping the third parties out of the affair, you are ensured of a quick deal anyway, because you are effectively saved from the long sale chain which drags on the processes in conventional house sale, with the further unpleasant prospects of a chain collapse at any time due to failure in communication or a disagreement over simple things.

It is advisable thus to avoid traditional selling methodologies and to avail to Quick House Sale facilities offered by these special quick sale agencies who can be contacted over the Internet. The online method renders the process even more convenient and faster. After these professional agents estimate your property, they come up with a offer of purchase, in keeping with the current property prices in the market.



Passive Income

It has been a dismal year for house prices, according to the Global Property Guide’s latest survey of publicly-available house-price time-series for the year 2008. And seen from a global perspective, the downturn is still accelerating.

The collapse of the world’s housing markets can be seen from three points of view, and unfortunately, all of them reinforce the bad news.

During 2008, the downward price momentum accelerated, as compared to 2007.

Only 2 countries saw positive momentum in 2008 (a slower downward house price movement than last year, or faster upward movement), while 28 countries saw their housing market momentum deteriorating, compared to the previous year. The two countries with a positive momentum were Germany and Switzerland.



During 2008, house prices fell in most countries.

During 2008 only 8 out of 32 countries saw house prices rise, after adjustment for inflation, while 20 countries experienced house price falls.

In contrast, during the year 2007, the downturn was just beginning, and only 6 countries saw house prices fall, while 24 countries saw house prices rise (all figures inflation-adjusted).

Many house-price falls during 2008 were extremely severe. Countries with house price falls of over 10% during 2008 were Latvia (Riga) (37%), Lithuania (Vilnius) (27%), the US (20%), the UK (18%), Iceland (16%), Ireland (12%), and the Ukraine (Kiev) (12%) (all figures inflation-adjusted).

During the final quarter (Q4) of 2008, the downward price momentum significantly accelerated, as compared to Q3, suggesting that the situation is deteriorating.

During 2008’s final quarter, 9 countries saw house price falls of 5% or more during just that quarter. Price drops of more than 10% during this single quarter occurred in three countries – in Latvia (Riga), which saw price falls of 15%, in Ukraine (Kiev) (13%), and in Hong Kong (15%). Other countries with Q4 house-price falls of 5% and over, included the UAE (8%), Lithuania (7%), Iceland (7%), Singapore (6%), Bulgaria (5%), and the UK (5%) (all figures inflation-adjusted, except UAE).

These price falls were much greater than during the previous quarter, Q3. During that previous quarter, only two countries experienced house-price falls (inflation-adjusted) of 5% or more, and no countries experienced house-price falls of more than 10%.

REGIONAL SURVEY BY GLOBAL PROPERTY GUIDE

Europe has major problems

The Baltic countries of Latvia and Lithuania suffered the hardest price falls both in nominal and real terms. In Riga, Latvia, the average price of standard-type apartments plunged 37% during 2008. Prices have been going down in Latvia since late 2007, after a remarkable increase of about 70% in 2006. The most alarming decline took place in the 4th quarter, when prices declined by 15%, the steepest quarterly drop in real terms in any country. These price falls were triggered by increased interest rates, and by the tightened credit rules which Latvia imposed in 2007.

Average prices of apartments in Vilnius, Lithuania, fell by 27% during 2008. House prices started slowing in mid-2007, and crashed in early 2008.

House prices in the UK plummeted by 18% in 2008. Although mortgage interest rates dropped slightly, to 4.48% in December 2008, the number of loan approvals for house purchases fell 58% in 2008.

There is serious trouble in Iceland (house price fall of 16% during 2008), Ireland (12%), Ukraine (12%), Malta (9%), Portugal (8%), France (8%) Finland (7%), Norway (6%) and in Spain (6%).

North America’s woes

In the US, the centre of the global financial crisis, in 2008 house prices fell 20% according to the Case-Shiller house price index, which emphasizes urban areas. OFHEO and FHFB figures, which are associated with Fannie Mae and Freddie Mac loans and have somewhat lost credibility, suggest a smaller decline of 6% and 3% respectively, during 2008. The US government recently approved a $ 787 billion economic stimulus package, of which $275 billion will be allocated to rescue the ailing housing market.

Canada has been much less affected than the US.

Pacific heads down

Both Australia and New Zealand saw house price declines during 2008, of 7% and 8% respectively.

Asia no longer insulated

Housing markets in Asia have not been insulated. Singapore, Hong Kong and Philippines recorded house price falls during 2008.

Singapore’s private residential prices dropped 9% during 2008, in sharp contrast to the 26% price increase of experienced during 2007. The developed countries’ economic troubles adversely affected Singapore’s exports, and during 2008, output in the manufacturing sector, particularly of electronics, precision engineering and chemicals, shrank by 10.7%. Singapore was officially in recession in Q3 2008.

Hong Kong has been badly hit by the crisis. House prices were down by an average of 6% in 2008. But during the last quarter, Hong Kong experienced a severe decline in prices of 14%.

In Makati, Philippines, prime 3-bedroom condominium prices fell by 2% during 2008, after an 11% price rise during 2007. Nevertheless construction of high-rise residential buildings continues, with residential condominium stock rising by 7% during 2008, according to Colliers Philippines.

Japan recorded modest Tokyo condominium price rises of 1.2% during 2008. On the other hand, land prices in Japan’s six major cities fell by 6% y-o-y to Sep-2008.

In Shanghai, China, house price rises slowed to 5% y-o-y by the end of 2008, after peaking at 30% y-o-y to May 2008. However Shanghai is likely to be somewhat exceptional, and Xinhua News Agency reported house prices declines in 70 major cities during 2008. Shenzhen suffered the hardest fall, with prices down by 18% during 2008

UAE on shaky ground

In Dubai, UAE, despite the bleak global picture, saw surprisingly large dwelling price rises of 41% during 2008. However during the year’s final quarter, prices fell by 8% in nominal terms. This downturn is attributable to strongly tightening lending criteria, an increase in interest rates, multiple layoffs, and alarm among buyers.

Forecast: No recovery in 2009

History suggests that in a crash, housing markets take many years from peak year to full recovery. In view of this and of the pessimistic IMF forecast for the global economy, no real recovery is likely in the global housing markets this year.

The IMF has predicted that the world economy will grow by 0.5% in 2009, the lowest level in 60 years. GDP in advanced economies is expected to decline by 2% during 2009. The United Kingdom and Japan will be hit the hardest. Output in the UK may contract by 2.8%, while Japan’s may fall by 2.6%.

Growth in emerging economies is expected to slow to 3.3% in 2009, down from 6.3% in 2008. Developing Asia is forecast to be the least affected, with growth of 5.5%. China’s economy is predicted grow by 6.7% in 2009, but this is a substantial decline from 9% growth during 2008.

We cannot be optimistic for five reasons:

• Valuations still clearly remain stretched in most countries, in terms of price/rent ratios.

• Economic growth is slowing or negative in many countries, which is negative for housing values.

• There are no signs that banks are becoming more willing to lend.

• The unprecedented nature of the financial system’s collapse has greatly added to the difficulties facing the world’s housing markets.

• Some national governments are experiencing difficulty in refinancing their national debt, putting their currencies under pressure. Currency instability is likely to aggravate housing sector problems in countries where many loans were taken out in a foreign currency.

The positive news is that the US government and several others are acting with vigour, as has the IMF. Nevertheless, there is a long tough road ahead.

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Description of the Global Property Guide:

The Global Property Guide (http://www.globalpropertyguide.com) is an on-line property research house, specializing in analyzing residential property valuations around the world.

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Sell House Quick