Realty Zone

Real estate investment remains one of the consistent ways of securing guaranteed returns on investment, even in the face of the current world financial crisis. It does not only assure investors of equity returns on investment, it can also be used as a regular income provider, either through rental income or outright sale.

Real estate also allows for a global playing field for any interested investor regardless of status, nationality or educational background.

The Group Managing Director, Xpress Property Services, Mr. Segun Alli, says that easy money can be made with proper study of the property market and available funds, especially in off plan purchases and property flipping.

According to him, starting a real estate business will depend on the level at which one is beginning. It may be as a one short investment, creating a portfolio or as a profession. But whichever level, one decides, good study of the property market globally is the best initial investment to make before financial commitment. However, depending on the country one chooses to invest in, a bit of cash as equity contribution may be required except where there is no form of mortgages, then a significant amount of money may be required to get started. In summary, one’s financial liquidity will determine his entry level and no fixed amount can be used as a yardstick.

Alli says, “To be a trusted player in the real estate world, integrity is vital and so the issue of regulation remains a good mechanism to enhance public confidence and maintain standard by all players and practitioners. In the United States, for example, to be a realtor, you require both federal and state licences with a mandatory renewal annually and some yearly hours of continuous education, unlike in Nigeria and in some European countries where there are limited regulations and some voluntary membership.

“The best way, however, is to carry out a proper and detailed check on the transactions and players with a lawyer involved at all times. Never deal from the briefcase but with a registered physical office.”

Qualifications required as a realtor depends on country of practice. In the US, for instance, you have to be educated as a realtor and licensed to practise. In the United Kingdom and Nigeria, basic qualifications are required but no active legislations yet to pursue the implementation. However, a good knowledge of existing laws within each market is key.
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Germany on Sunday guaranteed all private bank accounts and negotiated a 50 billion euro ($69 billion) bailout deal for Hypo Real Estate AG as Europe’s second largest economy sought to ward off financial crisis.

The Finance Ministry and private banks reached a deal late Sunday to infuse an additional line of credit worth up to 15 billion euros ($21 billion) into the embattled real estate giant, expanding on an earlier 35 billion euro ($48 billion) bailout plan that would have found the government and private banks splitting the bill.

The earlier deal fell apart Saturday when Hypo announced that a consortium of unnamed financial institutions had backed out. That prompted banking executives and lawmakers to convene in the capital for feverish talks toward the new deal they unveiled late Sunday.
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Casamia Star Gesamtplanung Real Estate, a leading German Developer and Broker, has asserted the importance of Cityscape Dubai in exposing the real estate market to the local and foreign investors, developers and buyers.

This occasion provides an opportunity for companies and institutions to share knowledge, exhibit services and launch new projects.

When asked about the event, Mr. Aqib Salam, General Manager of Casamia Star Gesamtplanung, said:

Cityscape Dubai is one of the most anticipated events in the UAE for the role it plays in refreshing the vibrant real estate industry after the summer. It is also appreciated for the information shared among key stakeholders revealing iconic projects in Dubai. These colossal projects reflect the security and potency of the UAE market making it capable of facing the world economy crisis.

Mr. Salam added, ‘Cityscape Dubai further promotes and develops the real estate market across the globe and sets the market direction and trend for the upcoming year. It provides a common platform that brings industry experts together to discuss regional and global development in the sector disseminating information and introducing new technologies related directly or indirectly to the industry.’

After launching Frankfurt Residence and Tulip Residence, in Marmooka City, Ajman, Casamia Star is currently in the planning phase for some exciting residential and hospitality projects to be unveiled in a short period of time in Dubai, Ajman and Ras-al-Khaimah. Among further upcoming agreements, the company has signed an agreement with the Chinese Best Eastern to exclusively sell and market for their projects in the UAE worth Dhs400m.

Japan’s stocks dropped, driving the Topix index below 1,000 points for the first time since December 2003, after the global credit crisis deepened in Europe and the yen jumped, cutting the value of overseas sales.

Mitsubishi UFJ Financial Group Inc. plunged 9.2 percent after worsening credit conditions forced new bailouts of Hypo Real Estate Holding AG and Fortis. Nintendo Co., which gets 80 percent of its sales from overseas markets, lost 8 percent as the yen surged to its highest versus the euro since May 2006. Nippon Steel Corp. sank 7.8 percent on concern demand will wane.

“This is probably the worst market I’ve ever seen,” said Hideo Arimura, who oversees the equivalent of $1.9 billion at Mizuho Asset Management Co. “It’s totally dark and there’s nothing that prompts investors to buy stocks.”

The Topix fell 48.92, or 4.7 percent, to close at 999.05 in Tokyo. Only 93 of 1,714 members included in the index rose. The Nikkei 225 Stock Average declined 465.05, or 4.3 percent, to 10,473.09.

The Nikkei lost 8 percent last week, its biggest drop since August 2007, on concern the passage of a $700 billion bank bailout by the U.S. will fail to stimulate demand for Japan’s exports. The benchmark is down 32 percent this year, set for its second straight annual drop.

Mitsubishi UFJ, Japan’s largest listed bank, lost 9.2 percent to 806 yen, the steepest plunge since October 2003, while Resona Holdings Inc., the fourth biggest, plummeted 9.5 percent to 119,800 yen.

Europe Growth

Germany agreed on a $68 billion plan for commercial property lender Hypo and BNP Paribas SA, France’s biggest lender, said it will take over Fortis in Belgium and Luxembourg. The bailouts in Europe follow failures in the U.S., including Bear Stearns Cos. and Lehman Brothers Holdings Inc. that spurred the $700 billion rescue package.

The European Union’s failure to come up with a unified approach to tackling the financial crisis at Saturday’s summit meeting of the EU’s four biggest economies shows that European politicians haven’t yet realized the dimension of the risks facing the financial system, write German media commentators.

Governments effectively agreed to go it alone in shoring up troubled financial institutions in their countries — the wrong response given how interwoven Europe’s financial markets are.

The divisions were highlighted on Sunday when Germany became the latest country to give a state guarantee for bank deposits in a move that has put other countries like the United Kingdom under pressure to follow suit.

Now Germany, Ireland, Greece, Denmark and Austria have given such guarantees, reflecting concern that the crisis could cause a disastrous rush to withdraw cash from banks, media commentators write.

German editorial page writers say it’s no longer enough for politicians to point the finger of blame for the crisis at bank managers. The current escalation of the problem isn’t due to reckless speculation and poor risk management, they argue, but rather the threat of a systemic crisis that is undermining confidence in the entire banking system and preventing banks from lending each other money.

At this point, commentators write, it’s only the governments that can stop the crisis spreading.

Hawaii Real Estate Continuing Education Information Now Available Online

The Hawaii Department of Commerce and Consumer Affairs’ Real Estate Commission encourages the state’s nearly 15,000 active licensed real estate professionals to access key continuing education information online. The new service is available through the state’s official Web site ( http://www.eHawaii.gov).

This new system provides Hawaii’s real estate licensees with the ability to view the number of continuing education (CE) hours required and earned for the current licensing period, their CE history, and to search for future CE courses being offered by approved providers. Real estate licensees are also given a greater level of control by accessing and reprinting their own course completion certificates for the current and previous certification periods. In the past, this could only be done by the approved CE providers.

In addition, real estate principal brokers and brokers-in-charge may monitor and view the current CE hours, CE history, and license status of all licensees associated with the brokerage. The system is updated daily and is simple to use.

“This new system integrates all parts of the continuing education process, from provider course submission and approval to real estate licensee access of continuing education information, course offerings, and approved providers,” said Neil Fujitani, supervising executive officer of the Real Estate Branch. “This integrated service will help manage and efficiently serve our real estate licensees.”