Realty Zone

Dubai Investment Properties (DIP), one of the leading real estate developers in UAE, today announced the launch of its exclusive multi-million ‘Sunset’ mixed-use development project in Dubai. The signature ‘Sunset’ development will include a high-end luxury shopping mall, boutique offices and lavish residential apartments in the heart of Dubai, along beach road in the upscale Jumeira 3 neighbourhood and stretching out into the waters of the Arabian Gulf.

“Sunset will be a unique development combining the best in architecture and the latest ‘green’ technology initiatives. It will be a real piece of art, where sophisticated, intellectual and brand-conscious customers can indulge their tastes for opulence and high living, with exclusive facilities and services. Sunset will set new standards in shopping in Dubai and will become the preferred venue for customers, who appreciate discretion, exclusive service and an ambience of elegance and class,” says Mr. Francois Faure, Executive Director, DIP.

With the launch of Sunset, Dubai Investment Properties plans to set a new parameter in luxury retail experience for customers looking to buy high-end international brands and become the most prestigious address for lifestyle seekers in Dubai. Sunset Mall will host over 97 outlets with a strong retail mix, including new high-end retail store concepts as well as international boutique brands. The mall will also offer customers VIP services and fine dining experiences with gourmet food restaurants, all of which will offer panoramic views of the Arabian Gulf.

Sunset will feature engaging architecture designed to showcase the best of international and local designers. Arkiteknik International, the architects for this development, have combined water, glass and steel at the Sunset Mall to offer retailers and guests an experience like never before. The interior of the Mall will feature the latest innovations in LCD and LED technology, offering visual effects not seen anywhere else in the city.

This year will be among the worst for the U.S. commercial real estate industry, as unemployment leads to a drop of as much as 30 percent in rents in some places and more office towers from Washington to Chicago and Los Angeles sit empty, according to several research reports from large commercial real estate service companies.

“2009 is going to be dismal for commercial real estate,” said John F. Sikaitis, director of research for Jones Lang LaSalle, a real estate services company. “Demand for space is way down. Sales activity is down. Rents are falling dramatically and vacancies are increasing. That’s forcing landlords to compete and lower their rents.”

Nationally, rents are expected to drop 10 to 15 percent. Manhattan rates could drop as much 30 percent. Nationally, the vacancy rate is likely to rise to 18 percent from 15.3 percent, Sikaitis said. Especially hard hit could be places where there’s a lot of office construction, including the Washington region, Miami, Atlanta, Chicago and Houston.

This comes as billions of dollars in loans on office buildings, malls and warehouses are coming due in the next few years and real estate owners are struggling to refinance their deals. That could lead to banks taking back properties and force some owners to sell at a loss.

Roughly $107 billion worth of hotels, office buildings and shopping centers are in trouble, ranging from mortgage delinquency to foreclosure, according to a report from Real Capital Analytics, a research firm.

“It’s not going to be a good 2009,” said Dan Fasulo, managing director at Real Capital. “We’re at the point where a normal, functioning market doesn’t exist. Buyers are there, but they don’t necessarily want to make an acquisition. Pile on top of everything that we don’t have a functioning debt market. It creates paralysis in the market.”

New York is projected to be among the hardest hit. The financial services industry there has been decimated by job losses, and companies are dumping office space back on the market. In Chicago, a 12 percent vacancy rate is expected to reach 15 percent or higher by the end of 2009. And in Orange County, Calif., vacancy rates could hit 19 percent from 15 percent in 2007.

You have probably read all the information on the market as it relates to real estate investing and are well aware that many of the world’s millionaires made their fortunes in the real estate market. As a result I’m sure that you feel ready to throw your hat into the ring and begin your own real estate portfolio. There is certainly nothing wrong with this as an investment strategy though there are many wrong ways in which an investor can go about the process.

Flipping properties is my field of experience and a good deal of what will be discussed here will relate to flipping properties though some of the information can be crossed over into rental properties and other types of real estate investment. Even personal property can be a real estate investment. Real estate is one of the few forms of investment in today’s society in which you can actually see the changes as they are occurring.

It is truly amazing to watch a property that was once neglected and in a state of disrepair suddenly spark back to life right before your very eyes. There is a lot of work involved in this process though and this is often overlooked. Much like labor in light of birth. The pains are quickly forgotten when looking into the face of the outcome.

Keep these things in mind for your first time and you should be well on your way to future success. You should also realize that the first few investments are learning experiences more than anything else. If you do not achieve the success you were hoping for (or success to a lesser degree than hoped) you should not give up on the dream all together simply learn from the mistakes you will make along the way as well as the mistakes that others have made.

Real estate investing is not an exact science. There is no formula in this business that guarantees success. Even seasoned professionals will find the occasional bump in the road even on a property for which they had high expectations. Stuff happens along the way that cost money, delay the project, or set the project back. These things are stumbling blocks no doubt but should not be allowed to derail the entire project. When these things happens go back to your original plan, reassess the situation and create a new plan with the necessary adjustments in mind. The key is in sticking to a plan the entire time and never throwing the plan out the window and flying by the seat of your pants.

Your plan will be your lifeline throughout the project. You need to have a plan and a budget in writing. One great rule of thumb is that you set aside double the amount of money you plan for in your budget. This gives you a bit of a safety net for the inevitable things that will go wrong. Things will go wrong on almost every flip you encounter. Even the seasoned professionals that have television shows about their flipping efforts encounter problems in almost every single flip, rehab, or renovation.

For your first few investment purchases it is recommended that you purchase properties that need little more than minor cosmetic repair rather than complete rehabs or renovations. This allows you to get your feet wet without the incredible risk of going off the deep end mentally, emotionally, and financially. These properties represent lower profits but also lower risk. They also allow you to gain valuable experience and raise a little capital in which to invest in properties requiring more extensive work in the future.

Keep your eye on the carrot at the end of the project. Far too many would be property investors give up just before they reach the point of true profitability. The goal is the profit at the end of the project.

For those of you who watch on the edges of your seats week after week as people on cable television seek to successfully turn a lump of coal of a house into a diamond that is suitable for kings and queens of the middle class to call home it is quite possible that you have considered ‘flipping’ a home of your own. This is a great way to make a nice tidy profit in real estate rather quickly if proper planning and attention to detail is made in the process.

Believe it or not, when done correctly and within reasonable time and budget constraints, projects such as this can be a great challenge that is also a ton of fun. First of all, the average citizen isn’t allowed to play with power tools on a regular basis and Tim Allen has taught us exactly how fun power tools can be. Keep in mind that he has also taught us just how dangerous they can be as well. The point is that it is often fun to learn new things and for many of us, working with power tools is a new thing. For those experienced with power tools, there are still likely to be some fun new things on the horizon when doing a real estate flip.

Even if power tools aren’t exactly your cup of tea, perhaps you have always wanted to try your hand at creating a color scheme or a trial run at renovating a kitchen or bathroom. Beyond a great way to have fun while turning a profit, a house flip can be a great practice session for changes you’d like to make within your own home. Most of us learn best by making mistakes. Isn’t it best to make mistakes with Formica or Corian (r) rather than the granite countertops we’d prefer in our own kitchens and baths?

This also gives you the opportunity to see how things you are considering for your home look in other homes before incorporating them into your home. If you are considering a certain type of laminate flooring, try it in a house that you are flipping. This is the ultimate opportunity to use trial and error when making design and décor plans for your own home. Even better is the fact that you can be working towards a profit as you do just that and I personally do not know of anyone that does not appreciate a nice hefty bit of profit every now and then.

Another fun thing about flipping real estate is that you often get the opportunity to work with the people you love. This is a great opportunity to get friends and family involved in the process of creating a masterpiece right by your side. The price for their time and labor is often some good music, a tasty pizza, and a couple of cold sodas (or beers provided the work is done for the day and everyone is walking home of course).

Even children can be of some help in these projects though you want to be very careful that they aren’t too much help with power tools and paintbrushes. Typically have older children help with landscaping projects and find someone to care for younger children (the tools, fumes, and temptations for small children simply may prove too risky to be practical).

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.

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.”

Buying Real Estate for Your Family

The very best and most enjoyable reason to purchase real estate by far is in buying a property in which your family will live and grow together. There is a lot of fun involved in finding the perfect place for you and your family to call home. There is also a great deal of stress involved as well and that should not be overlooked.

Some things to keep in mind when searching for the perfect property for your family are the following:

1) Make your first step the step of finding a realtor or buyer’s agent that you are confident has your needs, desires, and best interests at heart. Your realtor can prove to be a lifesaver when you’ve reached the final hours before closing and the sky looks as though it’s going to fall. Far more than that though, your realtor can help you find the home that you simply cannot see your family living without.
2) Once you’ve found a real estate that you trust to help you find a home for your family it is time to identify the things that are absolute necessities in your search and those things you can live without. The most important thing to decide upon is a budget that you are comfortable living with.
3) Once you’ve established a budget you need to decide the features that are important to meet the needs of your family. The number of bedrooms, bathrooms, square footage, and yard space. Do you need a fenced in yard or a basement? These things are important as they do affect the comfort and in some cases safety of your family.
4) Another important thing that must be considered when purchasing a home for your family is the neighborhood. This is more important than many people may realize. It is well worth having a smaller home in a neighborhood that is poised for growth rather than a larger home in a neighborhood that is in the state of decline or on the verge of the state of decline. Crime rates in the neighborhood and the school district are other things that need to be considered as well before deciding to view a potential home.
5) You should also take the time to look at several properties before deciding on one property over another. The more properties you see, the better the chances are that you will actually find the one perfect property for the needs of your family home. The more homes you see the more you will learn about your likes and dislikes. You will also get ideas about possibilities and things that can be added on to the home you eventually select. Regardless, the more homes you see, the more choices you have when the time comes to make a decision.
6) Never offer the asking price right away. Even if you are willing to pay the full asking price, offer something a little lower and allow some negotiating room. Be sure, if you truly want the house in question not to be insulting with your offer but make the offer just the same. Some things you may want to consider when you make your offer is how quickly you are likely to need a new roof, new flooring, new heating or air conditioning, and countless other improvements that may need to be made on the property. Each of these things costs money and they add up over time. If everything is fairly recent and in good working order you may want to consider that when making your offer as well.

You will find many houses along the way but few will reach out and impress themselves upon you as home. Those are the ones you should consider long and hard. Weigh the options, the prices, and your likes and dislikes. If you do all of this you should be well on your way to the home of your dreams.