Posts tagged with new homes

(II) HOMES in China

27 August, 2011 No Comments

This post is based on the conclusions of a Spanish entrepreneur who moved with his family to China, and he did his own market research to find a home there.

In China, homes are concessions of 70 years (apparently, they are considering to extend the concession to 90 years). If an investor purchases a brand new home, the concession is for the whole period.

In regards to the Real Estate second hand market;

* If the home is bought in the second hand market, the new owner should subtract the years that the home was previously inhabited to the total period of the concession.
* An interesting fact is that there is small market for rehabilitation of buildings or homes. Chinese are not used to perform regular maintenance to a home (ie; to give maintenance to the building’s garage or facades, or to paint the stairs and the house itself). This leads to visible impairments in a short period of time and therefore the buyer chooses to buy a new apartment or house. (This might be a possible gap in the market that should be carefully studied and be a great business opportunity).
* It could be inferred that second-hand homes in China are not as attractive as new homes. The vast majority tend to search for first hand properties due to the large existing supply across the country. We are talking about an immense market of new homes. However, in the country’s main cities, especially in the city centre (first ring) where the housing market has settled, supply of homes in the second hand market does exist.

The loans offered for the purchase of a home, can amount to 50% of the total investment. NO matter if home prices are fixed, one should always negotiate with the seller, in addition to a 2% discount for early payment. The realtor’s commission is paid by both parties.

Since China is a developing country of considerable size, large cities such as Beijing or Shanghai are not the only ones experiencing this kind of growth, existing cities in the suburbs referred to as “third” or “fourth ring” also follow this trend. These peripheral areas are usually well connected with either high speed trains or a growing subway network.

High speed train networks communicate in a quickly manner people’s homes with the city centers and workplaces. As well as the subway, which makes up the price a house along a station and with good communication (as would happen here).

There are ghost towns, mostly bought by investors who want to own. Taking into account that his mentality is geared toward work all day, have few expenses, and thus, saving. This allowed them to pay a flat to a son (usually one child per family), although now  it is changing, as children salaries are older than the parents’.

In order to appreciate the different areas, despite the large price increase that homes have suffered throughout the country, we see that:

The Hainan Province is a high class residential area with tax advantages. There are promotions of modern design, with resorts and golf courses. It is a very nice, and quite wet area due to its proximity to the sea, located in the south of the country. It is best to buy high apartments and away from the sea to avoid deterioration. The capital, Haikou, and the area of Sanya are also quite expensive. Sanya is a tourist town with an artificial island connected by a bridge. The group of MAD Architects has designed PHOENIX 2, a luxury destination that will be completed by 2014. Since Northern China is very cold, this area is considered a good summer place to spend under the sun. Its target customers are Russian and Northern Chinese. The price of housing in the area is rising at a fast pace, reaching five times its annual price.

Other parts of China are more affordable. Areas that can be a good place to reside are: Guangzhou (near Hong Kong), and Guiling, a beautiful city that will be connected to Shanghai by a high speed train (340km / h), that is still under construction. The price of the area will rise considerably. As of 2010, the highest price to pay would be around 2,000 € / m2, but one can also find housing for 200 € / m2 outside the cities.

Beijing, the capital, has a very extreme weather, such that good conditions only last two months because August can reach up to 40º C. It’s a dense city in terms of people and with high pollution levels. It would be interesting to buy a house in the capital for investment purposes.

Invest in Natal – Brasil

17 March, 2010 No Comments

Last week we were in the real estate fair Natal (Brazil), IX Salão Imobiliário DO RN, held in the Natal Convention Center, from 10 to 14 March 2010.

The sensations that caused us Natal just when we arrived in the city, is that it’s in urban development, where currently are construction a large number of apartment buildings, condominiums and other real estate developments, both to the consumption of Brazilian emerging middle class to foreign investors who see Brazil as a rising economy and potential return on investment within a short period.

Natal is the capital of Rio Grande do Norte in northeastern Brazil. Those who live here can enjoy over 400km of magnificent beaches, many of which are protected by reefs and natural pools, interspersed with rivers, freshwater lakes, sand dunes and cliffs of colors. Natal is very clear, cheerful and sunny.

In the real estate fair, we could see ourselves that Brazil is in a great economic growth. Building contractors, property developers and real estate companies were present to offer visitors the many real estate developments for sale in Natal city, as in the rest of the state Rio Grande do Norte.

All these real estate developments will be announced very soon in the New Homes Real Estate Portal.

New Homes International Portal

2 December, 2009 No Comments

The aim of New Homes International Portal is to provide our visitors information about the best international real estate developments.

New Homes International Portal

On the New Homes International Portal you will find details of new property developments currently under way all over the world. You will also find a large number of property development companies providing information about their latest new property projects, together with individual property owners advertising new homes for sale.

In addition to the advertised real estate developments, this site is offering helpful information to the buyer in the different
countries: legal steps to buy real estate, taxes, socio-politic, economic and general ideas of the choosen country to invest in. All together will be a basic tool for investors to decide between the different countries.