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Miktay wrote:Real estate still a good investment
Thursday, March 24 2016
Increasing mortgage rates will not discourage people from investing in real estate, according to Mark Edghill, managing director/broker at Key West Real Estate. Edghill, who is also Immediate Past President and Vice President of the Association of Real Estate Agents (AREA), said people with money will continue to look at real estate as a way of maintaining the value of their wealth in the face of recessionary conditions and with the depreciation in the value of the dollar they would consider that real estate is the best place to make their investment to withstand inflation. He said with mortgage rates going up people would still be inclined to put their money into a property to get rental income.
Edgehill said there are no signs that property values have fallen and no dramatic increase in properties being offered for sale which might indicate that persons who took out mortgages fairly recently and have lost their jobs are putting their properties on the market to avoid having them repossessed by the banks.
“We have not seen any significant changes. Basically, it has not been an issue where any one effect has been across the board. You would see changes or adjustments being made in certain sectors so like the expatriate rental market is one with a high inventory so you would see reductions in some, not all, of the asking prices.” He said it was too early to see effects from the recession because if someone had bought a house recently and had lost their job they would have options such as negotiating with the bank. He said there had not been any changes other than everyone speculating on whether prices will fall, whether the currency will be devalued and how much it will be devalued by.
According to Edgehill, with the continued depreciation of the TT dollar, building materials which have to be imported will become more expensive and the replacement value of properties will rise so that there might be an increase, rather than a decline, in property values. He said that property value is determined by demand and the market.
“Even though a house might cost me a million dollars to build, if there’s nobody to buy it for a million dollars and I can sell it for $500,000, I might have to take that. But the fact of the matter is that replacement-wise, depending on where the property is, with a devaluation we might actually see a correction there where the price may maintain itself because of a decline in the market but an increase in the property replacement values,” he explained.
Edgehill noted though, that rental rates have become more attractive, especially rentals of properties which were targeted at expatriates and where landlords were being paid in US dollars.
With some multi-national companies scaling back their operations and sending home their expatriate workers who would have occupied such properties, he said properties in that sector are coming onto the market. He added that with expatriates leaving the country, landlords who need to have the property generate an income will be looking at lower levels of rent to attract the remaining expatriates and some landlords of such properties would now be targeting locals but locals would not be paying the same level of rent as expatriates.
Edghill added that when the Property Tax is implemented it will have an impact on rentals which will more than likely increase to cover that additional expense.
“Because obviously if I have a mortgage on a property, the rental is subsidising that mortgage. If I then have property tax to pay - which I have always said property tax is a necessity and we should always have had contributions made to that - once property tax is added to the equation, the landlord is going to need to adjust his rental to compensate for that otherwise they will be further out of pocket.” Despite the recession, some land owners are continuing to build in some areas on lots which had been vacant and idle for years. Edghill said in those cases the owners would have been committed to the construction before the decline in the oil price and the country’s economic troubles.
He said they would have planned financially to build a property either for them to live in or to rent as a form of investment. “It’s still an avenue to be considered because of the fact that you are not getting returns if you were to go to the bank.
http://www.newsday.co.tt/businessday/0,225711.html
EmilioA wrote:TriniAutoMart wrote:We may say a reduction in the short term. When recession hits there may be bargains.
Not with the Cartel buying up land. Trini land prices not falling.
urbandilema wrote:Miktay wrote:Real estate still a good investment
Thursday, March 24 2016
Increasing mortgage rates will not discourage people from investing in real estate, according to Mark Edghill, managing director/broker at Key West Real Estate. Edghill, who is also Immediate Past President and Vice President of the Association of Real Estate Agents (AREA), said people with money will continue to look at real estate as a way of maintaining the value of their wealth in the face of recessionary conditions and with the depreciation in the value of the dollar they would consider that real estate is the best place to make their investment to withstand inflation. He said with mortgage rates going up people would still be inclined to put their money into a property to get rental income.
Edgehill said there are no signs that property values have fallen and no dramatic increase in properties being offered for sale which might indicate that persons who took out mortgages fairly recently and have lost their jobs are putting their properties on the market to avoid having them repossessed by the banks.
“We have not seen any significant changes. Basically, it has not been an issue where any one effect has been across the board. You would see changes or adjustments being made in certain sectors so like the expatriate rental market is one with a high inventory so you would see reductions in some, not all, of the asking prices.” He said it was too early to see effects from the recession because if someone had bought a house recently and had lost their job they would have options such as negotiating with the bank. He said there had not been any changes other than everyone speculating on whether prices will fall, whether the currency will be devalued and how much it will be devalued by.
According to Edgehill, with the continued depreciation of the TT dollar, building materials which have to be imported will become more expensive and the replacement value of properties will rise so that there might be an increase, rather than a decline, in property values. He said that property value is determined by demand and the market.
“Even though a house might cost me a million dollars to build, if there’s nobody to buy it for a million dollars and I can sell it for $500,000, I might have to take that. But the fact of the matter is that replacement-wise, depending on where the property is, with a devaluation we might actually see a correction there where the price may maintain itself because of a decline in the market but an increase in the property replacement values,” he explained.
Edgehill noted though, that rental rates have become more attractive, especially rentals of properties which were targeted at expatriates and where landlords were being paid in US dollars.
With some multi-national companies scaling back their operations and sending home their expatriate workers who would have occupied such properties, he said properties in that sector are coming onto the market. He added that with expatriates leaving the country, landlords who need to have the property generate an income will be looking at lower levels of rent to attract the remaining expatriates and some landlords of such properties would now be targeting locals but locals would not be paying the same level of rent as expatriates.
Edghill added that when the Property Tax is implemented it will have an impact on rentals which will more than likely increase to cover that additional expense.
“Because obviously if I have a mortgage on a property, the rental is subsidising that mortgage. If I then have property tax to pay - which I have always said property tax is a necessity and we should always have had contributions made to that - once property tax is added to the equation, the landlord is going to need to adjust his rental to compensate for that otherwise they will be further out of pocket.” Despite the recession, some land owners are continuing to build in some areas on lots which had been vacant and idle for years. Edghill said in those cases the owners would have been committed to the construction before the decline in the oil price and the country’s economic troubles.
He said they would have planned financially to build a property either for them to live in or to rent as a form of investment. “It’s still an avenue to be considered because of the fact that you are not getting returns if you were to go to the bank.
http://www.newsday.co.tt/businessday/0,225711.html
Nice Info but my question shud I wait ans stop looking or just continue the pursuit...
Miktay wrote:urbandilema wrote:Miktay wrote:Real estate still a good investment
Thursday, March 24 2016
Increasing mortgage rates will not discourage people from investing in real estate, according to Mark Edghill, managing director/broker at Key West Real Estate. Edghill, who is also Immediate Past President and Vice President of the Association of Real Estate Agents (AREA), said people with money will continue to look at real estate as a way of maintaining the value of their wealth in the face of recessionary conditions and with the depreciation in the value of the dollar they would consider that real estate is the best place to make their investment to withstand inflation. He said with mortgage rates going up people would still be inclined to put their money into a property to get rental income.
Edgehill said there are no signs that property values have fallen and no dramatic increase in properties being offered for sale which might indicate that persons who took out mortgages fairly recently and have lost their jobs are putting their properties on the market to avoid having them repossessed by the banks.
“We have not seen any significant changes. Basically, it has not been an issue where any one effect has been across the board. You would see changes or adjustments being made in certain sectors so like the expatriate rental market is one with a high inventory so you would see reductions in some, not all, of the asking prices.” He said it was too early to see effects from the recession because if someone had bought a house recently and had lost their job they would have options such as negotiating with the bank. He said there had not been any changes other than everyone speculating on whether prices will fall, whether the currency will be devalued and how much it will be devalued by.
According to Edgehill, with the continued depreciation of the TT dollar, building materials which have to be imported will become more expensive and the replacement value of properties will rise so that there might be an increase, rather than a decline, in property values. He said that property value is determined by demand and the market.
“Even though a house might cost me a million dollars to build, if there’s nobody to buy it for a million dollars and I can sell it for $500,000, I might have to take that. But the fact of the matter is that replacement-wise, depending on where the property is, with a devaluation we might actually see a correction there where the price may maintain itself because of a decline in the market but an increase in the property replacement values,” he explained.
Edgehill noted though, that rental rates have become more attractive, especially rentals of properties which were targeted at expatriates and where landlords were being paid in US dollars.
With some multi-national companies scaling back their operations and sending home their expatriate workers who would have occupied such properties, he said properties in that sector are coming onto the market. He added that with expatriates leaving the country, landlords who need to have the property generate an income will be looking at lower levels of rent to attract the remaining expatriates and some landlords of such properties would now be targeting locals but locals would not be paying the same level of rent as expatriates.
Edghill added that when the Property Tax is implemented it will have an impact on rentals which will more than likely increase to cover that additional expense.
“Because obviously if I have a mortgage on a property, the rental is subsidising that mortgage. If I then have property tax to pay - which I have always said property tax is a necessity and we should always have had contributions made to that - once property tax is added to the equation, the landlord is going to need to adjust his rental to compensate for that otherwise they will be further out of pocket.” Despite the recession, some land owners are continuing to build in some areas on lots which had been vacant and idle for years. Edghill said in those cases the owners would have been committed to the construction before the decline in the oil price and the country’s economic troubles.
He said they would have planned financially to build a property either for them to live in or to rent as a form of investment. “It’s still an avenue to be considered because of the fact that you are not getting returns if you were to go to the bank.
http://www.newsday.co.tt/businessday/0,225711.html
Nice Info but my question shud I wait ans stop looking or just continue the pursuit...
Depends on too many things...such as age, income, job, family, debt, present housing, outlook etc
My personal guideline: At least 1 year of mortgage pmts, land tax and living expenses in reserve.
These days too many bankers dream of houses they could huff for small change.
Miktay wrote:As the risk of repeating miself valuations are tricky.
Note that most T&T valuers base their fee on a % of the property's value.
Another thing to consider for financing purposes iz some banks will only accept valuations from specific valuers.
So check around b4 u spend appraisal money.
The bess valuation iz what a buyer willing to pay.
Solid liquid cash beats ole talk any day.
adnj wrote:If you do request an appraisal (valuation), the appraiser will provide you with the booked closing prices on "similar properties within close proximity." The appraisal is not just guessed at. The quality of the appraisal is a determined by the age, similarity and distance of the comparison properties. This is called a "comp valuation."
It's a tough call if the prices are going up or down on a month to month basis. But property values have always increased in any ten year period for all developed nations world-wide so long as there was no natural disaster or political instability.Miktay wrote:As the risk of repeating miself valuations are tricky.
Note that most T&T valuers base their fee on a % of the property's value.
Another thing to consider for financing purposes iz some banks will only accept valuations from specific valuers.
So check around b4 u spend appraisal money.
The bess valuation iz what a buyer willing to pay.
Solid liquid cash beats ole talk any day.
Evoloution wrote:Anyone know what should be the price of land off the chin chin road. land is categorized as agri land. there currently exist no drainage with the closest house about 200 ft from the land so water i.m guessing will have to be run from that point and also would need to put down 2 electricity poles to bring electricity close to the land. The owner is abroad and would like to advise him on how much @ current market rates the land would go for taking into consideration all the infrastructure i would have to do in order for T&C approval.
Bet you didn't see anybody buying it for that price.EFFECTIC DESIGNS wrote:Saw a guy selling 1 Acre of land in Chin Chin for $9 million the other day.
urbandilema wrote:Saw the express yesterday had some for sale in the classifieds but for Claxton bay
V2NR 3.0 wrote:I have been monitoring the market for the last 6 months and sadly, prices are not going down
V2NR 3.0 wrote:I have been monitoring the market for the last 6 months and sadly, prices are not going down
sinister_14 wrote:V2NR 3.0 wrote:I have been monitoring the market for the last 6 months and sadly, prices are not going down
Hold strain i been in the market 2years now...looking for land...and all the properties i checked from the last 2years till now still on the market no ones buying they will soon have to drop their prices...even some of the properties i check prices did drop but i didnt by because it was still over price and it also had other reason with paper work that they cud not give me....there is hope still...
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