Own A House - real estate market news

Switzerland has the law, which restricts purchase of the ground areas by foreigners-non-residents. It concerns only an inhabited real estate. For example, the foreigner can get no more than 200 sq. m of living space, and no more than 1000 sq. m of the ground area.

There are some restrictions on terms of resale: not earlier than in 5 or 10 years in order to prevent gamble in the market. There could be exception, if the proprietor will prove, that his state of health has worsened or he has got in a difficult financial situation, and that it has happened after the purchase of the real estate.

Annually Switzerland gives out about 1500 quotas - sanctions for real estate purchase by foreigners. These quotas are distributed mainly among the cantons with advanced tourism. A lot of sanctions get cantons of the French Switzerland, German Switzerland and Italian part of Switzerland. Zurich and Geneva are not in the list.

It is connected to the certain timetable. The bank will ask for the personal meeting with the future borrower, during which will ask questions concerning the family status, occupation, size of the annual income.
According to the law, Swiss banks are obliged to check up a source of money resources of the buyer to make sure that the money does not go from the business connected to traffic in arms, drugs, terrorism, etc. Banks check presence of money resources and ask to give the documents, which can confirm the income.

The bank can also ask granting guarantees in the size of about 20 % from cost of the real estate object. It can be any assets of the buyer (money resources on the account, securities, real estate, etc.). The question is, whether the buyer can give such documents. If not, the bank asks to set up a separate account and deposit money for payment of interest on the mortgage credit.

What real estate is chosen in Switzerland?

In 80s Switzerland have experienced so called “Arabian wave”, when Arabian sheikhs bought up a lot of elite real estate on lakesides. Now Switzerland experiences - “Russian wave”, that is the keen demand for real estate from the side of the Russian buyers. In the nearest future experts expect fort the “Chinese wave”. In addition to it, real estate in Switzerland is stably popular among Englishmen and Dutch.

The few have known about advantages of investments into the Swiss commercial real estate. Now the tendency has appreciably changed, and more and more people want to buy commercial real estate (approximately 40 % of all inquiries) which brings guaranteed income, though not fabulous. In fact, investment in real property in Switzerland helps to keep the capital in economically and politically stable country.

Commercial value characterizes a project cost in the market, at that it is necessary to take into account that commercial value is a price for the reasonable buyer who has all necessary information. As a rule, the given cost is applied at transactions of sale and purchase, transfer of object leave as a deposit, evaluation of rent payments, etc.

This cost is also the most important in estimation for the common person. But nobody can give exact information on cost of an apartment. And an excessive price existing in many cities for the present time makes fluctuations of the price even in 1-2 % an essential fluctuation in real money.

Huge value in the creation of real estate price makes the psychological readiness of people to pay this or that money. People in the beginning estimate the prices (look through offers in the market) and only then comparing variants - look for the best one. Thus creation of false prices (strongly overpriced) stimulates people to purchase real estate for a “little bit” overprice.
Summarizing, psychological pressure upon the buyer plays the huge role in formation of the prices for the real estate at present.

The most expensive house the world is built by American billionaire Tim Blikset - the owner of resort Yellowstone Club in Montana. The billionaire is going to sell it for 155 million dollars.

The private residence from wood and stone will be ready in 14-15 months. The total area of the house - 4900 square meters. The house is on a plot in 65 hectares at a resort which belongs to Blikset. The house will be sold together with the wine cellar, a private golf-links and the ski slope, designed by the owner.

The private residence consists of ten completely furnished rooms, and the special sliding wall in one of the rooms can be moved away. At that the room turns into a court yard with a home theater and a pool. Some participants of Forbes’ list 400 have already expressed interest in this superhouse.

The project of this house was created by architect Jerry Locati. In Yellowstone Club he has designed 35 houses. Expenses for construction, without the cost of the ground area, will make about 40 million dollars.

According to the forecast of Australian Property Monitor, in 2008 Melbourne can outstrip Sydney regarding high cost of habitation in Australia.

In 2007 the average cost a residential real estate in Melbourne has grown by 25,2 % whereas in Sydney rates of growth have made only 4,8 %. Thus, as of December of the last year average cost of a house in Melbourne has reached a point of 405,1 thousand dollars, in comparison with 323,4 thousand for the similar period of 2006.

In Sydney the prices have risen from a mark of 461,6 thousand US dollars to 483,6 thousand dollars.

In the forecast for 2008 company Australian Property Monitor has noted, that Australian real estate market will featured by instability, caused by consumers’ discredit, writes The Australian.

In America the prices for real estate have reached record-breaking low mark for the last 16 years and continue go down in price. Experts predict long and deep market recession of houses for one family.

According to CNNMoney.com, the price index for houses “S&P/Case-Shiller”, basing on the complex analysis of real estate prices in 10 cities, has fallen by 6,7 % in comparison with the last year. Falling of the same index in 20 cities has made 6,1 %. The reason of recession is an abundance of empty houses in that market, which has used to experience the agiotage of consumers.

The greatest recession is fixed in Miami (12,4 %), Tampa (11,8 %) and Detroit (11,2 %). Real estate has risen in price only in three cities: in Northern – Caroline’s Charlotte (4,3 %), Oregon’s Portland (1,1 %) and in Seattle (3,3 %).

Real estate market in Montenegro favorably differs with its strategic direction to tourism (as a matter of fact is a main income source for Montenegro).

The main market of real estate in Montenegro includes apartments, country houses, houses, hotels, restaurants, bars, i.e. the commercial and residential real estate intended for tourists and rest. The prices for such real estate, certainly, depend on a site and closeness to the sea. Having summarized - 1400 euros for sq. meter in a country house, house, and an apartment from 500m from the sea and farther. More than 2000 euros for sq. meter cost the real estate at the coast.

The Western Europe has always considered Montenegro as a place created for rest. Montenegro and the seaside in particular, has turned to an enormous building site for construction of elite real estate (country houses, houses, hotels) and apartments. Restaurants and bars are under construction everywhere and are offered for sale.

Real estate in Montenegro stably rises in price, taking the lead over statistics of other European countries; it is also find a ready rent market.

The legislation of Montenegro allows foreigners without difficulty to buy and sell both commercial and residential real estate. Procedure of registration is easy and takes a few days.

Rich foreigners have already for a long time bought the second dwellings in megapolis like New York and Miami, and not only for business purposes and entertainments, but also as profitable investments. But recently this tendency has even been intensified.

According to the National Realtors’ Association, the last year each fifth realtor company has pushed the business through the foreign investor. Fast decline in dollar’s value to euro and English pound this year has strongly reduced the price of the American houses for Europeans, and landslide of prices because of mortgage crisis has made them more attractive for other foreigners.

Realtors also mark, that high-interest of foreigners to investments in the American real estate has led to increase in demand for houses in before unpopular areas.