Moscow Real Estate Investment – Why You Should Consider It

Investing in real estate in Moscow could be the best investment you can make, and not in the long term but short term double digit gains are easily achieved.

Moscow 2007.

It is one of the most unique and exciting cities in the world – 17,000,000 souls live in a sprawling metropolis, seeped in history, seat of power of the Russian Federation, and home to 0ver 90,000 US Dollar millionaires, most of them under 50 years of age.

The Two Markets

The two Moscow real estate markets (residential and commercial) are indeed separated, but the profits possible in either market approximate each other.

For residential the greater part is composed of large apartment buildings, some of them with thousands of apartments within.

There is a smaller single home dwelling (often referred to as cottages, or dachas) which nevertheless can be built relatively cheaply compared to the sales price.

For the commercial market, there are new office buildings being built literally everywhere in Moscow, as well as shopping centers and industrial buildings.

The Opportunity

A simple visit to Moscow could convince the great skeptic that the construction boom is not even partially saturated.

The rents for either market do not yet approach London, but are closing very quickly.

The market is liquid, and there appears to be equally eager buyers and sellers. One can buy either independently, within a group, or fund. The returns have been more than impressive, and continues at a rapid rate

Why Moscow?

Moscow is a city of the future. Future is all about Moscow.

The population is young, growing, and highly educated.

The demand for both high quality commercial and residential property is unequaled in any European city, or any city for that matter.

Moscow resembles Hong Kong in the 1970s, London in the 1980s, and Los Angeles in the 1990s.

The political climate is more than stable, the laws and taxes have been adjusted to insure ownership continuity. The banks are learning the value of mortgage finance, and interest rates are becoming competitive.

How to Invest

Like any prudent investor one should see the lay of the land.

A week’s trip to Moscow can reveal much.

The major real estate companies (all of them) are resident in Moscow and provide a comprehensive viewing of their properties.

They can also reveal the local laws and regulations by which any investor and investment are regulated. It’s worth a visit. Moscow is alive and well and literally never sleeps.

How Much to Invest

This is a very subjection question. A 100 square meter apartment in Moscow can cost from $200,000 to $300,000 if purchased correctly as construction is about to start.

The sale of the same apartment in one year can at the moment find exceed $600,000 and even approach $1M.

It will not be difficult to make such an investment. One needs a real estate broker, a lawyer, and perhaps some personal assistant to translate and help you with local transportation.

Such a person is not difficult to find.

For larger and more impressive investment, consultation with the larger and well established real estate agencies can save you time, money, and later headaches.

Their specialists are on hand to guide you through the purchase process. For the larger investments, the multi-national real estate agencies (and they are all in Moscow) are your best bet.

Be a Land Investor, Not a Real Estate Speculator

With demand for housing at an all-time high in the UK, it is easy to become enthusiastic about land investing. Just be careful about over-exuberance.

The data analytics company Hometrack showed an interesting and perhaps alarming trend (depending on how you look at it) in home sales in May 2013. While the sales agreements for the month were up 8.2 per cent, new homes being built were only up 2.8 per cent. Does this outsized demand level not only push prices upward, but up into a real estate bubble once again?

Certainly, to Londoners that may seem to be the case. Central London home values recovered very quickly from the financial crisis and its aftermath in 2007-2010. But much of the demand driven there in that pricey market is a function of it being London: home to the international well-to-do, many of them from other countries who are here seeking a more stable society and economy. The same phenomena are observed in international cities that include New York, Tokyo, Hong Kong, Sydney and Melbourne.

But contrast that to home values in the rest of England and Wales. In the prosperous South East, prices are up but far from the levels seen in London. The Midlands and Wales have continued to see slow growth. The Funding for Lending scheme from the UK government, and historically low interest rates from the banks, are helping create some of that demand.

This is not surprising considering how there is wide concern about a third recession in 2013. In the economic seesaw seen over the decades, worries about the economy reduce purchasing of all kinds. When prices are low enough on such things as real estate, property fund management teams often swoop in to buy at the lowest prices in anticipation of a solid growth in asset value in the near term.

Land speculation is rarely a beneficial phenomenon in the long term. It generally means land prices rise above the productive value of the land itself – for example, when £10,000 per hectare is the going rate when under any zoning circumstance (agricultural, commercial or residential) the land cannot produce that much value. When the bubble – more a psychological matter than good sense investing – bursts, lenders to speculators cannot recover the loans, which then creates serious problems in the financial markets.

It should be noted that land speculation typically and quite obviously occurs when demand outstrips supply. And in the UK, where 130,000 fewer homes are built each year than are needed, that indeed is the case. What holds back speculation from happening now is the recent experience of a burst bubble – this factors heavily into private investor and financial institution thinking. No one wants a repeat of 2008.

No one – not governments, not homebuyers and most investors – likes a rapid rise and rapid fall. This kind of volatility leads to big winners, big losers and a generalised instability. The more solid land investment operates on a different model, where reasonable and logical strategies lead to a slower degree of growth.

So where do land investors wanting capital growth find those solid returns? Real estate investment trusts (REITs) have had at best middling success since being introduced just prior to the recession. They seem more subject to the dynamics of market trading than land and building supply and demand.

Strategic land investors working with land development experts often do so in micro-markets. In areas where employment is growing, for example, there may be strong incentives for local planning authorities to grant land use changes from agriculture or industrial to residential (to accommodate economic development). A strategic land investment will necessarily require work on the part of the investors (or their joint investment advisors and agents) to achieve the zoning change, design and develop infrastructure, then sell the land to homebuilders. This process is perhaps too slow for speculators, taking 18 months to five years to complete and to achieve a return on the investment.

Even with the more strategic approach to land development, an investor is strongly advised to work with an independent financial advisor. This helps the investor weigh the relative risks and rewards of land development against his or her capital growth planning and make decisions based on objective criteria.

Turkey Will Revise Its Reciprocity Law to Boost Foreign Direct Investment in Real Estate

In 2002, Turkey opened its real estate market to foreign nationals. Prior to 2002, acquisition of real estate in Turkey by foreign nationals was not permitted. When the government passed the bill in 2002 allowing foreign nationals to acquire property in Turkey, necessary ticks and checks that should have been in place were not implemented.

It gave rights to most foreign nationals to purchase property in pretty much all areas of Turkey with very little restriction as to region and size, including areas of national importance and cultural heritage. The government came under a lot of pressure in the years leading up to 2006, mainly by opposition voices. These voices, it could be argued, were not all biased either.

The existing law resulted in Turkey’s neighbours purchasing land in Eastern and South Eastern Turkey around Turkey’s water and energy reserves from mainly farmers, who could easily be persuaded to sell agricultural and non agricultural land at well below market value. Turkish government found this not to be in best national interests of the country and suspended the law allowing foreign nationals to purchase in Turkey. They sent some confusing messages to the global market, however, the revised law was later published in 2007 with restrictions on foreign nationals purchasing property in Turkey.

The current law allows most foreign nationals to buy real estate in Turkey except for nationals of those countries, where Turks can’t buy real estate. This is mainly Middle Eastern countries, some ex-Soviet republics, including Turkic Republics of Russia. In addition, current law imposes some restrictions as to where and how much land foreign nationals can buy.

The size restriction is pretty generous, close to twenty thousand square meters, therefore most Turkish holiday home buyers need not worry about that. However, some larger scale investors would need to set up a limited company in Turkey (foreign capital Turkish company) so as to purchase such large lots of land in Turkey. The current law also prevents foreign nationals from purchasing land and property in rural areas in Turkey, this is outside Town municipalities, townships. In other words, most agricultural land is beyond limits for foreign nationals. Similar to size restriction, a foreign national can purchase via a Turkish limited company, This is legal and indeed suitable for large-scale investors, who will use the land and property for commercial purposes.

The new revised law to be published in early 2012, will do away with reciprocity law. This will have no implications for EU, US, Canada nationals and a few others, where Turkish citizens can purchase real estate, however, it will have major implications for most Middle Eastern nationals, who can not purchase in Turkey. This, of course, will have an indirect impact on other investors too. Middle East has become a major market for Turkish real estate.

Istanbul apartments, Istanbul hotels and land in Istanbul in particular is exceptionally appealing to the better of Middle Eastern buyer. The better off Middle Eastern real estate investor, who traditionally would focus on New York, Paris and London have now added Istanbul on to their real estate shopping list. The current restriction discourages most of them, however, government statistics show that with the revised law there will be a major gold-rush for property in Turkey from the Middle East. Istanbul will attract majority of the investment for sure, however, coastal resorts are also under the lens of the Middle Eastern lifestyle seekers, who find it difficult to achieve the social structure and way of life in their home countries.

Turkey property investors should get in before prices of prime real estate in Istanbul and coastal resorts such as Bodrum, Kalkan, Gocek increase sharply due to demand from the Middle Eastern like Londoners for sure have experienced in central London since 1980’s. The same trend is about to hit Istanbul and few other resorts in Turkey.

Real Estate Schools – A Thorough Understanding of Investment & Finance

The art of real estate management has become big business in the property market, which has led to a number of UK and US universities provide dedicated schools that provide a thorough understanding of investment and finance before giving scholars the opportunity to specialise in key areas such as financial risk management, investment and insurance.

Real estate schools provide dedicated course for both undergraduate and postgraduate academics. Undergraduate courses examine modern property markets whilst placing them in a wider business context. Meanwhile postgraduate masters’ degrees apply rigorous analysis of property investment, appraisal and development, preparing students for entry into a variety of career directions.

London’s exclusive business schools are some of the largest providers of real estate programmes across Europe. The attraction of enrolling at one of London’s real estate schools is that it is located in the financial heartbeat of Europe, enabling scholars and staff to maintain strong industry links with the leading powers in both property and financial industries.

Competition for entry into real-estate schools is generally fierce for both undergraduate and postgraduate programmes. Students are required to have strong mathematical qualifications and a natural aptitude for business. Postgraduates will be well placed after an MSc Real Estate course to take up many positions within the financial sector. At London’s business schools, property advisory firms regularly visit to present to students, encouraging academic and practical links.

At present, property and investment offers more career paths than many other professions. From real estate companies to careers in the public sector, schooling will give academics a significant leg up into a plethora of professional financial disciplines.

Located in the heart of London’s financial district, Cass Business School is a leading provider of business and management education.

Our MBA is recognised globally as a market leader, we have the widest portfolio of Specialist Masters programmes (MSc) in Europe and our Undergraduate School is one of the best in the UK. Ranked in the UK’s top 10 business and management research schools, means we attract leading PhD students.

Real Estate Schools – Offering Expertise in Modern Real Estate Markets

It is now seen as somewhat rare for an undergraduate to know the exact career path they wish to take with so many choices offered. However, business and financial students wishing to maintain and further their business education should consider going the extra mile by enrolling in specialist real estate faculties.

These schools provide a direct insight into modern real estate markets, placing them in a wider business context, equipping students with a solid knowledge of the principles and applications of real estate investment techniques.

London business schools invariably have extensive real estate faculties providing a degree of flexibility that is required by many employers. Real estate schools teach a thorough understanding of investment and finance, with the ability to specialise in a number of fields such as financial risk, investment and insurance.

Studying at London-based schools enables students to learn from world renowned teachers who are incredibly practical and highly focused on their students’ chosen careers.

Places on courses at real estate schools boast particularly high competition with high demands of A Level results. However, this is tempered by the scholarships that are available on occasion to undergraduate students on the basis of academic merit. This can be a significant contribution, paying as much as a quarter of the tuition fee. Best of all, providing the recipient of a scholarship maintains a satisfactory level of academic performance the scholarship is renewable for subsequent academic years until graduation.

Many graduates gravitate towards careers as chartered surveyors, property analysts, analysts, appraisers, valuers, consultants and more. Graduating at a London business school, just a stone’s throw from the city’s business and financial quarter, provides an opportunity to gain employment with major global organisations.

Located in the heart of London’s financial district, Cass Business School is a leading provider of business and management education.

Our MBA is recognised globally as a market leader, we have the widest portfolio of Specialist Masters programmes (MSc) in Europe and our Undergraduate School is one of the best in the UK. Ranked in the UK’s top 10 business and management research schools, means we attract leading PhD students and scholars for real estate schools programmes at Cass

What is Required to Become a Real Estate Broker?

In Canada, there are a number of career avenues in real estate. One such avenue is a Real Estate broker. The job of a broker is to act as a liaison between people who buy and sell real assets. Their role is find buyers and seller who are looking to buy or sell property. A broker help sellers with the marketing of their property and selling for price that is acceptable to all the parties involved. A broker can own and manage a real estate brokerage firm and employ agents. One has to pass a broker’s exam to get licensed.

In order to become a licensed agent in Canada you must successfully complete a course of study as required under the Real Estate Act of the province of where you live. For specific guidelines on becoming a broker’s license, you can check with your province’s governing body. The Real Estate Council is the licensing and regulatory agency established by the provincial government to administer the Real Estate Services Act.

Each province in Canada regulates brokers. In general, to become a broker in Canada, one has to be at least 18 years old and a permanent resident of Canada. Before applying to take the broker’s exam, you should be registered and have been working a agent for a specified period of time as mandated by the provinces board. It can range anywhere from 6 months to 36 months, depending on where you live. You should have completed with a set of licensing courses and passed the written exams with grades of usually no less than 75%, depending on your province rules. The final examination must have been completed within the one year preceding application.

When applying to take the brokers exam, you must submit supporting documentation as required with the application as well as the required fees. You must submit the exam application usually within one year of the Broker Course examination date. If an application is made after the examination date, the exam must be re-taken. If an application is made after the specified date from the examination date, the Broker Course must be repeated. Each province will have their specific dates regarding the deadline of applications after one has taken and completed the real estate broker’s course. Most provinces require that you take a broker’s licensing course.

After successful completion of the Broker’s Licensing Course and Examination, one must apply to change their license status to broker, either Associate or Managing Broker, with the Real Estate Council of their province. One must also have a past record of financial responsibility and conduct.

When considering a career as a broker, you have to be aware that their will be a number of fees associated with obtaining the license. Such fees include: Broker’s Licensing Course fee, Supplemental Course fee, real estate broker licensing fee – $1100, and any business expenses.

Becoming a broker is a very rewarding and lucrative career. As well, there are a wide range of specialized areas where one can work.

What Are the Benefits of Hiring a Real Estate Agent

The home buying and selling process can be an intense and difficult task. With so much information available online, many people think they can take on the task on their own without using the services of a real estate agent. The real estate market can be complicated if one does not have the knowledge and experience. The benefits of using the services of a real estate agent can make the process much simpler and less stressful.

The following outlines the many benefits of hiring a real estate agent:

1. Knowledge and Know-How: Purchasing a home is more than just submitting an offer. An agent will have such knowledge as the community, neighborhoods, schools, road system, hospitals, shopping and supermarket locations …etc. They can also help you find a home that you can afford as well as offer advice on mortgages. They are knowledgeable about all that is involved when buying a home, such as the documentation required and the steps involved with the purchase. A real estate agent takes you through the process and minimizes the stress.

2. Time-Saver: If you are selling a home, an agent can take over the tasks such as arranging for a showing as well as actually showing the home. If you are buying a home, the agent will arrange for viewing homes that will suit your needs instead of spending time looking at homes that do not serve your purpose.

3. Buying and Selling Price Assistance: Agents will know if a home that is being sold is worth the money. They will look at such aspects as home demand and supply, current market conditions, the location, the type of house, and if the details of the house such as the number of bedrooms, are appropriate for the asking price. They can also negotiate the price which could save you thousands of dollars. Agents have access to such information as the value of other homes in the area, average sale prices, and the number of days the home has been on the market.

4. Essential Contacts: Agents may be able to recommend such professionals as a home inspector, Mortgage Company, a good attorney – etc. They have great contacts with those in the home sales market. They know reputations and can provide a number of choices so one can choose wisely.

5. Manage Documentation: The amount of paperwork involved with selling and buying a home can seem complicated and overwhelming to the novice. The Purchase papers can often be more than 10 pages. There are other papers such as such as federal and state disclosure forms. A real estate agent has the knowledge about all documentation involved with the sale process so that everything will be written up properly and legally.

6. Support: Because of the complex nature of the real estate process, you never know what questions you will have, but one thing for sure is that you will have questions. An agent will answer every question from start to closing.

Real estate agents play a crucial rule in the home sale/purchase process. By hiring a real estate agent, one will save time, money, and reduce a great deal of stress. For any home buy/selling venture, a qualified real estate agent is a must-have

What is the Difference Between a Real Estate Agent and a Real Estate Broker?

When one starts the process of selling or purchasing a home, it is not long before they realize that it can be an overwhelming task. There are many steps that are involved with the process that can often be quite complicated to the novice. Fortunately, there are professionals that can handle any home selling/buying situation and can take the burden off of your shoulders. Two such professionals are the Real Estate Agent and the Real Estate Broker. Before enlisting their services, it is important to understand the differences between each and their role in the process of buying and selling a home.

Real Estate Broker

A real estate broker is a person who acts as a liaison between sellers and buyers of real estate. They work to locate sellers who want to sell their property/houses and buyers who want to buy property/houses. Brokers help sellers with the marketing of their property and selling it for the best price and the best terms. For buyers, they assist them with purchasing for the lowest possible price with the best terms. In most states, one is required to have a license in order to be a real estate broker. In a few states, attorneys are permitted to conduct real property sales for compensation without being licensed as brokers or agents.

When one acquires a broker’s license, they can run their own brokerage company and hire licensed agents. One has to pass a broker’s exam to get licensed.

Real Estate Agent

Real Estate Agents help people with the actual locating and purchasing of a home as well as the selling of a home or property. Agents perform such duties as taking potential buyers to view homes that are for sale, offer advice to home buyers about where to acquire a home loan, submitting an offer for a home, locating the type of home that the buyer is looking for, has knowledge about the community where the home is located, and filling out specific forms that legally show that the house has been purchased. Both the buyer and the seller of the home sign these forms. An attorney is normally involved with the signing of pertinent documents.

The agent must be aware of the value of the home, all features of the home and if there are any problems with the home and property such as damage or a poor foundation, and they must be aware of the neighborhood and surrounding community. They should be able to answer any of the home buyer’s questions. As well, they must have knowledge about the laws related to buying and selling a home. For home and property sellers, they help assess the price of a home and list it.

Real estate agents can be self employed or work for a company. They receive a commission for the sale or purchase of a home. Commission fees will vary among agents.

When you plan to buy or sell your home or property, you should enlist the services of professionals such as real estate agents and brokers. Understanding their role in the process and their differences will help ensure that the process is much easier and less complicated.

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