Housing Markets in Scandinavia

Housing prices in Sweden, Finland and Norway can be thrown, which would put some of the strongest recoveries in Europe and threaten to return to their economies in recession.

The property market in Sweden could fall as 20 percent of borrowers with loans biggest difficulty with the payment of its debts, which are up to 46 times greater than their disposable income, considered by the Royal Bank of Scotland. The Central Bank of Norway said that low interest rates carry a risk of overheating of the property and credit markets in the country while in Finland said the housing market might be shaped balloon.

"I am very worried," said in an interview with Finnish Finance Minister Jyrki Katainen. 'Maybe there is a housing bubble in Finland. There is a risk that mortgage costs are too low. "

Housing prices in the three countries increased last year, although their economies are shrugged, and unemployment rose, sparking imbalances that must now be corrected. Higher interest rates in Sweden may lead to failure of some borrowers, said the RBS. The cost of loans in Finland, a member of the euro area does is determined by the European Central Bank, which makes more difficult the management of the local economy.

Housing prices in Swedish, the largest northern economy grew by 7% annually for the three months to July, which is the 15th consecutive period of increase. In Norway, it has risen by 19.6 percent from the end of 2008 until the past quarter. In Finland the prices of existing homes rose by 10% annually the past quarter, having recorded growth of 11.4 percent for the three months to the end of March.

Lars Magnusson, Director of the National Board to guarantee loans to the Swedish Finance Ministry, said in an interview a few days ago that housing in the country will lose a fifth of its value in the coming three to five years.

"A drop of 20% would probably cause or contribute to the deepening of re-recession," said Parr Magnusson, chief economist for RBS economies in northern Stockholm. "Re-recession may occur in all cases, the deterioration of international conditions for growth."

Liabilities of households in Sweden have equal 167% of disposable income at the end of last year to 104 percent a decade ago, according to calculations of the Riksbank. In Finland, this ratio has increased to 107% at the end of last year from 65 percent in 2000, according to central bank data. In Norway, the debt ratio is expected to increase to 197% of disposable income this year, which would have increased by 14.5 points compared to 2005, calculated by Norges Bank.

The main interest of the ECB of 1% may be inadequate for the needs of the Finnish economy.

"To prevent balonizirane would be better, of course, if Finland could become self-determined monetary policy," said Mikko Force, an economist at Roubini Global Economics in London. "Yet this is not enough in itself, as they say and the central banks in Sweden and Norway. Regulation is perhaps the best tool. "

Otherwise, the three economies are about to commemorate one of the most successful recovery in the EU. Finland's GDP may grow by 1.5 percent this year after declining from 8 percent in 2009, according to government estimates. In Sweden the central bank expects economic growth from 3.8 percent this year after last year's contraction of 5.1 percent. GDP in mainland Norway will increase by 1.75 percent this year after a decline of 1.6 percent last, predicted the central bank there.

According to RBS, however, risks to the real estate market today are greater than before the credit crisis, as well as households are more indebted and less unprotected from interest changes.

Decline of construction in Bulgaria

Bulgaria is among the countries with the largest decline in construction in June

For the tenth consecutive month Bulgaria ranks in the top three EU countries with the largest decline in new construction. This show Eurostat data for the construction sector of the EU in June.In this month Bulgaria reported 17.5% decline on an annual basis in its new building.

Larger decreases in June recorded only Hungary and Slovenia. Since September last year, Bulgaria every month located among the three countries, where annual new construction declined the most. The largest decline recorded our country in December, when the index plummeted 33.3% yoy.

A monthly basis (compared to May) the new construction in Bulgaria, however, reported growth of 0.2 percent. This corresponds with a monthly increase of construction in the EU from 3.5%. In some countries such as Romania, is adjusted monthly growth of over 16%.

Steady increase compared to May shows and new construction in Spain, which increased by over 7 percent (and annual - with more than 18%). Zhilishshtniyat sector of the country suffer even before the economy went into recession. This led to a decline in property prices, financial problems for many construction companies and growth in unemployment among Spaniards - currently the second highest after that in Latvia.

Pan-European data show that annually, on a monthly basis and there is growth in constructing a building within the EU. Over the past 12 months the new building is maintained primarily by infrastructure projects, while construction of buildings declined dramatically.

Therefore, these data can be taken as a signal that investment in property recovered smoothly after declined substantially in 2009 In June, constructing a building in the EU increased by 7.5% annually, but growth in the euro area is 6.4 cent.

Some of the most expensive real estate markets - such as the British already seen a small increase in housing prices. According to GDP data express the EU economy has expanded in the second quarter by 1.7% yoy. This is the biggest growth in gross product of the union since the economic crisis.

Despite these statistics, some analyst companies such as Yurokonstrakt "not optimistic. A month ago the agency launched an analysis in which the expected construction sector in Europe to shrink this year.

In 19 European countries with the largest construction market is expected to decline in the sector of 4% by end of 2010 because the suspension of state aid and the economy slow recovery. The construction sector in these countries declined by 3.1 percent in 2008 to 8.8 percent in 2009 and is expected to start growing before 2011, according to economists' Yurokonstrakt.

Garden Therapy

Some have a green thumb and forget all the problems taking care of plants and flowers in a garden or a terrace. But even those who have never tried it, can try this therapy, achieving great advantages.

The Garden Therapy, or ortoterapia, is a genuine alternative medicine for 'soul and body.
Founded in 1300 when Irish monks tended gardens to combat depression, but is now used throughout the world, especially in rehabilitating people with Alzheimer's, disabled and as supportive therapy in the treatment of addictions.
This form of natural medicine has proved very useful in treating forms of stress and anxiety, more and more present today.
Busy with a piece of land or of any vessel combines an excellent exercise to practice relaxation.
In addition, the garden ol 'garden requires constant care that requires commitment and passion.
Verder satisfaction from growing the plants and nurtures a deep trust even the most pessimistic.

Herbs
If you are new to gardening, but want to use this method as stress, one can begin to cultivate herbs: they are the most robust and easy to grow even on the balcony.
Their scent communicate messages that awaken awareness and invite you to establish a relationship with them.

In one corner of the balcony, try putting those most important to health: melissa sleeping good for digestion, marjoram, thyme against bronchitis, rosemary to have more energy.

Automatic Foreign Investment in India

A month and a half before the unveiling of India’s consolidated foreign investment policy, the government on Thursday doubled the ceiling on automatic foreign investment from Rs 600 crore to Rs 1,200 crore. Union commerce minister Anand Sharma, who announced the decision, said the move is expected to make India a more attractive destination for long-term investment. Under the current rules, long-term investments into most Indian sectors are ‘red-tape free’, subject to a cap on the amount of money invested. “We have got a good response from companies and investors, both from India and abroad,” he said, referring to his Christmas-eve invitation for suggestions from the public on simplifying foreign investment policy.

Sharma also announced that existing investors need not seek the government’s nod for incremental investments in sectors where a fresh investor would not be required to do so. Similarly, a single no-objection certificate from business partners would be enough for all subsequent investments of a company into India, he said. For calculating the investment, the government will look at actual capital inflow rather than the projected cost of the project, he said. The simplifications are seen as the result of the feedback given by the industry on the complexities of the existing policy. Sharma had, in December last year, urged companies and investors to give their suggestions on simplification and consolidation of India’s foreign investment rules.

Sharma said that long-term foreign investment (FDI) into India has remained at levels comparable to the year before. December saw inflows of $1.5 billion, taking the nine-month total to $20.9 billion against $21.2 during the same period a year ago. FDI flows, a signal of long-term confidence in India’s economic future, have remained flat for the last three years at around $35 billion even as the country moved up to top 3 in international ratings on investment friendliness. Sharma said the year may see record FDI inflows, despite starting off slowly. “Keeping the momentum in view, it is quite likely that FDI flows this year exceed those of last year’s,” he said. Meanwhile, India’s exports, which moved back into the positive territory in November, continued to grow in January. Total exports during January clocked $14.36 billion, clocking a growth of 11.5% compared to January 2009.

Sharma said the incentives announced by his ministry, such as cash support to exporters, would remain as they are even beyond the upcoming Budget, but some of the finance ministry-related sops, such as lower excise duties may be rolled back in a “cautious and considerate” manner in the Budget. Sharma said the government is in trade agreement talks with a number of countries, including Japan, the European Union, Turkey, New Zealand and Malaysia.

Home Prices in 2010

Apartment prices at Planet Godrej, a premium residential property developed by Godrej Properties in the tony Mahalaxmi area of Mumbai, had come down to as low as Rs 17,000 to Rs 18,000 a sq ft in the property market slowdown last year. The flats now sell at Rs 27,000 to Rs 30,000 a sq ft — just short of the peak rate of Rs 32,000 a sq ft in 2007-08. It’s not the commercial capital alone that has seen real estate prices on fire. Last week, the Jaypee group sold 600 plots on the Greater Noida Expressway, near Delhi, within three days at Rs 36,000 a sq yd (one sq yd equals nine sq ft). Brokers say the plots are now available for only Rs 39,000 a sq yard and will touch Rs 42,000 a sq yard within a few days.

On Pune’s posh Bhandarkar Road, apartment prices have risen 80 per cent in just five months. For example, flats at local developer Avaneesh Construction’s housing project are now available at Rs 9,000 a sq ft, compared to Rs 5,000 in August. Welcome back to the era of crazy rises in home prices. After a year of sanity, when property developers were reducing rates even in premium areas, it’s a rewind to 2007-08, when prices had more than doubled in as many years on the back of strong buyer and investor demand, as the stock markets boomed.

Then, apartment prices had gone down by 30 per cent from their peak, as home sales had almost come to a standstill in the last few quarters of 2008-09, reflecting a worldwide economic slowing. Pranay Vakil, chairman of Knight Frank India, a leading property consultant, says: “We have seen an up to 30 per cent rise in home prices in the last six months. A lot of pent-up demand came into the market around Diwali. That, coupled with strong NRI (non-resident Indian) interest, has led to the rebound in prices. Most NRIs have invested in Mumbai property this time, instead of Dubai.'’

The NRIs were absent from the property market in 2008-09. Vakil says prices have mostly risen in prime areas, where new projects are being sold out within days and where supply is limited. For instance, in the Prabhadevi area of Mumbai, if the delivery is three years away, prices have gone up to Rs 21,000 a sq ft. If the project completion is two-three months away, prices are Rs 25,000-Rs 27,000 a sq ft. But, if a house is ready to be moved into, it could go for Rs 30,000 a sq ft, Vakil adds.

The Maharashtra government has been quick to cash in on the rise in property prices and has increased stamp duty and registrations charges by 15 to 20 per cent in Mumbai, depending on the locality in the city. Last year, it did not revise these rates, as the property market was down. Analysts clearly see the return of investors in the residential market as stock markets have started booming. In the slowdown of 2008-09, investors had vanished from markets such as the National Capital Region.

Religare Capital Markets’ Associate Vice-President P Suman Memani attributes the rebound in property rates to the stock market boom. “Till August 2009, the price rise was moderate. But, after September, when indices shot up, investor and speculative interest returned to the real estate market. Sale prices have gone up by 50 per cent in some cases. It hurts genuine buyers and is not good for the market,’’ Memani says. Take Parsvnath Developers’ premium project, La Tropicana, in the Civil Lines area of Delhi. Brokers say prices have risen to Rs 12,000 a sq ft, from Rs 8,000 a sq ft in April 2009, a rise of 50 per cent. The developer has sold 415 apartments out of the 450 they have planned. The project is nearing completion.

In Mumbai, in the Oberoi Woods project in Goregaon East, prices have risen 50 per cent in the past nine months, from Rs 10,000 a sq ft in April to Rs 14,000-15,000 a sq ft now. “It is dangerous if prices go up from Rs 2,700 a sq ft to Rs 4,000 a sq ft even if the delivery is four years away,’’ Memani adds. Realty research firm Liases Foras’ Managing Director, Pankaj Kapoor, is also not happy. “The government is helping the developers to increase prices. They allowed restructuring of loans,” he adds.

Some developers do not agree and say price increases are just a function of the market. “We will go along with interest rates. If the annual interest rate is 10 per cent, we will raise it by 10 per cent. Customers will run away if you increase it irrationally. You have to increase it only to the level where it does not affect your sales,” says Unitech MD Sanjay Chandra. Adds Hiranandani Constructions’ Managing Director Niranjan Hiranandani: “I think such an increase is only in some isolated cases. If prices are reasonable, volumes will be good. If they are too high, volumes will come down.’’ So, where are the prices headed from now on? “The acid test for the property market will come in March, when the pent-up demand goes away and NRIs pull back. If stock markets continue to do well, demand will sustain. Otherwise, it will not,'’ says Vakil of Knight Frank.

Right Time For Investment

Stock markets are bouncing back, interest rates have come down from this peak, properties are cheaper than what they were a year ago and GDP is again on the move up. Does this indicate that, it's time to invest in real estate? Real estate investment involves the commitment of funds to property with an aim to generate income through rental and to achieve capital growth. When a person acquires real estate, he or she also acquires a set of rights, including possession, control and transfer rights etc. It is important to understand the dynamics of the real estate investment because it usually involves the locking of large capital over a period of time. On comparing investing in stock market with real estate investment you will find, both, stock investing and real estate investing have the same basic financial objectives: People invest money in both instruments to make money from growth and income. Both sectors have merits and demerits and are suitable for different sections of people. We believe real estate sector has an edge when it comes to security and leverage.

* An investment in property is considered a safer bet as you are investing in a "real" asset.

* Investors can borrow substantially to invest in a property, in certain cases upto 90 percent of the cost of the property.

It is very important to note that, awareness is the key to maximize returns in any investment. If you are good at identifying, managing and financing real estate properties you will undoubtedly do much better as an investor in real estate! Traditionally many of us are comfortable with real estate investing because (we see it every day and better understand the factors that affect the real estate prices around us). Real estate properties have historically gone up in value without many violent downswings. The stock market usually experiences a greater degree of volatility.

'Although the real estate sector has started showing some signs of revival, a majority of the industry experts expect the residential segment to recover by the end of 2009 with a 25-30 percent renewal in demand, said the survey report by the Federation of Indian Chambers of Commerce and Industry (FICCI). Demand for houses in the range of Rs. 15 - Rs. 25 lakh will go up by 26 percent, while those in the bracket of Rs. 25 - Rs. 40 lakh will see demand rising 22 percent, the chamber said. In another survey report by FICCI, the future of Indian retail industry bright in the coming six months as implied by the data, real estate rates in India will go up by 10-15 percent over the next four to six months.

For those planning to take a loan to buy their house, there is good news too. Several banks have slashed home loan rates recently to promote financing making it more lucrative for the buyers to invest in real estate.

Real estate prices across the nation were observed to have corrected earlier this year, however considering the last financial quarters' performance the demand for real estate investment has certainly inched upwards.

Considering the availability of various real estate options to invest in at the right price, along with best rate home loans and the future growth predicted, by FICCI, there has not been a better time to invest in real estate than now!

Places to live in California

There are many very beautiful places in California, but the topic is where are the best places to live. In the north around San Francisco, it is extremely beautiful and many sites to behold, but extremely expensive and unless you have a huge high paying job, it would be a difficult place to say it was the best. I do think it is one of the best vacation spots though.

California has much to offer in the way of living happy and comfortable. It has warm free beaches, pleasnt climate and good paying jobs. Put all of this together and you get the absolutely perfect place to live. Choosing the best place to live would definitely be down south. It has reasonably priced housing and it is easily accessible to everything.

Huntington Beach:
Huntington Beach is the honeymoon capital of California and a truly beautiful place to live. It has everything. Just north of San Diego and within a short drive to Los Angeles. The homes are beautiful and medium priced and the schools are excellent. Huntington beach is in the middle of some very exclusive neighborshoods such as Laguna Beach, San Clemente and Costa Mesa. Just north a little you run into Seal Beach. These are upper end communities and you will need a little more money to buy in these areas.

San Diego:
San Diego has it all from the Sea World attraction, the world famous zoo to the many ports of call. San Diego has many jobs. Many jobs mean that you can afford to live. San Diego has beautiful beaches, tree lined streets, and lots of good food. Many of the local communities are only a few steps away and just add to the beauty of the splendorous life in San Diego.San Diego is not far from the border of Mexico also, so for a quick visit and some cheap Mexican food, Tijuanna is close by. Some of the best communities close by are: La Jolla, Oceanside, Carlsbad and Escondido.

Santa Monica and Venice:
For those who just love to smell the beach morning noon and night, these are the towns for you. They are more expensive than the Downey and Lakewood areas, but they have many amenities. Santa Monica is famous for its peirs and Venice has its walk ways and bicycle trails. They are more metropolitan compared to Downey and Lakewood.Downey and Lakewood are more home town USA type areas and Santa Monica and Venice are more of the type of places where people like excitement and the night life.

Malibu and Santa Barbara:
These last two cities are the cream of the crop. They are where celebrities live and vacation. They are next to the ocean with the best view and they are very expensive. Malibu has small lots and right on the ocean and Santa Barbara is off the ocean trail, but it has huge tree lined lots.

Why even Oprah and Barbara Streisand live there. They are extremely beautiful cities and extremely desired. A home in Santa Barbara is a home next to heaven.No matter where you decide to "hang your hat," California welcomes you with open arms. Beautiful beaches, nice climate and plenty of jobs. All the necessities of life.

Lakewood, Long Beach and Downey:
Some of the best places to live in California is here. The homes are very reasonable in price, the schools are very good and these are safe areas to live. Whether you want to take a walk to the park or go have a hamburger late at night, anyone at any age will feel free to roam. There are certain areas of North Long Beach to stay away from, but the majority of Long Beach is upper class and very good to spend the rest of your life there.

Downey is the best of them all. It is a beautiful and safe community. It is surrounded by the I-5 and the I-10 on each border, a skip and a hop from downtown Los Angeles. It has Stonewood Mall and many large hotels that are easily accessible. Embassy suites has nightly happy hour with free coctails and live entertainment.

Many restaurants from Papa John's Pizza to Marie Callender's Restaurant. Richard Carpenter's home was in Downey for years and recently sold for over two million dollars, not the norm for sure. It is a place of comfort and a place to send your children to some of the best schools.