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Foreclosure Investments in US Foreign Buyers

Foreclosure Investing Growing In US From Foreign Markets

Foreclosure Investments in US Foreign Buyers

While there is certainly interest and demand domestically in America for foreclosure properties on the market, it seems interest is only building across the ocean. We caught wind of a press release that seems to tout the amazing investment opportunities in the US Real Estate market and the possible returns that are sitting there ripe for the taking.

Used as one of the pieces of advice in the press release was some quotes from Warren Buffet. Mr. Buffet was recently interviewed on CNBC’s Squawk Box and mentioned his feelings on the housing market and how he wouldn’t mind to invest on a large scale effort.

Mr. Buffet was quoted as saying, “If I had a way of buying a couple of hundred thousand single family homes and had a way to manage them…..i would load up on them.” It was also pointed out that with Warren Buffet saying that he had no self bias at the time because Berkshire Hathaway has little investments in the US real estate market.

The owner of the business offering these foreclosure opportunities as investments was quoted as saying, “”We are managing to secure family homes that are achieving rents of $900-$1200 per month for between $50,000 and $75,000 in quality cities where jobs growth is stimulating rental demand.” Phil Gerathy was talking about the Michigan market and he seems to have some connections to be able to land deals on the houses at $50,000 when average listing prices are pushing $200k.

The press release focused on the Australian investments they’re trying to perfect and build. If you live in the US and you’re trying to decide whether to invest in a home or in foreclosures, it’s probably a good sign that you should act if other groups from foreign countries are. Foreclosure properties are still out there but demand is certainly picking up almost nationwide.

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Realtor Arrested Grow Operation

Realtor Arrested For Having Ties With Marijuana Growing Operations

Realtor Arrested Grow Operation

A marijuana growing operation had wide reaching effects from London to Ontario and was coordinated by a realtor. The realtor was arrested by police after an 18 month investigation for being part of a grow-op network that facilitated purchases of houses on the market for growing operations.

The realtor’s name was Thu Tran who worked for Sutton Group Preferred Realty of London and had a license with the Real Estate Council of Ontario.

The connection started to fall together after a series of marijuana grower busts by police. With some investigation police and others started to notice that homes that were being busted for grow operations were often sold by Thu Tran, the grow-op realtor of choice. The first person to really notice this connection was the owner of Sutton Group Preferred Realty, Gerry Weir. Mr. Weir was told not to terminate the realtor until an investigation was final so that they could properly prosecute Ms. Tran.

In all it was reported in the London Community News that Thu Tran was the seller of a minimum of eight houses that were busted for marijuana grow operations. The houses were all in different parts of the city and were not necessarily related by location. The new crackdown is to kill off connections from realtors that are assisting organized criminals in these grow operations.

The sting was revealed in the LF Press and detailed how Ms. Tran was finally caught. It seems that an undercover operation was setup to actually find homes for grow operations and then were actually stocked with grow lights and power bypasses. Before the marijuana was produced police stepped in and made the arrest.

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Argentinean Housing Market in Turmoil After Dollar Restrictions

The Argentinean government’s decision to place restrictions on using the United States dollar to make purchases has placed the nation’s housing market in a serious bind. There are fears that the residential real estate market and the construction industry may face serious declines in the coming months.

The real estate and construction industries have been a major driving force behind Argentina’s economic growth over the past few years. In both industries, the dollar has been used as one of the primary forms of payment. However, restrictions imposed by President Cristina Fernandez have made it very difficult for Argentinean citizens to obtain United States currency.

While her actions have significantly slowed down overall economic growth in Argentina, she believes that the restrictions are necessary in order to pay off the public debt. Real estate experts and economists, however, believe that the restrictions that are now in place are doing terrible damage to both the housing industry, and those that are indirectly related to it.

Construction has slowed quite a bit since the restrictions were put into place. As a result, the home improvement industry has experienced a serious decline. The United States has been an important part of the Argentinean economy for the last decade.

Ten years ago, the country faced a serious economic crisis. Nearly two decades ago, the nation also struggled with severe hyperinflation. Both of those events have led the general public to believe that the United States currency is safer than Argentina’s peso when it comes to long-term saving.

With respect to the housing market, economists fear that the market could experience a freefall if the restrictions on the dollar aren’t lifted in the near future.

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Canadian Real Estate Market Growing Too Competitive

The commercial real estate market in Canada may have grown too fast and too popular for its own good. Investors around the world appear to be looking elsewhere to buy property in the current market, as the market in Canada has simply gotten too expensive one to realize some sort of profit.

Investors are, instead, looking at markets in the recovery phase, as properties in those areas are most likely to bring bigger returns than a market that is nearing, or has possibly already hit its peak. The United States, and various nations in Asia are becoming more popular choices for investors due to their low prices.

Those kinds of markets carry a slightly greater risk than a market like Canada at the current moment, though one could say that it is a calculated risk that will likely pay off quite lucratively in the coming years.

With that in mind, Canada has essentially become a victim of its own success. Areas like Toronto have grown exponentially over the last year, as has Calgary.

One of the factors that caused a decrease in interest by investors is that the nation does not have very many highly populated cities. One only need look at the difference in population between the United States and Canada to realize that there is greater potential for larger growth in the United States. The United States last census report shows that there are more than 311 million people living in the United States. That is almost nine times the amount that lives in Canada. In fact, Canada last reported only 34 million people as their total population.

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Canadian Housing Market Experiences Slower Growth in May

The residential real estate market in Canada may finally be starting to cool down. Housing prices increased in May by roughly five percent, which is about three and a half percent less than the increases experienced in previous months.

The performance of the market varied across the nation, with some cities posting significant losses while others posted tremendous gains. The city of Vancouver was one of the hardest hit, as the total number of home sales dropped by sixteen percent. Toronto appears to have finally started to cool after many months of unprecedented growth.

The Toronto market still posted a double-digit growth in overall sales, though the rate of growth dropped tremendously. The Toronto market experienced an increase in sales of eleven percent. That number, while still very strong, pales in comparison to the eighteen percent growth seen in previous months.

Economists have worried that Toronto may suffer the same fate as Vancouver, which has started to go through a major decline. The condo market in Toronto has been one of the driving forces of the city’s real estate market over the last year. The increase in demand led to a massive increase in condo development. However, real estate experts believe that supply is starting to exceed demand as the number of newly built condos continues to flood the market.

The city that posted the strongest gain in its residential real estate market is that of Calgary. Calgary experienced an increase of more than thirty percent over the total number of sales from last May.

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China’s Housing Bubble Continues to Deflate

The threat of a housing bubble in China continues to grow less likely, as residential real estate prices fell to their lowest point in sixteen months. The continued decline comes as a result of government officials declaring that they had to plans to eliminate the restrictive measures in place any time in the near future.

Home prices in China have not exactly taken a nosedive. However, they have steadily declined at small rates for the last year and a half. The average price dropped roughly 0.3% from where it was in April.

The current decline in housing prices in China is the longest the nation has ever experienced since records were kept. Residential real estate values have fallen in nearly seventy-five percent of the nation’s cities.

Some economists believed that China would ease their property restrictions over fears that the market was collapsing. The government, however, opted not to do so, citing that the declines have been gradual and have shown no indication of a potential crash. Rather, they believe that the market is simply correcting itself after prices became overly inflated.

There is no indication as to when China will eventually ease the property restrictions. Developers have greatly struggled over the last year and a half, and have been persistent in calling upon the government to eliminate some of the limitations in place. However, the government has essentially denied those developers time and time again.

As a result of the housing decline and overall restrictions, many Chinese investors have looked to housing markets overseas.

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Housing Market in China May Finally Be Starting to Stabilize

After months of coping with stringent government regulations on the sale of homes and the issuing of mortgage loans, China’s residential real estate market appears to falling at a much slower pace. The overall decline in housing prices during the month of May was a bit less than had been seen in previous months.

The lessened decrease in pricing marks the first time in more than four months that the market performance was stronger than it was in the month prior. Economists are attributing the smaller decline to the easing of some of the heavy restrictions that have been in place over the last year. China’s government has opted to lax many of the restrictions in order to be a halt to the slowing of overall economic growth.

The latest numbers have to bring about some hope among developers, which have seen their business suffer greatly over the last year and a half. With that said, economists are advising developers and real estate agencies that they should not get overly excited just yet.

The housing market still experienced an overall decline in pricing. In fact, residential real estate values are less now than they were one year ago during the month of May.

Prices will likely continue to fall on a year-to-year basis, though there is an aura of hope that the market will soon turnaround, particularly if the property restrictions are eased even further.

While it is unlikely that the government will ease its restrictive limits on the number of homes that a person can buy, there are considering easing lending measures for first-time buyers.

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Australian Housing Prices In Freefall

The residential real estate market in Australia took a massive hit in the last month, as home prices dropped significantly in comparison to the previous month and year. Home prices dropped nearly one and a half percent during the month of May, and they are down by more than five percent on the year.

Melbourne was one of the hardest hit cities last month, as the average home in the city experienced a price decline of nearly three percent. While there were some cities in Australia that did post mild increases in pricing, the overall performance at the national level was dismal at best.

Many had expected the government to intervene on the market over the past month in order to protect it from any further pricing declines. However, the actions taken by the government were minimal at best, and they certainly were not enough to prevent a further drop in home values.

Some economists are not overly worried about Australia’s market. They believed that the residential real estate market in Australia took place in late 2010. The declines being experienced now, they believe, can be chalked up to the market correcting itself.

Whether the market is correcting itself, or it is in an utter freefall, it is clear that potential homebuyers are coming out as the real winners. They are able to pay less to receive the same home that would have cost them a fortune in the past two years. In fact, the luxury market has been hit the hardest, meaning homes once reserved for the rich and powerful are more accessible than ever.

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Limited Inventory Leads to Increase in Housing Prices in the UK

For the first time in three months, the average selling price for residential real estate properties increased. The small increase, which was roughly three-tenths of a percentage point, can be attributed to limited sales inventory.

With prices having fallen the past few months, many potential sellers have opted not to put their home on the market. With that said, however, consumer confidence has improved for the first time in many months as fears over the economy have dissipated. The change in the overall perception of the economy will significantly help the housing market gain strength.

The job market in the United Kingdom is still fairly weak, and will likely prevent the residential real estate market from posting truly significant gains in the near future. Though, as long as the sales inventory supply is low, prices should remain stable or even grow slightly.

In comparison to one year ago, housing prices are still down. They dropped by just under one percent from April of 2011.

While up from last month, mortgage approvals are also down in comparison to previous years. They are nowhere near the historic highs that were achieved prior to the housing market crash that took place in 2007.

Optimism over the market has gain slightly, and will likely continue to improve. Many economists, though, believe that it will remain down in comparison to previous years. The job market will have to show some serious improvement before overall consumer confidence starts to regains the strength that it once had shown.

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Brazil’s Housing Market Could See Possible Trouble Ahead

From the surface, Brazil’s residential real estate market is currently one of the strongest in the world. The nation’s middle class is enjoying an upgrade in lifestyle, and property values have soared over the past ten years. In fact, the major city of Rio rivals New York and Paris in terms of affordability and availability of rental properties.

Many of the properties available in Rio’s most popular and well-known neighborhoods are impressively expensive. The price of a basic apartment with little to no view costs as much in Brazil’s elite neighborhoods as it does in the prime sectors of New York, London, and Paris.

Many of those living in the prime neighborhoods of Rio are international visitors. Executives from the biggest industries, including oil, cosmetics, and banks all own property in the area along the beach of the ocean.

While one might think that only the premier areas of Rio would be unattainable. However, rental prices have become so exorbitantly high that they are grossly unaffordable for many citizens. Even properties with bedrooms too small for beds are commanding obscene prices.

The market as a whole is booming unlike anyone has even seen in the past. However, economists are starting to question whether or not the growth is sustainable. Some believe that Brazil may face a crash that is similar to or worse than that experienced by the United States five to six years ago. Many believe that the market will not stand the test of time, and may plummet following the 2016 Olympics.

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