Scenic homes in NZ. Sporns, Emigrate!

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>April 26, 2009
overseas properties
</TR><!-- headline one : start --><TR>Good time to buy?
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Scenic homes in NZ
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<!-- START OF : div id="storytext"--><!-- 4 or less paragraphs so show all paragraphs first before showing the media and bkstry and stuffs --><!-- story content : start -->Real estate worldwide has been hard hit by the global downturn.
<!-- story content : start -->Home prices in some foreign cities have fallen sharply, as a result of tighter credit and the difficulty some owners face in servicing their mortgages. Their fall, coupled with the relatively strong Singapore dollar, has made it more attractive for Singaporeans to land their dream home overseas. <!-- story content : start -->Investing in a property overseas involves a fair amount of risk. But for those who have the stomach for it, this may be a good time to scout around for a holiday home in Sydney, a retirement villa in Penang, an investment property in London, and more attractive buys in other cities.

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>April 26, 2009
overseas properties
</TR><!-- headline one : start --><TR>Australia beckons
</TR><!-- headline one : end --><TR>Homes are looking more affordable Down Under given the weaker Aussie dollar, but property experts caution investors against jumping in blindly </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Joyce Teo
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The Avondale, a 34-unit development in Pymble, Sydney is selling apartments from A$450,000 to A$750,000. -- PHOTO: IP GLOBAL
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->Australia is reappearing on investors' radar screens, with homes there looking more affordable to overseas investors now that the Aussie dollar has weakened from a year ago.
'Australia's banks are still well capitalised and in a global economy with a lot of high-risk investments, the Australian market is comparatively low-risk, which is what many investors are looking for right now,' said IP Global managing director and founder Tim Murphy.
But the window of opportunity may not last. After Lehman Brothers collapsed, the Aussie dollar fell to below par against the Singapore dollar, fetching about 92 Singapore cents. One Aussie dollar now fetches some S$1.065, compared with S$1.27 a year ago.
'Analysts are predicting the Australian dollar will become stronger as investor risk appetite returns, making it important to borrow in the currency you are buying in and let the rental service the mortgage payments,' said Mr Murphy.
MLG Australia managing director Marcus Gilmore said there has been a major influx of activity this year and mostly in the lower end of the property market, thanks largely to first-time home buyers' grants. (The high-end market has slowed considerably.)
'Any product under A$500,000 (S$530,750) in Sydney should be seen as good value. One-bedroom apartments are great value under A$400,000 but rare...In the fringe and outer suburbs, you should be looking at between A$375,000 and A$450,000,' he said.
Experts cautioned that foreigners - who are allowed to buy only new properties directly from developers - should buy only properties that have a resale market.
Mr Gilmore reckoned that investors should always look for re-development zones, particularly as the Australian government is now encouraging infrastructure spending. 'Investments in early stages of re-development zones always see great rewards in the long term.'
Better rental yields

Investors may also want to consider buying smaller units as these offer better rental yields and are easier to resell, said Colliers International associate director for international projects Edwin Layson.
What they should be cautious about, said Mr Gilmore, are the tourism markets, as the resale markets are flooded with properties, and bank funding for these markets is hard to obtain at the moment.
Savills Western Australia managing director Paul Craig said the Western Australia market remains attractive due to record low interest rates, tight rental vacancies, rental growth, government stimulus and home buyer grants, against a backdrop of Western Australia's strong economic links to China.
Said the firm's residential sales and investments manager Shane Smedley: 'Potential investors should be focused more on rental yields than capital growth in the current market as the days of high capital growth are behind us for the moment.'
Although the Western Australian economy may contract this year, Mr Craig said Savills expects it to be short-lived. 'The long-term outlook for our property market remains prosperous given our strong links with China.'
Mr Murphy, though, is keen on Sydney and Melbourne as these cities continually have limited new supply of homes and high occupancy rates. For instance, the rents in Sydney rose by 15.4 per cent year on year in 2008 according to Australian Property Monitors data, he said.
The data also shows that Sydney apartment prices fell by 3.8 per cent last year, although they had remained relatively flat in the fourth quarter of the year. In Melbourne, apartment prices fell 1.5 per cent last year.
Investors should know that property prices have not come off as much as that in other markets when buying prime location properties in Sydney and Melbourne. Also, borrowing costs will more than likely rise in the medium term, said Mr Murphy.
'However, one must also take into account that the currency depreciation and low borrowing costs mean real prices are much lower than they were 12 months ago.' [email protected]

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>April 26, 2009
overseas properties
</TR><!-- headline one : start --><TR>Plus points for NZ: lovely scenery and cheaper loans
</TR><!-- headline one : end --><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Joanna Seow
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New Zealand's natural beauty, with snow-capped mountains, islands and lakes, is a major pull factor for investing in property in the country. -- PHOTO: SOUTHERN LAKES REAL ESTATE
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New Zealand may not be the first place that springs to mind for property investment, but the depressed market makes it a good time to look at the land of snow-capped mountains and golden beaches.
Ms Sue Charlesworth, marketing manager at Southern Lakes Real Estate, told The Sunday Times: 'The prices have certainly come down from the levels of 18 months ago...plus the New Zealand dollar isn't very strong at the moment, hence overseas investment becomes more feasible.'
A year ago, the kiwi dollar was worth S$1.07 but it is now down more than 20 per cent to 85 Singapore cents.
Ms Charlesworth said the reduced cost of lending in New Zealand is also helping to make property investment at any level very accessible.
Prices are expected to remain relatively stable for the next few years,
buoyed by increasing migration to New Zealand but capped by rising unemployment.
Residential property expert Andrew King, of Andrew King Property Management Services in New Zealand, believes that it could be a good time for investors to consider putting down money, as 'cashflow is good while interest rates are low'.
'An investment in New Zealand property would be a long-term hold as prices are not expected to increase for at least three years,' he added.
Several New Zealand 'island-like properties' are being advertised on the website of Vladi Private Islands, which markets islands worldwide.
There are national sensitivities involved in the acquisition of such rare locations and they are protected by rules and regulations.
But the New Zealand government is planning to overhaul the Overseas Investment Act this year. This regulates the acquisition of 'sensitive land' by overseas investors.
Reforms may make it easier for foreigners to buy property.
Bayleys Real Estate managing director Mike Bayley suggested some unique locations Singaporean investors can consider.
'For personal investment and for use as holiday homes, there are properties scattered throughout the country in locations ranging from islands, remote beaches and lakes through to snow-capped mountain lodges.'
He said most international investors are in the main cities of Auckland and Wellington, where there are large-scale residential investments.
In Queenstown, a small town by a picturesque lake surrounded by snow-capped mountains in South Island, Ms Charlesworth said an investor would need at least a NZ$250,000 (S$210,000) deposit for a managed apartment.
Such properties are rented out to visitors most of the year and are managed by a property company.
For a high-quality residential property, which is considered to have solid, predictable returns, at least NZ$450,000 would be needed.
More expensive residential investments generally require considerably less capital investment as a percentage of the total purchase price than managed apartments. This is because banks are more willing to offer loans for these types of properties. [email protected]

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>April 26, 2009
overseas properties
</TR><!-- headline one : start --><TR>Home in on Malaysia
</TR><!-- headline one : end --><TR>Market glut makes developments in prime locations in KL and Penang affordable </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Elizabeth Wilmot
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TA Properties' Idaman Villas - double-storey semi-detached units in the Damansara region just outside Kuala Lumpur with a built-up area of 3,692 sq ft upwards - start from RM500 psf. -- PHOTO: TA PROPERTIES
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->An over-supply plus gloomy market sentiment are adding up to a rare buying opportunity for investors in Kuala Lumpur, particularly in the prime KL City Centre (KLCC) area.
Dr Lee Ville, president of ERA Malaysia, said: 'In my personal view, the property market sentiment (of KL) is at its lowest since 2004.
'This sentiment has sparked a price drop in the KLCC and Mont Kiara locality.'
He gave an example of Kiaraville, a development in Mont Kiara.
'It was launched in 2005 at RM380 (S$158) per sq ft (psf) and today, there are some units being sold...as low as RM500 psf.'
At the peak, transactions of the property were in the region of RM600 psf, he said.
Mr Ivan Hoh, executive director of PropNex International, said: 'We are seeing a slowdown in property prices in KL's prime areas...we have seen a 15 per cent drop from last year.'
He added that 'many Singaporeans like to buy in areas like Bangsar, Damansara, Mont Kiara, Bukit Bintang and KLCC area'.
'As this is the capital city of Malaysia, rental yields are better than in other states.
'Yields in the current market are about 5 per cent to 7 per cent, depending on the selling price of the property,' Mr Hoh said.
TA Properties' Idaman Residence, a luxury condominium in KLCC priced from RM950 psf, has units for sale.
Prices for its Idaman Villas, double-storey semi-detached units in the Damansara region with a built-up area of 3,692 sq ft or more each, start from RM500 psf.
Dr Ville said: 'With current market sentiment, KL properties are at their most affordable and attractive.'
Penang market

Penang is a frequently overlooked but promising state for property investment. Its capital George Town, together with Malacca, received a Unesco World Heritage Site listing last year.
Mr See Kok Loong, director of Metro Homes, said home prices at Seberang Prai, which is on the mainland of Peninsular Malaysia, 'have been low for many years' due to ample land and lower purchasing power.
He said a standard terrace house on the mainland could cost between RM200,000 and RM250,000 whereas on the island, 'where the prime area' is, terrace houses could cost above RM500,000.
Dr Ville said: 'There are high-end luxury condominiums along Gurney Drive such as Silverton, Regency, Millennium and 11 Gurney.
'These fetch anywhere between RM450 psf and RM550 psf.'
Knight Frank Research said gross yields of upper-middle and high-end condominium units in Penang range between 4.5 and 6.5 per cent.
Property giant SP Setia is launching the third phase of Setia Vista - 29 two-storey terrace units with a built-up area of 1,700 sq ft each. Prices start from RM618,880.
Dr Ville said: 'It is a great place to live or retire. After all, prices remain relatively cheap compared to the rest of our Asian neighbours.'
[email protected] <!-- end of for each --><!-- Current Ratings : start --><!-- Current Ratings : end --><!-- vbbintegration : start --><!-- vbbintegration : end --><!-- dennis change request 20070424 : start --><!---Google ad - Start : Sun, 26 Apr 2009 02:41:21:567---><!-- AdSpace STI Google ad tag --><SCRIPT language=JavaScript1.1 src="http://ads.asia1.com.sg/js.ng/site=tsti&pagepos=20&size=10X10"> </SCRIPT>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>April 26, 2009
overseas properties
</TR><!-- headline one : start --><TR>Lower-priced landed homes in Johor
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The Setia Eco Gardens project, located in Johor's Iskandar development region. The eco-friendly development is also near the Second Link in Tuas. -- PHOTO: SETIA ECO GARDENS
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->Investors or people looking for retirement homes in Johor should be able to find attractive buys in the Malaysian state.
Mr Ivan Hoh, executive director of PropNex International, said Johor's proximity to Singapore makes it an attractive destination.
'Many aspire to own a landed property in Singapore which they can't afford, so the other alternative is to buy a house in Johor,' he said.

=> While the govt is the BEST PAID in the world. Why accept being shortchanged till like this?

There is generally more demand for landed homes than condominiums in Johor, he added.
'As they have vast land, many prefer to live in a house with land versus paying a more hefty sum to live in a condominium. For about RM250,000 (S$104,000), you can get a decent terrace house of 1,500 sq ft. A condominium in a good location will cost at least RM350,000.'


Wah seh! Does this not make me look like an insatiably greedy fcuker? *chey*

Indeed, the lower prices compared with similar properties in Singapore are a huge draw.
Mr Lim Boon Ping, an agent with Johor-based Tiram Realty, said: 'Compared to Singapore or even other parts of Malaysia, Johor Bahru residential prices remain very attractive, thus making it a relatively cheap place to reside in.'
He cited the example of a single-storey terrace house in Taman Johor Jaya with a built-up area of 761sq ft.
'At its peak in 2006, transactions hit RM170,000 for a unit. Now, you can easily purchase one at around RM120,000.'
Knight Frank Research showed that 'movement of prices has been flat with no significant changes (in Johor's residential market)...the market is stable and does not show any sign of a 'bubble' scenario'.
Knight Frank also said rental rates and yields, which hover around 4 per cent to 5 per cent, are expected to come under pressure and show some downward adjustments in the near term.
Mr Hoh said: 'In terms of rental yield, a house in general will not be able to fetch as high a yield when compared to a condominium.
'As property prices have crept up over the years and rental rates stand still, the yields in Johor remain low, probably 3 per cent or 4 per cent.'
Malaysian property giant SP Setia has some projects in Johor.
Its Setia Indah project, for instance, has a range of units called the 180 Degree II. These are double-
storey terrace houses with a land area of 1,540 sq ft each.
Prices start from RM304,800. The development is expected to be completed in September.
SP Setia will soon launch Setia Eco Gardens, an eco-friendly development near the Second Link in Tuas. Its Visellia terrace units will have a built-up area of 1,926 sq ft onwards and are priced at $138,000 each.
Mr Eric Cheng, executive director of HSR Property Group, said of Johor: 'Singaporeans will have to drive only 10 or 15 minutes to get there on a weekend, and they will probably own a bigger land plot.
'But I think a true investor should wait and see. I think (they should) give themselves another good six months for the market to stabilise; I think it's still too early to judge.'
Elizabeth Wilmot

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>London (homes) calling
</TR><!-- headline one : end --><TR>Falling prices and appreciation of Sing $ put that coveted address within reach </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Jessica Cheam
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Chester Square in London's Belgravia is said to be among the more prestigious addresses in Britain, if not the world, while Aquarius House at St George Wharf (top) is touted as London's most exclusive riverside apartment project. It is the latest instalment in a new large-scale development along the Thames and is expected to be completed next year. -- PHOTOS: BLOOMBERG AND COURTESY OF ST GEORGE PLC
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->London property may be among the most coveted in the world, but it has still not been immune to the global economic fallout.
But while falling prices are giving home owners sleepless nights, they spell good news for buyers who have always yearned for that London address.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story -->RELATED LINKS
<!-- Audio --><!-- Video --><!-- PDF --> Six-month price changes
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</TD></TR></TBODY></TABLE>Experts point to a couple of reasons why homes in the British capital are calling out to investors all over the world, particularly Singapore:
For starters, London prices have plunged about 20 per cent to 30 per cent since their peak, says property consultancy Knight Frank in a recent report.
And the Singapore dollar has appreciated by 20 per cent to 30 per cent against sterling in the past year or so, giving investors more bang for their buck.
Mr Nicholas Barnes, Knight Frank's partner of residential research in London, told The Sunday Times that two trends will emerge in the first half of this year:
One is that the balance of power has moved from sellers to buyers, while the number of sales will start to rise as more owners accept that the downturn is not going to be followed by a quick rebound.
There is already evidence that buying opportunities are emerging from the slide in prices and some buyers are biting despite the recession.
Ms Jacqueline Wong, head of residential, Singapore, at Jones Lang LaSalle (JLL), said the firm tested the waters in Singapore last weekend by launching two projects with a leading London mixed-use developer, St George.
The launches attracted 'very good response' and saw more than 80 visitors, with 12 units sold, she said.
One project, 14-storey Aquarius House, part of the St George Wharf development in Vauxhall, offered 85 one- and two-bedroom apartments ranging from 364 to 851 sq ft and will be completed early next year.
Prices start from £399,950 (S$880,000), which works out to about S$2,417 psf - comparable to prime properties in Singapore such as Ardmore Park.
This is a 15 per cent discount on prices launched at the peak of the market, said Ms Wong.
Another firm, DST International, is also tapping the current sentiment and will be launching a London project in Singapore next month.
On offer is The City Peninsula, a 20-storey project at Greenwich, one stop from Canary Wharf, which is offering one- to three-bedroom units ranging from 495 to 840 sq ft.
Prices start at £250,000, which works out to about S$1,111 psf, which is comparable to city-fringe home prices here.
DST's London specialist Doris Tan said that as Greenwich is one of the main destinations of London's 2012 Olympics, properties at that location have the potential for capital appreciation.
For buyers looking at super- prime properties, locations like Belgravia, Mayfair, Chelsea and Knightsbridge offer some of 'the world's most attractive urban environments', says Knight Frank.
Emerging property hot spots include Marylebone - it recently pushed past the £1,000 psf mark but is still far cheaper than neighbour Mayfair - Bloomsbury, Paddington, Bayswater and the South Bank.
Knight Frank is also marketing 1,024 sq ft flats at Canary Wharf in East London for S$880,000 upwards each. A year ago these were going for more than $1.2 million each.
Mr Barnes said the worst of the price slide is over. But analysts are 'not yet sure where and when the bottom of the market is'. Also, there is a possibility that the pound may weaken over the next six to 12 months.
JLL's director of residential investments, Mr Julian Sedgwick, said he anticipates a strong medium- term residential price recovery, led by London, from next year.
It might pay to wait a little longer before investing, although JLL's Ms Wong cautioned that trying to time purchases with the bottom of the market could mean all the choice units will be gone.
She pointed out that London property has always been a good investment proposition: 'There is no (capital) gains tax, there's a lot of transparency and it is a location popular with many Singaporeans due to its top universities.'
One more thing to note is that London still offers strong rental yields of up to 7 per cent currently, as the capital values of stock have fallen further than rental rates, said Hong Kong-based property investment firm IP Global's managing director, Mr Tim Murphy.
'It is important to factor in the yield of a property as well as its potential capital gains when considering an investment,' he said.
Knight Frank's Mr Barnes thinks the prime residential market will bottom out this year, remain fairly flat for much of next year and begin to tick upwards towards the end of next year.
'We do not, however, foresee a significant 'bounce' in values - rather we think a steady and more sustainable uplift over the medium term is more likely.
'We also believe that prime will emerge from the recession ahead of the general market.' [email protected]

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Overseas land: Getting a foot in the door
</TR><!-- headline one : end --><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Linette Lai
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Investing in land overseas used to be the domain of the extremely wealthy, but landbanking companies have put an end to that.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story --><STYLE type=text/css> #related .quote {background-color:#E7F7FF; padding:8px;margin:0px 0px 5px 0px;} #related .quote .headline {font-family: Verdana, Arial, Helvetica, sans-serif; font-size:10px;font-weight:bold; border-bottom:3px double #007BFF; color:#036; text-transform:uppercase; padding-bottom:5px;} #related .quote .text {font-size:11px;color:#036;padding:5px 0px;} </STYLE>Lure of high returns
The main attraction of investing in land overseas is the hefty payouts investors can expect to reap, with some firms promising returns of around 20 per cent.



</TD></TR></TBODY></TABLE>Such firms buy large parcels of undeveloped land that they feel has development potential. They keep part of the land for themselves and divide the rest into smaller plots for sale to individual investors.
The hope is that the land later attracts the interest of developers. The company then sells the plots on behalf of individual investors.
Companies like Edgeworth Properties offer sites in Western Canada while Profitable Plots deals mainly in land in Britain. The minimum investment for a plot varies but usually ranges from $10,000 to $15,000.
The main attraction of these projects is the hefty payouts investors can expect to reap, with some firms promising returns of around 20 per cent.
'Land is a hard asset that will always appreciate in value with time and development,' said Mr Michael Yap, vice- president (Asia Pacific) of Edgeworth Properties.
Edgeworth selects land that has the prerequisites for sustained economic and population growth and is situated next to developed neighbourhoods, added Mr Yap.
Landbanking companies typically give customers an estimate of how long they have to wait before the land is bought. This can be from three to seven years.
However, there is no guaranteed figure and it is possible that customers may have to wait longer.
Most landbanking companies provide detailed information on the land they are offering so investors can get a fair idea of what they are buying.
But there are also risks involved.
'The first thing that comes to my mind is liquidity - landbanking does not provide much liquidity,' said Mr William Cai, director of GYC Financial Advisory.
'As there's a lack of liquidity, it is hard to say if investors are overpaying for the piece of land in the first place.'
Mr Cai also cited exchange rate fluctuations as a risk in this kind of investment.
Landbanking is also unregulated, which could be a problem if disputes arise between the company and individual investors.
Despite the possibility of getting their fingers burnt, response from Asians has been 'very encouraging', said Mr Yap.
Edgeworth's land lots are sold in Singapore, Malaysia, Taiwan and the Philippines, with Singaporeans constituting about 63 per cent of buyers. [email protected]

Is it true that if I buy Ozzie property, I cannot resell it to another foreigner?
I have to resell it to an Ozzie.

Lion_Barbell said:

Is it true that if I buy Ozzie property, I cannot resell it to another foreigner?
I have to resell it to an Ozzie.

Click to expand...

There are ways around this obstacle ..... you got a property to offload? PM me if you need help :p