News

Property Investor Supermarket launches Indiana Investment Properties

Thu, 15 Dec 2011 19:50:00 GMT

Indiana Investment Properties

As the year 2011 comes to a close it brings with it a great opportunity to get a steal on other investors.

Property Investor Supermarket is proud to launch a brand new market to our growing portfolio of investment properties.

Our newest market is in Indianapolis, a thriving metropolis, in direct competition with locations like Buffalo, Detroit and Atlanta.

It is Indiana’s largest city and is the 14th largest city in the U.S., the third largest city in the Midwest (behind Chicago and Detroit),

With lower than average US unemployment levels, lower median wages which means one thing for us cheap property for investors and most of all RENTERS ….

We have just this week signed a strategic alliance with a group of companies to source homes in the old historic district of Indianapolis “where people want to live and rent”

• Indianapolis is undergoing a major facelift improvements in the “rebuild Indy project” to give curb appeal to Indianapolis streets & bridges valued at almost $200 million (www.indy.gov)

• Prices from $35,000-$60000 • Nett yields from 12% • Rental guarantee for 12 months • Warranty on appliances 12 months • Full hands off investments with professional property management company as part of the deal ·

When you hear Indianapolis you immediately think Indy Car racing but it is a lot more than that !

Indianapolis is an “up & coming area”

Fast facts about Indianapolis

Indianapolis Skyline

• Home of the Super Bowl XLVI, On May 20, 2008, the city was awarded the rights to host Super Bowl XLVI. Indianapolis hosted the 1987 Pan American Games and the2002 World Basketball Championships • Indianapolis International Airport, airport code IND, is the largest airport in Indiana and is home to the second largest FedEx operation in the world (after the Memphis headquarters) and the United States Postal Service Eagle Network Hub. The entire airport is a global free trade zone called INZONE with 18 designated subzones.

• Indianapolis is a prime centre for logistics and distribution facilities. It is home to distribution centres for companies such as Amazon.com, Foxconn, Finish Line, Target, and CVS Pharmacy • Indianapolis 500, Brickyard 400, Men’s & Woman’s NCAA Basketball Tournaments •

Several new large corporations like Honda & Carbon Motors have settled in Indianapolis in the last year • Headquarters to Eli Lilly, Brightpoint, Wellpoint, Simon Property Group to name a few •

The National Association of Home Builders and Wells Fargo ranked Indianapolis the most affordable major housing market in the U.S. • Forbes magazine ranked it the sixth-best city for jobs •

Indianapolis ranked first on CNN/Money’s list of the top 10 cities for recent graduates. •

Indianapolis ranked 10th in the best cities for relocation by Yahoo Real Estate •

The largest industry sectors by employment in Indianapolis are manufacturing, health care, social services, and retail trade. Compared to Indiana as a whole, the Indianapolis metropolitan area has a lower proportion of manufacturing jobs and a higher concentration of jobs in wholesale trade; administrative, support, and waste management; professional, scientific, and technical services; and transportation and warehousing.

Additional Facts
• Indianapolis is the home of: Ball State University Indianapolis Centre, Butler University, Indiana University-Purdue University Indianapolis (IUPUI), Ivy Tech Community College of Indiana, Marian University, Martin University, Oakland City University Indianapolis campus, The Art Institute of Indianapolis, Vincennes University Aviation Technology Centre, the University of Indianapolis, the University of Phoenix, and WGU Indiana. •

Indianapolis is below the national unemployment rate at only 8.5%, in better terms that means 97.5% of hoosiers are employed (monster.com) •

According to government data, the average salary for jobs in Indianapolis, Indiana is $32,020, and the median income of households in Indianapolis was $40,051.

More properties will appear from the 3rd week of December as our stock levels rise – in the meantime contact Chris

Another Satisfied Client buys in Alicante Region

Tue, 13 Dec 2011 15:15:00 GMT

Dear Nigel

I would like to say thank you for finding me my home in Spain. Harvey Savage worked endlessly to find me just what I wanted he was so patient and nothing was too much trouble for him, he helped me every step of the way and I will always be grateful to him.

I would recommend Girasol Homes to anyone and Harvey is a great asset to your team out in Alicante

Thank you once Again

Kind Regards

Keith Stoner

Kind Words from Satisfied Clients

Wed, 05 Oct 2011 20:08:00 GMT

Dear Nigel, I want to write a thank you note, we have bought an apartment in Entre Naranjos.

We have done this in response to an advertisement from you, directed by Sven, who knew of our desires and he has been searching for us. We therefore very much like to add our compliments on your site, especially to Sven.

He found and supported the decisive factor for our purchase, our thanks. It is the house of our dreams and we love it in Entre Naranjos,

Very briefly, our sincere compliments, and especially to Sven but also to the whole Girasol Homes who made this possible.

We would like to say to anyone who wants to buy a house in Spain go to Girasol Homes, you do not get disappointed.

Yours sincerely, Mr and Mrs Bos (Nehtherlands)

Spanish Property Store Goes Live

Fri, 26 Aug 2011 17:30:00 GMT

One of the many new websites under construction at Girasol Homes is now live, specialising in Spanish Property Sales the new site at Spanish Property Store is already receiving traffic and new visitors.

Developed by Graham Hunt and Nigel Salmon this family of sites is intended to demonstrate to the Spanish Property Buyer the One Stop Shop Element of buying a Spanish Property through Girasol Homes.

Spanish Property Prices Now at Realistic levels

Fri, 19 Aug 2011 23:15:00 GMT

In contrast to the UK, where vendors are still in a state of denial, owners in Spain have finally began dropping their asking prices, according to new data from Idealista.com.

In total, 31% of vendors have dropped their prices with a disproportionate number coming from the cheaper end of the market.

According to Idealista, 134,107 sellers lowered their prices which is 69% more than last year and the sharpest change ever recorded by the portal.

The regions with the biggest number of falls were in Madrid (10.2pc), Zaragoza (9.7pc) and Barcelona (8.8pc).

Girasol has found that the most activity is happening in the Alicante and Murcia Regions.

New Site to launch for Spanish Repossessions

Fri, 19 Aug 2011 22:31:00 GMT

By September Girasol Homes will have a whole host of Specialist sites that will form part of the Girasol Homes family. One of these is the Specialist Spanish Repossessions website spanish repossessions.

This site will focus on how to buy a Spanish Repossession Property and list some of the benefits of doing so. This could include a Low Deposit Property with a high percentage mortgage which would save thousands of Euros on a large deposit plus mortgage type property. More will follow on this site.

Spanish Property Tax is reduced to encourage sales

Fri, 19 Aug 2011 22:28:00 GMT

From the Wall Street Journal

MADRID—Spain will temporarily lower the rate of value-added tax levied on purchases of newly built housing as it looks to boost its moribund property market, part of a slew of new policies to help the economy and cut the government’s budget deficit.

At a press conference following an extraordinary cabinet meeting, Finance Minister Elena Salgado spelled out several measures, announced in recent days, to bring forward corporate-tax payments and reduce drug-procurement costs in the country’s state-run health service.

She also said the reduction in VAT on house buys—to 4% from 8%—will only be applied until the end of this year, and seeks to cut the large number of properties built in recent years that remain unsold. As Spanish property prices have tumbled since 2008, the number of transactions and employment in the sector have dropped significantly.

“This measure will help to generate economic activity,” Ms. Salgado said, adding that it should have a positive effect on government revenue, which she didn’t specify, through a significant increase in taxed transactions.

Air Traffic Rises across Spain in May 2011

Wed, 29 Jun 2011 14:24:00 GMT

From Moodies Report

SPAIN. Aeropuertos Españoles y Navegación Aérea (AENA), the country’s airport and air traffic control authority, posted a +6.4% year-on-year increase in passenger traffic in May to 17,883,637.

Madrid-Barajas Airport experienced a -1.7% decline to 4,213,488 but Barcelona El Prat Airport posted a +22.3% surge to 3,072,750.

All top ten airports, other than Madrid, posted year-on-year growth. Pallama de Mallorca was up +6.8%, Malaga +9.8% and Alicante +7.3%. Tenerife Sur was the fastest riser, up +22.1%.

For the first five months, passenger numbers across the AENA network rose by +8.5% to 75,001, 913.

Madrid-Barajas Airport experienced a +1.3% gain to 19,516,202, while Barcelona El Prat Airport posted a +20.0% increase to 12,639,500

All top ten airports posted year-on-year growth for the period.

Housing Market in Spain predicted to bottom out

Thu, 23 Jun 2011 21:43:00 GMT

The Spanish housing market has been predicted to “bottom out” in the next year, providing an ideal environment for international property investment.

JP Morgan Chase said Spanish property will be available at bargain prices in the next 12 months, before starting to recover.

New rules that banks must adhere to by September, set down by the Spanish government, is expected to see lenders selling off their property assets to try and increase their capital.

Banks are also easing back on their lending criteria for distressed property in a bid to encourage investors, meaning borrowers can get up to 100% mortgages.

In a statement, JP added: “There is still some way to go, given the large overhang of land, further write downs to come and further de-gearing by property companies and banks.”

Portugal Property Market Analysis

Wed, 25 May 2011 19:20:00 GMT

Residential Property Market in Portugal, Silver Coast Area

Nigel Salmon MD of Girasol Homes (www.girasolhomes.co.uk) recently spoke to his colleague Craig Anderson in the Silver Coast Region of Portugal regarding the marketplace and current conditions locally.

Nigel: “What is the market like locally?”

Craig: “At the moment there is a lot of press with regards to the current climate in Portugal which is fuelling some concerns about the financial and political stability of the country. With the current Centre-Left government resigning and the press bandying around phrases like “Financial Bailout”, “Austerity Measures” and “Recession” like they were confetti, it is no wonder. On the back of this there have been some reductions in the asking prices of some properties, and coupled with some reports that property prices are in “Free Fall”, seems to be giving the impression that there is also a real instability in the residential property market”

Nigel: “But is this really the case?”

Craig: “Every market is unique and has unique opportunities, let me explain”

There are several factors that make this market different from markets which may be more familiar to people such as the UK or Spanish Residential Property Markets.

1. Land classifications have been created with there being 4 main types. They are Urban, Touristic, Rustic (or Agro-Florestal) and Eco-Reserve Land. This allows for the control of where, as well as what type of properties can be built. For example you can’t build an apartment block on Rustic land. Rustic land generally only allows 1 detached or 2 semi-detached properties to be built.

2. There are very strict guidelines when it comes to building in Portugal. These include very rigid rules regarding the size of building in relation to the land that it is being built on as well as the maximum height and so on. This is designed to prevent overbuilding, or the construction of high-rise apartment buildings etc.

3. Proximity to the Ocean. There are restrictions on the various land types as to how close to the Ocean you are allowed to build. Recent changes have meant that it is no longer possible to build on certain types of land, such as Rustic land, if they are within 800m of the coastline.

4. There is a minimum land requirement meaning you must have a certain amount of land in order to be allowed to build on it. Again recent law changes saw the minimum requirement for Rustic land changed from 2,000sqm to 40,000sqm which greatly reduced the availability of building land over night.

5. Mortgages, for some time now it has been virtually impossible to borrow money from a bank to buy a piece of land. Therefore virtually all the land is debt free in Portugal and the owners, generally, are under no pressure to sell the land to clear debt.

Nigel: “So what does all this mean?”

Craig: “If you take all the factors and apply them across the board, it means that the supply of land is very limited. It means that any available land with a good sea view is at a premium and will only sell at a premium price. As you move inland the price does drop a little but the scarcity of Rustic land means that land prices are still fairly high. It also means that landowners are not desperate to sell their land and therefore you are unlikely to see wholesale reductions in the price of land. It means that existing properties, particularly those with a good sea view or some other unique feature, will hold their value because it is generally no longer possible to build a comparable property given the new and current building restrictions.”

Nigel: “So why therefore are we seeing some reductions in asking price?”

Craig: “There are reductions in the asking price of some properties, and whilst most property owners seem to be more receptive to negotiating than before, it tends to be the developers who are making large scale cuts in the asking prices. This is occurring for 2 possible reasons.

1. The builder may have borrowed during the ‘good times’ at low interest rates to make speculative builds and they may have designed their properties to cater specifically to international property buying market. Now that ‘harder times’ are here, they are being squeezed by higher costs, and interest rates at the same time when the international property buying market has slumped because of exchange rates and worldwide economic woes. Some builders are left with little choice but to slash the price of their property in order to liquidate the asset, clear the debt and basically get out. We have already seen a number of builders shut up shop under current economic pressure. We do have access to advertised and “un advertised” discounted homes.

2. Not all builders however are in the same dire straits. Many are in much stronger positions but possibly need to make just a single sale to ensure they are able to weather the current economic storm. However because other builders are cutting their prices, the stronger builders are being forced to follow suit in order to remain competitive in the eyes of the few bargain hunters who are out there. It is also worth noting that most of the price reductions are coming from the luxury market and tend to be on properties that are priced in excess of €500,000. At present we are seeing only a few obvious price reductions on properties below this figure.”

Nigel: “So what impact is this having on the market?”

Craig: “Things have changed and the change has been very rapid. The new property market is split between properties priced over €500,000 and those priced below this figure. The higher priced properties are seeing a reduction in the asking price which has yet to filter down to the properties below €500,000. The resale market tends to see prices remaining fairly steady although vendors seem to be more receptive to negotiations. The plot and build market is the one seeing the least amount of activity at the moment because of the increase in VAT and the general rising cost of materials. 12 months ago you could have bought some land and built a property for as much as 25% below what you would have paid for a comparable, existing property. Unfortunately this is no longer the case as the price differential has slowly been eroded away. At the moment, particularly with the current reductions on Luxury Properties, it is now more sensible to buy an existing property and enjoy it now, rather than build your own property for much the same price but have to wait up to 2 years for the result.”

Nigel: “So when do you believe it is the best time to buy a property and why?”

Craig: “I believe now, Summer 2011, is the time to buy because the current prices will not remain as they are and there are some exceptionally good bargains around. The next election here in Portugal is set for the 5th June. In the short term, it really doesn’t matter which political party gets elected to office because they are all bound by the terms of the “Bailout” to implement the same measures. Then the agreed financial rescue package needs to be delivered and be in place by the 15th June. Once these two events take place, the dust will begin to settle.

The world will see that there isn’t such a major problem in Portugal and the confidence will begin to return and people will start investing in property again. Once this starts to happen, the price reductions will quickly disappear as the laws of economics kick in. We will see the demand for properties increase as the confidence returns and the limited supply of properties will reduce as properties are sold to satisfy the demand. Increasing demand and a reduction in supply will inevitably result in the prices going up. Initially I don’t expect there to be a huge increase in prices, those that have been reduced will revert to their pre-reduction prices and the rest will probably remain as they are, there will just be less room to negotiate. However, as time goes on and confidence continues to grow, we will see a shortage of available properties with the result that it will become a sellers’ market, and then we will see prices increasing.”

Nigel: “But won’t they just build more properties to satisfy the demand?”

Craig: “Possibly. However for at least the last 18 months the banks in Portugal have not been lending money to builders to make speculative builds and there is no indication yet that this situation will change in the near future. If the situation does change it will take at least 18 months for newly built properties to be ready, and due to the reduced number of available builders, the number of new properties coming onto the market is unlikely to be large enough to have a significant effect on property prices as a whole. It is more likely that these new properties will be priced in keeping with whatever the current value of the market is at that time.”

Nigel: “Could I not just wait and buy a repossessed property from a builder that has gone out of business?”

Craig: “Yes you could. However, repossessions do not operate the same way here as they do in other markets such as the UK. Some things in Portugal move rather slowly and can be rather complicated. Therefore, depending on the circumstances, a property that is repossessed today could take as much as 2 years or more before it is put back on the market by the repossessing body. During that time the building will have been unoccupied and, depending on what stage the construction was at when it was repossessed, it may well have had the interior exposed to the elements. Therefore there may be additional hidden costs involved in getting the property back up to scratch and the price at which it is offered to the market may not be any lower than the current market value. So it is therefore better to buy it now, at a reduced price if possible, rather than wait for an undetermined period of time to buy the property, with little reduction in price, that has now deteriorated and needs additional work.

Therefore, whilst the Residential Property Market is being affected by current circumstances, it is not an unstable market. I believe as soon as the current situations are resolved, the market will very quickly revert to its natural point of equilibrium. I also believe we are unlikely to see the widespread peaks and troughs in Residential Property prices, which have been witnessed in the past in other markets such as the UK or Spain, as a result of bursting property bubbles.”

We have access to a larger than normal amount of quality properties in all price ranges and many great locations, if people are buying for all the right reasons and in the right areas they will find a great house with us in Portugal.

Craig Anderson is in charge of the Silver Coast Operations for Girasol Homes Limited.