November, 2011
David Cameron has finally decided to do something about Britain’s troubled housing market, but it’s not sitting pretty with analysts and investors alike. His radical new strategy (his words, not mine) includes: letting first-time buyers access mortgage funds after only putting up 5% in down payments; further pushes for the Right To Buy scheme targeted at social housing, and injecting a (deceivingly) sizable £400 million to resuscitate the country’s moribund construction sector. Also, in a bid to highlight how incredibly serious Mr. Cameron’s government is about resolving the current housing crisis, he even announced to insure lenders against any defaulting mortgages initiated under the said plan. No explanations, however, as to why none of this gloom was apparent last year while carrying out those brutal spending cuts, of which developmental housing bore the deepest gashes.
In the aftermath of the global financial fallout, U.K. banks have been reluctant to service the housing market, shutting out both owners and developers from obtaining necessary financing. The resulting inactivity is said to be holding the greater economy from recovery, and keeping Brits from realising their dreams of homeownership. The government’s offer to team up with builders and indemnify lenders against any losses is expected to ease up credit flows, coaxing banks to provide mortgages at 95% LTV a proposition they’ve largely shied away from ever since the world economy went bust (presently lenders insist on offering mortgages at a somewhat restrictive LTV ratio of 75%-90%).
The demand for housing in Britain is expected to grow at a rate of 232,000 homes/year, of which only 100,000 are being built at present. The £400 million in planned funding is intended to get developers to start working on new projects, and complete those that remain unfinished. Lack of building has cost the British economy dearly (accounting for nearly 20% of last years economic drag), and the government foresees the creation of many long-lasting employment prospects once construction efforts recommence.
Cameron’s other two propositions related to social housing are extensions of already in place, largely ineffective policies. Those currently residing in subsidised social housing would be given first-preference, and offered the opportunity to buy their present dwellings at 50% off market value. Bought homes, which no longer form a part of public housing, would then be replaced with newly built units to keep the welfare property stock at balance. The fact remains that the public will be made to spend much larger amounts to replace these sold-off units, a theory that seems at odds with the governments current austerity drive. If further cuts are instituted down the line, and construction of new welfare units becomes unsustainable, then what shall become of that segment of the population that desperately depends on social housing for survival?
The plan has largely failed to excite the markets; developers are hopeful, but their dipping share prices say otherwise. Critics want the government to do more to strengthen fundamentals, and create actual demand to help lift the property market out of the red. The Tories, however, have begun to accept one reality, the buy-to-let phenomenon is here to stay, at least for the time being; and if homeownership can’t be guaranteed, affordable renting options should.
Photo Credits: Lars Plougmann via Flickr & No 10 on Flickr
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This Post is from: Overseas Property Mall, part of Fuzz One Media Group
Cameron’s New Housing Bid: Lend, Build, and Repeat
Category : General Property News
UAE – Dubai
We already reported on how UAE’s thriving aviation industry is helping the region keep out of trouble, and now apparently it’s even flown in to revive those flat lining property markets. Rental specialists, Campaya, just cited Dubai as this holiday season’s go-to destination of choice, reporting a marked uptick in demand for rentals in the city. Thanks to the ongoing slump, prime realty is going for lowly prices. Other popular hotspots include, Egypt, the Caribbean, and Madeira – so much for a white Christmas.
Ireland
Ireland can’t seem to catch any of that holiday cheer. House prices continued to fall at record rates, and are now 45% of what they were during the boom. Apartments were hit the hardest, while residential properties saw a 13.8% decline in equity. As foreclosures persist, prices are expected to dip even further.
Chile
The Chilean property market, however, is overflowing with joy. Rising incomes have bolstered demand for luxury living, and prospects look upbeat as more people turn to housing for security against an expectedly crisis-ridden 2012.
Brazilians in Florida
Chiles neighbour and long-time ally, Brazil, is using its good fortunes to lift spirits up north. Brazilians are rocking Miami and buying up a storm, paying cash for $200,000 luxury condos, rejoicing on the backs of a strong currency. Florida shines on, but one real (R$) misstep, and the floodgates could reopen.
Canada
In Canada, the mood remained upbeat. Alberta residents in particular took seriously to building, as housing starts in the province rose against national convention. The oil rich region attracted interest from all over as more Canadians moved to Alberta to benefit from its booming natural resource industry. As jobs here open up, migration is expected to rise, and demand for housing swell further.
Meanwhile, the construction frenzy in Montreal is said to die down as developers wake up to market realities. Experts believe new units will remain vacant as mortgage rates rise in 2013 – right around the time these developments go on sale. The worsening global economic crisis is said to somewhat slow down the presently resilient national economy as a whole.
China
The Chinese might be able to offer some respite. Chinas nouveau rich has begun to invest heavily in assets abroad (to the tune of around $1.57m), buying large-ticket items in exchange for investor visas and quality living for their families. Education is a big draw for the Chinese, and most of the investment is concentrated in university and college towns. However, high processing costs, rigorous paperwork, and a strengthening Chinese economy could all bring a gradual decline in Chinese emigration.
London & the EU
Increased foreign interest in London realty got property prices soaring; non-UK parties now majorly own the City as it offers good investment prospects, generating greatest worldwide interest for its office properties. Political stability, and the properties’ safe-haven status have got buyers flooding in; while private banks line up to service low-risk, wealthy foreigners. Holdings from the U.S, Asia, and the Middle East are on the rise, while E.U. members struggle. Also, as Spain and Italy are hit hard, Brits hurry to decide whether to sell or stay put. As the euro wavers, urgency mounts; France sticks out as a star investment.
UK Housing
The Tories came out with a new plan to make buying attractive for locals. Mortgages shall now be obtained by putting up a mere 5% in down payments. Additional funds (£400m) will be targeted to encourage building of affordable housing, creating jobs, and jumpstarting the stalled economy.
Property Investing
What else? Canada outshone competition again, and was named the no.1 most desirable investment destination. Selling points: continued capital gains, pristine vistas, and endless options. Hong Kong and Switzerland rounded off the top 3; meanwhile, Kenya made a surprising entry at number 9. Apparently, wildlife resorts and beachfronts trump regional conflicts and terrorist threats.
The Rich & Famous
The week ended as Kirsty Bertarelli took the honors for Britain’ richest woman. The 40-year old singer-songwriter, and wife of pharma mogul Ernesto Bertarelli, is worth an estimated £8 billion. She’s a philanthropist, ex-beauty queen, and can be seen shuttling between her £8m chalet in Gstaad, a £10m chateau in Lake Geneva, and a modest dwelling in Knightsbridge. Yes, the rich really do have it all.
Photo Credits: Luc V. de Zeeuw via Flickr
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This Post is from: Overseas Property Mall, part of Fuzz One Media Group
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Category : General Property News
Spain’s markets are in a fix, and there seems to be no creditable solution in sight. In fact, there is no credit. Lending activity in the country has slowed down dramatically, having experienced its greatest fall this year (a record 2.64% decline till September). The property markets gone bust, and looks to have taken all the air out of Europe’s fourth largest economy. Borrowers keep defaulting, and homes foreclosing. The only thing that’s left soaring here is the national unemployment rate (22.6% at present vs. 7.9% in summer 2009).
Meanwhile, the banks seem to be even more cash-strapped than the population itself. The Spanish banking system was an important player in the country’s once robust real estate and construction markets, and still pays deeply for its generous missteps. Out of the total 1.79 trillion euros of outstanding loans that the banks currently hold, 308 billion euros is taken up by real estate, most of which is reportedly as good as gone. Spain’s property boom, much like the rest of the crisis-riddled world, was entirely misguided. Land development were largely concentrated in areas that have no real value; where given the current population trends, demand for units is not expected to materialise any time soon, not in the next 10-years at least. Banks then have a significant chunk of their money holed up in real estate that nobody wants to buy.
Spain’s financial sector was at the receiving end of both bailout funds and increased regulation following the global economic crisis of 2008. The public has coughed up 17.7 billion euros (and counting) to help keep banks out of the red; however, the number of surviving banks stands greatly reduced. Analysts believe that given the central banks increased demands for adequate cushioning; the end count is bound to be even smaller. Small to medium sized banks are expected to virtually go poof, since the majority of their business came from the property market, which now stands largely defunct.
Following the crash, property prices in Spain have witnessed massive downward reductions. Overall, home prices are now 28% lower than what they were in pre-bust days; whereas, land values have taken a hit of around 33%. As joblessness mounts and foreclosures become imminent, banks are expected to add even more real estate to their already overflowing portfolios. It is unlikely that these properties will be turned over anywhere in the near future; banks aren’t willing to unload at washout rates, and buyers refuse to pay stated premiums.
With the last government having largely failed to bring stability to the ongoing crisis, the newly elected popular party vows to not let the decline continue any further. The country’s problems, however, have outgrown its capacity to endure. The European debt crisis, of which Spain is an active participant, is nowhere near resolving itself. The nations industry is at a standstill; the banks’ hesitance (and apparent inability) to lend, coupled with the new leaderships proposed austerity drive can then only prolong this lull. Further, the banking systems present provisioning is based around best-case scenarios, if anything the government might have to pump in more funds to help keep the entire sector from falling under. I say, heads up ECB, another troubled soul comes your way.
Photo Credits: Chris Kimber via Flickr
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This Post is from: Overseas Property Mall, part of Fuzz One Media Group
Spanish Banks UNABLE to Sell Toxic Real Estate Assets
Category : General Property News
The Chinese authorities have succeeded in making good on their promise to lower property prices, but this bid to make housing affordable for the greater half of the Chinese population mightprove particularly costly for the Chinese economy as a whole. The residential sector is a major contributor of short-term economic growth in China, and accounted for an estimated 6.1% of its total GDP in 2010. Falling prices have already dragged down investment in the country’s real-estate market, and are expected make a similar dent in its demand for steel. Given the already dismal global economic outlook, a sluggish Chinese economy could then setoff more alarms than fireworks.
The drop in housing rates can be witnessed throughout the Chinese expanse, from large, major cities such as Shanghai and Beijing (here rates fell another 0.3% over a single month alone), to the relatively less populated second and third-tier ones. The country has instituted a series of regulations, whereby raising interest rates, and introducing local restrictions under which only those city residents who have been paying district or city taxes for a certain period of time are allowed to purchase housing in the said locality; these moves it intends would help take some pressure off of the overheated property market.
Discounted prices, however, have resulted in a flurry of buying, speculative and otherwise. Housing units in many developments are now priced at rates akin to those last seen in 2009. Developers have been forced to sell properties at throwaway rates; certain newly furnished apartments went for less than what the other, older houses in the locality were presently valued at. Major developers have seen their profits dip, and shares slide; raising fears that if the current trend continues, a shortage of adequate housing would soon develop, whereby triggering further unrest.
These falling prices also carry a strong implication for the greater world economy. The Chinese are the major buyers of machinery, and other housing-related (raw) materials from markets as far and wide as Japan, Australia, and Latin America. Local manufacturers are already citing worrying drops in demands for construction equipment, and doubt that they’ll be able to meet annual sales targets. The contagion shall then surely pass onto other markets whose growths are primarily fueled by exports, of which China constitutes a lion’s share.
This overarching influence of the Chinese property market then leads analysts to believe that such downward revisions in housing prices may not be allowed to continue for long. Persistent deductions in prices at various developments have already irked many buyers, and sparked protests as homeowners see their treasured equity vaporize at an increasing rate. The Premier, however, seems adamant to see these so-called corrections through; and given the track record of Chinese officials, a policy reversal might be somewhat of a long shot. Regardless of the status quo, developers, both local and foreign, remain upbeat about the long-term potential of the Chinese property market. They trust that once interest rates start to fall to reasonable levels sometime next year, the market will reveal its actual value, and prices will soar again. The Chinese housing market will eventually stage a comeback since the present state of affairs too is somewhat of a show; artificially orchestrated, well put-on.
Photo credits: Dale via Flickr
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This Post is from: Overseas Property Mall, part of Fuzz One Media Group
Category : General Property News
The UAE seems well perched on the formidable wings of its soaring aviation industry. Markets are swiftly jetting towards the promise land of both recovery and progress. The region is close to realising its long held ambition of piloting growth independently off its naturally occurring oil reserves (UAE is the 4th largest exporter of oil in the world), and is strategically building upon its tourism industry to provide the necessary traction.
The state has previously used its property markets as a launching pad for its non-oil driven growth prospects, but the debt-fueled boom of 2007-2008 threw a proverbial wrench into that design, and the entire plan truly went bust. Since the golden days of yore (mid-2008), property prices in the region have fallen by more than 80%; however, Dubai properties took the greatest beating due to their increased foreign exposure (here sales have fallen by more than 70%, while 60% of total property value was washed off following the financial crisis). Experts believe this decline to persist as more projects near completion, and the market is further inundated with housing that will scarcely fetch the starry prices which developers originally foresaw.
In contrast to the property sector, the UAE airline industry is gaining continued momentum. While property developers in Abu Dhabi halt projects, and lay off workers; the capitals airport keeps building. The Abu Dhabi International Airport (ADIA) is said to add a Midfield Air Terminal to its current facilities in order to eventually accommodate an estimated 47 million passengers per annum. Its designated carrier, Etihad Airways, presently holds a fleet of 62 planes, and has ordered an additional 100 during the just concluded Dubai Air Show. The popularity and outreach of the airline has resulted in increasing airport traffic at ADIA by 19.7% from 2006 till present, which is further expected to build on current numbers at an average rate of 1.5% per annum. The terminal is in addition to the already continuing redevelopment taking place at AIDA, which in itself is expected to increase the facility’s ability to handle at least 20million passengers once finished.
The Emirati states have been able to attract a growing number of tourists to their ports regardless of the sustained lull in global financial markets, and the precarious political situation in the Middle East. The UAE offers a strategic pathway to the coveted markets of China and India; the authorities realize that with time demand for its routes will only rise as its two star carriers Emirates and Etihad continue to expand outreach and passengers swell. Infrastructural and capacity building is thus ongoing at full speed, with the Abu Dhabi government alone pledging to inject $500million dollars into its tourism and industry in order to better position the capital as a global player in the aviation industry, and in effect increase its non-oil sectors GDP contribution from the present 41% to an estimated 64% of total receipts.
The Sheikhs for the first time are not channeling their energy and resources into developing behemoth structures that only feed their fancies, but are instead setting off to exploit another actual untapped gift of natures – their states strategic positioning on the world map. Given UAE’s abundant oil reserves, the fortunes of its citizens will surely proceed to grow; as it is the economy expands by 3.8% this year (vs. 1.4% in 2010). From where we stand, the airline industry will easily airlift the Emirates out of the current global gloom, and once recovery begins offshore, it will also fly in more investment back home.
Photo credits: Griffiths via Flickr
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This Post is from: Overseas Property Mall, part of Fuzz One Media Group
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Category : General Property News
The Canadian housing market continues to function in a consistently insensitive manner. It’s like it fails to realize that the rest of the free world is hurting, and this persistent, and seemingly abnormal, growth is bound to cause more offense than awe. The Canadian Real Estate Association (CREA), only yesterday, released some more upsetting news – the country’s home sales have risen once again (by 1.2% in October), and the overall industry outlook too remains sanguine (1.4% higher sales expected overall in 2011 vs. those in 2010). What is Canada doing differently? Are Canadians a particularly hopeful bunch, or is there something more sinister at play? Why is it that owners and buyers alike have not taken to renting with as much fervor as their American and British friends so apparently have?
A little digging into the operations of the Canadian economy in general, and the housing market in particular; and one comes off even more troubled than before. The global demand for the country’s produce (i.e. Crude Oil, Natural Gas and Automobiles) have only grown; its lenders adhere to (and honor) a stricter set of regulations, and the government’s efforts to stabilize the economy have been lauded rather than ridiculed. The country might be singled out as an exception, but the only exceptional thing it has done is keep the risky borrowers out of the greater market. If you can’t afford that C$1 million property in the desirable downtown Toronto district of your choosing, banks don’t approve your mortgage. Even during the recklessly fueled housing boom of simpler times (circa 2007) the number of homeowners in Canada with loan-to-value ratios (LTV) of 80% or greater was negligible as opposed to those in America, and the Great Britain. Regardless of these so-called market deterrents, Canadians’ demand for housing witnessed sustained growth, and house prices still remain high.
Another striking element of this very peculiar Canadian experience is the electorate’s unconventional response to their leaders. The authorities have made adequate downward revisions in interest rates, and the population has oddly responded by showing buyers confidence. Immigration too has an interesting role to play. As per recent reporting, the Chinese contingent has been instrumental in stoking house prices in certain Canadian cities. This coupled with the government’s unrelenting funding of public works, and other social service programs (read, welfare) has resulted in adding to the desirability factor of localities, whereby generating even more buyer interest.
Analysts, however, don’t consider the Canadian economy to be able to perpetually weather these troubling financial winds from offshore. This confounding growth they believe will peter out; although, a virulent recession does not feature on the forecast. The current price pattern is consistent with Canada’s national 10-year average. The house prices are rising, but less aggressively so, thus, those of you hoping that the now ubiquitous crash is imminent might be in for yet another surprise. What is worrisome though is the potential effect of a sudden increase in the now affordable rate of interest. Canadians too have been observed to be spending a little more extravagantly; resembling their ailing neighbors in the amount of debt they’re accruing. If this trend is allowed to continue, even a slight increase in rates could spell trouble for homeowners. Then again, the Bank of Canada (BOC) has avowed to do whatever it takes to avert crisis, and do right by its people. The insanity never ends.
Image Courtesy: H.R. Hatfield @ Flickr
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This Post is from: Overseas Property Mall, part of Fuzz One Media Group
Canadian Housing Market Refusing to Stall
Category : General Property News
We always talk about the special partnership between the UK and US, and we all know that it will scarcely ever be as “special” as it was between Bush and Blair, at least not until sufficient time to have past for us all to have forgotten the lies Blair told during the time that he was being operated from behind by Bush, but that is another article. But one special relationship that we have no such choice in is the special relationship between our economies and housing markets.
Just as the glove puppet metaphor was appropriate above, it is as though the US housing market is operating the UK one, but it is more like string puppetry; pulling it around. The US housing market crashed because of a tsunami of defaults on sub-prime mortgages well and truly burst the bubble of easy credit that was fuelling the boom. The UK banks were as tied up in sub-prime US securities as any bank in the world, and so the contagion soon became a UK problem.
Both saw massive repossession figures, although the US problem was bigger one could argue that proportionately as to the size of the markets, the problems were equally huge. And both saw their banks practically shut up shop to mortgage lending.
Now, the same set of circumstances caused by the crash is fuelling a rental boom in both the US and the UK. Namely, the fact that of the few first time buyers with immaculate enough credit to get a mortgage, even fewer can raise the 10% (or more) deposit needed to get an affordable rate. Thus, most would-be first time buyers in the US and UK are being forced into the rental market. This, combined with the thousands (millions in the US) of people who have been forced into the rental market by repossession, and on top of the usual demand for rented accommodation, is fuelling unprecedented rental demand in both countries.
According to a recent government survey, US developers can’t build fast enough to meet the demand, even though construction is growing rapidly across the nation.
Two-thirds (67%) of developers surveyed last quarter by the National Multifamily Housing Council said construction activity is underway, with 20% breaking ground on new projects as fast as they can put everything in place. The other 47% reported an increase in pre-construction activities-acquiring land, lining up financing, getting building permits-but not much actual construction yet. Even with all this increased building, 54% of developers still think development is not meeting demand in the US.
In the UK demand is so great that rents are setting records on a weekly and monthly basis. According to the latest buy to let index by LSL Property Services (parent company of Your Move and the Reeds Rains agency network), rents grew in all areas of the UK in September for the first time on record. The index, which was based on a representative sample of 18,000 properties across the UK, recorded rents up 0.7% on average in September, taking the average to £718, surpassing the record high of £713 set just 2 months before.
Rents in London grew by an incredible 5.2% in September. This is obviously great news for those with capital to invest in buy to let properties in either the US or UK (especially with so many repossessed properties to choose from in places like Florida and Atlanta), but one can’t help but wonder if the UK rent rises are perhaps storing up more trouble for the future; for example, if people start to get priced out of the rental market we are endanger of the government stepping in and making UK rental law even more pro-tenant. But again, that is another article.
Photo credits via: gavof over on Flickr
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This Post is from: Overseas Property Mall, part of Fuzz One Media Group
UK and US Face Buy to Let Boom Hand in Hand
Category : General Property News
The Sri Lankan government is scrapping the 100% tax levied on foreigners buying land, in favour of a new special land tax to be unveiled in the 2012 budget.
The new tax will remove restrictions on foreigners buying and developing land anywhere in the country, and will also close loopholes which have allowed many foreigners to buy land in Sri Lanka tax free. It is also thought that removing the tax will increase tourism and property sales to foreigners. The overall aim of the decision is to increase the revenues coming into government coffers from the sale of land to foreigners, sources from the Finance Ministry told reporters.
The amount of the new tax hasn’t been finalised yet, but it is aimed at improving the system of foreign land and property sales in Sri Lanka.
For example, under the current system foreigners can buy land tax-free if their investment in the entire project is over $10 million. Because of this, land is often sold at inflated prices, allowing huge profits to be made tax-free. Another example is when foreigners buy Sri Lankan companies that are holding land, or to use as a vehicle for buying land, and thus avoid paying the 100% tax. Whenever there’s a prohibitive tax in place, foreign investors find a way around it and Sri Lanka is no exception, a senior official of the Finance Ministry said.
In order to buy shares in a company in Sri Lanka it is necessary for a foreigner to open a SIERA Share Investment External Rupee Account. Foreigners then bring any money into Sri Lanka directly into their SIERA account for any investments in shares. When the shares are sold the foreign investor is entitled to repatriate all the initial investment and profits. Foreign investors are not liable to tax on any profits made on the sale of shares.
When the time comes to sell property, if selling to a local, there is no issue. If a foreign buyer is found and the property is held in a company, the foreign buyer can simply sell the shares of the company, place the funds in the SIERA account, and repatriate the monies, a member of the Finance Ministry revealed.
The 100% tax was only reintroduced in 2004, to appease leftwing parties, who blamed the property boom on foreign speculators investing in the country. But it has now become apparent that this was a bad way to combat the problem. The buyers who didn’t know about the loopholes were being put off altogether, and those who did know about them were buying land tax free, so the government was losing out both ways.
Photo credits: Mr.T via Flickr
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This Post is from: Overseas Property Mall, part of Fuzz One Media Group
Sri Lanka to Scrap 100% Tax on Foreign Land Buys
Category : General Property News
Donald Trump is furious about a proposed off-shore wind-farm near his £750 million golf resort development in Menie on the Scottish Aberdeenshire coast — so much so that he has written a letter to Alex Salmond. In the letter, Trump calls the proposed 11-turbine wind-farm “disastrous and environmentally irresponsible”, one wonders if he would think it was so disastrous or environmentally irresponsible if he wasn’t about to see completion of a golf resort a mile down the beach from it.
Of course he’s furious, he has every right to be, but in all honesty it would be far better for all of us if he approached it in a different way. Oil is going to run out, and global warming is real. If we want to continue living on this earth, and living the lives we do now, we all need to accept that things like wind-farms are going to become part of our landscape and scenery.
The coast of highlands Scotland is one of the most beautiful landscapes in the world, but it is also one of the windiest places in the UK, and you can’t build wind-farms where there is no wind.
But Trump doesn’t see it that way, and the developer has vowed to fight against the “useless eyesore” on every possible front.
Five years ago, environmentalists and those in the local community in Menie were saying similar things about his luxury golf development, but Trump won the day. Apparently, at the time Trump extracted pledges from the then Scottish government, that wind turbines would not be “destroying and distorting Aberdeen’s magnificent coastline”.
In the letter Trump says, “you should ask yourself if any other international developer would ever risk investing in Scotland after my experience and all the promises that were made to me”.
But these promises were not made by the current government, a spokesman for the Scottish government said: “Mr Trump’s letter refers to the position five years ago, when he was submitting his Menie planning application in 2006 – before the current administration took office – and therefore we have no knowledge of what was said then.
“The Menie application was determined properly, according to Scotland’s planning laws and procedures, and it will be exactly the same for this development proposal.
“Ministers will assess every planning application on its merits, taking into account the views of consultants, interested parties and the public.”
In his letter to Salmond, Trump writes: “I object in the strongest possible terms to the current location of the wind turbines as proposed by Vattenfall, which is only 2km from my championship golf course and directly opposite Royal Aberdeen Golf Club.
“Its adverse visual impact on my development and the beautiful Aberdeen coastline would be disastrous and environmentally irresponsible.
“I will soon have invested approximately £60 million of my own money – which is not a public subsidy, unlike the funding for Vattenfall’s turbines – to create a world-class golf resort under my global brand.
“After enduring the expense and many years of complex planning procedures, the championship course is nearing completion, well ahead of schedule.
“Unfortunately, instead of celebrating the start of something valuable and beautiful for Scotland, this ugly cloud is hanging over the future of the great Scottish coastline.
“My objection to the wind farm should come as no surprise to anyone because I have consistently warned of the adverse consequences it would have on my development and on Aberdeen.”
But according to Trump, he is not just fighting for the views of his patrons. In a great irony, Trump claims to be fighting against the desecration of Scotland’s coastline, when 5 years ago people were fighting against his golf development on the very same grounds, and now, according to them he is guilty of such desecration.
Trump’s letter to Salmond reads: “I am not fighting this proposal merely for the benefit of Trump International Golf Links. Instead, I am fighting for the benefit of Scotland.
“Every location in the United States with a magnificent coastline – nothing compared to Scotland – has successfully defeated these horrendous looking, noisy and inefficient structures.
“My mother, Mary MacLeod, who was born in Stornoway [in the Outer Hebrides off Scotland's north-west coast], would be very proud of what I am doing for Scotland.
“It is not only for my project, it is more to preserve Scotland’s beautiful coastline and natural heritage.”
This will certainly be an interesting one to watch. One silently wonders how many lavish lunches or perhaps more expensive things went into extracting the promises from the previous government, and if now a little grease in the right wheels will put paid to the wind-farm. Of course, we will probably never know one way or the other.
Read More:
- Donald Trump and Royal Society for the Protection of Birds (RSPB) join forces to defeat wind turbine project [Daily Mail]
- Donald Trump’s plea to Alex Salmond over ‘ugly’ wind farm [Guardian]
- Donald Trump Angry Over Offshore Wind Farms Near Scotland Golf Course [Huffington Post]
- Trump’s fury at ‘ugly’ wind farm set to spoil his fairway from heaven [The National - UAE]
Photo Credits: Slaunger via Flickr
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This Post is from: Overseas Property Mall, part of Fuzz One Media Group
Trump to Fight Scottish Wind-Farm on Every Possible Front
Category : General Property News
For the last few years, the London property market has been one of the most talked about in the world. Before the crash it was talked about because of the rapid rate at which property prices were growing, especially prime properties, and the fact that first time buyers were being priced out of the market.
London was then hit hard by the crash, but when UK prices started to grow fuelled by weak supply and government stimulation in April 2009, London returned to its old ways. In fact, if it weren’t for the exceptional shortage of supply in London, some believe that the UK average house price indices wouldn’t have shown the rises they did.
Now that is certain, house prices are stagnating around the UK, but in London and the south they are growing. Houses never got affordable for first time buyers in the capital (they never got affordable anywhere but that is another story), because prices never fell far enough, and because the banks are demanding bigger deposits. And the situation is continuing to get worse as prices rise.
In fact, according to research from bank and mortgage lender First Direct, buyers in London are paying 10 times the deposits they were 20 years ago, while salaries have barely tripled during the same period. Combined with the price rises of late, the reduced amount banks are willing to lend means that those looking to buy in the capital last year would have found it more difficult than at any time in the last 20 years.
“Much has been made of rising house prices, but the average deposit needed in the first place has actually risen more than twice as fast as house prices and almost four times as fast as income,” said Bruno Genovese of First Direct. “This is why we are seeing first time buyers getting older, with more and more people struggling to get on the property ladder.”
What’s worse is that, because of the buying situation, renters are starting to find difficulty in finding somewhere to stay that they can afford as well. With less and less first time buyers able to get on the property ladder, rental demand is soaring.
This is fuelling record rent rises, and pricing people out of the rental market. This then forces more and more people to look at the option below that, which is renting a room, and the latest evidence shows that demand is even outstripping supply for rooms, and again, prices are rising.
Photo credits: Metro Centric via Flickr
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This Post is from: Overseas Property Mall, part of Fuzz One Media Group
London Property Still Prohibitively Out of Reach for First Time Buyers
Category : General Property News
