There are so many real estate articles out there — and so little time! For busy investors looking to take a quick reading break, look no further than our list of recommended reading for the week. From advice and investment tips to market reviews, we’re highlighting the stuff that’s really worth your time.
So sit back, and take a break. These were the 5 Must-Read Real Estate Articles of The Past Week:
By Neil Callanan via Bloomberg
London and Hong Kong are the cities most at risk of a housing bubble as real estate begins to look overvalued, according to UBS Group AG. The U.K. capital is now the second-least affordable of the 15 urban centers studied by UBS, trailing only Hong Kong, the report said. Price-to-income and price-to-rent values have surged to all-time highs even as real earnings have fallen 7 percent in London since 2007, UBS said. London risks a “substantial price correction should the fundamentals for estate investment deteriorate,” the report said. “We advise caution.” London house prices have surged 40 percent since the beginning of 2013 because of demand from overseas buyers, attractive rental yields and population growth, the Swiss bank’s global real estate bubble index shows. The Bank of England has asked for more powers to regulate lending to so-called buy-to-let investors, who are attracted by rental yields of more than 5 percent compared with 1.8 percent for benchmark U.K. government bonds.
By Brian O’Connell via MainStreet
The U.S. residential real estate market has hit a rough patch, leading some industry insiders to scale back on once positive outlooks for the housing sector. That reality hit home this week with the release of Realtor.com’s monthly home sales data report, which shows a marked decline in residential sales activity. According to Realtor.com, home sales fell by 12% from August to September, and June and July figures were revised downward to fall into negative territory as well. “The new home sales report covering September released today shows a rate well below the consensus estimate and indicates that real issues emerged late this summer in the new homes market, questioning the supposedly strong growth signals that were previously interpreted by many,” said Jonathan Smoke, chief economist at Realtor.com, in an email to MainStreet.
By Kayleena Makortoff via CNBC
A growing number of investors are betting Canada’s frothy property market will nosedive, according to research firm Markit, as low energy prices drag down the country’s economic outlook. Investors are taking out an increasing number of “short” positions on banks and insurers with high exposure to the property market, Markit explained, with these investors expecting share prices to slide. This comes amid record low interest rates in the country— which have been cut twice this year, down to 0.5 percent. Financial groups now account for three of the top 10 shorted stocks in the country, it said. Home Capital Group — one of Canada’s largest financial institutions— currently ranks as the most shorted stock in Canada. Markit measures the short interest in a stock by calculating the amount of shares that are out on loan. Home Capital Group recently saw an 18 percent share sell-off and the cost to borrow its shares jump 10 percent after second-quarter results showed fewer mortgage starts than expected. Shares on loan now total 31.9 percent, according to Markit.
By C.J. Hughes via The New York Times
The area by the Brooklyn Navy Yard can seem forbidding. Hulking warehouses line Flushing Avenue, a wide and busy street that hugs the yard for 16 blocks, while the yard, a massive former military complex turned manufacturing center, is almost totally enclosed by tall fences and walls. “It’s literally like working in a federal prison,” said Chris Terrell, a wine importer who stores his bottles at the yard and must venture past its security checkpoints. But the vibe will be less harsh going forward, as major steps are being taken to reinvent the area, part of the Wallabout neighborhood. Across from the yard, developers are putting the finishing touches on Navy Green, a $146 million housing complex with market-rate and affordable apartments being built on the site of a former Navy brig.
By Grant Cardone via Entrepreneur
Inflation is defined as, “a general increase in prices and fall in the purchasing value of money.” Your money doesn’t go as far — simple. The $30k you made at your job 10 years ago and lived comfortably with barely gets you by now. You can’t control inflation (the Federal Reserve does that) and the government has doubled their debt since 2008. It’s now at $18.3 trillion and grows every day. The government cannot save you or your family, or ensure your financial freedom. Set your mind right about earning money. More cash = more freedom! Money itself won’t make you happy, but it will give you the ability to provide a better life for yourself and your loved ones. You must invest with income streams that give you positive cash flow, learn to leverage your debt, learn to handle inflation and take control of your physical assets. Do you currently have commercial real estate assets in your investment portfolio? Are you scared to have your money in the stock market (like I am) but also fed up with almost no return on investment with your money at the bank?
Did you like these articles? What were your favorite articles this week?