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Berlin Agrees Five-Year Rents Freeze To Tackle Housing Prices Boom

The local government in Berlin has agreed to freeze rents in the German capital for five years as the city is battling with skyrocketing housing prices.

The Berlin Senate’s majority, which is composed by the Social Democrats, Greens and the Left party, approved the decision last week after months of discussions.

The plans will be sent to parliament this month, where they are expected to be approved and to take effect in January 2020. They also include measures to cap subletting contracts.

“We’re entering new territory,” said Berlin Mayor Michael Mueller. “Others talk about it, but we’re actually doing it.”

The clamp down on rent rise, one of the most extreme decisions taken by a Western capital in recent times, is being followed with close interest by other world cities.

The plan was initially proposed by the Left party. Katrin Lompscher, the party’s head of urban development and housing, said the intention was to “ease the burden” on tenants after a property boom which saw rents doubling over the last 10 years.

German house-builders’ and property companies’ shares were hit hard on October 21st. Deutsche Wohnen, Berlin’s largest private landowner, saw its shares fall by 4.6%. Shares of Vonovia SE, the largest property company in the country, fell as much as 1.6%.

Today In: Consumer

A separate grass-root initiative attempting to force Berlin’s local government to expropriate over 200,000 properties from large landlords is ongoing.

In August, Forbes.com revealed that Berlin is the city with the highest growth for prices of luxury real estate in the world.

For the second year in a row, the German capital had recorded the strongest price growth rate globally, with a 12% increase year-on-year – according to data from Knight Frank.

Follow me on LinkedIn. Check out my website.

I am a business reporter focusing on real estate, retail and technology. I am currently Chief Investigative Reporter at Property Week, where I lead the magazine’s investigations unit. I have been nominated as Best Print Writer at the BSME Awards in 2019 and 2018 and as Best Journalist – Infrastructure, Development and Construction at the British Journalism Awards in 2017. Prior to that, I worked as a freelance for a number of publications across the U.K., France and Italy including The Bureau of Investigative Journalism and La Repubblica. I hold an MA in Investigative Journalism from City University of London and an MA in French literature from Ca’ Foscari University of Venice.

Source: Berlin Agrees Five-Year Rents Freeze To Tackle Housing Prices Boom

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Investors Are Pouring Billions Into Proptech Here’s Who’s Getting It

The real estate business is finally getting renovated, as a new wave of startups build property-technology platforms that improve or simplify the complicated process of buying, selling, renting, or owning a home. And VCs have been more than willing to open their checkbooks: Since 2013, annual investment in U.S. proptech companies has grown at a rate five times that of investment in all U.S. businesses. In 2019, investment in U.S. proptech is on pace to exceed $10 billion. Here’s where some of this year’s money has gone.

$370 million

Compass hosts real estate listings on an easy-to-use online platform. It also provides tools for agents, including real-time pricing, marketing software, and automated multiplatform listings, leaving more time for face-to-face meetings with clients.

$300 million

Opendoor buys homes directly from sellers in exchange for cash, which helps them afford down payments on their new digs. The company holds DIY open houses that allow almost anybody with a smartphone to tour a home–without an agent–between 6 a.m. and 9 p.m.

$160 million

Better, a direct lender, allows homebuyers to quickly get a mortgage via a simple online application. Plus, no commissions and no fees mean borrowers pay only interest.

$170 million

Nextdoor keeps people up-to-date on events in their neighborhood. The social network also helps neighbors find babysitters and pet sitters, swap safety tips, and, of course, gossip.

$200 million

Clutter packs, stores, and moves its customers’ belongings­–and lets them track their inventory online. A forthcoming feature will help customers decide what to move, sell, or donate with a few clicks.

$300 million

Lemonade’s app lets homeowners and renters buy insurance against life’s lemons, such as losses from fire, water damage, and theft.

By: By Kevin J. RyanStaff writer, Inc. @wheresKR

 

Source: Investors Are Pouring Billions Into Proptech. Here’s Who’s Getting It

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Read the full report here: https://www.sbs.ox.ac.uk/news-and-eve… Will we soon be able to buy a house with the click of a button? A new report released by Saïd Business School, University of Oxford takes an expansive look at property technology (PropTech), and its findings detail the dramatic changes facing the real estate industry. The 95-page report was written by Andrew Baum, Visiting Professor of Management Practice at Oxford Saïd and real estate industry veteran, using data from PropTech venture capital firm PiLabs and interviews from over 50 real estate professionals.

Council Post: How To Prepare For The Recession As A Real Estate Investor

It seems like all the talk these days is centered around the inevitable recession. I see an article every day claiming that the end is near. Recently, the yield curve inverted, which many point to as a strong indicator of an oncoming recession. But, there are also many experts who claim the economy is strong. They cite strong growth, spending, development and other indicators to support their theory. No matter which way you lean, it is inevitable that there will be a market correction/recession at some point. It’s impossible to say for sure when or how bad it will be.

As a real estate investor, you want to be prepared for when it does happen. If you think back to the last crash in 2008, the best deals were the years after that. If you had capital, you made a lot of money. It almost didn’t even matter what you bought because prices were so insanely low. What I’ve heard most from investors looking back at it is, “I wish I would’ve bought more properties.”

Even though you can’t predict when it will happen, you can still take steps to get prepared. If you’re prepared, you’ll be able to capitalize. Let’s go over how people will be affected during the recession.

Sellers

In a recession, there will be many more distressed sellers than there are today. Since the last downturn, sellers have been able to refinance or sell if they got in a tight spot because of appreciation. Since prices will be going down, many will not have enough equity to refinance or sell. They’ll have to face foreclosure or a short sale. The sellers who do have equity will want to sell out of fear that they’ll lose their equity if they wait any longer.

Flippers

Many flippers will have exited the market. Prior to the recession actually happening, they’ll notice inventory rising, days on market increasing and their properties selling for less than anticipated. As a result, their margins will tighten. They may lose money or simply not make the return needed to justify the risk. Therefore, there will be far fewer flippers than you see today.

Wholesalers

Many wholesalers will leave the market. Even though there are more distressed sellers, there are fewer sellers with equity. They’ll notice that there aren’t as many flippers to sell to anymore either. The flippers who have weathered the storm will ask for significant discounts in order to do a deal. Wholesalers’ margins will begin to tighten to the point where it doesn’t make sense to spend marketing dollars anymore.

Contractors

Contractors will not have as many job opportunities since there will be fewer people buying and renovating homes. In order to get jobs, they will have to lower their prices to stay busy.

Real Estate Agents

With fewer buyers and sellers in the marketplace, there will be more competition to acquire clients. Real estate agents will have to spend more marketing dollars to attract them or take discounted commissions.

All these people play a vital role in real estate investing. You should ask yourself where you fit in with all of this. What’s the best position to be in?

The answer: become a cash investor.

In today’s market there are a lot of cash investors, but many will be wiped out or scared during the recession. So there will be far less competition in all aspects of real estate investing. The cash investors who do stay in it will own the market during a recession. With cash, you have many options. You can choose to flip homes with little competition. You can buy a bunch of discounted rentals and build your portfolio. Or you can lend the money to operators and have them do all the work for you.

Again, the No. 1 regret people told me they had after the last recession was that they didn’t buy enough homes. It wasn’t that they wish they would’ve wholesaled more homes or sold more homes as an agent. The person actually buying homes is the one who thrives in the recession.

The cash investor will be able to buy directly from all the motivated sellers with less competition. They’ll be able to buy from wholesalers at deeper discounts because there are more deals than money. They’ll be able to get cheaper labor from contractors because they’ll be one of the only sources of consistent work, and agents will work harder to find deals for cash investors because there will be fewer retail clients.

As you prepare for an oncoming recession, the most important thing you can do is become a cash investor. Here are a few ways how:

• If you have properties or assets, consider selling some so that you have more liquidity.

• If you’re a wholesaler or real estate agent, look into raising capital so that you can start buying the deals you find.

• If you’re a flipper, start building more relationships and using more lenders now so a trusting relationship is in place before the recession hits.

We don’t know when the next recession will be, but it doesn’t really matter. You should be preparing as if it could be tomorrow. Figure out how you can become a cash investor, and you will be ready for it.

Forbes Real Estate Council is an invitation-only community for executives in the real estate industry. Do I qualify?

Ryan Pineda is the CEO of Homerun Offer.

Source: Council Post: How To Prepare For The Recession As A Real Estate Investor

Lets talk about a potential recession, what might happen, and how you can best prepare – enjoy! Add me on Instagram: GPStephan – Avocado Toast Merch: https://bit.ly/2DhFyo3 GET $50 OFF FOR A LIMITED TIME WITH COUPON CODE: THANKYOU50 The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $125 million in sales: https://goo.gl/UFpi4c Join the private Real Estate Facebook Group: https://www.facebook.com/groups/there… So first, lets talk about what’s influencing the market and what factors we should be made aware of: The first is rising interest rates: This means that the cost of borrowing money is expected to INCREASE over the next few years. When borrowing gets more expensive, you either need to RAISE prices to keep the profit margins the same – which means things get more expensive to you as the customer. Second, we’ve begun seeing the warning signs of the INVERTED YEILD CURVE – which, according to just about every article out there, the inverted yield curve has historically been associated with a high likelihood of upcoming recession. Third, we have the tariffs and the uncertainty surrounding what may or may not happen. And when it comes to investments, the ONE thing all investors dislike is UNCERTAINTY. When people are UNCERTAIN, they don’t invest, they hold cash…and that causes stock prices to fall. And fourth…we’re seeing a slow down in nearly all markets. Here’s what I think is going to happen… First, I’ve noticed QUITE a lot of what I call “gamblers fallacy.” This is the expectation that the market will drop, JUST because we’ve been in the longest bull market in HISTORY and that means it’s “overdue” and more likely to happen. Second, I believe that a lot of our “Recession Talk” is already SOMEWHAT factored into the price. Think of all the people NOT investing right now because they want to wait for lower prices…that is, in itself, self fulfilling and lowering prices. And third…no one, including myself, knows whats going to happen. No ONE. And fourth, you have so many false news articles designed to APPEAR like credible new sources so they get pumped through Facebook and Blogs for the sole purpose of manipulating you into buying their products. Well here’s the reality: First, NO ONE can predict when a recession will happen. We’ve been seeing these articles since 2013 from people who claim the recession is coming any month now. It’s never ending. You’ll read about this one expert predicting something, then another expert predicting something else, and they keep repeating themselves until eventually, one of them is right. Then they use that credibility of being right ONCE to propel them into the next opportunity. Second, it’s important you PREPARE for a recession in ways you can CONTROL: First, you CAN control whether or not you keep a 3-6 month fund in the event you lose your job or something unexpected comes up. This is absolutely ESSENTIAL for you to do. Second, you CAN control whether or not to have too many outstanding debts that might need to be paid down. If you’re over leveraged, or if you have high interest debt, it’s in your best interest to pay those off to free up cashflow in the event of a downturn. Third, you CAN control how much you spend…if you’re spending is too high, it’s important to cut those back so that you can save more money to invest. And when you DO invest, invest long term. Ideally, these are investments you should plan to keep 10-20 years. For me, I see lower prices as an opportunity. And to alleviate some of these concerns, you don’t need to just drop ALL of your money in the market at once…buy a small amount each and every month. This way, if the price goes down..you’re buying in cheaper and cheaper over time. If it goes up, you’re buying in little bit little…and anytime when it comes to investing, slow and steady wins the race. This isn’t about making an immediate 10% profit in a month…this is about investing for your future in a slow, stable way where you don’t feel stressed whether the market goes up or down. For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com My ENTIRE Camera and Recording Equipment: https://www.amazon.com/shop/grahamste… Favorite Credit Cards: Chase Ink 80k Bonus Point Offer – https://www.referyourchasecard.com/21… American Express Platinum – http://refer.amex.us/GRAHASOxHd?XLINK…

Real Estate Math: How Much Do I Need To Save For A Down Payment On A House?

If you’ve been thinking of buying a house, you probably know that you should start saving up toward a down payment. However, if you’ve ever asked yourself how much you should be saving, you’re not alone. I’ve broken down the math for you below. Use these equations – and calculators – provided to figure out your savings goal.

Find out how much you can afford to pay in housing costs each month

Conventional wisdom states that housing expenses should never exceed 28% of your total monthly income. Using that figure, if you make $5,000 per month, that would translate to a monthly housing payment – which should include additional costs like taxes, mortgage insurance, and HOA fees – of $1,400 per month.

To find your amount, the math would look like this:

Your monthly take home pay x 0.28 = Your ideal monthly housing payment

Learn how much house you can afford

Once you have your ideal monthly housing payment in hand, you can use that to find out how much house you can afford. To do this, you’ll also need some additional information. You’ll also need a projected annual interest rate and the number of monthly payments you’ll make over the life of the loan.

Today In: Consumer

The formula for this is as follows:

Loan amount = (Monthly payment/(Annual interest rate/12) ) x (1 – (1/(annual interest rate/12)*number of monthly loan payments)

The math here can get pretty complicated so I suggest using this calculator to do the legwork instead.

Continuing with the example above, that $1,4000 monthly payment over a 30-year loan with an interest rate of 5% would average out to a loan amount of $260,794.26. For the purposes of this article, I’ll round it to $260,000.

Zero in on your down payment amount

These days, you need to be prepared to make a down payment of at least 3.5% – 5%. However, if you aim higher and save up a down payment between 10% and 20%, you’ll have access to better interest rates, which could save you money over the life of the loan.

No matter how much you decide to save, the math will look like the following:

Your total loan amount x down payment percentage = down payment amount

In the example above, if I used my $260,000 loan amount and wanted to make a 20% down payment, it would look like:

$260,000 x 0.20 = $52,000

The answer you get is equal to the amount that you should aim to save up to put towards a down payment.

Follow me on Twitter. Check out my website.

As a real estate blogger and content creator from a family of Realtors, home buying and selling is what I know. In addition to Forbes, my work can be found on Realtor.com, ApartmentTherapy.com, and Freshome.com. I also work with individual real estate agents to boost their digital marketing strategies. Find me at TMRealEstateWriter.com or on Twitter @TaraMastroeni.

Source: Real Estate Math: How Much Do I Need To Save For A Down Payment On A House?

For more than 40 years Donaldson Real Estate School has prepared students effectively for the real estate exam. A major part of student success is their mastery of the real estate math portion of the test. In this video, Chris will explain what we call our “secret sauce” to mastering real estate math: The Donaldson Math Circle. The Donaldson real estate math circle helps applicants preparing for their real estate exam by breaking down many of the algebraic formulas needed to pass the test into one simple to use system. ———————————————————– Donaldson Educational Services is the #1 source for professional exam preparation, pre-license education, post-licensing, and continuing education in a variety of industries. Featuring programs to gain a real estate license, insurance license, mortgage license, appraisal license, home inspection license – Donaldson is truly a one stop shop for your professional education needs. Keep up with Donaldson here: http://donaldsoneducation.com Twitter: http://www.twitter.com/donaldsonschool Facebook: http://www.facebook.com/donaldsoneduc… Subscribe on Youtube: http://www.youtube.com/donaldsoneduca…

Real Estate Investing 2.0: Unique New Approach Goes Beyond Crowdfunding

A combination of legislative reform and advances in cloud-based digital technologies has made crowdfunding a reality in real estate investing, but it has done little to overcome other barriers to entry. Now, a new business model is taking things to the next level.

While companies like RealtyMogul and Fundrise used crowdfunding to make real estate investing more financially accessible, many investors still consider it too daunting a prospect to venture into. Crowdfunding marketplaces require individual participants to choose the ideal investment and assume most of the risk themselves, and many people are simply not comfortable doing that.

Recognizing those barriers, entrepreneur Eran Roth came up with a plan to take real estate investing to the next level. Iintoo, the company he founded, is built around a REIMCO (real estate investment management company) business model and only offers deals that have gone through a rigorous vetting process based on a data-driven methodology. It actively manages those deals through their entire lifespan (typically 36 months), and underwrites every project on a firm commitment basis, so it has real skin in the game.

Active management makes a difference

The active management component is one of the most significant differentiators between iintoo and crowdfunding marketplaces, Roth stresses. “We had a student housing project in Georgia where the developer passed away suddenly. Foreclosure typically follows in a case like that, but given our hands-on model, our team traveled to the site, helped find a new developer, and made sure the bank would continue working with us. In a marketplace model where the platform is hands-off, the investors would simply have lost their money, but that property ended up returning a 20.82% yield to iintoo’s investors when we exited.”

While all investments, including iintoo’s involve risk, iintoo has come up with a unique way to address investors’ concerns about risk, with a program called epiic (Equity Investment Protection Community*). Epiic offers investors two kinds of protection against loss of principal. The first is a social community pool funded by a small percentage of each initial investment. The second is a $150 million insurance policy underwritten by Everest Re Group, one of the largest reinsurance companies in the world.

Focused on deals lasting 18 to 36 months, epiic provides a seamless and easy investment option for  investors looking to make one contribution into a diversified, risk-mitigated real-estate fund. There are risks associated with investing and principal loss is possible. Certain restrictions and limitations apply.

“Initially, I learned of iintoo’s platform through a friend. It seemed like a new way to invest in real estate,” says investor William Raff. “The more I learned about iintoo, and especially its equity protection, the more interested I became. Since then, I’ve invested in a number of geographically diverse residential properties in the U.S., including student housing and multifamily apartments. iintoo’s expertise lies in this area, and it provides an easy-to-use platform that enables individuals to efficiently access these investments.”

Diversification

Financial strategists have long recommended alternative investments such as real estate to increase portfolio diversification and potentially boost returns. Accredited investors ($200K individual/$300K joint annual income or $1M household net worth) can now access this market through iintoo with a minimum investment of $25,000. Average historical annual returns on iintoo’s full-cycle investments have averaged 16.63%* since the company’s launch four years ago.

Becoming an iintoo member is easy. It’s free to join, and there’s no commitment. Simply go to www.iintoo.com and sign up. Within a matter of minutes, you’ll be opening the door on an investment world once available only to the world’s elite.

This is an advertisement for iintoo.com. Securities offered through Dalmore Group LLC, a registered broker-dealer and member of FINRA/SIPC.

The testimonials contained in this article may not be representative of the experience of other customers. The testimonial is no guarantee of future performance or success.

This is not an offer to buy, sell or trade securities.   Investments are not FDIC insured, have no bank guarantee, and may lose value.

*When we refer to “Equity Protection” we are referring to an arrangement between an affiliate of Everest Re Group, Ltd. (“Everest Re”) and iintoo epiic GP LLC, the general partner of each covered issuer (“Covered Issuer”), pursuant to which the latter promises that, even in the event the underlying project is not profitable or records a loss, the investor in the Covered Issuer shall receive a specified amount equal to the original principal investment he/she/it provided (less other amounts already received by such individual investor during the course of the investment).

Equity Protection has significant limitations, including, but not limited to, repayments for losses in the Covered Issuer are only made up to a maximum amount of funds available from the retention account and the policy, repayments are on a first come, first serve basis, and risk is pooled across Covered Issuers subject to the same retention account and policy. Iintoo epiic GP LLC, and not the investors, is party to the policy with Everest Re. As a result, investors have no direct legal rights under the policy. In addition, beyond use of the Equity Protection proceeds from the retention account and the policy, neither iintoo epiic GP LLC nor the Covered Issuer has any obligations to indemnify investors for losses.

For more information, please see “Business of the Company-;Equity Protection” and “Risk Factors-;Risks related to the Equity Protection” in any of our issuers’ private placement memoranda.** The exit annual yield is equal to the ratio between the total profits from the equity investment (before tax) and the total raise (amount invested by iintoo’s equity investors in the project) divided by the investment term.

Source: Real Estate Investing 2.0: Unique New Approach Goes Beyond Crowdfunding

Let’s debunk some common myths about real estate investing, and share what it’s ACTUALLY like, no sugar coating – enjoy! Add me on Snapchat / Instagram: GPStephan Jeremy’s Channel: https://www.youtube.com/channel/UCnMn… Financial Growth Conference: https://financial-education2.teachabl… Join the private Real Estate Facebook Group: https://www.facebook.com/groups/there… The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c First expectation: Real estate investing is passive. The reality is that creating the type of rental property to the point where it’s passive income takes a LOT of work. But the work is, at times, still ongoing. Eventually you’ll have a vacancy. Eventually you’ll need to fix things up again. Nothing will last forever. Sure, you can get a property manager who’ll handle much of this for you – but you will need to do SOME work yourself, even if it’s as small as choosing between finishes or approving bids on work. It won’t be an insane amount of work, but it will be something. So yes, real estate CAN be fairly passive…but it’s not passive if you don’t put in the work UPFRONT. Second Expectation: In order to invest in real estate, you need to do the repairs yourself or be a good handyman. The reality is that I can’t do anything besides change a lightbulb. While I do know some landlords who do the work themselves to save the money, this is absolutely not a requirement – and depending on how much your time is worth, it’s often cheaper just to pay someone else to do it the right way. It’s also worth noting that since all these repairs are a write off, you can write off the costs against your income…but, if you do the work YOURSELF, you cannot deduct the cost of YOUR OWN LABOR. Third Expectation: It takes a lot of money to start. The reality is that it often takes 10%-25% down to begin investing in real estate. This COULD be a lot depending on your definition of “ a lot,” and also on your area. Buying a property in Los Angeles would be significantly more expensive than in Kentucky, for instance. Where one person might be able to buy a property for $20,000 down, someone else might need $200,000. Fourth Expectation is that it’s often like the TV shows. The Reality is that it’s NOTHING like what they portray on TV. Oftentimes those TV shows will be loosely scripted around creating drama and creating a show that’s actually interesting enough to watch all the way through. Every episode needs a goal, a problem that arises, a solution to that problem, and then a resolution at the end. The real life problems that come up just aren’t that exciting or interesting. It’s often boring and mundane. The fifth expectation is that you’ll make a lot of money investing in real estate. The reality is that oftentimes one property won’t make you rich. Most mom and pop landlords won’t make a lot early on, but as they scale up, they can earn a significant amount of money from a lot of smaller sources. This is how many landlords start making money, enough to quit their jobs and invest in real estate full time. It’s growing your portfolio over one or two DECADES and accumulating those properties that might make you only $900 a month….but buy one of those every 18 months, and in 15 years you’re making $9000 per MONTH. That’s how most landlords make their money, and make a LOT of it. But the beginning will be slow and frustrating until you begin adding more and more to your portfolio. For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness@gmail.com Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve – https://goo.gl/sT68EC American Express Platinum – https://goo.gl/C9n4e3

Inside The Outrageous FIVE Jumeirah Village In Dubai Featuring 254 Floating Swimming Pools

An outrageous new resort opens this Fall, dramatically changing the skyline in Dubai. FIVE’s second hospitality and residential project, FIVE Jumeirah Village Dubai, offers a luxury tower with 247 hotel rooms and suites, 221 one and two-bedroom hotel apartments and 33 four-bedroom hotel apartments, all with private pools or Jacuzzi’s.

Located a short drive from Dubai’s new Al Maktoum International Airport and Expo 2020 site, the stunning design of the property, developed in-house by FIVE, has been registered as a trademark by the company in 168 countries.

This is not just another tower in Dubai’s skyline, it is a futuristic new property providing each unit with a landscaped garden and private swimming pool, even at the height of 800 ft.

The mastermind behind this one-of-a-kind design is CEO of FIVE Real Estate Development, Nabil Akiki. Mr. Akiki created a rotating design that features advanced architecture to maximize natural daylight and create spaces that simultaneously conserve energy.

The open space architecture allows sunlight to shine through the core of the 60-story tower while a vertical micro-climate with over half a million sq. ft. of plant life helps to naturally maintain the temperature. Each apartment benefits from a dramatic 200- degree view of Dubai and offers an astounding 156 pools and 134 Jacuzzi’s.

Nabil Akiki told me about his design inspirations and challenges in creating this spectacular property. “The connection between humans and nature is a basic and natural necessity. As such, each apartment incorporates an extensive outdoor terrace, including pool, to bring the outdoors indoors. The concept of this connection combined with open spaces and this lifestyle has accompanied me since my childhood and has served me positively as inspiration for the design of FIVE Jumeirah Village.”

Describing what separates this building from other hi-rises, he says “Conventional buildings are valued from top to bottom, wherein your highest floors at the highest rates compared to the lower ones. With FIVE Jumeirah Village, all levels are penthouses and equal the features and value of each other, increasing the value of the conventionally, underselling levels by far.”

“With conventional architecture, you lose land and turn it into concrete. The concept of integrated lush terrace apartments allow you to gain seven-times more green living compared to the land you have lost for the construction. It’s a contribution into ecology and green community concepts with a focus on sustainable lifestyle and LEED regulations.”

“This pioneering design features three revolving wings on each floor, which rotate continuously through the building. The roof becomes the garden of the upper apartment. The revolving void creates a natural cooling system, decreasing the temperature by 2-3 degrees compared to conventional building approaches.”

Building such a dramatic building did not come without challenges, and Mr. Akiki explained, “It was a challenge for even the most experience consultants to believe in the design concept. Beginning with accommodating the building’s functional infrastructure and services for each floor, such as MEP installations, due to the absence of conventional vertical shafts. The solution was to create a core building that connects the three revolving wings. All services lead below the slabs horizontally on each floor and connect to the core of the building which incorporates a vertical distribution to the ground floor level.”

“Conventional architecture balances the water and concrete weight through columns, jeopardizing the open space and gardens. Our focus was on minimizing columns to increase the open space, through cantilever slabs, specially designed for this building. Additionally, to the water weight lifted by the building, we also needed to ensure waterproofing. Due to the limitations of conventional drainage systems, our focus fell on polyurex, a sprayed system onto the concrete surface, 4-times more efficient than conventional systems.”

The design elements of the tower are also unique, and he tells me, “Each apartment provides residents with a penthouse lifestyle, which means you have three fully open, window sides. Conventional apartments feature the opposite, three enclosed walls. The increased glass, also increases the temperate your apartment is exposed to, resulting in higher cooling and environmental impacts. We used double glassed windows and created shades facing from the lush terraces to naturally balance the temperature exchange.”

The five-star resort also includes a main pool; gourmet street food restaurant; ReFIVE urban spa, and a state-of-the-art gym. Guests are also allowed access to Palm Jumeirah with its beach, restaurants, and bars.

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I have been a world explorer for over 30 years, having visited more than 90 countries. I am highly experienced in exotic travel and extreme luxury adventures and have been lucky to work with and travel alongside some of the biggest celebrities and billionaires. I love exploring hidden, never before seen locations, revealing exclusive over-the-top destinations and reporting on unique celebrity stories. I am passionate about supporting the environment and animal rights and will always help promote those causes with stories from around the world. Follow me on Instagram: officialjimdobson, Twitter @theluxeworld, or e-mail me at theluxeworld@gmail.com to be a part of my world.

Source: Inside The Outrageous FIVE Jumeirah Village In Dubai Featuring 254 Floating Swimming Pools

Luxury Dubai Real Estate. 6 Bedroom Golf Course Villa. HILLSIDE. So myself and Asad from https://www.rexposure.com/are so excited for you to see this Video. In my opinion, it is by far the best Video I have done and a serious amount of time has been put into the editing and production. I cant recommend Asad enough if you are looking to show of a luxury Dubai Real Estate Project! He can do it all! Regarding this luxury 6 bedroom Hillside villa located right on the golf course, I hope you will be as impressed as I was. I still don’t think the video quite does it justice but it should give you an idea of what to expect. The best part for me is the fully soundproofed private cinema room in the basement. But there are so many cool features from the lift, to the master suite and bathtub to the Bar and huge glass garage. It truly does show how the rich and famous could enjoy living in Dubai! I hope you enjoy taking a look through, as always please let me know your thoughts in the comments. You can also follow me on:

Instagram @Liamjeffreydxb You can also get in touch with me on my mobile number +971 56 25 1311.

The £1.3 Billion Splash Out In London’s Billionaire Strip

Billionaire house owners, hoteliers and property developers are pumping an estimated £1.36 billion into a neighborhood of London’s West End.

The parcel of land between Upper Belgrave Street and Grosvenor Place in East Belgravia is undergoing a construction boom due to low prices and lack of planning restrictions, according to a new report by luxury property specialists Beauchamp Estates.

“There are five distinct enclaves within Belgravia, each with unique characteristics, and the most significant hotspot for new development is East Belgravia,” said Jeremy Gee, managing director at Beauchamp Estates.

“The other enclaves are restricted by listed building and conservation area status. Wherever supply is constrained compared to demand it helps to sustain capital values and this is why Belgravia property values have outperformed the rest of prime central London.”

The names of the ultra high net worth individuals who have recently invested in the area include two sheikhs, an American billionaire and a Ukrainian oil mogul.

Sheikh Hamad bin Jassim Al Thani, former Prime Minister of Qatar and member of the royal family, bought Forbes House within Belgravia’s billionaires strip last year for around £150m and is developing a £300m property. Once completed, it will be London’s most expensive private mansion.

U.S. billionaire Ken Griffin, the CEO of investment Citadel, has bought a £100m penthouse at the new Peninsula London Hotel.

Other investors in the area include Sheikh Ahmad Al-Sabah of Kuwait–who owns a £36m house in Belgrave Square–and oil and gas magnate Gennadiy Bogolyubov, who bought a £60m 10-bedroom villa nearby.

The Beauchamp Estates report highlights the fact that despite being larger than neighboring areas Mayfair and Knightsbridge, the 200-acre Belgravia historically saw less new development.

It is also cheaper than its surrounding areas: according to Beauchamp Estates, the entry threshold for prime property in East Belgravia is £5.4m, compared to £5.8m in Chelsea, £8.2m in Mayfair and £12m in Knightsbridge.

The report lists eight live developments in East Belgravia, including the £500m Peninsula London Hotel, which will provide between 24 and 28 apartments and penthouses; a luxury scheme at 6-7 Grosvenor Place, planned for either a VIP club or a lavish house; and a new development opportunity at Headfort Place, currently up for sale for £6.5m.

The latter has planning permission for a new 3,800-square-foot six-storey luxury townhouse designed by Adam Architecture.

Follow me on Twitter or LinkedIn. Check out my website.

I am a business reporter focusing on real estate, retail and technology. I am currently Chief Investigative Reporter at Property Week, where I lead the magazine’s investigations unit. I have been nominated as Best Print Writer at the BSME Awards in 2019 and 2018 and as Best Journalist – Infrastructure, Development and Construction at the British Journalism Awards in 2017. Prior to that, I worked as a freelance for a number of publications across the U.K., France and Italy including The Bureau of Investigative Journalism and La Repubblica. I hold an MA in Investigative Journalism from City University of London and an MA in French literature from Ca’ Foscari University of Venice.

Source: The £1.3 Billion Splash Out In London’s Billionaire Strip

As Mortgage-Interest Deduction Vanishes, Housing Market Offers a Shrug

The mortgage-interest deduction, a beloved tax break bound tightly to the American dream of homeownership, once seemed politically invincible. Then it nearly vanished in middle-class neighborhoods across the country, and it appears that hardly anyone noticed.

In places like Plainfield, a southwestern outpost in the area known locally as Chicagoland, the housing market is humming. The people selling and buying homes do not seem to care much that President Trump’s signature tax overhaul effectively, although indirectly, vaporized a longtime source of government support for homeowners and housing prices.

The 2017 law nearly doubled the standard deduction — to $24,000 for a couple filing jointly — on federal income taxes, giving millions of households an incentive to stop claiming itemized deductions.

As a result, far fewer families — and, in particular, far fewer middle-class families — are claiming the itemized deduction for mortgage interest. In 2018, about one in five taxpayers claimed the deduction, Internal Revenue Service statistics show. This year, that number fell to less than one in 10. For families earning less than $100,000, the decline was even more stark.

                                    

The benefit, as it remains, is largely for high earners, and more limited than it once was: The 2017 law capped the maximum value of new mortgage debt eligible for the deduction at $750,000, down from $1 million. There has been no audible public outcry, prompting some people in Washington to propose scrapping the tax break entirely.

If the deduction’s decline should be causing a stir anywhere, it is in towns like Plainfield, where the typical family earns about $100,000 a year and the typical home sells for around $300,000. But housing professionals, home buyers and sellers — and detailed statistics about the housing market — show no signs that the drop in the use of the tax break is weighing on prices or activity.

“From the perspective of selling and trying to buy, I don’t see any evidence of that,” said Paul Forsythe, who teaches physical education and coaches football at a high school.

Mr. Forsythe and his wife, Kylie, are selling their four-bedroom, two-bath home on a quarter-acre lot in one of Plainfield’s older developments, which dates to 1997. They are moving with their two daughters to a nearby suburb, closer to the schools where they work. They have owned homes through the ups and downs of the local housing market, which boomed in the early 2000s and crashed in the midst of the financial crisis.

“Right now,” said Ms. Forsythe, a fourth-grade teacher, “people are excited that the market is finally good again.”

Such reactions challenge a longstanding American political consensus. For decades, the mortgage-interest deduction has been alternately hailed as a linchpin of support for homeownership (by the real estate industry) and reviled as a symbol of tax policy gone awry (by economists). What pretty much everyone agreed on, though, was that it was politically untouchable.

Nearly 30 million tax filers wrote off a collective $273 billion in mortgage interest in 2018. Repealing the deduction, the conventional wisdom presumed, would effectively mean raising taxes on millions of middle-class families spread across every congressional district. And if anyone were tempted to try, an army of real estate brokers, home builders and developers — and their lobbyists — were ready to rush to the deduction’s defense.

Now, critics of the deduction feel emboldened.

“The rejoinder was always, ‘Oh, but you’d never be able to get rid of the mortgage-interest deduction,’ but I certainly wouldn’t say never now,” said William G. Gale, an economist at the Brookings Institution and a former adviser to President George H.W. Bush. “It used to be that this was a middle-class birthright or something like that, but it’s kind of hard to argue that when only 8 percent of households are taking the deduction.”

Kylie and Paul Forsythe outside the Plainfield home they are selling. “People are excited that the market is finally good again,” Ms. Forsythe said.
CreditAlyssa Schukar for The New York Times

Mr. Gale, like most economists on the left and the right, has long argued that the mortgage-interest deduction violated every rule of good policymaking. It was regressive, benefiting wealthy families — who are more likely to own homes, and to have bigger mortgages — more than poorer ones. It distorted the housing market, encouraging Americans to buy the biggest home possible to take maximum advantage of the deduction. Studies repeatedly found that the deduction actually reduced ownership rates by helping to inflate home prices, making homes less affordable to first-time buyers.

But the real estate industry said that scrapping the deduction could undermine the value of what is, for most American families, their most important asset. In the debate over the tax law in 2017, the industry warned that the legislation could cause house prices to fall 10 percent or more in some parts of the country.

Price growth has cooled in many markets, including New York and Seattle, but not nearly as much as the most alarming estimates suggested, and not in a pattern that suggests the loss of the deduction was a primary factor. Places where a large share of middle-class taxpayers took the mortgage-interest deduction, for example, have not seen any meaningful difference in price increases from less-affected areas, according to a New York Times analysis of data from the real estate site Zillow.

Skylar Olsen, an economist at Zillow, said that the slowdown in the housing market probably had little to do with the tax law. Home prices have risen much faster than wages in recent years, creating an affordability crisis in many cities that probably made slower growth in prices inevitable.

“Housing markets were burning so hot at an unsustainable pace and they had to come down,” Ms. Olsen said.

The tax law may have had another impact: It capped deductions for state and local taxes at $10,000, which had a particularly large effect in coastal cities and other places where property taxes and real estate values are both high. Those places did see a slowdown in the growth of home prices after the law took effect, although it is not clear whether the two were linked.

The national real estate industry argues that the two tax changes have together played a role in weakening the housing market.

“Clearly the housing market is underperforming in relation to economic fundamentals of job growth, wage growth and mortgage rates,” said Lawrence Yun, chief economist for the National Association of Realtors.

Economists like Mr. Yun and Ms. Olsen will probably debate the law’s impact for years. It is possible, and even likely, that sophisticated analyses will eventually conclude that limiting the mortgage-interest deduction did lead to somewhat slower price growth.

But for most home buyers and sellers, those subtle effects will be washed away by forces that have a much bigger impact: changes to mortgage rates, construction costs and supply and demand trends that vary from city to city and from neighborhood to neighborhood.

The tax law also rolled back the mortgage-interest deduction in a way that minimized the chance that taxpayers would notice its absence. Congress did not take away the tax break; it just changed the law in a way that meant fewer people would benefit from it — and buried the change in a much broader overhaul to the tax code.

But while Washington think tanks plot the deduction’s demise, the real estate industry is still hoping to restore it in some form. Mr. Yun of the National Association for Realtors said that as the housing market weakened, pressure would mount for Congress to restore some of the tax advantages that homeownership has historically enjoyed, although not necessarily in the same form.

For now, though, real estate agents and developers do not see the erosion of the mortgage deduction playing much of a role.

Plainfield’s housing market has been shaped by abrupt changes over the past 30 years. In 1990, a tornado leveled parts of town, killing more than two dozen people and forcing a huge rebuilding effort. At the turn of the millennium, the town had fewer than 10,000 residents. It has since quadrupled, with more growth on the way.

During the housing craze of the mid-2000s, developers leveled corn fields and sod farms to make way for cul-de-sacs. When the crisis hit, activity in many of the new subdivisions froze, said Ellen Williams, a real estate agent with Coldwell Banker in Plainfield who has sold homes in the area for nearly two decades. Only in the past few years has construction restarted in earnest.

CreditAlyssa Schukar for The New York Times

Ms. Williams helped the Forsythes buy their home several years ago, when the housing crash still weighed on the market and the couple was underwater on a townhouse that had become too small for their growing family. They rent the townhouse out now, which means that they still itemize their deductions, including for mortgage interest. They said the deduction was not a factor in the sale of their home this summer or in their purchase of a new one.

Ms. Williams said that has been the case across the market. “I don’t know that it’s been a huge enough change yet,” she said. “People worry about Illinois taxes more.”

In the Forsythes’ ZIP code, housing prices are up 2 percent from the last year, according to data from the online real estate brokerage Redfin. Homes are selling quickly, Ms. Williams said, as she gave a quick tour of a recently listed four-bedroom house backing up to a pond in a nearby community. The hardwood floors were well kept, the kitchen hardware dated to the mid-1990s and the home was listed for $267,000.

“There’s not a lot available in this subdivision,” Ms. Williams said, “so I anticipate it selling quickly.”

Jim Tankersley covers economic and tax policy. Over more than a decade covering politics and economics in Washington, he has written extensively about the stagnation of the American middle class and the decline of economic opportunity. @jimtankersley

Ben Casselman writes about economics, with a particular focus on stories involving data. He previously reported for FiveThirtyEight and The Wall Street Journal.

 

Source: As Mortgage-Interest Deduction Vanishes, Housing Market Offers a Shrug – The New York Times

Foreign Investment In U.S. Real Estate Plunges

The U.S. housing market has hit another stumbling block, as purchases of homes by foreign buyers dropped a dramatic 36%, according to a report by the National Association of Realtors.

The data comes from an annual survey of residential purchases from international buyers, which found that foreign buyers, led by the Chinese, purchased existing properties with a total value of $77.9 billion from April 2018 through March 2019, compared to properties totaling $121 billion in the preceding 12 months.

Investors from China exited the market most dramatically, with purchases falling 56% to an estimated $13.4 billion worth of residential property.

There are many reasons for the plunge, including less economic growth abroad — growth slowed to 3.6% in 2018 and is on track to slow to 3.3% in 2019 — tighter controls on outside investment by the Chinese government, a stronger U.S. dollar and a low inventory of homes for sale, according to Lawrence Yun, NAR’s chief economist and fellow Forbes.com contributor, who called the magnitude of the decline “quite striking, implying less confidence in owning a property in the U.S.”

Most foreign purchases were in Florida, followed by California, Texas, Arizona, North Carolina and Illinois.

While this is bad news for the overall U.S. market, it won’t make a crucial dent in the New York market, as foreign investment hasn’t been part of the market for some time, those in the industry say.

Leonard Steinberg, a broker in New York City with Compass, referred to the recent high-profile Manhattan purchases billionaire hedge-fund manager Ken Griffin, who closed on a $233 million penthouse earlier this year, and Amazon founder Jeff Bezos, who recently bought three condos for a combined $80 million.

“The reality of it is the Chinese billionaire or Russian oligarch were a small fraction of the market,” Steinberg says. “Your best foreign buyers are American buyers—just from other parts of the country.”

Svetlana Choi, a broker with Warburg Realty, said there is still foreign investment in New York, just not for ultra-luxury properties.

“While there are still Chinese investing, they would prefer to invest in an apartment building in Flushing that can bring a far larger return, than an empty super expensive apartment in New York City,” Choi says.

Noemi Bitterman, also of Warburg Realty, notes that as the market continues to decline, more investors may come through.

“My feeling is that now is definitely a time to buy because current prices reflect fair market value and not inflated prices as we saw six to 12 months ago,” Bitterman says. “The market has adjusted and prices are where they should be.”

Follow me on Twitter or LinkedIn. Check out my website.

I’ve been working as a journalist in the New York metro area for more than a decade and have developed a specialization in luxury real estate

Source: Foreign Investment In U.S. Real Estate Plunges

Blackstone Calls Logistics Its ‘Highest Conviction’ Real Estate Idea After Striking $18.7 Billion GLP Deal

At Blackstone Group, the world’s largest private equity firm, with $512 billion in assets under management, few properties or companies are out of reach. So when the firm strikes a record-setting deal and anoints the sector as a top firm-wide idea, it’s worth listening to.

In real estate, Blackstone is doing just that when it comes to logistics space—the warehouses where the orders of Amazon and other e-commerce giants are delivered in bulk, sorted and sent out to customers. On Sunday evening, the firm disclosed an $18.7 billion deal for the U.S. logistics assets of Singapore’s GLP, inking the biggest private real estate deal in history. And Blackstone isn’t coy about its optimism for the real estate that houses America’s increasingly e-commerce-oriented supply chain.

“Logistics is our highest conviction global investment theme today, and we look forward to building on our existing portfolio to meet the growing e-commerce demand,” Ken Caplan, co-head of Blackstone’s real estate business, said in a statement.

It’s a bold statement coming from Blackstone given that logistics space is probably only noticeable to the average American as they drive along the interstate or make landings at airports on a clear day.

The warehouses Blackstone is buying are often massive white windowless and logo-less boxes bigger than a football field. They sit adjacent to airport runways, highways, large ports and rail hubs. Increasingly, inside these buildings is what looks like science fiction: Massive robots move and sort palettes of goods, drones check inventories, and orders are sifted and sorted on conveyors that have the sophistication of an automotive assembly line.

For Blackstone, Sunday’s deal is a major doubling down on the U.S. logistics market. Its $140 billion real estate investment arm rolled up logistics warehouse operators and formed Indcor, which it sold to GLP for $8.1 billion in 2015. Then the firm’s real estate gurus set their sights on Europe, building pan-European giant Logicor into a $13.8 billion logistics behemoth that was sold to China Investment Corp. in 2017. In buying GLP’s U.S. business, Blackstone is bulking back up with familiar assets, acquiring some 179 million square feet of urban, in-fill logistics assets nationwide, doubling the size of its existing footprint. It also bought back a piece of Logicor from CIC in late 2017.

Blackstone’s global opportunistic real estate funds will acquire 115 million square feet of GLP space for $13.4 billion and its income-oriented non-listed real estate investment trust, BREIT, will acquire 64 million square feet for $5.3 billion. “Our global scale and ability to leverage differentiated investment strategies allowed us to provide a one-stop solution for GLP’s high-quality portfolio,” said Caplan.

Blackstone has its pick of real estate ideas to crow about.

It is one of the biggest office, hotel and single and multifamily property owners in the United States and globally. Its $140 billion portfolio contains 231 million feet of office space globally, 151,000 hotel room keys, 75 million feet of retail real estate, and 308,000 residential units and homes. It built and remains a top shareholder of Invitation Homes, an NYSE-listed single-family landlord with a portfolio of 80,000 homes nationwide. In Chicago, Blackstone owns the Willis Tower, and in Las Vegas it owns the trendy Cosmopolitan hotel and casino. By square footage, logistics space now appears to be Blackstone’s top real estate holding.

The $18.7 billion price tag is a coup for GLP, the seller. Based in Singapore, GLP is was cofounded by entrepreneur Ming Zei Mei, who spun out the international logistics space of Prologis, mostly based in China, Brazil and India. Now GLP, short for Global Logistics Partners, operates 785 million square feet of space, with more than half in China.

Once listed in Singapore, GLP was taken private in 2017 by its cofounder and a consortium of Asian investors including HOPU Jinghua (founded by Goldman Sachs’ former China chairman), Hillhouse Capital and China Vanke Co. In addition to logistics space, GLP is becoming a force in real estate and private equity asset management, with $64 billion under its watch. For the firm, Sunday’s deal is a watershed, reportedly receiving interest from Prologis, a publicly trade real estate investment trust that is the leader in U.S. logistics space.

“GLP was able to leverage our deep operating expertise and global insights in the logistics sector within four years to build and grow an exceptional portfolio,” Alan Yang, chief investment officer of GLP, said in a statement. As it recycles capital, the firm remains bullish on the U.S. “We are looking forward to expanding our footprint in the United States to continue to seize key opportunities in the U.S. market,” Yang said.

For more on Logistics:

See our 2017 feature on Prologis, the world’s logistics leader

Also see our mention of GLP in our coverage of a bet Brookfield made in China.

I’m a staff writer at Forbes, where I cover finance and investing. My beat includes hedge funds, private equity, fintech, mutual funds, M&A and banks.

Source: Blackstone Calls Logistics Its ‘Highest Conviction’ Real Estate Idea After Striking $18.7 Billion GLP Deal

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