JUNE 2010 |
www.opp.org.uk Triple sales in Beverly Hills
Developer profi leLETTERS Your shout | 21
Editor’s choice… Best of the web Take me down to Panama City
Dear editor,
Here in California we are still experiencing market issues with fi nancing and appraisals. Most fi nancial institutions, regardless of the loan amount, tend to follow Fannie Mae and Freddie Mac guidelines to make decisions. These programs are structured more for the lower end markets and have little applicability to our unique Westside and Hollywood markets. There are also problems with travelling appraisers that don’t understand
our local market or are not current with our latest market trends. Beverly Hills and Bel Air had the most signifi cant increases in the over $2 Million category from a year ago. Even more extraordinary is the fact that the upper end, over $10 million sales, increased in all the Mid-Triangle areas during the fi rst quarter of this year with Beverly Hills and Bel Air (combined) having tripled the amount of sales. This increase is also a testament to the power of foreign buyers in our
market. Beverly Hill-Post Offi ce and Hancock Park had a small decline in the number of sales but began the fi rst quarter of 2010 with a strong sales record. We anticipate a continuation of the same trends in the second quarter.
Financing and appraisals will still be problematic and interest rates have begun to rise in the last few weeks. The upper-end properties should continue their strong demand. While there is no ‘business as usual’ here on the West Coast, at least there
are signs that we are returning to a market that we can understand. Greg Moesser.
Vice President Private Estates Division, Rodeo Realty California, USA
Don’t forget the middle
Dear editor,
Why is it that coverage of the investment scene in the USA always concentrates on the two coasts? Not enough information is given to states and areas
Today there’s too much supply and too few buyers in the Panama City condo market (which means) that motivated sellers needs to off er a killer deal to sell, writes Ronan McMahon in International Living’s online postcard newsletter this month.
Dear editor,
According to press reports in La Estrella, 191 skyscrapers are under construction in Panama City. On average each building has 30 fl oors. We don’t know how many condos this equates to but it’s likely to be in the 20,000 to 30,000 range. Most of this is priced beyond the reach of all but wealthy Panamanians.
These skyscrapers are targeted at foreign buyers from North America, Europe and neighbouring countries in Latin America. These buildings were mostly planned at the peak of the property boom in 2007. Construction started in 2008 and are set for delivery this year and next. Sales contracts have been signed on most of the inventory that’s due for
delivery this year. That doesn’t mean the units are sold. We can only count on them being sold when buyers pay the remaining 80% of the purchase price.
The world has changed Many buyers planned on using a line of credit in the US or a mortgage from a local bank to close. The world has changed since 2008. These options may no longer be open. Banks in Panama routinely withdraw mortgage off ers without explanation these days. Other buyers may have the means to close but may decide to just walk away. Understanding what all this means is complicated by the variety of
nationalities of buyers. Venezuelans and Colombians are mostly cash buyers who take a medium term view of the market. They don’t necessarily need rental income from their unit. They were mostly looking for a safe home for their cash. American, British, and Irish buyers were mostly speculators. They are fi nding
themselves in diffi culty. Canadian buyers fall somewhere between the other two groups.
Pressure is building Whatever way you look at it—too much supply is too much supply. The pressure is building. The deals are set to come. Here’s my advice: * Focus your search in the prime ocean view areas of Balboa, Paitilla and Punta Pacifi ca.
not as well
known internationally which – in light of the US market meltdown – are now good long term options … such as Colorado. Also, the “greening” of the US market is beginning to take off and will off er
unique opportunities for investment. Mobile platforms such as the patented AccessU2 (founded by a Brit) should make property information more portable and accessible.
Alistair MacCabe
WinWithWindsor Inc. USA
* Look for newly completed buildings with high-end amenities and where “real” buyers have closed on at least 80% of the units. Buy quality. * Line up your fi nance. Get ready to pull the trigger. * Get reliable realtors onside. Work your realtor. Make him want to fi nd you a deal. Tell him exactly what you are looking for and make sure he understands you can close fast. Then sit back and wait for the deals. This is a buyer’s market.
Ronan McMahon International Living
PEOPLE
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