I was inspired this month to write once again about real estate investing internationally. Mainly because I have a good friend traveling through Spain as I write this, and I'm a little jealous - okay, a lot jealous. Anyway, as I've said in my previous postings, there are solid opportunities around the world, and it doesn't necessarily take an adventurous risk-taker to pursue making money investing in real estate internationally. This entry takes us to the most romantic city in the world - I've traveled there before, and it's pretty amazing...
Venice in Italy is one of the world’s most enchanting cities thanks to the almost fairytale allure of landmarks such as St Mark’s Basilica and Square, the Palazzo Ducale, the Grand Canal and the Bridge of Sighs.
This is understandably one of the most desirable places in which to own a property in Italy. Yet with prices of apartments in St Mark’s Square, for instance, routinely changing hands for US$9.75million, many investors have shied away from buying real estate in Venice. As have many locals, in truth, and since the 1950s the city’s population has shrunk by two-thirds to its present 60,000.
Yet there are highly affordable and profitable investment opportunities to be snapped up there - if you look in the right parts of the city. One such area is Dorsoduro, one of Venice’s six sestieri (districts) and a short vaporetto boat ride from St Mark’s Square. Here, just US$360,000 can buy a small, well-appointed apartment. Dorsoduro lacks nothing in upmarket chic as it is home to the Accademia art gallery, the Peggy Guggenheim Museum and a recently opened Punta della Dogana Museum, a major collection of contemporary art on the site of an old 17th century customs house.
Yet it is also a lively, vibrant area – the Ca’ Foscari University is here – and after dark Dorsoduro’s bars and cafés form the centre of Venice’s nightlife. To get more bang for your investment buck, head for the even more affordable Castello, Venice’s largest district, which lies just to the east of St Mark’s Square but is slightly off the well-trodden tourist trail. Here, expect to pay around US$415,000 for a two-bedroom apartment of around 75-80sq meters - yes it's meters in Italy.
The rental yield of property in Venice remains huge. Some 20 million visitors a year beat a path to the city, for its historic architectural splendour as well as popular events such as the carnival in February/March; the Biennale arts festival in summer and autumn; and the Venice Film Festival in August/September. It means there is demand for rental properties almost all year round. In high season, a one-bedroom apartment can fetch from US$1,700 a week, a two-bedroom property around US$2,600 and the most prestigious properties US$8,000-plus.
Alternatively, look farther afield to the outlying isles among the 118 that make up the Venetian archipelago. In Burano, six miles outside the city centre, US$625,000 can secure a house rather than just an apartment. The nearby islands of Tellestrina Chioggia and Torcello are also worth a look. Bear in mind that rental yield will fall the further away from the centre of Venice in which you are.
Another popular option is to look beyond Venice and to the historic towns and cities within the Veneto region, some 45 minutes away by train, but it's worth the visit, and the train ride is amazing. They include Verona, one of Veneto’s principal tourist and cultural destinations; Vicenza, a Unesco World Heritage Site; Padova, a lively, attractive and historic university city; and Treviso, renowned for its wine and cuisine. In Treviso and Vicenza, expect to pay around US$350,000 for a two-bedroom town centre apartment.
Padova is possibly the priciest of these towns and an 80sq m two-bedroom apartment will frequently come with a price tag of around US$550,000. Obviously the price falls considerably if you are prepared to take on a restoration project. Explore the surrounding countryside, where in places such as the spa resort of Abano Terme US$350,000 can stretch to a spacious three-bedroom home.
Broaden your horizons and check out the world. We can help with an investment if you're interested. There are deals to be had everywhere - even in the world's most romantic city.
Tuesday, June 28, 2011
Tuesday, May 31, 2011
There are Realtors and then there are Realtors...
I'll start by saying that this is not meant to put anyone down, accuse anyone of intentionally not doing his or her job, or knock on those who didn't have higher education opportunities. But, there are Realtors and then there are Realtors.
If you have been in the market for any type of property, you have probably realized that everybody has a real estate license. Everybody. It seems like everytime I walk in the Ingle's grocery in my neighborhood, I see at least one Realtor. Frankly, it's too easy to get and maintain a license. And some people don't bother and are still out managing rental properties (illegal in TN) and are now self-proclaimed "Real Estate Investment Coaches." I've always been a proponent of more stringent licensing and renewal regulations - even going as far as to suggest a minimum two year degree (Associate's) to work in the business. Realtors have a big impact on local economies through pricing of properties, advice to consumers, which properties are shown, which are ignored, business expansion locations, business relocations, lobbying efforts locally, regionally, and nationally - a lot of things that the general public doesn't realize. And, most have an even bigger impact on assisting the average consumer with what will surely be the largest purchase in his/her life. Note, the National Association of Realtors is the largest (and one of the most well-funded) trade organizations in the United States.
The good thing about all that I mentioned above is that there is a lot of good that Realtors can do. A good Realtor can help a client look at all angles of a situation. A good Realtor can then assist the client in understanding all viable options to provide the client with the best possible information for a sound decision - even if it's not exactly what you wanted to hear. Whether it's in commercial or residential real estate, a good Realtor will help the client make the best investment. Even in the residential setting, when the average consumer is only staying in a home for an average of 5 years, it's an investment, whether the consumer realizes it or not.
The problem with the influential-nature of being a Realtor is that there aren't a lot of actual experts in the marketplace. So, some of the largest corporations that may be looking to expand or relocate into the area, the investors looking to invest in our properties, and homebuyers looking for sound advice may be talking to someone who has no clue, no education, or a biased opinion. Example - I've heard from a number of businesses that (in the past) they have been totally swayed away from the possibility of relocating into the downtown area of Johnson City. And, it's usually based on this: "Downtown hasn't been anything in years, so I'd look for a nice place toward north Johnson City." That statement isn't founded in any data or research, and is simply a biased opinion from a Realtor.
On the clueless side, there are a lot of Realtors who use real estate as a side job. They count on friends and family to buy or sell a house or two every year, and they may or may not be up to date on education, paperwork, price trends, value changes, etc. Most of those folks look at real estate like freelance sales - and that is a problem. Realtors are a tool to match the consumer with the right product, and not intended to sell you on anything. And this stuff happens VERY easily. As I said, Realtors are everywhere - they're church-goers, non-profit members, neighbors, parents to friends of children, co-workers, etc. So, it's a good possibility that you're going to run into one. And, when you're in the market for a property, real estate is going to come up. Then you're hooked by someone just based on your casual conversations who may or may not know what he or she is actually doing.
Some entire real estate companies are setup to encourage their Realtors to recruit more Realtors in a legalized pyramid scheme where sometimes they become more obsessed with stacking their pyramid than with advising you on real estate matters. But, I'm not just laying the blame here with Realtors because if consumers would take the decision of spending a couple hundred thousand dollars more seriuosly, most of these "hobby" and "pyramid" Realtors would have nothing to do.
So, my entry for this month is just to encourage all you consumers - buyers, sellers, investors, business-owners, etc. to think about it. I'm not saying a Realtor from T. C. Lewis & Co. is the only one to use because there are other experts in the mountain south. But I am saying that you should evaluate your Realtor on more than just a casual conversation that you had with him or her at a playdate with your kids. Remember, there are Realtors and then there are Realtors.
If you have been in the market for any type of property, you have probably realized that everybody has a real estate license. Everybody. It seems like everytime I walk in the Ingle's grocery in my neighborhood, I see at least one Realtor. Frankly, it's too easy to get and maintain a license. And some people don't bother and are still out managing rental properties (illegal in TN) and are now self-proclaimed "Real Estate Investment Coaches." I've always been a proponent of more stringent licensing and renewal regulations - even going as far as to suggest a minimum two year degree (Associate's) to work in the business. Realtors have a big impact on local economies through pricing of properties, advice to consumers, which properties are shown, which are ignored, business expansion locations, business relocations, lobbying efforts locally, regionally, and nationally - a lot of things that the general public doesn't realize. And, most have an even bigger impact on assisting the average consumer with what will surely be the largest purchase in his/her life. Note, the National Association of Realtors is the largest (and one of the most well-funded) trade organizations in the United States.
The good thing about all that I mentioned above is that there is a lot of good that Realtors can do. A good Realtor can help a client look at all angles of a situation. A good Realtor can then assist the client in understanding all viable options to provide the client with the best possible information for a sound decision - even if it's not exactly what you wanted to hear. Whether it's in commercial or residential real estate, a good Realtor will help the client make the best investment. Even in the residential setting, when the average consumer is only staying in a home for an average of 5 years, it's an investment, whether the consumer realizes it or not.
The problem with the influential-nature of being a Realtor is that there aren't a lot of actual experts in the marketplace. So, some of the largest corporations that may be looking to expand or relocate into the area, the investors looking to invest in our properties, and homebuyers looking for sound advice may be talking to someone who has no clue, no education, or a biased opinion. Example - I've heard from a number of businesses that (in the past) they have been totally swayed away from the possibility of relocating into the downtown area of Johnson City. And, it's usually based on this: "Downtown hasn't been anything in years, so I'd look for a nice place toward north Johnson City." That statement isn't founded in any data or research, and is simply a biased opinion from a Realtor.
On the clueless side, there are a lot of Realtors who use real estate as a side job. They count on friends and family to buy or sell a house or two every year, and they may or may not be up to date on education, paperwork, price trends, value changes, etc. Most of those folks look at real estate like freelance sales - and that is a problem. Realtors are a tool to match the consumer with the right product, and not intended to sell you on anything. And this stuff happens VERY easily. As I said, Realtors are everywhere - they're church-goers, non-profit members, neighbors, parents to friends of children, co-workers, etc. So, it's a good possibility that you're going to run into one. And, when you're in the market for a property, real estate is going to come up. Then you're hooked by someone just based on your casual conversations who may or may not know what he or she is actually doing.
Some entire real estate companies are setup to encourage their Realtors to recruit more Realtors in a legalized pyramid scheme where sometimes they become more obsessed with stacking their pyramid than with advising you on real estate matters. But, I'm not just laying the blame here with Realtors because if consumers would take the decision of spending a couple hundred thousand dollars more seriuosly, most of these "hobby" and "pyramid" Realtors would have nothing to do.
So, my entry for this month is just to encourage all you consumers - buyers, sellers, investors, business-owners, etc. to think about it. I'm not saying a Realtor from T. C. Lewis & Co. is the only one to use because there are other experts in the mountain south. But I am saying that you should evaluate your Realtor on more than just a casual conversation that you had with him or her at a playdate with your kids. Remember, there are Realtors and then there are Realtors.
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