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True to form, just like I called it, even before the New Year could began in earnest three more Black men were lynched in America. Somehow, just saying I told you so doesn’t really do it for me. On New Year’s Eve, Johannes Mehserle a White police officer shot Oscar Grant Jr. a 22 year old Black man in his back, killing him instantly as he lay prone and unarmed on a train platform in Oakland California. The incident was caught on tape. It became just the latest public lynching of a Black man in the United States, and it sparked several days of angry rebellion.1 On that very same day, in Bellaire Texas a police officer shot the 23 year old son of Bobby Tolan, a once famous professional baseball player. Robbie Tolan ended up with a bullet lodged in his liver, only because as he stood in the driveway of his own home, a White police officer simply assumed that the car he actually owned was a stolen vehicle.2 Then, hours later on New Year’s Day, nine police officers in New Orleans discharged their weapons 48 times and put 12 bullets into the back of yet another young unarmed African American man; 22-year-old Adolph Grimes was shot dead in a hail of gunfire just a few feet away from his grandmother’s home. A total of 14 bullets pierced violently through his body.3 As we established in Part One http://www.associatedcontent.com/article/1259196/racist_atrocites_soar_as_
america_regurgitates.html?cat=9 of what has now regrettably become a two-part series, nobody has ever mandated that it requires a rope and a tree to lynch someone. All that it requires is the will and the means to take someone’s life. Now, with the election of the first Black man to the highest office in the land, it appears as if some White people across the country have simply lost their minds.
Truth be told, not a year has actually gone by in recent memory without at least one Black man being summarily lynched in the United States. This type of racist violence has never really ceased to exist in this country. Today of course, in America nobody except for me that is, actually has the nerve to call this lynching anymore. But that’s just what it is. And I suspect that the name has been changed in order to ‘project’ guilt upon the innocent victim. That much is clear. Again, I’m just not buying it. We are living in the 21st Century people, and damnit, something has got to give! We as a nation are better than this!
Nevertheless, all of a sudden with the election of Barack Obama it appears that the stakes for many people have simply grown much higher. We should all be mindful however, that we are being watched by Our Ancestors, and the future has its cynical eye upon us as well. Of this, I am quite sure. The election of a Black man to the most powerful office in the entire world has provided the ultimate humanization of Africans in America for the very first time during their long five-hundred-year sojourn here in the Western World. No longer can bigots White and Black simply mask their wayward beliefs behind the illusionary ritual perception of Black racial inferiority. As a consequence of Barack Obama’s election, this must now come to an end. In a sense, this ultimately is what Obama’s meaning is to all people of color. On November 4, 2008 in one fell swoop, Black people were undeniably humanized in America, and the central pillar of the racial argument has finally been dismantled forever. What this means nonetheless, is that the vocabulary of race shall have to change as well. The world as it truly exists can now hopefully be brought into sharper focus.
The Black community today remains the only place in American life where a kind of extra-legal violence is permitted similar to that which is often associated with the most brutal dictatorships around the world. These are the only neighborhoods in the country where White police officers routinely shoot to kill unarmed citizens, often with no other real excuse than the mere fact that they dared to exist in the world. There is no other community within the United States where you can find an innocent 92 year-old grandmother who is literally gunned down in her own home; for absolutely no plausible reason at all. It is the only place where the press would dare attempt to justify this atrocity by trying to turn this woman into some kind of gun-toting grandmother; simply in order to distract us from what was really going on.4 There is no other community in America where an entire elite class of Talented Tenth have summarily condemned and then completely abandoned the neighborhoods. This is the true reality whereby each day amidst economic blight and Para-military occupation, millions live their lives in the United States. Everyday, the scene is played out over and over again where foreign nationals in the ‘Hood’ run the legal-store trade safety indoors, while young unemployed Black males learn to survive in their own neighborhoods running an illicit trade outside. It must be a strange feeling being an outsider in your own neighborhood; simply because the entire world seems to believe that your community is this nation’s political dumping grounds. Death for these lost boys comes easy. Obama’s election signals a necessary change in the scope of our view towards racism and class bigotry out of the narrow confines of Civil Rights and towards a broader Human Right perspective.
What we have learned is that over 200 death threats were actually reported against the life of the new President, and just within the early hours and days directly following his election racist atrocities spiked dramatically all over the country.5 The rising rash of racist death threats continued to grow even until Inauguration Day. Moments later, Rush Limbaugh promptly told the millions who listen to his show, that he “hope[d] that the Obama Administration failed!” Now you tell me, just how patriotic was that? 6 Limbaugh’s comment alone could only serve to provide aid and comfort to untold legions bent upon the psychopathology of racial hatred. Perhaps though, questions of this nature are really best left for each of you to judge amongst yourselves.
In the weeks leading up to the Inauguration, famed neo-Nazi radio commentator Hal Turner ratcheted up the hate speech and even went so far as to suggest on his Blog, that an unmanned aerial drone should be sent to drop explosives over the crowds gathering in DC. This kind of mass murder, killing that many people he said would simply be “a public service” To kill millions of African Americans whom he called “sub-human simians” and “mentally-ill Whites” at the Inaugural Celebration was simply prudent in his view.7 Shamefully enough, Turner is certainly not alone. In just the last three months these homegrown terrorists have begun directing their bloodlust for Black life upon a number of unsuspecting innocent citizens. Hours after the November 4 election, three men Michael F. Jacques (24), Thomas A. Gleason Jr. (21), and Benjamin F. Haskell (22) claimed that it was simply anger over the election of a Black man to the Presidency of the United States that actually motivated them to pour gallons of gasoline on the predominantly Black Macedonia Church of God in Springfield Massachusetts; and then set it ablaze. A total of five firemen were subsequently injured fighting the flames.8 Bishop Bryant Robinson Jr. who Pastors Macedonia Church of God called the actions of these three young men “irrational”:
“This practice of racism undermines the full potential of our country! It wants to deny the contributions of the best of all our people!” 9
So true! After the arrest of the three men Reverend Georgeanne Greene, another prominent member of the clergy in Springfield, said that ultimately this incident helps us to bring bigotry out into the open and “allow[s] us to face head-on the level of racism in our country”.10 However, maybe I am mistaken but I for one have not seen CNN, Fox News, or even MSNBC acting to put this scourge of racist bloodlust into the spotlight; or for that matter does there appear to be any effort at all to explore the true nature of what is actually going on. This of course is because racism in America is treated like some deformed child that we all have kept hidden in the basement. Of course we all know that it is there, but we really are not supposed to talk about it! It is meant to be regulated to some shameful somewhat fabled past that must now remain unspoken. Otherwise, you just might be accused of playing the race card! To be completely honest with you, to this very day I simply have no idea just what this bizarre phrase is actually supposed to mean. What I do know, is that innocent Black people keep dying.
Another thing that we have discovered is that since being assigned Secret Service protection in the spring of 2007, which was much earlier than any other candidate in history, President Obama has received more death threats than all the other 43 presidents combined. It seems that there are a terribly large amount of people in this country who are seething with a potentially violent psychopathology, simply unable to get over the mere fact that the 44th President of the United States could have actually been owned by the first 27. This alone seems to be enough to actually elicit their utmost anguish and distain. Some have even spoken about states once again seceding from the nation. Yet, we should thoughtfully take notice that no Black people have been messing with them! Indeed, the most shameful aspect of all of this is that long after Jim Crow’s ultimate demise private property continues to be destroyed and innocent Black lives continue to be broken simply in order to bring out into the open what has always been prevalent enough for all to see anyway. Nevertheless, by and large with few exceptions the US corporate press has consistently refused to honestly cover this egregious cancer that continues to plague our society. If today, even in the face of mounting threats against the life of the President, the US Government still remains reluctant to protect American citizens from the vicious psychopathology of unsolicited racist violence, then these individuals and communities need to be referred for prosecution through the International Court of Justice at the Hague.
Around the very same time, within just hours of the November 4 election, numerous incidents of racist violence were recorded in California and in New York as well.11 As I documented in Part One there was simply a slew of racist incidents occurring; from cross burnings to Barack Obama’s likeness being ceremonially hung in effigy all throughout the country. Simply witnessing all of this unsolicited anger and intermittent violence turned against innocent African Americans, an alien landing here for the very first time might easily conclude that Black people had at one time actually enslaved White people in the West and not the other way around. Racism you must understand, is simply about ‘projection’. It is the psychopathology of turning one’s own ineptitude upon a convenient target. The weaker the individual, the more susceptible they are to its viral effects. Nevertheless, the question still remains: At this vital crossroads in our nation’s history, will this domestic terrorism finally be put to an end, or will America once again forfeit its soul and squander its promise in order to appease the crude psychopathology of the few?
It is an enormous tribute to the character of our new President that all throughout the campaign season HRC, the woman destined to become the new Secretary of State, never for one minute attempted to tamp down the racist comments and actions of some of her most ardent supporters; nonetheless he picked her for his cabinet anyway. From Texas to Appalachia, let us not forget that initially it was the HRC Campaign who sought to mine and nurture racist sentiments all throughout the nation. From the curious amount of people who shamelessly attempted to liken Barack Obama to the monkey Curious George12, to the irate women who stood sentinel in the lobby of the Democratic National Committee shouting “Denver-Denver!” American racism was on center-stage in Campaign 2008. One women even had the audacity to proclaim “There throwing it all away and giving it all to an inadequate Black man!” The Clinton Campaign had seduced this bloodlust long before the general election had even begun.13
Nonetheless, if HRC seemed indifferent to all of the mounting death threats and racist rhetoric that was being directed against her opponent, John McCain and Sarah Palin appeared to eagerly encourage it. When he was ultimately called on this by Congressman John Lewis, John McCain immediately attempted to flip the script; demanding that Obama denounce the congressman.14 This of course was amazing enough in itself. Yet, it could easily be recognized as simply one of the latest tactics of political tricknology. Whenever you wish to deflect a racist act or expression, all you simply need to do is to accuse the person who complains the loudest of “playing the race card!” Suddenly, the victim now becomes the culprit, who ought to be ashamed for “playing the victim” in the first place! In other words, simply by telling the truth as he saw it, Father Phleger was painted as a racist himself. By the time that we got to the general election the McCain Campaign had this down to a science. It is only the newest political fad of talking loud and saying nothing! Nevertheless, both the Clinton and the McCain campaigns ultimately appeared to be playing to the very same crowd.
Yes, in the end John McCain unlike Hillary Clinton actually sued for peace, and he conceded victory right on cue. However, true be told, this was a day late and a dollar short. Even after his own horrendous experience with dirty politics during the 2000 Presidential Campaign, in 2008 John McCain ran what could only be called a dishonorable campaign right to the bitter end. Make no mistake about it
What is all of this really about? Why are there so many people who have a hard time adjusting to the new reality of a multi-cultural American society? Why have death threats been on the rise against the President of the United States? To understand all of this you have to begin at the beginning, because societies are actually like factories in the production of human personalities.
During slavery, a Black woman was considered the legal property of her master, like a horse, or a table, or a shoe, and therefore she could not legally be raped. So it was that for centuries, White men had their way with Black women. After slavery, White men mostly in the south immediately began to cowardly project the almost Jack-the-Ripper-like attention that they had once wantonly displayed towards Black women’s bodies on to the Black male. From that very moment on, while millions of Black people were desperately scrambling simply to re-establish their randomly scattered families, until nearly a century later, the forged frightening specter of a fiendish Black male somehow on the prowl for the chastity of pure white women became the a prori excuse for wanton racist acts of inconceivably savage violence. By the turn of the Twentieth Century an average of at least one African American was lynched every week within the United States.
Furthermore, perhaps the most inconspicuous aspects of the early history of marketing in America, is just how readily racist iconography acted in collusion with Jim Crow. Let us not forget that before Hitler could justify the wholesale victimization of the Jewish people, it was necessary for him to draw a sharp caricature of them within the minds of the German people. This was an enormous propaganda campaign that sought to render the Jewish people as conceivably inhuman as possible. Not since the savage days of rope and fire has there been such a profuse proliferation of racist iconography as was so casually on display during the 2008 Campaign. The American press failed to adequately cover this, and absolutely no mention was ever made of the origins of these terrible images that have brought so much misery and pain to millions of Black people. Mrs. Obama has done well to object to Bennie Babies being named after her precious children. In a sense, this nation has truly forfeited its ability to handle the marketing of the image of Sahsa and Mila when the press continues to hide the reality of this nefarious history in its reporting. The daily advertising of some of the most common everyday household products and popular consumer goods featuring the distorted image of Black men, woman and children, has been generously covered in my essay titled Black Orchid in the White House Garden http://www.blackcommentator.com/283/283_black_orchid_aschenge_guest.html It is an issue that bears more scrutiny than the limits of this essay will allow. Nevertheless, from foodstuffs featuring images of half naked Black children running through the woods, usually being chased and often being eaten by animals, to the proliferation of pictures of African American men and women with grossly distorted lips and bulging eyes, these where the images which helped to mitigate the medieval barbarism of Jim Crow violence. When Chip Saltsman, a recent candidate for the chairmanship of the Republican National Committee says that sending members of his party a CD with a song titled “Barack the Magic Negro” was simply some light-hearted humor, his indifference is strikingly similar to millions of sick racist White people who casually participated in several thousands gruesome acts of rope and fire during the Jim Crow era.
Fredrick Douglass once summed up the American Dream this way: “The struggle for freedom in America he said is a struggle to free Black men’s bodies and White men’s minds.” This is no less true today than it was 150 years ago. Douglass had the foresight to see this because he had witnessed first hand war and Reconstruction. He lived through the quick and shameful betrayal of the First Reconstruction and the Evil Birth of Jim Crow. Douglass was a true patriot, and he knew at that very moment that even after the long and painful centuries of Black enslavement, and the bitter recent years of such a divisive and fratricidal war, the nation had once again come to allow its lesser angels to prevail, and for this it would even if unwittingly forfeit the American Dream once more. Make no mistake about it, as we have witnessed in the past, when the American Dream is denied to one of us, it is denied to all of us. Now that a true progressive resides in the White House it shall take a newly energized and truly determined coalition of activists of every hue to once and for all secure the Dream before it is forfeited once again. History, past and future is watching us.
ENDNOTES
http://www.associatedcontent.com/article/1435400/death_threats_against_
obama_pg8.html?cat=9
Sienna Plantation of Missouri City, Texas, is a residential community that ranks way up there as one of the top places to live in America. This is because Missouri City has made it to the Money Magazine 2007 list of the 100 best cities to live in, in the state of Texas. Texas itself has 6 towns which were listed in the same year among the 100 best towns to live in, in the United States.
Being a respected financial magazine, Money Magazine is known for giving sound financial advice to businessmen and entrepreneurs (not to mention the general public) so making it to this exclusive list of the top places to live in America is quite an honor in itself.
Missouri City is in good company – Highland Park, and Southlake, which are both located in Texas, are named #11 and #25 respectively on the list of the best towns to live in the country (based on highest median household income.) Everyone will probably agree that household income is a good determinant of the quality of life that a Texas resident and his family can enjoy since obviously you cannot meet the needs of each family member without adequate income. Money Magazine said the median household income for Highland Park is $174,538 while for Southlake it stands at $152,991, which definitely makes these two Texas towns some of the top places to live in America.
Highland Park was also named by the magazine in another list – the list of the top 25 towns which have the highest median home price. Being #15 on that list, the median home price for a Highland Park home is $1,603,608. We know that your property appreciates in value when the other homes in the same neighborhood and in surrounding communities have approximately the same value, so you can expect that a home near Highland Park will probably command around the same median home price as well.
This is good news for families with homes in Texas who would like to see their investment appreciate over time, so that leasing it out or even selling it in the future will help them command a good market price for it. After all, one bad egg can contaminate the whole dozen, or in this case at least one of the top places to live in America.
Another town in Texas which ranks up there as one of the top places to live in America is College Station. This Texas town made it to #25 on the list of the 25 places in America with the greatest population of singles. College Station has a singles population of 54.6% out of the whole population – and you know that where singles tend to accumulate, you can expect to find high spending patterns not just on the basics of food, clothing and shelter, but also on other needs such as entertainment and the nightlife. This is good news for entrepreneurs who are scouting for the top places to live in America so that they can relocate their businesses there.
Real estate developers will also find the tendency of singles to live near one another to be an advantage when selling their real estate projects and developments because, for one, word of great deals on property can spread through referrals and word of mouth. Singles are generally just starting out on their careers but probably will settle down as soon as they find a suitable mate, so looking for great properties is probably one of their life priorities at that time in their life.
It is not such a far off possibility that the rank-and-file employee in 2007 may turn out to be the chief executive officer of the same company 10 years later. And of course, as a single goes up the corporate ladder, and settles down to raise a family, his needs will change. So a wise real estate agent and astute real estate developer would want to market his offerings to the singles market as early as possible. The critical mass of singles in College Station shows great promise for future sales of properties.
It is a known fact that a few percent of the population controls over 90 percent of all the money in the USA. Middle class has been hit the hardest from this down turn of the economy, the stock market was betting on the housing explosion in the late 90’s. Housing prices went through the roof. People thought that this was going to be a long lasting situation. Mortgage companies were giving mortgages with almost nothing down.
Banks gave some people 2 mortgages one for their down payment and another long turn mortgage for 80 percent or better. With rates coming down people were refinancing, some once, twice even three times to enjoy the drop in rates. People were encouraged to take some of the equity out of their homes for remodeling additions, investments, buying a summer home for other properties. People leveraged themselves to make more money. Nobody really thought the gravy train would end.
Then out came the wolves in sheep’s clothing. Offering even lower rates, BUT very few people read the fine print about the rate only being there for 2 to3 years, then jumping to prime rate, plus 5,6,7 percent or higher. Some loans turned into out of control balloon rates.
When people went to try to refinance, rates were higher, people couldn’t afford their homes any longer. People started to panic, the stock market started to drop, consumer confidence fell, foreclosures started. People panicking caused them to pull money out of the Stock market causing even more turmoil. Banks started foreclosing. People started losing their jobs, homes dropped in value. ALL the people who refinanced their home to 125% now had to give money back to the bank because their homes were not worth as much.
Unscrupulous mortgage and loan companies jumped in, and acting as a friend to the consumers, signed them up in short mortgages, but unknowingly were trying to steal people’s property. People who over extended themselves financially with other properties started a domino effect while losing property after property. When the federal government finally saw what was happening it was too late. People were losing their jobs and their homes and the economy was in deep trouble. This economic down turn started a global recession.
The major car manufactures General Motors, Chrysler, and Ford who were selling vehicles with 0% financing showed how much they are hurting even before this collapse.
People that have been dealing with the same bank for several years which they had their life savings and retirement money, where many were able to save $200,000 to $400,000 or more during their life, they ended up losing most of their money when the banks closed. Their life savings was just about gone!
In December of 2008 over a half a million jobs were lost. Major companies with massive layoffs, banks like Washington Mutual and Wachovia were taken over by Larger banks like Chase Manhattan Bank and Wells Fargo.
Citi Bank got financial help from the federal government in the tune of 62 Billion dollars! They are still cutting jobs but they are trying to stay afloat. I have to give credit to the upper management and CORPORATE OFFICERS that refused to take their yearly bonus in 2008.
Unlike some financial institutions that received several billion dollars for help and what did they do with the government money? THEY TOOK THE MONEY FOR THEIR YEARLY BONUSES!
When the big 3 car manufactures went to congress for help. They drove down to Washington. Who are they kidding? Their private jets are still their waiting to fly off into the wild blue yonder.
Corporate America is part of a very big piece of this puzzle. The money they spend on their corporate images could save a lot of jobs. Even Mayor Bloomberg of New York City has not been paid (not that he needs the money) but he truly contributes a lot of money to charities. I respect what he does. There should be more people like him. Corporate Offices should take a lesson.
MIDDLE CLASS AMERICA NEEDS HELP.
Here are 10 helpful tips.
Mortgages now are extremely hard to get. The Federal Government is finally stepping in to oversee what is happening.
1. Watch out for deals that are too good to be true, because they are usually a scam. There are still scam artists out there. Make sure a competent attorney reads over ANY financial contract. A woman in California that owned her home that was in her family for generations needed $30,000. She found a lender but WITHOUT KNOWING the lender they sold the house right from under her.
2.Get legal representation with all your financial situations. Make sure the attorney is someone that you know or a friend knows, or who has a good reputation that can be verified. DO NOT USE AN ATTORNEY SUGGESTED BY ANY FINANCIAL INSTITUTION. Watch your back
3. If you are lucky enough to have several hundred thousand dollars saved, you can go to any bank that will have a FDIC program that will protect your money in a CD or some checking accounts and they will GUARANTEE your money up to $250,000. If you have more a husband can open one account and a husband and wife can open another protecting $500,000. IF there is more money to protect use, your kids and put it in trust but PROTECT YOUR SAVINGS!! If it is a Brokerage account with Fidelity you are protected up to $500,000. Call the FDIC and make sure on any of these programs. You can get the telephone number or contact number through most banks. BE CAREFULL THIS DEAL IS ONLY GOOD FOR THE YEAR 2009. I am sure there will be other deals coming out this year.
4. On the Brightside, an economy EVEN SUCH AS THIS, MILLIONAIRES ARE MADE. The market is low. I still believe it will go lower. Property is low but it will go lower.
5. You can pick up tax lien properties as an investment. Read about them DON’T investin them unless you know what you are doing and what you are looking for.
6. The bond market is not the place to be at this point I would wait until interest rates go up. If you can, try to keep your credit card bills down to nothing. Some credit cards charge anywhere from 25% to 30%. Find a bank that will offer you a balance transfer. Some of you can extend to 60 or 72 months with a rate of fewer than 5 percent rate.
7.There are some good investments out there but make sure the company you are investing with is financially secure and make sure they are not in debt and have a CASH surplus.
8. Property investment is good BUT you will have to pay taxes and support the property until you sell it.
9. The internet is a great research center. You can make money on it. BUT there are plenty of scams to. Be very careful. We have discovered a solid business with residual income to create retirement for many years to come..
Network Marketing as endorsed by Donald Trump-as a way out of all financial problems, starting a home based business and following a system of success–to ensure your family’s income is “recession proofed”.
10. If your car is in good shape keep it well maintained. If you take care of it the car will take care of you. If you do need a new car there are very good low or 0% finance deals out there, but remember, when buying a new car as soon as you drive it off of the lot you just devalued the car 20-25%. It may pay to buy a Two Year old car still with a factory warranty.
Keep a positive outlook on things. It is tough now but things run in cycles. Look for the up swing, try to save some money and make wise investments.
I hope the year 2009 is going to be a good year for everyone. Remember this a cycle and there is a way down and then a way back up again. Even when this economy becomes strong again, be careful not to over extend yourself. Spread the wealth around. Put it in different banks and watch what the FDIC is doing.
People who took a chance and invested in coastal property in California, Hawaii and some parts of Florida with a $30,000 investment in any one of the three states mentioned above 30 years ago could have returned over $1,000,000.
Today Ocean view properties for sale here are expensive and Americans are looking elsewhere for property that’s cheap and has huge growth potential and getting an affordable slice of paradise
Where are they buying?
Ocean view property for sale can be purchased for just $60,000 and have huge growth potential and Americans are buying in increasing numbers in Central America.
Just a 3 hour flight away and yet ocean view property for sale is up to 70% cheaper than in the USA!
The main market is Costa Rica a safe, stable, friendly country with huge and growing foreign investment. Gains have been stunning for example.
Investors that purchased $30,000 of property in the town of Jaco, just 15 years ago are now worth as much as $750,000.
The Marriot Corporation which built its crown jewel of Latin America Los Suenos Resort and pre sold 50 condos of 2000 square feet for $250,000. The next year Marriot sold another fifty at $350,000. Now this years upper end units are being sold between $450,000 to $850,000.
The same scenario as California, Hawaii & Florida?
The boom in Central America has only just started, record investment and migrants from the US will push prices higher and we could see similar increases here over the next 10 or 15 years as we have seen in the USA.
The boom is set to continue
More Americans than ever are buying second homes and much of the US is expensive, yet Costa Rica remains cheap and gives a high standard of living at lower cost in one of the most beautiful countries on earth.
Buyers of property get the same rights as residents, property tax is minimal and the process of buying and selling is easy.
The capital gains potential
Ocean view property for sale can and does make many savvy investors triple digit annual gains and they are doing this with low risk. Furthermore, they are also able to gain income from the buoyant rental market.
If you are looking for a holiday, a second home or an investment property, then look at the booming ocean view property for sale market in Central America, you will see similar potential for gains that existed in America 30 years ago and the boom has only just begun.
Consider the facts and get on board for big capital gains potential combined with low risk.
There are so many ways to invest in property foreclosure. Whether you are looking for a HUD foreclosures or foreclosures bank owned. One of the known places where to find these properties are bank of America foreclosure. Even government foreclosed properties are so rampant these days that there is no shortfall of where you can find them. Real estate properties or home properties are so easy to find. Going online to search them is the best way to it.
Free website for foreclosed homes is so easy to find on the internet. Here if you are one of those who are interested in buying foreclosure homes, this is the first thing you have to do. Because you have to know where the homes or properties are located and how you can bid on them. Some you have to bid on them or contact your local bank to facilitate the procurement or application for the property.
Knowing where the foreclosures can be find is just the start. If you are to invest in these properties you may need to be a real estate agent or license broker in order to do it yourself. If you are a real estate agent or broker, then you need to find one to do it for you. An excellent real estate agent would know or at least have information and tips even before they get listed. Acquiring or having your hands on tips and info can give you the edge needed before anybody else have their hands on it.
Getting advance tips and info on any available bank of America foreclosure can give the chance of first look and scrutiny. Thus beating your competitors to the draw will give you the first crack at the house and put you bid right away. These are not only for investors. These too are an excellent buy for first time homebuyers or even second time home buyers. To some investor and homebuyers who have entrepreneur mind turn or flip homes for a profit within a few months.
For first or second time home buyers, this is an opportunity to buy at a very lower price, in fact in some instances; you can buy them at half price. These are always below market value. Bank of America foreclosure is not the only big place to find such home and real estate property. HUD foreclosures and VA has enormous amount of list of for sale homes too.
But the most important thing for you to do is ensure that that the property is in god order and structurally sound. Whether you are looking for bank of America foreclosure or bank owned foreclosures and government ones for sale, the best place to start is thru online inquiries.
The Costa Rica property market has been bullish for many years now and more than 100,000 American’s now live in Costa Rica and many more have bought investment property and made gains of 30 – 100%
Now many property investors are switching their attention to other countries such as Nicaragua, Panama and Honduras, so is Costa Rica property still the best location for investment property in Central America?
Let’s find out.
The answer is yes!
Costa Rica is an established location
Costa Rica is an established location and property booms can last for many decades – the reason for this is that when a destination becomes popular it puts in an infrastructure that attracts even more people.
While many people like the idea of living or retiring overseas, they still want the comforts of home and other expats around them.
Costa Rica provides the best infrastructure in Central America:
Including, quality housing, great utilities, safety, and great recreational facilities.
Other locations in Central America simply cannot compete with the quality of life, at such affordable cost
Beachfront property is still highly affordable.
The demand to live on the coast in huge in many developed countries and expensive.
Costa Rica offers stunning coastline, crystal clear blue water and pristine beaches all at a cost of up to 70% less than in the USA.
Demand is still strong and buying is supported by the baby boomer generation, not only looking to make money from their investments, but looking at the cost of living -hat offers them a luxury lifestyle,for just a couple of thousand dollars a year.
Quite simply social security checks go further in Costa Rica.
With many people worried about not having enough savings and living longer this is a major consideration in investing in Costa Rica property.
Where to get capital growth
Of course, the key to making money in any overseas property investment is location.
You need to choose your locations wisely and in Costa Rica a safe bet is the Central Pacific coast.
Jaco is the major town in the area, however prices can be a little on the expensive side.
Buy in nearby towns though and prices are affordable and you still have great facilities.
Many areas are providing savvy property investors with gains of 30 – 100% per annum and if you pick locations wisely you to can make these gains.
Costa Rica is popular and looks set to attract more American and other foreign investors due to:
The size of the community, great infrastructure, fantastic recreational facilities, safety and security, outstanding natural beauty and the ease with which property can be bought.
Why buy in up and coming countries when you can get the best lifestyle in Central America at an affordable cost with great capital gains potential as well?
In conclusion, Costa Rica still offers the best risk reward in terms of property investment in Central America and a lifestyle that is hard to beat any price.
If you are considering property investment in Central America, consider buying in Costa Rica and you maybe glad you did.
It’s no secret why thousands of people choose to move to Latin America each year to invest and retire. The pleasant weather, fresh food, welcoming locals and great property deals all are big draws. But buyer beware, here are a few of the common scams out there to watch out for when looking for your dream beach house.
1. The Bickering Sibling Scam: This scam is very prevalent all over Latin America. This is when the house is owned by various people (often left to children in a will) and some of the owners try to sell the property while other legal owners don’t wish to sell. This can lead to big problems for you if you pay someone before getting this legally cleared up.
To avoid being burned by this scam, work with a good lawyer and make sure they null the legal rights anyone has to the property.
2. The Uncle Larry Scam: Often a house is sold without informing an active tenant, and the tenant simply refuses to leave. The police in many countries of Latin America don’t help much in these cases. So before you buy, make sure there are no active tenants. Or if there are, make sure the current owner gets them out before you hand over the money. This can be one big headache for a new home buyer.
3. Shanty Town Scam: This has been happening ever since the Spaniards first arrived hundreds of years ago. You will see that in some areas of the coasts, the cheapest beachfront real estate is inhibited by make-shift shanty towns. Many of these people have been here for decades, yet they don’t actually have the title to the land. This opens the door to someone coming along and buying the land without their knowledge and reselling it right out from under them. Uprooting these people is extremely difficult, and this difficulty should be avoided if possible.
4. The Invalid Contract Scam: This is when you sign a document or contract in Latin America, but don’t officially register it with the corresponding Municipality, rendering it unenforceable! Using a good lawyer can help prevent things like this from happening.
5. Multiple Sale Scam: In most Latin countries, once you purchase a property you have to register it officially with the local Notary and the Office often designated the “Registro de Propiedad.” If you don’t, the seller could sell the same property multiple times, and the first one to register the property with the local authorities gets the official deed to property. To avoid, make sure as soon as you buy to register the property.
6. The Useless Property Scam: This is where someone sells you a property that has some governmentally imposed building restriction, rendering your purchase useless. A good lawyer can help you avoid this scam. In other cases your property may be on the base of a large, unstable mountain of sand that will collapse on you once you start construction. To avoid, always visit a lot before you buy it, and don’t commit to anything over the internet.
7. False document scam: In Latin America, anything can be copied. Identical-looking passports can be made for around $150. Needless to say, some people may try to sell you a property with false title and registration documents. The way to prevent this is to always work with a trustworthy lawyer.
Don’t let this list of scams scare you off. Moving to Latin America was the best choice many people, myself included, ever made.
Domenick Buonamici teaches expats how to find the hidden beachfront property bargains of Ecuador through his e-Book “The Insiders Guide to Ecuador Real Estate” available for immediate download at http://www.EcuadorRealEstate.org .
As the new administration seeks ways to guide the U.S. out of recession, it would be well advised to pay attention to innovation and intellectual property. A press release I recently found on MarketWatch discusses the position of strength the U.S. has in the area of intellectual property and why the Obama administration must focus on strengthening IP ownership rights. There are some interesting ramifications for countries and companies competing in the global knowledge economy.
In the release, Mark Blaxill and Ralph Eckardt, two experts on innovation and intellectual property strategy (and authors of an upcoming book), argue that America’s most valuable asset is its innovation and IP reserves, and that these will likely become the main source of U.S. competitive and economic strength in the 21st century. Importantly, the authors warn that these advantages are easily endangered by overzealous attempts to drive patent reform too far and misguided calls to weaken the rights of patent owners.
Backbone of Competitiveness
According to Blaxill and Eckardt, America’s vast storehouse of IP reserves form the backbone of the country’s global competitiveness. While business people and policymakers may undervalue and overlook these reserves, they are the fuel that powers the economy in good times and helps it bounce back from bad times. The story goes on to say:
The American IP sector, all by itself, provides one of the strongest surpluses in the country’s balance of trade accounts: In 2007, America’s IP exports (i.e., royalties and license fees) were $62 billion — three times larger than Japan’s IP exports, which came in second at $20 billion. America’s IP surplus in 2007 was eight times the size of Japan’s and twice the size of the combined surplus of every other country in the world that reported an IP surplus.
Harsh Realities
With the U.S. in a position of relative strength in terms of intellectual property power, proper management at a national and corporate level should help the country come out of the recession faster and perhaps farther than other countries. A hopeful scenario, to be sure, but U.S. companies are now faced with weak quarterly earnings, declining revenues, lower stock values, forcing budget cuts -that sometimes come at the expense of protecting valuable IP assets.
Do More With Less
While companies have to function within economic realities, it is equally important for them to preserve and enhance their future competitive advantages. For obvious reasons, this we have advocated the need for an integrated approach to business-IP strategy (and indirectly advocated the IP management software one might use to facilitate this integration), we also believe that firms can do both at the same time. (In fact, we’re recently published some studies that suggest an opportunity to achieve a positive ROI from IP management software in less than 12 months — while at the same time, laying the IT foundation for longer-term strategic IP management.)
Start Doing It Now
While corporations in North America and Europe struggle with these competing demands, on the other side of the world, countries and companies continue to make significant investments in their innovation foundation. A recent article in the Oregonian entitled, “China chips away at our high-tech advantage” should help executives and politicians become aware of the growing competitive threat (in the purest, capitalist sense) from that country:
China’s expansion into the world of innovation will test America’s reputation and know-how. To peek inside China’s largest free trade zone, Tianjin, is to glimpse the country’s carefully calculated destiny: high-tech industries, cutting-edge research institutes and ambitions to become home to the world’s most innovative companies. China no longer wants to be the world’s factory for cheap products. Under pressure to create better-paying jobs and to clean up its environment, the nation is trying to snag blue chip companies by vowing to crack down on intellectual property theft and schooling a new class of managers.
THIS Is Strategic Alignment of Business and IP
China is well positioned for the future as well, as their IP ambitions are aligned and consistent at the national level and at the corporate level. At one level there are politicians such as Premier Wen Jiaboa, who stated in 2004: “The future of world competition will be for intellectual property rights.” And on the corporate level there are executives such as Michael Jemal, president and CEO of Haier America, who recently stated that innovation and patents were his company’s “life blood.” “Haier applies for two patents every single day, every day of the year. In fact, it’s more than that.”
For those of you who haven’t heard of Haier, I bet you will come to recognize the name in the near future. When it entered the U.S. market nine years ago, the company sold three products. Now it sells 3,000. You name it, Haier makes it, everything from little dorm refrigerators to air conditioners, washing machines to flat screen TVs. “Haier is the number one brand in China,” Jemal said. “In Asia, we’re in the top ten. The objective here in the U.S. is also to build a market share, to be in the top three in the U.S.”
So What’s a New Administration to Do?
We’ve discussed what businesses can do better manage their IP in multiple entries in the Financial Aspects of Intellectual Property blog. So for now, let’s stick with the issues on a national level. Going back to the press release on MarketWatch:
Blaxill and Eckardt argue that: “Today, the chief export of the U.S. economy is innovation. American inventors have built a strategic reserve of intellectual property rights that is every bit as strategic as our domestic energy reserves.” The U.S. national interest demands that we safeguard these strategic reserves, according to the authors:
“Unlike American multi-national companies, which can innovate anywhere in the world, the U.S. economy itself needs domestic innovation to thrive,” they say. (In many cases, the interests of the U.S. economy and multi-national companies have actually separated.) The incoming administration must defend both the volume and price of domestic American IP assets on the global market. Aggressive development of innovation and IP assets will improve both the balance of trade and terms of trade for the U.S.
Policy Recommendations for Maintaining Innovation
According to Blaxill and Eckardt: “In practice, IP rights are the incentive that brings markets, talent and invention together to monetize our innovation and deliver benefits to the nation. For much of its history, the American economy has had a unique ability to put all these pieces together to create value from its innovations.”
They argue that, “At this time of great national distress, we need to fall back once again on the spirit of American innovation, and as we have in the past, we must look to the foundation of American invention to pull ourselves through this latest crisis.” They recommend a national “innovation policy” that includes:
Protecting the U.S. patent system and the renewable strategic reserves that it generates. Sustaining America’s terms of trade and defending the pricing of America’s invisible assets through regulation and legislation. Adapting the USPTO to the needs of the modern patent development process. Building talent locally through quality science and engineering education. Providing incentives for inventive talent to live and work in the U.S. Making science and engineering financially rewarding careers. Supporting returns on invisible asset investments.
Let’s hope the gang in Washington is going to act along these lines.
The real estate market in and across the United States of America is as varied and expansive as the country itself. Although the age old adage comes off a bit trite and certainly overused, when it comes to real estate investment and other real property purchasing opportunities in the United States, there actually is something for everyone. There are many different opportunities available to the savvy shopper.
Investment Property in America
In the 21st century, an ever growing number of men and women are electing to make the purchase of investment real estate in the United States. This includes both residents of the U.S. as well as people living abroad who wish to become a part of the generally burgeoning U.S. real estate marketplace. As a general rule, people who are snatching up investment property in the United States are doing so in three different arenas:
First, investors are electing to buy into commercial real estate holdings.
Second, men and women buying investment property in the United States are also spending a goodly share of their funds on residential rental property.
Finally, people who are purchasing investment real estate in the United States are putting at least some of their money into vacation types of properties.
Residential Real Estate in America – Single Family Properties
No where is the commentary that the real estate market in the U.S. is as varied as the country itself when it comes to the matter of residential real estate. Depending on where a person is interested in residing, in making the purchase of residential property, will dictate how much money will need to be spent on such a purchase.
In some cities in the United States — many of the major cities on both the east and west coasts of the country, for example — the prices of residential properties continues to increase rather dramatically over time. On the one hand, the ever rising cost associated with the purchase of residential property in some cities in the country is keeping some people out of the housing market all together. There are some cities in the America that are experiencing a flat housing market. In other words, the appraised value of real estate is remaining level and not increasing much over time.
Residential Real Estate in America – Apartments
In addition to stand alone, single family residences, the market involving apartments, condominiums and townhouses in many communities has become more active in the past five years. This has particularly been the case as the so-called “Baby Boom” generation begins to move towards the empty nest phase of their lives (their children have left home) and even towards retirement. As a consequence, people are moving towards purchasing apartments, condominiums and townhouses because they are more convenient and generally less difficult and time consuming to maintain. In many instances, these properties are also smaller in size than the typical single family residence.
The overseas buyers are also seen buying these types of property with greater frequency over recent years. In some instances, citizens of other nations are taking to the purchase of these types of properties in order to allow them the opportunity to have a second home in the United States.
Holiday Property in America
One of the most significant trends that has developed in regard to real estate in the United States in the past twenty years revolves around vacation property. In the 21st century, a growing number of people within the United States — as well as an increasing share of property owners from abroad — are investing in vacation and holiday property.
Investment in holiday property generally has been seen to occur in two different areas. First, people both in and out of the United States are making purchases of second homes or vacation homes for their own usage. (In some instances, these people do turn around and rent or lease out their vacation or second homes to other people during those segments of the year when they are not using the property personally.)
Second, men and women residing inside and outside of the United States can also be found investing in time shares in record numbers. A time share situation is one in which a person buys “time” in a piece of real estate. In other words, they are buying an interest in a particular piece of property that interests the purchaser during a specified period of time each and every year.
Mortgage Options
When considering the options for a mortgage on your overseas property there are a couple of choices to consider;
1. Do you consider raising finance on your existing property in the UK to cover the whole cost of your purchase abroad? A good idea if the interest rate in the country in question is a lot higher than it is here in the UK as you will pay a lot less in monthly repayments.
2. Do you secure a mortgage against the property from a local bank in the country of purchase? This can be a wise option especially if the interest rate is lower than our current UK interest rate. Most overseas mortgage / bank lenders will require upto 30% deposit on mortgages. However, you will need to give some thought to how you will service your mortgage payments each month especially if you are not living or earning in that country as you may well lose out on exchanging money each time to cover monthly expenses. Check out our Foreign Currency page to see how you can save money in this example
3. Some Builders and developers may well offer their own mortgage facilities on their properties for sale. This can be beneficial to both parties depending on the logistics of the mortgage or loan facility. Always check and compare with the two options above before making your final descision.
For more details on Mortgages in America visit our Mortgage page in the American section on our website.
Specific steps to buying real estate property in America
A person interested in making the purchase of any kind of real estate in the United States needs to give serious consideration to engaging the assistance of a qualified and licensed broker or of an equally qualified real estate service that has been established to service the needs of those people seeking to purchase investment, residential or vacation property within the U.S. When shopping for real estate in the United States, a buyer needs to keep in mind that the agent or Realtor works for the seller. The real estate agent or Realtor is legally obliged to protect and further the interests of the seller.
In addition to engaging the assistance of a qualified broker or real estate service, it is also important to note that the real estate markets found across the United States vary significantly from location to location. As a consequence, a person looking to buy real estate in the United States will want to make very certain that he or she has resources that are specifically knowledgeable about the real estate market in a particular region of the U.S.
One step that a person interested in buying real estate in the United States will want to consider taking up front is obtaining a financing commitment from a bona fide lender before beginning the search for specific pieces of real estate. In recent years, in the United States, lenders will extend mortgage facilities to people interested in purchasing real estate (provided that they are credit-worthy) in advance of identifying a particular piece of property for purchase. By having such a lending commitment in hand, a person looking to buy real estate will be in a better position to more efficiently and effectively procure real property in the least amount of time.
When making the purchase of real estate in the United States, the general practice and law in most states is that a purchaser accepts the property in the actual condition it is in at the time of the contract for sale is executed. In other words, a buyer generally buys the property in the condition it is in and cannot complain about significant defects after the deal is closed between the buyer and seller. (The one caveat is if the seller willfully and intentionally withholds material information about defects or problems of a significant nature associated with the real estate.) As a result, it is imperative that a buyer makes certain that the property is closely examined for flaws and defects before a contract for sale is finalized and certainly before the closing date on the transaction.
Once a particular piece of property has been identified for purchase, a contract is then drafted. In the United States, real estate cannot be sold in the absence of a written contract. Often, when residential real estate is sold, a standard form of contract is utilized to memorialize and effect the sale. However, if a person is making the purchase of investment or commercial real estate, more often than not a specific and individualized contract is created for the transaction.
When the contract is signed by the parties, a closing date is established. In the U.S., the closing date is the date on which all of the duties and obligations under the contract need to be satisfied — including the obligation of the seller to make certain that the title to the real estate is “clean” and including the obligation of the buyer to make certain that his or her financing is in order.
Generally, a closing date is set approximately 30 days from the signing of the contract for sale. However, there is no hard and fast rule pertaining to when the closing is to be held. The closing date is established between the parties to the real estate sales contract.
One of the items that a buyer will want to make certain he or she obtains after the contract is signed and before the closing date is title insurance. Title insurance will protect the buyer of real estate should a situation arise in which the title to the underlying real estate ends up being clouded. A clouded title is one in which another person or entity ends up having an interest in real estate that may not have been found or properly disclosed during the time period between the signing of the contact and the closing of the sale itself. For example, a prior lender may have a lien on the property that for some reason was not discovered. While such an encumbrance on the property’s title should have been discovered, there are countless examples in which mistakes occur and liens and other interests in a particular piece of real estate are not discovered. Again, title insurance protects a buyer of real estate from any expenses or loss that he or she might experience as a result of a defect in or cloud on the title to real property.
In most jurisdictions in the United States (but not all) local units of government assess property taxes on real estate. If a person is making the purchase of real estate, he or she needs to understand that they are likely to be responsible for paying a pro rata share of taxes that will be due and owing for the portion of the year of the purchase during which the buyer actually assumes ownership of the real estate. Often, the taxes will be due to be paid at the time of closing to avoid any problems between the buyer and seller in the future.
Additionally, insurance on the real estate needs to be in place to benefit the buyer on the closing date. A purchaser of developed real estate will not want to assume possession of the property without making absolutely certain that proper insurance is in place.
Property Abroad always recommends using a Solicitor or Lawyer
It has been a dismal year for house prices, according to the Global Property Guide’s latest survey of publicly-available house-price time-series for the year 2008. And seen from a global perspective, the downturn is still accelerating.
The collapse of the world’s housing markets can be seen from three points of view, and unfortunately, all of them reinforce the bad news.
During 2008, the downward price momentum accelerated, as compared to 2007.
Only 2 countries saw positive momentum in 2008 (a slower downward house price movement than last year, or faster upward movement), while 28 countries saw their housing market momentum deteriorating, compared to the previous year. The two countries with a positive momentum were Germany and Switzerland.
During 2008, house prices fell in most countries.
During 2008 only 8 out of 32 countries saw house prices rise, after adjustment for inflation, while 20 countries experienced house price falls.
In contrast, during the year 2007, the downturn was just beginning, and only 6 countries saw house prices fall, while 24 countries saw house prices rise (all figures inflation-adjusted).
Many house-price falls during 2008 were extremely severe. Countries with house price falls of over 10% during 2008 were Latvia (Riga) (37%), Lithuania (Vilnius) (27%), the US (20%), the UK (18%), Iceland (16%), Ireland (12%), and the Ukraine (Kiev) (12%) (all figures inflation-adjusted).
During the final quarter (Q4) of 2008, the downward price momentum significantly accelerated, as compared to Q3, suggesting that the situation is deteriorating.
During 2008’s final quarter, 9 countries saw house price falls of 5% or more during just that quarter. Price drops of more than 10% during this single quarter occurred in three countries – in Latvia (Riga), which saw price falls of 15%, in Ukraine (Kiev) (13%), and in Hong Kong (15%). Other countries with Q4 house-price falls of 5% and over, included the UAE (8%), Lithuania (7%), Iceland (7%), Singapore (6%), Bulgaria (5%), and the UK (5%) (all figures inflation-adjusted, except UAE).
These price falls were much greater than during the previous quarter, Q3. During that previous quarter, only two countries experienced house-price falls (inflation-adjusted) of 5% or more, and no countries experienced house-price falls of more than 10%.
REGIONAL SURVEY BY GLOBAL PROPERTY GUIDE
Europe has major problems
The Baltic countries of Latvia and Lithuania suffered the hardest price falls both in nominal and real terms. In Riga, Latvia, the average price of standard-type apartments plunged 37% during 2008. Prices have been going down in Latvia since late 2007, after a remarkable increase of about 70% in 2006. The most alarming decline took place in the 4th quarter, when prices declined by 15%, the steepest quarterly drop in real terms in any country. These price falls were triggered by increased interest rates, and by the tightened credit rules which Latvia imposed in 2007.
Average prices of apartments in Vilnius, Lithuania, fell by 27% during 2008. House prices started slowing in mid-2007, and crashed in early 2008.
House prices in the UK plummeted by 18% in 2008. Although mortgage interest rates dropped slightly, to 4.48% in December 2008, the number of loan approvals for house purchases fell 58% in 2008.
There is serious trouble in Iceland (house price fall of 16% during 2008), Ireland (12%), Ukraine (12%), Malta (9%), Portugal (8%), France (8%) Finland (7%), Norway (6%) and in Spain (6%).
North America’s woes
In the US, the centre of the global financial crisis, in 2008 house prices fell 20% according to the Case-Shiller house price index, which emphasizes urban areas. OFHEO and FHFB figures, which are associated with Fannie Mae and Freddie Mac loans and have somewhat lost credibility, suggest a smaller decline of 6% and 3% respectively, during 2008. The US government recently approved a $ 787 billion economic stimulus package, of which $275 billion will be allocated to rescue the ailing housing market.
Canada has been much less affected than the US.
Pacific heads down
Both Australia and New Zealand saw house price declines during 2008, of 7% and 8% respectively.
Asia no longer insulated
Housing markets in Asia have not been insulated. Singapore, Hong Kong and Philippines recorded house price falls during 2008.
Singapore’s private residential prices dropped 9% during 2008, in sharp contrast to the 26% price increase of experienced during 2007. The developed countries’ economic troubles adversely affected Singapore’s exports, and during 2008, output in the manufacturing sector, particularly of electronics, precision engineering and chemicals, shrank by 10.7%. Singapore was officially in recession in Q3 2008.
Hong Kong has been badly hit by the crisis. House prices were down by an average of 6% in 2008. But during the last quarter, Hong Kong experienced a severe decline in prices of 14%.
In Makati, Philippines, prime 3-bedroom condominium prices fell by 2% during 2008, after an 11% price rise during 2007. Nevertheless construction of high-rise residential buildings continues, with residential condominium stock rising by 7% during 2008, according to Colliers Philippines.
Japan recorded modest Tokyo condominium price rises of 1.2% during 2008. On the other hand, land prices in Japan’s six major cities fell by 6% y-o-y to Sep-2008.
In Shanghai, China, house price rises slowed to 5% y-o-y by the end of 2008, after peaking at 30% y-o-y to May 2008. However Shanghai is likely to be somewhat exceptional, and Xinhua News Agency reported house prices declines in 70 major cities during 2008. Shenzhen suffered the hardest fall, with prices down by 18% during 2008
UAE on shaky ground
In Dubai, UAE, despite the bleak global picture, saw surprisingly large dwelling price rises of 41% during 2008. However during the year’s final quarter, prices fell by 8% in nominal terms. This downturn is attributable to strongly tightening lending criteria, an increase in interest rates, multiple layoffs, and alarm among buyers.
Forecast: No recovery in 2009
History suggests that in a crash, housing markets take many years from peak year to full recovery. In view of this and of the pessimistic IMF forecast for the global economy, no real recovery is likely in the global housing markets this year.
The IMF has predicted that the world economy will grow by 0.5% in 2009, the lowest level in 60 years. GDP in advanced economies is expected to decline by 2% during 2009. The United Kingdom and Japan will be hit the hardest. Output in the UK may contract by 2.8%, while Japan’s may fall by 2.6%.
Growth in emerging economies is expected to slow to 3.3% in 2009, down from 6.3% in 2008. Developing Asia is forecast to be the least affected, with growth of 5.5%. China’s economy is predicted grow by 6.7% in 2009, but this is a substantial decline from 9% growth during 2008.
We cannot be optimistic for five reasons:
• Valuations still clearly remain stretched in most countries, in terms of price/rent ratios.
• Economic growth is slowing or negative in many countries, which is negative for housing values.
• There are no signs that banks are becoming more willing to lend.
• The unprecedented nature of the financial system’s collapse has greatly added to the difficulties facing the world’s housing markets.
• Some national governments are experiencing difficulty in refinancing their national debt, putting their currencies under pressure. Currency instability is likely to aggravate housing sector problems in countries where many loans were taken out in a foreign currency.
The positive news is that the US government and several others are acting with vigour, as has the IMF. Nevertheless, there is a long tough road ahead.
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The Global Property Guide (http://www.globalpropertyguide.com) is an on-line property research house, specializing in analyzing residential property valuations around the world.
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