Real Estate Investing

 

Well, it’s nice to see that our neighbors are prospering. Even though the U.S. housing market isn’t doing terrible, per se, the markets of Canada and Mexico are absolutely flourishing!

 According to The Real Estate Bloggers, Mexico is seeing a boost in its market because of several factors, including new lending rules and a shortage of 6 million homes. By and large, Mexicans do not finance their homes, although new Mexican president Felipe Calderon has set a goal of 10 million new mortgages by the year 2010. Still, most Mexicans currently inherit their homes, build them by hand or buy them with cash. The falling interest rates and other factors are expected to drive the number of Mexican mortgage lendees higher than the current six percent.

“The trend could even slow immigration from Mexico by generating millions in jobs and personal savings as a fresh supply of loans gives many their first chance to own a house,” the Associated Press reports.

In Canada, meanwhile, the natives are comfortably immune to the much-publicized American real estate nosedive of late 2007. In fact, last year proved the strongest year ever for Canadian real estate. The Bank of Canada recently issued an interest rate cut, and average home price in 2007 reached as high as $307,265, an 11-percent increase over the previous year. Average home price in the fourth quarter of 2007 saw an even larger year-to-date increase at 12.1 percent. According to the Canadian Real Estate Association, summing up the nation’s real estate activity in 2007:

“There were 520,747 homes sold, a 7.6% increase from 2006. The previous record was set in 2005. Sales for 2007 marked the first time 500,0000 homes sold in one year. Activity also represented the largest year-over-year percentage increase since 2002.”

Ann Bosley, president of CREA, said lower interest rates will help keep housing affordable in light of price increases in the seller’s market. However, consumer confidence could be swayed by the U.S. real estate scene, thus affecting the Canadian market, Bosley said. Maybe instead, with such prosperous real estate markets so close by, the American market will be boosted through something like an osmosis effect.

The real estate market in India is hot. So hot, in fact, that Kroger may be jumping on board. That’s right, the Ohio-based $66 billion U.S. grocery store giant is in talks with Indian realty companies to create joint ventures on some commercial projects. According to India’s Economic Times, Kroger reps have already met with three or four of India’s most prominent real estate development companies.

The move would be more profitable for Kroger than merely entering the retail market, and it would also create familiarity with the Indian culture should Kroger decide to enter the retail market down the road. Furthermore, if that time comes, Kroger will be better positioned to secure the commercial placement that has eluded other retailers. In fact, many retailers have shelved their plans to expand into India because there simply isn’t enough good property available currently. For an outsider looking in, Kroger’s interest in Indian real estate seems oddly random, though it could prove very strategic and beneficial.

Pre-fabricated housing was once relegated to government projects and low-income neighborhoods. Now, a new day has dawned. When housing is built off-site and trucked in, it can make for a much more affordable housing option. But it doesn’t have to be small, rickety or ugly. Prefab has spread its wings and landed in some of the most chic, lux neighborhoods imaginable.

Bonus: It’s usually lower cost. The Washington Post wrote about Barry Bless and Jennifer Watson, who built a two-bedroom, one-bath, 1,150-square-foot mountain abode for $95,000. That’s about $83 per square foot. This is an ultra-modern home, with an open floor plan, hardwood flooring and floor-to-ceiling windows. Additional work needed on the home, like site prep and water/sewer hookup, was handled by the couple and their friends, which the article points out as an obvious cost-cutter.

“But Barry Bless and Jennifer Watson figure that even if contractors had done most of the work, their 1,150-square-foot, two-bedroom, one-bath mountain retreat would have come in at around $150,000. That works out to $130 a square foot, compared with the $200-to-$400-per-square-foot costs of many modern, architect-designed houses.”

Prefab housing has plenty of options. With full-length porches, decks, garages, fireplaces, basements, stone and brick exterior, these houses are virtually indistinguishable from their more traditional counterparts. However, prefab is really making a name for itself in modern housing design, something which would normally require elite architects and seemingly endless pockets. The boxy, airy, lofty looks are more popular around the U.S. and have also caught on in other countries like Sweden, where partnerships have been formed with Ikea modern furniture manufacturer.

OpenHouse NYC blog offers a video tour of a fabulous prefab home and interviews with real estate experts. Marcia Altman, a realtor in West Hampton, tells the blog that the only remaining stigma attached to prefab, or modular, housing is among “the uninformed.” Essentially, she says, this option helps home buyers get “a little more house for a little less money.” The prefab housing option may increase in cost as demand and respect grows, particularly when the limping housing market recovers and home prices soar once again. For homebuyers on a budget, it’s an option worth digging into.