02nd of April 2007

iPropertyCLUB News

A crop of new global funds will let individuals invest in property hot spots around the world

A CROP OF NEW GLOBAL FUNDS WILL LET INDIVIDUALS INVEST IN PROPERTY HOT SPOTS AROUND THE WORLD

The crash in condo prices through 2006 was headline news across the USA. The term is familiar to UK ears, but not everyone fully understands the meaning.

Condominiums are basically apartment blocks in which the majority of units are owner-occupied who jointly own and manage all common areas such as the building structure, grounds, hallways, driveways, clubhouse and community rooms. Thus a homeowners association is responsible for the roof replacement, exterior maintenance and common area maintenance issues. And who will also decide on such issues as sub-letting and these could change.

Up-market condos feature such Essential lifestyle accessories as gymnasiums, and Pools and other accessories. And a management fee will also take care of landscaping, pools, cable TV provision, garbage pick-up, insurance and so on. So condos can offer a hands-free Lock-up and leave it Lifestyle.

They are cheaper than single-family homes in the same location and provide a first step on the property ladder. But they are unlikely to show a comparable appreciation in the Long-term. Nevertheless they do provide an entry to a more expensive neighbourhood - perhaps in downtown Miami - than would otherwise he possible.

Condominiums can be purpose-built or apartment block conversions. Apartment blocks in the USA are usually tenanted. They Lack the shared facilities of a condo and may not be so well cared for. During the recent residential property boom transforming ageing apartment blocks into up market condos became ad the rage. Gut the search for quick profits was at the expense of sitting tenants and some have been fighting back in the courts.

Now the pendulum is swinging the other way as the latest surveys show occupancy rates and rental income from apartments is rising. Atlanta developer Bill Bongos, for one, had previously switched from building apartments to putting up condos. 'Now we are back in the other direction, developing and building mostly apartment blocks, Ranges recently told the Dallas Morning News.

Source: Property Investor