There has been a significant increase
in international commercial property investment compared to last year,
according to news reports referring to a study released by Jones Lang
LaSalle (JLL). JLL provides commercial property investment and
investment management services.
In the earlier half of 2009,
international commercial property investment was US $ 76 billion. Now,
for the same period of 2010, global commercial property investment
stands at $132 billion, almost double of what it was. The study notes
this as a sign that there is increased confidence in the property
investment market among investors, after the recent worldwide real
estate slump.
Europe had the highest number of
transactions investing in property in the first half of 2010. The
United Kingdom (UK) has emerged as the most preferred property
investment option, with investment values touching US$ 7 billion,
followed by Germany.
Commercial property investment
can domestic, inter-region and cross-border or global. It was seen that
in Europe, more than half the property investment were cross-border or
global, with the percentage standing at 54% of all European property
transactions.
It is seen that there is an
across-the-board increase in property investment, both domestic and
international as investors search for property globally which can
appreciate in value and give them good returns.
Buying Investment Property - Why and What to Buy
Investing your money in the real
estate sector can give you good returns over the years. An investment
property is real estate that is used solely for the purpose of getting
returns, either through appreciation in value or by renting it out. It
is different from a house or flat bought solely for residential
purposes. Getting tax benefits can also be a reason for buying
investment property.
After the recent slump in the
real estate sector, confidence has started coming back, as is seen in
the research conducted by JLL. If the trend of property appreciation
continues, then buying investment property may fetch you returns on your
investment higher than other investment options such as stock market or
bank deposits.
For ordinary individual thinking
of buying investment property, options would range from investing in
residential and agricultural land, houses, flats or commercial office
space. Purchasing land and houses can ensure that your investment is
secure as there is appreciation in the value of the land. The return on
property investment in land would come as a result of increase in land
prices after a few years. In the case of houses and flats, rent can be
charged, so that there is an immediate regular return on your
investment. This is addition to any profit that you would make when
decide to sell the house or flat when its value appreciates.
Some experts advise against the
purchase of flats as a long-term property investment. In buying land,
there is a strong chance of appreciation of its value. In the case of
flats, the time factor is of importance. The structure of the flat may
deteriorate with time, and thus may not fetch as good a return after a
number of years, as investment in land would. Some areas also see a glut
of flats being built, thus reducing its rental value.
When to Buy and When to Place Investment Property for Sale
Buy low and sell high is an
oft-repeated investment advice. During the recent global financial
downturn, property prices went downhill due to the sub prime crisis in
the US housing sector. Property investment advisors recommended that it
was a good time to invest for those seeking to buy property for the
purpose of returns. Good investment property for sale could be bought at
low prices and the investor could wait for the value to appreciate.
Today, as confidence is slowly
returning to global property markets, levels of transactions in property
investment has nearly doubled to that of first half of 2009, as
indicated in the Jones Lang LaSalle (JLL) research released this month.
Global property investors are searching world real estate markets
seeking an attractive deal. Property prices in countries like India are
expected to grow, as there is a demand for housing. When there is
expectation of appreciation in value, it's a good time to buy.
A lot of investors struggle with
the decision of when to put their investment property for sale. Unless
there is an urgent need for money or some personal reason, which prompts
the property sale, it is necessary to study the market trends and your
own financial objective before making a sale.
If property prices are about to
rise, then of course you should wait. Unless there is an even better
value investment property for sale, which is expected to give you more
returns than what your current property returns. Putting up a current
investment property for sale and reinvesting it in another valued
property is a common strategy used to enhance profits. This is also a
way in which taxes on the sale proceeds of an investment property can be
avoided. People, who are selling their investment property, may not
need to pay taxes on their profits from the sales if they reinvest the
money from the sales in another property. Another time to place a
property investment for sale is when you have achieved your investment
objectives and wish to use the sales proceeds for other purposes.
Property investment experts
advise that investing in real estate is a long-term proposition for
optimal returns. Some experts suggest that investors should allow their
investment properties to go through at least one property cycle - of
upturn, market slump and stabilisation, and again upturn, before putting
up their property for sale. A property cycle may be localised to a
region. It is necessary to study market situation and trends and take
the advice of a real estate consultant before deciding to sell an
investment property.


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