The stop to the repayments of the British Real Estate funds is spread in a domino effect that seems, at the moment, unstoppable. After Standard Life, it was the turn of Aviva and then, in the late afternoon of a difficult day for securities listed in the Real Estate, M & G headed by the Prudential Group. The threat now hangs over all the giants of the City investing in bricks and mortar. Commercial, for the moment at least.
Living in London, one of the most expensive cities in the world, is now "cheaper". Among the first effects of the British economy Brexit was also a fall in prices of apartments for sale in London.
Requests for loans from American families return to fall, despite the Fed’s decision to freeze rates.
In the week ending May 27, the index that measures the volume of mortgage applications decreased by 4.1%, after + 2.3% recorded in the previous week. About the index relating to refinancing applications it marked a decrease of 4%.
This was announced by the Mortgage Bankers Associations (MBA) stating that the rates on thirty-year mortgages remained stable at 3.85% as in the previous month.
Rental house’s market is down slightly: in the winter semester from October to March, the Swiss web platforms have been proposed 123.563 apartments, – 6% compared to the previous six months.
Further evidence of the market cooling is the increase in the average period during which an advertisement is active, increased from 27 to 29 days. The index shows that research is mostly aimed at local apartments of 1-2 and a high rent increases are the days when the post is online. This was revealed by the OWI index published by the Svit, the Swiss economy estate association. Only two of the twelve cities under consideration РNeuch̢tel and St. Gallen Рshowed a contraction of the times when ads are on the sites. The biggest rises were seen in Sion, Chur and Lugano.
The European housing markets keep on the recovery path, albeit with differences amongst the single countries. Pushing sales and prices are favourable conditions like low interest rates and economic growth. The headwinds come from markets turmoils, risk aversion and concerns about the strength of the banking sector in some countries.
In this "crisi period", high-yield real estate investments represent a tangible alternative, the safe harbour some investors are looking for… How to get access to them? As these assets are “off-market”, visibility is limited and reserved to qualified international advisors….
