Monday, July 13th, 2009
Hi there!
I just read this little bit on a blog – I’ll tell you where in just a minute, but please read this first:
“According to one source, [farm]land values have gone down 20% already in other countries, which would suggest the U.S. is lagging in a farmland price correction. Prices are down 18% in Brazil, 12% on the Canadian prairies, 20-35% in Russia and Bulgaria, and 70% in the Ukraine.”
This is a contrarian approach to the populist theory that farmland is a safe investment. The rationale? Farmland prices are being held up primarily by speculation, and as the speculator goes, so go the prices. Also, the theory that farmland will increase in value as the world population increases MAY be an ultra-long-term truth, but speculation in commodities can also kill that on the short- to long-term.
For me, the only reason to buy farmland is as an investment that you are going to work as a farm! And that comes with it’s own large family of speculation attached. Not a sure thing!
Oh – the quote comes from a blog called “Seeking Alpha” and you can find it at http://seekingalpha.com/article/148224-13-agriculture-myths-busted-this-bubble-is-ready-to-pop. It makes a fun read as long as you’re not heavily invested in farmland. :-D
Ciao for now
Craig
for
Bulgaria Realtor
P.S. Remember, you read it FIRST on
Bulgaria Realtor!
Possibly related posts: (automatically generated)
Tags: Agriculture, Arizona Politics, Brazil, Bulgaria, Bulgaria Realtor, Bulgaria Realtor Blog, Canadian Prairies, Censorship, Commodities, Conservatives, Contrarian Approach, Craig, Craig Hesser, Dung, Farm Hub, Farm Land Values, Farmland Prices, Fun, Good 2004, Hypocrisy, Investment, Jimmy Craig, Jimmy Craig Hesser, Jimmy Craig Websites, Lagoa Dos Patos, Land Values, Little Bit, Myths, Rationale, Realtor, Retail Store, Russia, Sediments, Seeking Alpha, Speculation, Speculator, Sure Thing, Truth, Ukraine, Urban Farm, World Population Increases
Posted in Real Estate Market | No Comments »
Saturday, June 27th, 2009
Bulgaria Realtor
Hi there!
“Now is the Hour – Part 2″? What in the world do I mean by that? Well, think about it – if the first part talked about properties, this part has to be an update on financing, right?
Right!
What’s starting to happen is that the banks are starting to suffer from the lack of new funds and new sales – why? Restrictive to prohibitive terms for new mortgages. Remember what I did write in Now is the Hour – part 1?
“Bulgarian mortgage lenders have put the stops on the business with limits as to how much they will lend (typically 40% of the buying price, maximum), and also with really restrictive interest rates – 12-15% plus the Interbank rate plus signing fees, depending on the type and life of the mortgage.”
Well, there appear to be a few Bulgarian banks out there that are not satisified with their returns at those levels. What’s happening? They have dropped their interest rates by 50% or more, and are willing to go to 50-55% of the market value of the property (in extreme cases even 70%). This is still not like the glory days 2-3 years ago, but it will certainly help out the real estate market.
So, welcome to “Now is the Hour – Part 2″! :-D
It really IS the time to start choosing what you really want and start organising your purchase plans! For the names of the banks presently involved, see the Focus Information Agency article at http://www.focus-fen.net/index.php?id=n185477.
Ciao for now
Craig
for
Bulgaria Realtor
P.S. Remember, you read it FIRST on
Bulgaria Realtor!
Possibly related posts: (automatically generated)
Tags: 3 Years, 3 Years Ago, Afghan Hounds, Banks, Border Collies, Bottomed Out, Bulgaria, Collies, Craig, Extreme Cases, Focus Information Agency, Glory Days, Hot Air, Information Agency, Interbank Rate, Interest Rates, Jimmy Craig, Jimmy Craig Websites, Latency, Maximum, Mortgage Lenders, Mortgages, Names, Plasma Tv Vs Lcd, Real Estate Market, Realtor, Television Plasma, Www Focus
Posted in Finance | No Comments »
Tuesday, June 9th, 2009
Hi there,
As predicted, the costs for construction of real properties are dropping. There are two reasons for that, one is that the costs for materials are lower due to lack of demand and lower energy and transportation prices. The other is the lack of jobs for contractors and strong competition for the little amount of work available.
The second item – competition in the construction arena – will tend to even out over time. What we expect to happen is that the weaker (presumably marginal) contractors will be forced out of business on a financial basis. The buyers will (have) become more discerning, making sure that their contractor lives up to the contract and does the job properly the first time. The days of the “slap it together and get rid of it” are over, at least for the near to medium term.
Finally, the market prices will be limited by the partially-finished properties that were stopped due to the lack of money and buyers. It will be less expensive and faster to finish the better of these than to start from scratch. The less viable incomplete construction (with design and/or infrastructure problems) probably will be demolished over the medium term, which will reduce the pressure on the lower end of the price range.
Craig
for
Bulgaria Realtor
Possibly related posts: (automatically generated)
Tags: 70mm, Bargains, Battery Magazine, Black Sea, Black Sea Coast, Black Sea Resort Area, Bulgaria, Bulgaria Realtor, Canon 5d, Canon Ef, Canon Eos, Canon Eos 50d, Canon Slr, Construction Arena, Construction Business, Construction Costs, Craig, Craig Hesser, Desirable Properties, Digital Slr Camera, Elena, Existing Properties, Financial Basis, Financing, Flash Memory Card, Good 2004 Ltd, Good Job, Housing Sales, Infrastructure Problems, Jimmy Craig, Jimmy Craig Websites, Job, Jobs, Medium Term, Money, Myth Drannor, Nessebar, New Construction, Odds, Real Estate Market, Realtor, Sandisk 2 Gb, Scratch, Sea Coast, Sea Fleet, Sea Resort, Slap, Sunny Beach, Sveti Vlas, Transportation Prices, Xpn
Posted in Construction | No Comments »
