Wednesday, June 04, 2008

High Cost Real Estate Markets Today

Hard times are here and apparently much has hit the real estate binge. People are apprehensive of buying property these days and much of it is because they cannot afford it.

There will be of course loan options where you can borrow a certain percentage of the whole price of the property and pay in installments. But if you are the wise pencil pushing person today, you also have to manage your finances. One non-payment will incur penalties which in turn will become additional expenses unsolicited.

You will be surprised though that some countries like London, Monaco, France, and Hong Kong could care less about the crisis besetting us today. For them it is business as usual and while the turnover of these properties may not be that fast, they are willing to wait. They believe in their work and apparently someone will come along and buy these properties. Well…hopefully that is.

Despite global economic concerns, the credit squeeze, and rising commodity prices, properties in the world's most expensive neighborhoods are still commanding ferocious premiums. While $1.5 million in Cleveland or Tampa would probably purchase a substantial house, with four bedrooms, a multicar garage, and maybe even such amenities as a swimming pool and media room, in London's Belgravia or on Manhattan's Fifth Avenue, it would buy you little more than a glorified shoebox.

(Source) Yahoo Finance