Best Finance Network
Get the best connectivity about finance.

New York has begun doing what any major city does when it runs out of real estate, but with great success. It has started increasing the rent for up to $5000 for a single bedroom apartment, not a better deal for an average family earning $100K a year. And to date there are no witnesses of slowing in the growth of the rental prices in this city.

The ever-taller high rises, extremely profitable to the owners relative to the forecasted construction costs, provide homes for escalating population. While single family homes that are put up for rent are typically larger, with private yards, the condos are barely 1000 sq. ft. but with views of the city and scenery to die for. Extra features such as gym, playgrounds, club house and concierges provide an interesting alternative to living here.

A two bedroom single family home in the heart of the city can cost around $6000 and as low as $750 in a suburban area outside the city, almost double the cost of what it was two decades ago. The downtown part has a rent of anywhere from $1500 to $2200 for a studio, and $3000 for a 2 bedroom, while upper east side-the affluent area where most skyscrapers are-can go as high as $10,000. Although the outskirts have seen a slight decrease in the influx of people after the recession, the very wealthy area have done very well in maintaining this price over the last ten years.

Reasons for Rent Increases :
There are various theories behind what is really causing the rental prices to increase in New York. And most prices are driven by owners and their agents convincing people to rent while justifying that they are seeing a completely rational price in comparison with the cost of owning a home. One can note that the recent rental boom has not been limited to New York but has been in full swing in other states such as California, Washington and North Carolina. The wealthiest cities and neighborhoods have experienced the greatest home appreciation recently, and these increases have outstripped rental growth in such markets.

Let us look at some of the theories that is driving the rental price here:

Theory 1: Demand and Supply:
People who are on an edge of buying houses in NY are seeing that housing and mortgage markets are imperfect, with real estate agents not representing the buyers interest and appraisers being paid to justify exorbitant prices. They are realizing that homes under this scenario are not worth what they were worth previously. Land is scarcer in the most exclusive communities and people renting would pay large premium for living in such communities.

Theory 2: Renting is Cheaper than Owning:
Renting is one way of showing that home prices cannot escape the fundamental forces that drive them in the long term-income. The housing prices have grown exponentially with respect to renting, and in this massive economy people are unable to pay large portion of their paycheck toward their house. People fearing the real trouble meeting their obligations in the future such as divorce, job loss and medical emergencies, want to post-phone buying and just rent for a while.

Theory 3: Population Growth and Immigration:

Probably the most popular reason as to why rent prices has seen an increase in recent years. Most new immigrants are renters and prefer to rent as long as they could save money to buy a home, resulting in more demand for rental properties.

Theory 4: Escalating Construction Cost:
Even though home builders are on the sell side of the market, they are unable to fair given the high cost of construction, compelling them to increase the price of houses to a level not reachable by an average middle class family- another economic reason that people are renting rather than buying. More so, builders claim that it is the zoning and building restrictions that are the culprit in higher rental prices.

Where The Current Rental Market is Heading:
Even homeowners with less leverage in their homes are now feeling relatively safe renting the houses given the current trend. Considering the shaky economy and no real income growth, people are beginning to dedicate their resources and attention to rent in an attempt to avert a real disaster from buying a house.

David Haynes is a writer who searched for the Lettings Bristol had to offer when choosing his home.

The prospect of house repossession and eviction is a daunting situation that many people think will never happen to them. Sadly due to the current economic situation house repossession is increasing across the UK. If you need help selling your house quickly to release equity to pay off debts then Sell or Yell can help. Sell or Yell are an experienced company specializing in quick property sale, they work within your individual time specifications to sell your property. Sell or Yell are market leaders in the field and are dedicated to helping you sell your house quickly, avoiding repossession and eviction.

Selling your property through market leaders Sell or Yell means you don’t have to go through an estate agent, avoiding agency fees. As well as saving money on agency fees, by not going through an estate agent you save a lot of time and don’t have to put your house on the volatile open house market. Sales can be arranged in a matter of days with Sell or Yell, they work within your individual time scales, giving you piece of mind that if you are already under threat of repossession, Sell or Yell can help you quickly.

You might need to release equity in your house to buy another property or relocate; whatever your circumstance Sell or Yell will help you sell your property for cash fast. An additional service offered by Sell or Yell is the ‘Sell with Rent Options Scheme’, after selling your property Sell or Yell will help you to find alternative accommodation.

Are you eyeing a mortgage relief? Well, the answer is most likely to be ‘yes’, as millions of homeowners across the U.S.A are struggling hard to find the effective relief program or help. Often, homeowners feel that the money that could be saved via the relief programs would help them sustain other costs that were so long been postponed due to financial restrictions. A number of alternatives offer effective relief programs helping the mortgager adjust with his or her payments. The relief ideas in actual sense come to your best help in times when a particular circumstance blocks your road to payment.

Therefore, if you find yourself in hard times owing to mortgage payment then, consider relying upon any one of the following methods –

The Lender

While looking for a mortgage relief idea, consider contacting your lender, as a priority. All you need to do is call up the mortgage statement and request the call to be offered to the department of loss mitigation. This particular department helps in establishing a loan modification program that allows you to change the mortgage terms according to your convenience leading you towards a safe payment rather than foreclosure.

Refinance Program

The Home affordability Refinance Program (HARP) help in cases you have Freddie Mac or a Fannie Mae loan. This program allows the Fannie and Freddie mortgage holders to refinance their present mortgage within a value of 105 per cent to 125 per cent of the present value and worth of the home. This particular program also focuses on the idea of helping the mortgagers with better terms and conditions on the mortgage laying an improved situation financially. For availing, the best benefits with these two above-mentioned relief programs consider contacting the loan service provider for the application procedure.

Consult an Attorney

Consulting an attorney or a specialized real estate lawyer in times of hardship with your mortgage also helps in finding an effective mortgage relief program. If you are in a fixed financial situation then, consider relying upon your attorney for a loan medication program that can help in either delaying or avoiding a foreclosure.

Government Help

If you are facing problem in paying off your mortgage then, turning to government programs help in dealing with the mortgage issue. The Making Home Affordable Program and the Home Affordable Refinance Program are two such programs that are designed to assist the homeowners experiencing trouble with the mortgage payments.

However, while finding out the effective mortgage relief program, you need to keep in mind taking cautious steps towards the idea. Many a time, steps taken in hurry have resulted in bad decision that had further made the mortgage situation worsen leaving the mortgager in trouble. Therefore, it is advisable that you choose a relief program doing the background research well to save yourself from the hassles.

The author, Aalina Jones here provides smart suggestions on mortgage relief. This article will certainly help people gather plenty of information regarding loans and mortgage policies.

Consulco Capital Real Estate Limited (CCRE) has now completed the acquisition of the final two investments for its London retail property syndicate, Hermes Properties Limited. Hermes has established a suite of 10 retail and restaurant business property investments, situated in buoyant central London locations.

Earlier in November, Hermes acquired a £27 million freehold portfolio in London Bridge, Central London, as part of its initiative to sell off trophy assets and further their interest in developments requiring active management. Hermes cited London’s resilience in the face of weaker global and domestic markets for its continued investment in the capital.In its latest move, Hermes has now acquired 442 Kings Road, in London’s West End, for £1.1 million, which comprises a retail/restaurant unit currently let to French vintners Nicolas.

It has also acquired a Tesco Metro store in Lewisham, south east London, which is let for 15 years, uninterrupted, for £900,000. The combined net initial yield of these properties stands at 6.0%. London Director, David King, said “These acquisitions mark the end of the investment period and in 12 months, with almost £20 million purchased, we have hit all our targets. We will launch our second syndicate early next year.”

Consulco opened a London office in January 2011, and existing deals for Hermes Properties Ltd have included properties in Poland Street (£2.4 million), Cannon Street (£2.31 million), Wardour Street, Great Queen Street, Greek Street and The Strand (£7.9 million together). These commercial properties in London are also expected to land a net yield of 6%.

A question that has been considered for decades is whether it is better to invest in property or stocks. Both markets are increasing in value and have been for many years so where is the wisest place to invest your money? This article will consider the pros and cons of investment property vs. stocks.

The Pros of Real Estate

• Real estate investment is accessible to everyone. Everyone needs a home in which to live and everyone is able to gain access to a loan if they approach it sensibly. Whilst most people are not exposed to stocks and bonds as a child everyone is exposed to a plethora of different properties and buildings. This enables people to build a knowledge base over the years and gain an automatic insight into investing in property.

• It is a tangible investment. Property is something you can physically see and touch whereas stocks and bonds are not.

• It is difficult to defraud someone who is buying real estate. The buyer can turn up and see the property and can run property valuation software from home so they know the true value of the property when they buy it.

• Using debt, you can make a much larger investment than you have the means for. This enables a larger initial investment than could be managed in other forms of investment.

The Cons of Real Estate

• When compared to stocks real estate can take a lot of time to manage. If a water main bursts at midnight then it will be you who gets a phone call and you will have to deal with it straight away.

• If the property is unoccupied for any reason then it will effectively be costing you money each month. Mortgage repayments will be due regardless of whether you were able to find a tenant.

The Pros of the Stock Market

• The greatest wealth creator in the history of finance is that of stock trade. Despite occasional crashes which could see large losses, the investment and reinvestment in stocks is the single greatest creator of wealth in the world.

• Ownership of stocks and shares does not require any input from you. Once you own the stocks you are able to sit back and watch the company improve and grow along with your investment.

• You will receive cash dividends every year. Unlike the housing market which could cost you each month, dividends will provide you with cash every year.

• Stocks enable diversity of investment. Unlike a house which requires huge input all at once, stocks can be bought in small amounts when you are able to and they will still have the same effect.

• Stocks can be sold easily and rapidly. If you need cash or want to get out of your share position then it is easy to sell your stocks rapidly. Those who make the most money from stocks often buy and resell stocks within a single day.

Cons of the Stock Market

• Despite their steady growth over the years, stocks are able to crash without warning. Global financial changes can cause stocks and shares to drop in value dramatically within just a few minutes. This means that your solid investment could crash at any time leaving you without your funds.

• The price of stocks can fluctuate massively in short periods of time even when there is no financial crash. The nature of stocks means that within a day there can be huge fluctuations in the value of stocks, making it a very uncertain place in which to invest.