Costa Rica Real Estate: January 2006

Thursday

Bulgarian Property - Market Update 26 Jan 2006

By Timothy Wright

Figures from the National Statistical Institute indicated that the average prices of flats in the Regional capitals of Bulgaria have shown a rise of over 36% in 2005.

The prices of flats in the capital of Sofia saw the highest rise of 20.2% with prices averaging 1,222.4 leva/sqm. The highest percentage of growth was registered in Vratsa, where the prices of flats rose by an astounding 86.1% and prices are at 464.8 leva/sqm.

Other areas of growth for the same period include:

Yambol up 72.1 per cent to 513.6 leva/sqm

Silistra up 70.1 per cent to 406.5 leva/sqm

Varna up 25.6% to 1,198.1 leva/sqm

Bourgas up 46.2% to 1,126.5 leva/sqm

* * *

Sofia Olympic Bid Gathers Momentum

In a move which signals the determination to put Bulgaria on the tourist map and commit to major infrastructure improvements, the government has confirmed its support for the Bulgarian capital to host the 2014 Winter Olympics.

"We should be aware that the road ahead is long and difficult. Achieving the aim will be good not just for the development of the Olympic ideal, but for the development of winter sports and winter tourism in Bulgaria as a top priority of the economy as well," Prime Minister Sergei Stanishev said.

The first stage in the process concludes in June 2006 when the number of competing cities is narrowed down to four. These cities will then continue the bidding process right up until June 2007 when the winning city is named.

Major highway projects will be given priority as the State and Sofia Municipality, along with the Bulgarian business community work together to ensure the best possible outcome of their bid. Winter tourism will also greatly benefit as a result of a successful bid.

* * *

EU Integration

This week saw the arrival of European Commission Vice President Franco Frattini in Bulgaria. Frattini met with the Prime minister and many other government ministers along with Justice Minister Petkanov and senior judiciary members.

Items up for discussion included judicial reform, the suppression of human trafficking, corruption and the strengthening of the future EU external borders. All are seen as areas of concern and part of the EU accession process, with EU membership expected in 2007.

* * *

Brits Invest and Holiday in Bulgaria in Record Numbers

The British have been heading to Bulgaria in record numbers. The country is not only proving more and more popular as a destination for British holiday makers but many are also buying investment properties and holiday homes in the country.

James Knight, Managing Director of leading property specialist Knight International (http://www.knight-intl.com), has predicted that 1.2 million British tourists will probably choose to visit Bulgaria for a holiday in 2008.

In 2002 there were 100,000 Brits travelling to Bulgaria for a holiday. This number has risen heavily each year and was up to 400,000 for last year, 2005.

Knight cites that Brits now know a lot more about Bulgaria and the country is now seen as been within their "comfort zone" for holiday destinations, along with other countries such as Italy, France and Spain.

The cost of a holiday is also vastly less than that of a similar holiday in France or Spain due to the lower cost of living. There is also an impetus on the expansion work been carried out at airports such as Burgas and Varna to allow the passage of an increasing number of tourists. Low-cost airlines are also doing their bit with more flights than ever in and out of the country. The completion of construction work at the airports will open the market to more low-cost carriers resulting in greater competition, lower prices and improved flexibility for the traveller.

On the property front, the number of Brits buying second homes in Bulgaria has risen 77% in 2005. Alex Wright, director of British Consultancy Company HIFX comments "Although France and Spain remain the most popular destinations to buy abroad, due to their proximity and the cheap price of travel; British citizens are starting to look further a field,"

He adds "Bulgaria also is booming and the Black Sea resorts are reminiscent of Spain 20 years ago; investors are buying in their droves and there is similar activity in some of the ski resorts.

While Spain accounts for 35% Brits homes overseas and France accounting for 24%, interest in second homes in these countries is declining and the going to other countries such as Dubai and Bulgaria where buyers can get more for their money.

Tim Wright is an international property investor and regular article contributor. He is the author of "Bulgarian Property - The Overseas Buyers' Kit" available at http://www.BulgarianPropertyBuyer.co.uk

Article Source: http://EzineArticles.com/?expert=Timothy_Wright

Sunday

Real Estate Valuation

By Steven Gillman

Real estate valuation for single family homes is typically done by using comparable sales. With income properties this just doesn't work well. Imagine if you are looking at a 24-unit building. It would be difficult to find similar ones nearby that have recently sold.

It's also not ideal to use replacement costs for income property appraisal. How do you figure replacement cost if there is no land for sale nearby with proper zoning? This is used as a secondary method, though, and can tell you if maybe you should be building instead of buying.

Real Estate Valuation By Cap Rate

Income properties are bought for the income. Income, then, is what is used to determine value. The rate of return investors in a given area expect gives you the capitalization rate, or "cap rate" for the area. This is what you use to accurately appraise an income property. Below is a somewhat simplified explanation.

The process begins with the gross income of a property. You then subtract all expenses, but not loan payments. For example, if a building's gross income is $82,000 per year, and the expenses $30,000, you have a net (before debt-service) of $52,000. You then apply the capitalization rate to this figure.

Suppose the acceptable cap rate in the area is .10, for example (ask a real estate agent), meaning investors expect a return of 10% on the value of the property. You simply divide the income of $52,000 by .10. $520,000, then, is the indicated value of the building. Suppose the usual rate is .08, meaning investors in the area expect an 8% return. Then the value would be $650,000.

Easy Real Estate Valuation?

Take net income before debt-service, and divide by the "cap rate:" It's a simple formula. However, the tough part is getting accurate income figures. Did the seller show you ALL the normal expenses? Did he and exagerate the income? Suppose he stopped repairs for a year, and also showed you the "projected" rents. In that case, the income figure could be $15,000 too high. The building would be worth $187,000 less (.08 cap rate) than your appraisal shows.

One thing smart investors do when buying, is to separate out income from vending machines and laundry machines. If these provided $6,000 of the income, that income would add $75,000 to the appraised value (.08 cap rate). Instead, do the appraisal without this income included, then add back the replacement cost of the machines (probably much less than $75,000) to arrive at a valuation.

Of course, you should be careful with any real estate appraisal method. There is no perfect appraisal method, and all are only as good as the figures you plug into them. If used wisely, though, appraisal by capitalization rates is one of the most accurate methods of real estate valuation.

Steve Gillman has invested in real estate for years. To learn more, get a free real estate investing course, and see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com

Article Source: http://EzineArticles.com/?expert=Steven_Gillman

Wednesday

Montecito Real Estate Through Time

By Gary Woods

Montecito Real Estate wasn't always incredibly expensive. Why, way back in 1769 it didn't cost much at all. Father Serra was wandering around up on what is now Hot Springs Rd back then looking for a place for a church but after he died Father Lasuen decided that wasn't such a great idea after all and the place didn't get built for quite a while.

Finally about 1857 the East Valley Catholics decided they needed some place closer than the Old Mission to worship so some workmen from the San Ysidro Ranch built an adobe chapel on the Juarez property at 53 East Valley Rd.

Montecito didn't really get rolling until 1876 when some of the "first families" with such names as Jaurez, Romer, Olivas, Robles, Dominguez, Lopez and Lorenzana decided it looked pretty good to them. It was about that time that a grapevine was planted at what is now 850 Parra Grande Ln. and agriculture in the East Valley was born.

In 1887 the Southern Pacific Railroad came to town and things really started to take off. At that point William H. Crocker, and his mother-in-law Mrs. Caroline Sperry, bought Rancho Las Fuentes south of East Valley Road and thus was born The Crocker-Sperry Ranch which at the time was primarily citrus. Now it's the site of the Birnam Wood Golf Course, which still has names like Las Fuentes and Packing House Rd.

As we moved into the 20th century, big money started coming our way. Montecito became a fashionable health resort and huge luxurious private estate began springing up. People like the Rockefellers, Carnegies, Fleishmanns, Cudahys, DuPonts and Swifts discovered the place. Homes with 30 to 200 acres began sprouting up everywhere.

In 1915 the Montecito Country Club came into being. Things went great for the Country Club until Maj. Fleishmann and a few friends decided they needed something more exclusive so the Valley Club of Montecito was born. Later on in 1968 the Birnam Wood Country Club joined the Valley Club in the same area and Montecito Social life became a real whirl.

Today Montecito Real Estate is some of the most prized dirt in the world. The huge estates are still there and interestingly enough there's still some agriculture there. But there are also smaller buildings which have been made up of some of the estates that were sub-divided.

So far for 2005 215 Single Family Homes have changed hands in Montecito which is down slightly from where were in 2004. The average sales price for a home in Montecito for this year is $3.16 million and the median sales price is $2.47 million. Currently there are 92 properties on the market with a median list price of $3.75 million and an average list price of $5.57 million.

The highest priced sale for 2005 was $22 million and the least expensive sales this year was $1,075,000. Some of the properties currently available are:

• 2 Bedroom 1 Bath home for $1,025,000

• 3 Bedroom 2 Bath property for $2.1 million

• 4 Bedroom 4 Bath home for $3.95 million

• 5 Bedroom 6 Bath property for $4.45 million

• And the highest priced listing currently on the market is 6 Bedroom 11 Bath home for $24.9 million

Well that's about it for now for Montecito Real Estate.

Gary Woods is a Realtor in Santa Barbara and is the trainer for the Santa Barbara Association of Realtors. You can hear Gary on Radio 1290 AM Mondays from 9-10AM. www.montecito-real-estate.com.

Article Source: http://EzineArticles.com/?expert=Gary_Woods

Tuesday

Hope Ranch Real Estate Through Time

By Gary Woods

The first mention of Hope Ranch was in 1769 when Portola wrote about it in his diary. He was greeted by the Canalino Indians which were somewhere between where Modoc and US Highway 101 currently run. The Canalinos had been there almost 10,000 years at the time and we're probably pretty surprised to see Portola.

The first time somebody actually owned Hope Ranch was in 1843 when Lt. Narciso Fabregat of the Santa Barbara Presidio was given the deed to the ranch. The grant was known as the "La Calera" (The Line Kiln) and was used by the Mission fathers to make mortar for building the Mission. The kiln was located on what is now Las Palmas, the main entrance of Hope Ranch

The first Sale of Hope Ranch Real Estate occurred in 1861 when Thomas Hope purchased it from Mrs. Robbins (not Robinson) for the princely sum of $8,000. The area reminded Mr. Hope of his native Ireland and the first thing he did was drive a flock of some 2,000 sheep across his new possession into Santa Barbara. The sheep went forth and multiplied up to about 5,000 and provided the wool needed for soldier's uniforms during the Civil War. This made Mr. Hope a very wealthy man.

Because of his prosperity in selling wool Mr. Hope decided to build himself a very spiffy home. Peter J. Barber designed what was called "The Mansion". This home located on Nogal Dr across from the Vieja Valley School cost $10,000 and was completed in 1875. Today it's a County Landmark listed in the National Register of Historical Places

In 1873 Thomas Hope gave the county a very cool 120 foot wide strip of land to be used for a road. This strip which became Hollister Avenue went all the way up to the current Turnpike Rd.

In 1887 after her husband's death Mrs. Hope sold the western half of "Las Positas y La Calero" as Hope Ranch was called in those days to the Pacific Improvement Company. The company had some illustrious members including Mark Hopkins, Charles Crocker, Collis Huntington and Leland Stanford. The sale was for $250,000 which was pretty good for a $10,000 investment. But Hope Ranch Real Estate has usually been a good investment.

The Pacific Improvement Company didn't improve much, but there was the Potter Country Club, on the site of current La Cumbre Country Club which got laid out and lots were offered for sale. Unfortunately sales weren't too brisk. But in 1923 along came Harold Chase who purchased the easterly 825 acres of the Ranch and started Santa Barbara Estates, Inc., and we were off to the races.

Mr. Chase organized a second syndicate called La Cumbre Estates, which purchased the 1200 acres of Las Palmas and Robles Drives which united Hope Ranch under one control. The installation of roads, utilities and bridle paths soon followed along with an increase in the water supply.

The first homes in Hope Ranch were constructed for the directors of the La Cumbre Estates Corporation. Mr. Chase's home was called "Las Terrasas" and was completed in 1925. Then Peter Cooper Bryce built "Florestal" as well as the Wilson and Dickenson homes.

Falling under the category of, "I shoulda' bought then", home sites originally went from $100 to $2,500 per acre. And to purchase these sites the terms were One-quarter (25%) cash at time of purchase, with the balance to be paid within three years at 6% per annum of deferred payments". (Still not too bad an interest rate) Currently there are 686 residences and there are about 18 vacant lots still available for development.

The highest priced sale for 2005 has been $7.75 million and the least expensive sales this year was $1,875,000. Some of the properties currently available are:

- 4Bedroom 2.5 Bath home for $2,495,000

- 4 Bedroom 5 Bath property for $2.975 million

- 3 Bedroom 4 Bath home for $4.195 million

- 5 Bedroom 5.5 Bath property for $8.795 million

- And the highest priced listing currently on the market is 5 Bedroom 5 Bath home for $21.5 million

Well that's about it for now for Hope Ranch Real Estate

Gary Woods is a Real Estate Broker in Santa Barbara CA and is the trainer for the Santa Barbara Association of Realtors. He can be heard on radio 1290 AM Mondays from 9-10AM.

Article Source: http://EzineArticles.com/?expert=Gary_Woods

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