Caribbean beaches can look at $25 million worth of investment and 1.4 million cubic metres of sand

The Dominican Republic is spending $25 million improving its beaches to make them more attractive to visitors. It is part of a wider plan to boost tourism as officials are worried that cuts in flights from the US and other problems such as the recent power cuts could seriously hit the number of people interested in investing in the country, the second largest island in the Caribbean. Full article

Home Resales Decline to 10-Year Low in the US

Latest Bloomberg reports suggest that sales of previously owned U.S. homes fell to the lowest levels this June. This is the worst hit in the last ten years and due to plummeting real estate prices and buyers confidence the housing recession is now in its third year and there are no signals of things looking up. Full article

£18,000 drop in property prices in the UK

Daily Mail, in its latest article about property prices in the UK discusses a new report from property website Rightmove. The report said that in the past two months the average asking price across England and Wales has dropped by £7,281 to £235,219. Just two per cent below the average in July last year, this is the first time Rightmove has recorded an annual drop since it began in 2002. Full article

Aparthotels: the safer property investment option

The latest trend in property investment: an Apartment + a Hotel = Aparthotel

Aparthotels are typically a three-star or higher hotel property looked after by a management company that takes care of all the hassles of ownership, including maintenance and finding hotel users. They typically offer the investor the opportunity to own a plush hotel room that can provide a monthly income.

While the natural choice for a lot of the property investors in the UK would be to invest in London, with the 2012 Olympics on its way, many investors are also looking abroad at holiday hot spots where hotels rooms are in demand all year long.

This trend is still setting in but a few early adopters such as GuestInvest and HomesGoFast are already profiting from it. In their blog, HomesGoFast mention the surprising speed with which these properties sell out highlighting the MGM Grand in Las Vegas, a 576-unit condo hotel, which was expected to sell out in two years but instead sold out in two months! The Platinum, a 255-unit property in Las Vegas, also sold out in just a matter of a couple months. The reason, they feel is that the armchair investor feels secure in this type of development and one that appears to look after itself.

As for us, we think only time will tell. In the current property climate one has to tread with care. The lack of flexibility, the concept of selling a hotel room to another buyer, renovations, and most importantly chances that the hotel might not do very well might make Aparthotels a less exciting proposition than it seems at the moment.

UK Property news round up for the week:

Gloom and doom in June

UK house prices fell by 2% in June, according to the UK's biggest mortgage lender, the Halifax. However the latest survey conducted by Nationwide shows that house prices fell by 0.9% on average in June. Contradictory, as always.The average price of a home is now £180,344, nearly 10 per cent lower than when house prices peaked in August last year. Homeowners who bought a home last year with little or no deposit are now facing negative equity. However, average UK house price remains 2 per cent higher than in June two years ago and more than 10 per cent higher than in June 2005, according to Halifax. A pretty clear indication that the British housing sector still has some way to go before it reaches an all time low.

(Graph Source: BBC News, 1 July 2008)

Several job cuts in house building sector

The latest of the UK House Builders to announce job cuts is Barratt Developments. After a tough couple of months and an even more challenging period ahead, they’re looking at cutting 1,200 jobs by closing two divisions and merging other parts of their business. Earlier in the week, well-known home builder Persimmon announced that the company will reduce its full-time headcount by 1,100 and its flexible workers by 900, cutting its total staff from 5,000 to 3,000. They admitted that profit margins had fallen from 20.8 per cent in the first half of last year to just 14 per cent in 2008. The sector's jobless toll is touching 4,500 so far this year.

Banks set 5% mortgage

Borrowing costs remain unchanged for the third month in a row by Bank of England. Following their latest meeting, Bank of England has decided to keep the interest static at 5%. . Homeowners and businesses hoping for an interest rate cut as economic crunch bites are unlikely to get any joy from the policymakers.

More Falls?

Another recent forecast by Halifax predicts that UK house prices are set to fall by 9% this year - having revised their views from February that the market would be "flat" in 2008. Things seem to be going from bad to worse in the UK property market but some people are still optimistic. A list of the ten most recession-proof UK counties was published by the Times earlier yesterday. The top three resilient counties which didn’t get affected by the economic hit were Oxfordshire, Hertfordshire and Isle of Wight. City of Westminster house prices were up by a whopping 26.4%. The list was based on the asking prices of homes on Rightmove.co.uk, which displays details of around 90 per cent of all property sales across England and Wales. Looks like the housing market might not be so bleak after all!

Dubai with a twist

With this new swirling building in the making in Dubai, UK property investors can add something unique to their property portfolio. The spinning skyscraper, the Dynamic Tower, is being designed by architect David Fisher. The 420-metre tower, offering a hotel, offices and flats, is permanently on rotation.


Fisher told The Times: “The idea came when I was in Miami. A friend told me that one apartment, which overlooked the ocean, was worth $3million but another, which, didn't was worth $1.8million. I started thinking about this dynamic tower.” Full article


(Image source: The Times, 27th June 2008)