2008 is over. Roll on 2009!

Posted by: chrissy on Dec 30, 2008 | (0) Comments

Under: Canadian Real Estate, Community, Marketing, Realestock, US, buyer's market, property, real estate


2009 is nearly upon us – and some might say that this has not come a moment too soon. This year has been anything but dull, but at times we could have done with a little less drama. To ease you into 2009 (which many analysts fear may be as tumultuous as last year) here are some reminders of things that happened last year… which may make you glad that we are leaving it.

Top News Story of the Year: Financial Crisis

The only way that you might have missed out on this is if you were living in a cave, under a rock. Definitely the defining story of 2008: from bailouts to stimulus packages, from crashing mortgage rates to foreclosures, every day brought new and more terrifying stories. This was not a good year to have real estate and business news Google alerts sent directly to your email account – unless you enjoy receiving 15-20 pieces of bad news a day.

Top Real Estate Story of the Year: House prices tumbling, back to basics mortgages and foreclosures ahoy

Yep – it’s not good news. Most markets saw some reductions in sales, and prices dropping – whereas other markets saw massive drops and the inability to sell at all. This, and the shrinking economy lead to an increase in foreclosed properties – which has meant many people have lost their homes this year. The consequence of this is that many banks and other lending institutions have become more prudent and restricted their lending policies. You can still get a mortgage, but you’ll need to have a good deposit, a steady income, and a good to stellar credit score.

Top Slightly-Less-Depressing Real Estate Story of the Year: First Time Buyer Alert

2008 was a good year for first time buyers to get in on the action. Providing you could get a mortgage, this was a great year to invest in real estate. This can only get better for first time buyers as 2009 continues, as prices will be dropping further. So when your 35-year old son says he still needs to live in your basement for free because “house prices are too expensive” feel free to chuck him and his ever growing laundry pile out in January.

Top ‘Most innovative ways to sell your house’ Stories of the year

My top three?

1) Can’t sell your house? Why not raffle it off? Sounds insane? That’s because it is. But desperate times call for desperate measures. In October, the Globe and Mail talked about homeowners who have narrowly avoided foreclosure, and made money. However, it’s not easy: some states/provinces will not legally let you raffle your house.

2) Buy the house, get the car free! In November, the National Post reported that a seller who couldn’t sell their East York home at a lowered price was offering potential buyers a free vehicle – worth $15,000. As of posting time – no news on whether it sold.

3) Find a buyer? Get $100,000. At the beginning of December, David Bangert and Linda Harris of Kailua, Hawaii REALLY wanted to sell two million dollar pieces of property. So they offered a reward for $100,000. If you could find someone who wanted to buy their houses, and more importantly, were funded to buy them, you could get up to $100,000 as a reward. Again – no news as to whether they sold or not.

Top ‘Good News Story for us: Most homebuyers are now looking on the Internet for their new home

According to the 2007 National Association of Realtors Profile of Home Buyers and Sellers, 84 percent of buyers use the Internet to search for a new home, and this is a trend that has continued through 2008, and will continue into 2009. The Chicago Tribune, in its Eight Real Estate Trends for 2009 article, have predicted that as more buyers go online, more realtors will want to post their information online – which is great for sites like Realestock, who offer easy ways to upload properties on to our site – for free – to millions of eyes!

So happy new year, and let’s hope 2009 is a good one! We’ll be blogging in the New Year, and also releasing our new monthly newsletter – the Realestock Report. We wish you the very best for a prosperous 2009!

The views expressed on the blog portion of this site represent only the opinions of the author and may not necessarily be the opinions of Realestock.com

Buy Smart Now - Sell Smart Later

Posted by: chrissy on Dec 17, 2008 | (0) Comments

Under: Community, Forbes, Realestock, US, buyer's market, property, real estate


This morning on Forbes.com, I read an article about the cities in America that are most likely to weather this real estate market, and be a great long term investment. Forbes listed the top ten as:

10. Atlanta, Georgia

9. Portland Oregon

8: Cincinnati, Ohio

7. Philadelphia, Pennsylvania

6. St. Louis, Missouri

5. New York, New York

4. Minneapolis, Minnesota

3. San Antonio, Texas

2. Washington, D.C.

1. Seattle, Washington

Living in the Pacific Northwest (Well, south west to those of us in Victoria, BC, Canada), Seattle was not a surprise at number one. However, I found some of the cities on the list to be quite surprising, such as New York, where housing has been so horrifically over priced for some time – Or a Midwest city like Minneapolis, where one would assume businesses are feeling the crunch, which would be reflected in the property prices.

However, looking at this list in detail, it is possible to see that these cities all share things in common that make them more likely to ride the current crisis, and therefore great places to buy real estate. I am not suggesting that you pack up your belongings and hot-foot it to Cincinnati. However, what we should be doing is looking at where we want to buy, and seeing if the area has similar characteristics which may make it a good deal. Smart buying is the new way to buy in this market.

Everyone loves….

Do you live somewhere where everyone wants to live? I live in Victoria, British Columbia, and while it was one of the most expensive places to live in Canada at the height of the boom, I am not quite throwing myself off my third floor condo just yet. Why? Because Victoria is well known for being the place where people want to retire to in Canada. The city is beautiful, the weather is usually excellent, (note: we are currently having freak winter temperatures of -4°c. This is not normal….bbrrrr…) and it’s an all round great place to live. Whatever happens, these things will not change, and people will still want to move here. So if you live in an area that is growing in terms of incoming population, you might just make it through the next few years.

Taking care of Business?

Minneapolis may be in the Midwest, but unlike other failing Midwestern cities, Minneapolis has less of a manufacturing base, and has diversified in the way that has kept it going through current hard times. A number of corporations are based in and around Minneapolis, such as Target, General Mills and PepsiAmericas inc.

Look at the companies in your town. While nowadays it’s very hard to guess which companies are going to survive, and which won’t, if there are a number of stable corporations, you should be safe. Also, if like Minneapolis, your town has diversified, and doesn’t depend on just one industry (such as forestry or automobiles); this is also a good indication of a ‘safe’ place to buy.

Low unemployment is also an important factor. If the number of ‘positions vacant’ signs are larger than the amount of ‘for sale’ signs, you’re on to a winner.

No.place else to go!

Sprawling cities such as Sacramento allowed developers to build build build. However, New York and San Francisco are both places where there isn’t really any space to build extensively - which means that property still sells because people have to live somewhere, and less housing = more people who want to buy your condo.

Conservative building practices

While everyone may have been frustrated about strict building codes and practices in the past…you should now be running over to those city officials and kissing them all over. Why? Because cities with strict building codes will be more likely to recover from this recession. For the same reason as the space point above, people have to live somewhere, and if there are less places to buy, those that are for sale, sell.

A little note about foreclosures…

While foreclosures are more of a symptom, rather than a cause, the disease metaphor works because if your city is riddled with unemployment, a bad economy, and a lack of people moving to the area, you’ll see more foreclosures. So, unless you are looking to buy a foreclosed property (and there are plenty of good reasons for that), you might want to avoid areas with a high level of foreclosures.

In the end, we’re all trying to look for hope in this market. However, buying in areas where these things occur is always going to be a safer and more sensible way to buy real estate in the current market. Most of these points are common sense – but that may be the way in which we come out of this market – slow and steady wins the race. So buy smartly – which will help you to sell smartly in the future.

The views expressed on the blog portion of this site represent only the opinions of the author and may not necessarily be the opinions of Realestock.com

Looking back…what did we learn at the 2008 ULI Fall Meeting and Urban Land Expo?

Posted by: chrissy on Dec 12, 2008 | (0) Comments

Under: Community, Downtown, Florida, Green Building, Marketing, Realestock, Suburbia, Urban Land Institute, advertising, buyer's market, property, real estate


We attended the Urban Land Institute (ULI) conference at the end of October. The event was very interesting and successful, but it’s only now that we’ve had the chance to sit down and really think about what we learned at the conference – and what will stay with us, way into 2009…

1) Things are not as bad as they seem: everyone at that conference intends to be in business for next year’s conference, and the year after that, and the year after that. People are working hard, deals are being made, and things are getting better, but it’s hard to fight against the perception that is being propagated by the media. However, if you speak to realtors, developers, sellers and mortgage lenders, you’ll see that there is business to be made, and deals to be done. It’s just a little harder right now…

2) People are looking for innovative ways to sell developments and real estate: Rent-to-buy, auctions, pricing drops, online special offers, social networking…people are trying a variety of different techniques to keep selling real estate. Diversify or die – the buyers’ market means that realtors and developers MUST get more creative. A couple of ‘open house’ signs on the street does not a advertising campaign make, so if you don’t understand blogging, have never posted on a web board, or you have no idea what a ‘tweet’ is – you’ll be left behind in the new world of marketing. (p.s. Cheeky plug: check us out at http://twitter.com/Realestock.)

3) Print advertising is dead: Our booth was extremely busy. Why? Because we are offering something quite different from other advertising companies. Our advertising is all online, so we use new and innovative ways of marketing, and we don’t waste your budget like traditional advertising can. For more information on our full package for your marketing success,

4) People are waiting for the big turnaround: 2009? 2010? When will it be? Many realtors, developers and sellers are conserving more and spending less, delaying sales, or even renting out properties until people start buying again. The reason being that these businesses need to survive, and if you can’t afford filet mignon, you’ll dine on Kraft Dinner until you can.

5) Environmental and Green Building – It’s on the up! Once a niche market, this is now becoming the norm, and people are expecting to have features such as low flow toilets, good insulation and other innovations which save the environment, and save money. As oil, gas, and other materials become more and more expensive, it is not just the traditional environmentalist demographic who are interested in ‘going green’. Granted, for many people, it has nothing to do with the environment, and everything to do with saving money, but whatever the reason, environmental building is becoming very popular, and green houses are still selling, even in this market.

6) The coordination of houses and transportation: Suburbia experienced growth in the mid to late 20th century because people were interested in moving out of the cities to get bigger houses, more space, and a better life for their families. Now that people’s priorities have changed, and most people are looking for energy efficient houses, easy accessibility to schools, shops, businesses etc, the suburban landscape is in decline. There is even a trend for families with children – the original suburban demographic – to move back to the city for reasons such as better childcare options, better education, and more choice. This doesn’t mean that the end of suburbia, but it does mean that things will have to change. Better transportation links such as buses and other forms of transit, in addition to encouraging more family-friendly opportunities and a better sense of community will enable suburban housing to stay competitive in terms of reaching young families and other buyers.

If you were at ULI, let us know what you learned, and whether you think these themes will stay constant through 2009.

Realestock and Microsoft Financing? It couldn’t be simpler!

Posted by: chrissy on Dec 05, 2008 | (0) Comments

Under: Community, Marketing, Sales, advertising, buyer's market


We are pleased to announced a new and beneficial partnership between Realestock.com and Microsoft® Financing! Tim Vasko, the CEO of Realestock has reported that: “Realestock.com is experiencing 30% higher search and request volume than it was this time last year” Which verifies the fact that buyers are turning to online searching to find their new home, and so if you don’t have an online presence, then you don’t exist.

However, the cost of starting up online can be too much for many developers to afford. This is where our financing options come in.

Realestock has recently teamed up with Microsoft® Financing to offer clients an easier way of paying for our services, such as allowing you to spread payments over a designated time period, rather than paying for all of your software and service needs up front.

Instead of paying us directly, you are approved quickly and efficiently* by Microsoft®, further streamlining the purchasing process.

Because of this partnership, we are now able to offer a limited time deal (until the 31st December), which allows you to pay nothing for any advertising or marketing until June 2008. We do this because we know that you’ll enjoy the benefits that Realestock has to offer you.

To find out more, please contact us, and one of our business development experts will contact you. Remember, this offer ends on the 31st of December, so click NOW to start getting the ultimate return on investment!

* Available OAC , offer ends 2008. Offer valid with one year contract purchase of 1to1Real ™ and iQ3 Guaranteed Leads™ Program

Ten Reasons NOT to Fear the Current Real Estate Market

Posted by: chrissy on Dec 01, 2008 | (0) Comments

Under: Canadian Real Estate, Community, Green Building, International Real Estate, Realestock, US, buyer's market, property, real estate


Is the doom and gloom in the media getting you down? Have you stopped reading newspapers or surfing the net for fear that your house is now worth little more than pocket change? Never fear, here at Realestock we have some reasons why you shouldn’t get upset - whether you’re a home seller, home buyer, an agent, or a developer.

Mortgage companies are still offering competitive loans, and rates are going down. The media continually reports that mortgages are unavailable. We don’t know where they are looking, because we know first hand that you still can get funding, and even better, rates are dropping. If you are a first time buyer, this is an excellent opportunity to jump in. Why? Low interest rates mean your mortgage may turn out to be less than the rent you are paying now. Think of it as an investment. I’d rather be paying my mortgage than someone else’s.

You can get a really good deal, depending on where you are buying. Areas that may have been overpriced before the crisis may have come down to a more reasonable price – and this is where you can jump in. Always wanted that waterfront condo in Vancouver, but never been able to afford it? Now the price has dropped by 25%, you might be able to.

A decline in new home sales and a lack of building will mean that your ‘old’ property will be in demand. Fewer developments are in the works, and many condo developments are unable to complete construction. This means that there will be a couple of years when there will be a real lack of brand new homes for buyers who want to move in, without having to update their property. This is where you can jump in. The current crisis gives you enough time to renovate your 1980s condo just in time to catch those buyers who want to move in to a new place. Cha-ching!

There is a surge of demand for rental properties. If people don’t buy – they rent. Got a new development that you can’t sell? Why not try implementing a rent to buy model? Bought a house to flip and sell? Why not flip and rent? When the market comes back around, you’ll be able to sell to your renters. I love it when a plan comes together.

Overseas investment is still happening. Where you and I see “Argh! My house is worth less than it was last year”. Overseas buyers might think “What a great deal”. Obviously, not all properties and developments will appeal to overseas investors, but it you are selling in a popular tourist area, or own a waterfront property, you might find that you have something original to offer someone who’s looking for a nice vacation home.

Niche properties are still selling. Are you selling an environmentally aware development? Or something by the water? Maybe your townhouse community offers facilities that make it different and innovative, such as a fitness centre, or access to a golf course. If you are offering something that differs from the norm, you might find your property sells before similarly priced ‘little boxes’.

If you don’t have to sell, what’s the problem? If what goes up must come down, then hopefully what comes down, must go up. If you don’t intend to move from your home, and you can still pay your mortgage, then just hang tight. Remember, eventually you’ll make the money back. Maybe it won’t be at the same rate that you made it last time, but slow and steady wins the race. And maybe you won’t have to wait that long, because….

Many economists and world leaders are predicting that the major crisis period will be over in 2010. If this is the case, that’s not that far away. Think about how long ago late 2006 was? Not that long ago, eh? If you can afford to ride out the crisis, you can still come out with a great investment or properties to sell.

Your home is not just collateral. It is a living breathing thing. OK, maybe I’m going too far, but something that is really important to remember is that a house is not just an investment. – You spend your life there. Think about what you love about your home and what makes it special. Maybe it was your son taking his first steps in the den, or your parents’ 40th wedding anniversary dinner that took place in the dining room. Don’t you feel better already?

We are learning from our previous mistakes. As Oscar Wilde once said: Experience is the name we all give to our mistakes”. The whole world can now see where mistakes were made, and how we can avoid this happening again. Whether we blame over-speculating, or subprime mortgages, or everyone living on the never-never, it doesn’t matter. But we can learn from what has happened, and prevent a worldwide disaster from occurring again.

So you can finally pull yourself out from behind the sofa. Yes, things could be better, but they could be much worse, particularly if we let ourselves get caught up in this situation again. Real Estate is still a great investment, and while people are apprehensive now, the market will eventually recover.

Do you think that it is only a matter of time before the market corrects itself? Or do you think that we are in for many more years? Let us know what you think below, on our twitter page or in our community forums

The views expressed on the blog portion of this site represent only the opinions of the author and may not necessarily be the opinions of Realestock.com

Taking ’stock: 17th October, 2008

Posted by: chrissy on Oct 17, 2008 | (0) Comments

Under: British Columbia, Canadian Real Estate, China, Community, Debt Recovery, Donald Trump, Florida, Forbes, Golf, Green Building, International Real Estate, Press, Realestock, US, US Elections, US Presidential Election, buyer's market, downsizing, luxury market, million dollar homes, property, real estate


It’s another monumental week in the real estate world. Once again, Taking ’stock supplies you with some interesting tidbits to keep you up to date on various world developments (no pun intended). If you read anything in the news that you think should be in next week’s blog, feel free to comment on the posting. Alternatively, if you want to comment on any of the stories listed here, let us know what you think!

Luxury Real Estate News/Views

Neighbor says Golf is a Sport Too Close (New York Times)

A lot of people want to be near to their favourite golf course…but how near is too near? A resident whose house is next to the 6th hole (a par 3) at the Winged Foot Golf Club is sick of golf balls hitting his property, breaking his windows, scaring his children, and making his dog sick. The hole is currently closed due to a restraining order brought against the club. You know it has to be serious when Donald Trump is offering to mediate.

It’s not Easy Being Green - If You are Buying a Luxury Home…

This week’s Realestock blog entry looks at how many luxury buyers are not concerned about their homes being environmentally sound. However, some developments are managing to combine good living with good style.

America’s Luxury Homes, Downsized (Forbes)

On a similar theme, Forbes.com has written this interesting article about how many popular luxury properties are smaller than traditional ‘luxury’ housing. This is partially due to the lack of space, growth of environmentalism, worries about reselling the property in this less than buoyant market, and, more importantly, because it isn’t 1987, and big doesn’t necessarily mean classy. After all, is it better to have Foie Gras, or a Big Mac?

Worldwide Property News/Views

China’s Homeowners Feeling Little Pain (Newsweek)

Here in North America, we are all on tenterhooks, fearful to hear what will happen to the property market next. However, in China, people are not feeling the pinch as we are. According to Newsweek, the cost of an average home has increased fourfold in the past eight years, and China’s 80-million strong middle class are clambering to get on to the property ladder. Whether the market will eventually deteriorate like ours is still uncertain, but for the moment, things are looking sunny for the Chinese market.

Have I Got the Candidate For You! How the Real-Estate Market Could Turn Florida for Obama (Slate.com)

We are all now acutely aware how politics can affect house prices. However, in Florida, the real estate market could affect the choice of candidate. Voters are looking at which candidate will save them from getting into negative equity. This choice could be crucial as to who becomes the next president: because as Al Gore knows, Florida can change an election.

Rise in Property Re-structuring, Recovery and Debt Business Expected (PropertyWire.com)

According to PropertyWire.com, many international real estate groups are moving into the restructuring and recovery business - due to the large amount of real estate developments and projects that are falling through due to a lack of funding, in addition to the large amount of foreclosures and other loan difficulties that are occurring.

 

Taking ’stock: 14th October, 2008

Posted by: chrissy on Oct 14, 2008 | (0) Comments

Under: Abu Dhabi, China, Downtown, Realestock, Sales, UAE, US, buyer's market, luxury market, real estate


Once again, it’s been another week of changes, trials and tribulations. Here’s a round up of some interesting luxury, North American and World stories that were in the news this and last week. If you read anything in the news that you think should be in next week’s blog, feel free to comment on the posting. And I hope our readers in Canada had a lovely Thanksgiving!

Luxury Real Estate News

Athens extends its Luxury Scope (International Herald Tribune) In the last few years, the luxury products market in Greece has increased a great deal, which has inspired a range of luxury building opportunities, including a high retail mall

Concierge Auctions Pleased With Results of Luxury Real Estate Auction (PR-Canada.com) Our partner, Concierge Auctions, have completed a successful Auction in Florida. With the state of the current market, auction houses are finding more properties available for sale at both ends of the market.

Gulf’s, Indian real estate markets to be among best: Survey (India Times) Looks like the luxury market in India, China and the Middle East is still growing, and will outperform all other areas of the world. So that second home in Dubai could be an excellent investment….

General Real Estate News

Buying a condo, one piece at a time (The Real Deal) One innovative way of allowing people without a down payment to get a home is a rent-to-buy scheme, which is currently being tried in Brooklyn, New York. Tenants pay an expensive monthly rent, but do not need to put any money down, so it is a way of saving for your new home, while living in it.

Escape…to the City? This week’s Realestock Blog Post: Many people are choosing to leave their lives in Suburbia and move back to the city…with their kids and pets in tow. Is this a good move? It is worth giving up land and space to be closer to your workplace and favorite coffee shop?

Former Muppet house sells for $28M (The Real Deal) When I first saw this headline, I assumed that it was about Kermit and Miss Piggy’s old place. Unfortunately not….but a nice story nonetheless

Realestock partner Concierge Auctions Pleased with Results of Luxury Real Estate Auction

Posted by: chrissy on Oct 10, 2008 | (0) Comments

Under: Concierge Auctions, Press, Realestock, buyer's market, luxury market, million dollar homes, property, real estate


Concierge Auctions Pleased With Results of Luxury Real Estate Auction

Source: Concierge Auctions www.PR-Canada.net

Monday, 06 October 2008

Today Concierge Auctions hosted a luxury real estate sale of two bay front estates on Siesta Key, Florida. The auction was located at the Sarasota Ritz-Carlton Hotel, with over 100 attendees.

“It was a very well organized, transparent event,” said Marisa Marino of Horizon Realty. “A client of mine participated, but unfortunately he was outbid. He and I look forward to participating again in the next sale.”

This was the debut of Concierge Auctions’ innovative Guaranty Program. The program benefits both buyers and sellers, as they can participate with confidence knowing the properties will sell on Auction Day regardless of the high bid.

“In the context of the current economic climate, I am thrilled that we were able to aggregate a strong crowd, including 26 qualified bidders willing to spend millions of dollars for these exceptional properties,” said Stuart Mattison, Director of Sales. “The fact that they not only attended the event but also actively participated was encouraging.”

AUCTION RESULTS (high bid plus premium)

1356 Point Crisp Road: $2,772,750

850 Mangrove Point Road: $2,200,000

“We are pleased with the results and have received outstanding feedback from the real estate community. Our format has resonated, and we believe we are on our way to bringing the auction process to the mainstream,” said Laura Brady, President.

Concierge Auctions has made the determination that it is in the best interest of the seller and registered buyers of 850 Mangrove Point Road to re-offer the property in the next Sarasota auction in December. The decision was reached after the firm was notified that at least two buyers were precluded from placing their highest bid on the property.

Sellers interested in the Sarasota December sale should contact Concierge Auctions immediately. Availability will be limited to a maximum of five properties, which will be selected within the next four weeks. As always, Concierge Auctions fully protects listing and buying brokers. For further details and registration, visit www.conciergeauctions.com or call 888-966-4759.

PR-CANADA.net

Source: Concierge Auctions

Taking ’stock: 6th October, 2008

Posted by: chrissy on Oct 06, 2008 | (0) Comments

Under: Canadian Real Estate, Green Building, Palm Beach, Realestock, Sales, buyer's market, luxury market, million dollar homes, property, real estate


Welcome to our newest Realestock feature. Every week, Taking ’stock will give you a roundup of the news and views that have arisen in the past week.

Luxury News

What’s on the market: While new record looks unlikely, Palm Beach primed for big deals (The Real Deal, NY)

Looks like luxury homes in Palm Beach are still doing well. Multi million dollar homes are still on the market, and are selling!

Young guns driving enviro-condo push (Globe and Mail)

The Green Movement is growing…but is the luxury market lagging behind? Why aren’t luxury buyers going green?

General North American Real Estate News

Economist debate whether US property market plunge will cross into Canada (Property Wire)

Housing market could soften more but not crash: CIBC (Globe and Mail)

Prudent Canada won’t experience a U.S.-style housing collapse (Vancouver Sun)

There’s been a couple of articles on this in the last week. The bad news? House prices will go down. The very good news? Most economists, including those at CIBC, BMO, and Desjardins, assure us that Canada will not suffer the same crash that the US is currently experiencing.

Loonies find a second home in U.S. real estate (National Post)

Many Canadians are taking advantage of the US property market…by buying vacation homes in the States. But is this a wise buy?

Bailout plan offers vague help to homeowners (Associated Press)

It looks like the bailout may not help those US home owners who are currently losing their houses, but may help to stop a rapid drop in house prices…

Miscellaneous and Fun News

A Million Reasons to Look Globally?

This week on our Realestock Blog: What does your million buy around the world? Will it go further in Paris, London or New York?

Sex and the City’ Writer Bushnell Probes Real Estate (Bloomberg)

Candice Bushnell, famed writer of “Sex and the City” has set her newest novel in the backdrop of Manhattan’s booming real estate market. OK, so she’s a little out of date…but it sounds like a fun read…maybe something to take your mind off the current real estate woes?

A Million Reasons to Look Globally?

Posted by: chrissy on Oct 02, 2008 | (0) Comments

Under: Community, Forbes, Realestock, US, buyer's market, luxury market, million dollar homes, property, real estate


The Barenaked Ladies may once have sung “If I had a million dollars”, but since the rise of “Who wants to be a Millionaire” or “Deal or No Deal”, the once giant amount of a million dollars has really begun to lose its meaning. If hanging out with Howie Mandel for an hour can make you a million - I’m in (however, two hours – might be too much).

Recently on Forbes.com, I read an article on what kind of real estate you can get for a million US dollars. Considering Realestock has luxury developments listed in various countries, I rushed to read it.

The differences are astonishing:

In Cape Town, you can get a five bedroom house with amazing views, a tennis court, pool and pool house, and a computerized irrigation system to water your extensive grounds

In Namibia, you can get a four bedroom, three bathroom ranch, with an additional one bedroom apartment to rent out, if you so wish

In Beijing, $1million gets you a four bedroom serviced apartment, with access to two pools and a gym

Your money does well in Toronto – You can get a three bedroom house, with beautiful bay windows and a pool

In Paris, you can get a two-bed duplex! However, you might want to stop jumping for joy – because that’s a 230 square foot duplex

What does $1 million buy in Tokyo? A 600-square foot, one bedroom apartment

A million dollars doesn’t go far in London, England, which is hardly a surprise. Forbes discovered a three bedroom flat in Maida Vale (a relatively upscale part of London), which they described as ‘drab’. Hey! In England we’d call that a ‘character’ apartment!

As for New York, prices are dropping, so your million goes a little further than it did a few months ago– you can now afford a one bedroom, 670 square foot apartment in Chelsea, with dramatic city views, a doorman, and various other amenities.

So what does this mean for luxury real estate? Possibly this indicates that the boundaries have changed, and that depending where you are buying, a million dollars doesn’t necessarily indicate luxury. If you spend $12 million, chances are you’ll still get that luxury home, - irrespective of where you shop, but in many of the most desirable cities, that sole million won’t go very far.

It also indicates the strength (or not) of the US Dollar – which is important for most sellers and developers, particularly for those selling their properties in the current ‘buyer’s market’. If you have properties in the US, you may find that British, Japanese or European customers may be interested in purchasing property in the States where their £500,000, €700,000 or ¥106,000,000 will go much further (Would you rather have a three bedroom house in the Hollywood Hills, or that ‘character’ flat in London?). Conversely, if you are selling a development in Costa Rica, Mexico, or somewhere else where US buyers will be able to stretch their dollars a little further, you may find that you’ll have more inquiries stateside.

Either way, what you need is international exposure, and knowledge of where to base your marketing and promotional dollars. Listing your property on Realestock is one way to do this. We have visitors from all over the world, so potential clients looking for the bigger bang for their buck, whether they’re in Berlin, Germany, or New Berlin, Wisconsin, will be able to view your property, and see what they can get for $500,000, $12 million, or indeed a million dollars. If you are really looking for that $1 million price tag, we have a range of condos, townhouses, and yes, even estates that are priced around the million mark. And look, you didn’t even need to phone a friend, or challenge the banker!

 

The views expressed on the blog portion of this site represent only the opinions of the author and may not necessarily be the opinions of Realestock.com