Norway real estate market is seeing a revival due to the lower interest rates in the economy. There is a price rise for all types of Norway real estate listings and across all dwellings much like the increase in the prices for the international real estate. Norway is one of the countries of the European Union that has really managed to come out the recession relatively unscathed. This is due to the fact that the country had a sound management of its fiscal resources including those that came from the vast reserves of its oil and natural gas industry.
Not many countries have had the right kind of fiscal management which led to the debt ballooning in various countries and a steep fall in the prices for international real estate for sale especially in the US and the UK. The Norway real estate market has surged ahead by 9% in the second quarter of 2010 according to the latest statistics that have been revealed by the country. The housing market and the Norway real estate forsake have actually performed well through 2009. Corresponding to the fall in the prices in international real estate for sale, the prices for Norway real estate listings also fell during mid 2007 – 2008.
The Norway real estate sale prices for row houses has increased at the rate of 10%, detached houses at 9. 2% and the multi dwelling houses rose by 8%. All rates are YOY basis. The Norway real estate market differs from one region to another. While some regions have experienced a higher growth rate such as Stavanger (16. 8%), Bergen (14. 6%), Trondheim (11. 6%), others such as Western Norway real estate (3. 6%) haven’t experienced such high growth rates. The interest rates for mortgage are quite low (at near 2004 – 2005) rates and this has helped the Norway real estate to grow better than other countries that are present in the European Union.
The GDP growth hasn’t been appreciative, but mirroring the economic recovery, the GDP is supposed to grow n the next year. This augurs well for the real estate in Norway. The wages are set to increase by 3. 4% by 2011 and the unemployment levels are at the lowest in Europe at 3. 7%. The combination of all these factors will cause cheer for the Norway real estate. The Norway rentals have a really low yield and are only a max of 5% in the whole country. Monthly rentals for Oslo are around 750 Euros and will go up to 2400 Euros depending on the size of dwelling that is up for rent. The Norway rentals tax is also quite high and non residents are taxed on the rent from income at a flat 28%. Other tax rates including capital gains tax and inheritance tax are also quite high.
Norfolk Islands real estate is quite vibrant as the government wants to promote the island. The prices are quite high in comparison to the international real estate. Norfolk Islands is a territory of Australia and the present system of real estate division of land was done when the Pitcairn islanders settled on the island in 1856. At that time the real estate was carved in the following way. A 20 hectare real estate in Norfolk Islands plot was granted to the head f each family. While the 10 hectare real estate in Norfolk Islands plot was given to males that had married and settled in the territory. The problem now with the real estate in Norfolk Islands is whether the ownership is family based or individually based as it is overlapping. The Norfolk Islands real estate for sale is quite lucrative. For luxury cottages that have more than 3 bedrooms with attached baths, sauna, double hardwoods, double garage and are complete with all furnishings and appliances along with 5-10 acres of wooded bush land and access to sea would cost approximately AUD 1. 5 million. Quality Norfolk Islands real estate is also available here. Most residents and foreigners can own properties here without being resident in territory. Norfolk Islands real estate for sale is freehold. Investors can also rent out the Norfolk Islands real estate and homes and can enjoy a truly tax free income. The government advises investors to check when they are purchasing the Norfolk Islands real estate. The government wants foreigners t invests in the territory and this is also a great way of obtaining a general entry permit (GEP) that allows them to stay and work here as well. Those that have stayed on the island for duration greater than 5 years become eligible for full residency and this is the same as gaining the citizenship of the island. Tourists are drawn to the white beaches that Norfolk Islands has. There are plenty of modern hotels, cottages and resorts and other real estate in Norfolk Islands that is available for foreigners as well. Even though Norfolk Islands is self governing, the laws of Australia also apply and hence the rights of the property owners are protected on the island. Currently there are no restrictions that have been placed for those that are non residents and wish to own the Norfolk Islands real estate for sale. Lawyers are required for completing all the real estate in Norfolk Islands deals. It takes about 6 8 weeks for the transfer of the real estate in Norfolk Islands for sale to take place after the due diligence has been completed. Connectivity is quite high and the Norfolk International airports have flights that originate to and fro from Australia and New Zealand.
New Zealand real estate is on the upswing currently in line with the rest of the international real estate market. However, the transaction cost here is comparatively low than the rest of the international market. While the prices for the real estate in New Zealand dipped in the first 2 months of 2010, it recovered quickly in the later months. Statistics for the New Zealand real estate for sale shows that prices for the houses were up by about 4. 8% on a YOY in April 2010. Auckland has seen the highest jump and the prices in April 2010 were up to near about 7. 4%. Even though, the news for the New Zealand real estate listings is extremely positive, there is bound to be a slowdown and a downward pressure on the prices since the interest rates have been hiked. In June this year, the Reserve Bank of New Zealand has hiked the interest rates by 25 basis points or 0. 25%. This has made the home loans more costly and the housing loans approvals have gone down. The current interest rate after the hike stands at 2. 75%. The government ahs further taken a decision to remove the depreciation deductions that the investor could claim for the properties that they invested in. this decision was made during may this year and will be implemented starting April 2011. Non residents are allowed to purchase the New Zealand estate for sale. However buying the New Zealand real estate doesn’t make them eligible to live permanently in New Zealand. The investment in New Zealand real estate is extremely attractive and the prices are still about US$3600 approximately per square meter. This translates as a yield of around 7% for the investor especially for the real estate in New Zealand located in Auckland and other cities. New Zealand is considered to be an extremely stable country, with strong economic fundamentals and very high rate of immigration and most investors are happy to get these conditions when they invest long term in the real estate. In Auckland currently, a 50 square foot apartment will cost the investor US$ 250,400. While the prices for the real estate in New Zealand for other cities such as Wellington and Christchurch are also quite high. While the New Zealand rentals for Christchurch are not as attractive as Auckland and stand at around 4% only. When buying real estate in New Zealand, the transaction cots are relatively low as compared to the rest of the international real estate transaction costs. The seller pays for all the agents’ commission. The transaction costs are quite low and are in the range of 4. 2% – 5. 8%.
Much like the rest of Europe Netherlands real estate is looking up and the sale prices for the properties are rising. Coupled with the fact that the global economy and the international real estate market is recovering, this is great news for the Dutch market in almost 3 years. Since the data has been released in April 2010 for the increasing prices of Netherlands real estate listings, the industry is on a roll. According to the data that has been released by the Dutch Land registry Office and Statistics Netherlands, the average cost of the owner occupied apartments and flats are now priced at 241,289 Euros and this is higher compared to the same quarter in 2009. The prices for Netherlands real estate for sale in owner occupied apartments are rising much faster than those that are occupied by the single family homes. The average price of the apartments for all Netherlands real estate listings across the country is valued at 189,540 Euros in 2010 quarter and this has seen an increase of almost 5%. Even the number of housing transactions has increased significantly in the month of April 2010 as compared to the same time the previous year. During the month of April the Netherlands real estate listing were many and the Netherlands real estate for sale were about 11,100 units. The sales rose by almost 10% for single family homes as well as apartment units. As compared to international real estate for sale, Netherlands is one of the countries that have performed the best. Within the European Union, Netherlands real estate for sale has seen the highest sales figure. In the coming 2011, the GDP is expected to grow by 1. 3% and this will also reflect positively on the Netherlands’s real estate.
Since the Dutch employment rate is really low currently and stands at 4. 1% currently, one of the lowest in the European Union. This should see the Netherlands real estate for sale moving really fast. The average Dutch real estate for sale prices for apartments in Amsterdam, the capital of the country is approximately 4437 per square meter. The Dutch rentals across the country are quite moderate and stand at around 6%. In “The Hague” and Amsterdam, the Netherlands rentals are lower at around 5. 5%. This is moderate as compared to the international rentals and the property rentals in the rest of the European Union. The tax on the rental income is a flat tax at almost 30%. Even capital gains tax is 30% if the sale of real property was used for generating rental income earlier. The transaction cots are quite low in the country and stand at around 10% – 14% for the dwellings that already exist. The commissions for the real estate agents are from 2%-4%.