Scaffolding and skips; meals sans chips

Scaffolding, skips, ethnic cuisine and traffic wardens are all signs that an area is on the up and will see big rises in house prices, according to a new report.

Other things to look out for when choosing where to buy you next home are: packed trains, burglar alarms and neighbourhood watch schemes, it was claimed.

Savings firm ING Direct and the Future Foundation think tank looked at data from around 200 estate agents, which suggested areas with these indicators would have house price rises of 13% above the national average.

Birmingham, Newham in London, Liverpool, and Bicester in Oxfordshire were named specifically as "growth" areas.

ING Direct chief executive Lindsay Sinclair said: "Everyone wants to know if the area they live in or are planning to move to is 'on the up', in order to find out whether their home is a good investment.”

“Our report reveals a number of signposts that will help homeowners to find out whether an area is set for better things.”

"Traffic wardens and more crowded public transport are not things you would normally welcome, but it appears that such annoyances do come with a silver lining."

Pet passport deadline looms


All pet owners who would like to holiday with their pet this summer need to start the wheels rolling now, in order to make sure their pet passport comes through in time.

Vicky Watson from Halifax Pet Insurance said: “All owners who are considering taking their pets abroad on holiday should act now. The pet passport process will take six months to complete so by starting the stages now it will allow the pet to accompany the family on holiday in August.”

The passport process will commence with micro-chipping your pet to ensure that the animal's owner is easily identified. The second step is then to have your pet vaccinated against rabies and wormed.

This vaccine must then be certified as effective by a registered vet. It is after this stage that the owners must wait for a period of six months until they can take the animal out of the country.

Not only is it necessary that your pet holds the legal documentation to leave the country, but it is also crucial that the pet is insured. This insurance will cover the animal for vets fees and any unforeseen circumstances that can occur when owning a pet. The amount of cover will reflect the type of cover taken out by the policy holder.

Halifax Pet Insurance is one of the few insurers who offer a policy which covers a pet when it is taken out of the country.

France has the world's highest quality of life

A new international study has concluded that France has the world's highest quality of life...

International Living magazine has released its 26th Annual Quality of Life Index. According to IL's comprehensive analysis, France again offers the greatest quality of life of any country, while war-torn Iraq remains in last place.

Despite high taxes, bureaucracy, and a high cost of living, France is once again in pole position after taking over the top slot last year. And it's even relatively affordable in some regions too. Outside of Paris, the cost of living is significantly lower and livable homes are selling for less than $100,000. France has benefited from its best-in-the-world health care system, legendary cultural amenities and safety, IL reports.

"France has a good climate, unspoiled countryside, and great health care. And its capital, Paris, is arguably the world's most beautiful and romantic city on earth," said Laura Sheridan, Managing Editor of International Living magazine, who conducted the study. "Add to all this the world-competitive infrastructure and you can understand why we'd name France the world's best place to live."

To produce the annual index, International Living considers nine categories: Cost of Living, Culture and Leisure, Economy, Environment, Freedom, Health, Infrastructure, Safety and Risk, and Climate. International Living uses statistics from a number of official government, non-profit, and media sources for much of the number crunching. IL also includes the input from International Living's extensive roster of correspondents from around the world.

The fall and rise of the United States

The United States - which had ranked at the top of the charts for an impressive 21 consecutive years until being dethroned in last year's survey - regained its footing somewhat, climbing up to the number 5 slot from number 7 in last year's survey. The United States' improvement was fueled by a significant improvement in its Cost of Living score. The United States' fall in the rankings last year was due to a decline in its Freedom score. That score remains significantly lower than its peer countries at the top of the chart, and is one of the primary reasons it is not higher in the rankings.

Six of the top 10 positions in this year's survey were taken over by European countries. Argentina rose to number 10 in the rankings. Many of the countries that showed the greatest increase from the 2006 International Living study were from Latin America.

International Living's 2007 Quality of Life Index highlights:

Leaders:
1. France,
2. Australia,
3. Netherlands,
4. New Zealand,
5. United States

Bottom Five:
195. Iraq,
194. Somalia,
193. Yemen,
192. Sudan,
191. Afghanistan

Other Notables: 8. Italy,
11. Germany,
22. Canada,
25. Mexico,
34. Panama,
37. United Kingdom,
108. Cuba,
116. China,
116. Russia

Other Highs and Lows:

Lowest cost of living: Nauru (it's an island in the Pacific)
Best Infrastructure: United States
Most Corrupt: Haiti
Best for culture: Italy
Best climate: Zimbabwe
Best to register a new company: Australia
Longest life expectancy: Andorra
Fastest Risers:

Dominican Republic: Up 50 positions
El Salvador: Up 49 positions
Vietnam: Up 46 positions
Botswana: Up 42 positions
Kuwait: Up 42 positions
Costa Rica: Up 38 positions

Falling Behind:

Iran: Down 43 positions
Russia: Down 43 positions
Swaziland: Down 43 positions
Papua New Guinea: Down 38 positions
Israel: Down 37 positions
You can find the complete chart at www.qualityoflife2007.com.

7 hotspots for 2007!

We take a brief look at seven international property hot spots that are being tipped for great things this year...

Like it or loathe it, the international property investment market is heavily influenced by what the media is hyping up at any given moment. Whilst the smart investor takes all this drama with a pinch of salt and uses careful research into longer term indicators to inform her investment choices (such as domestic property market and tourism trends), it nonetheless pays to keep abreast of what's being talked about.

Homes Worldwide and A Place in the Sun magazine have recently released their list of international hotspots for 2007. Here, we pick out seven destinations that appear in both lists and consider what all the fuss is about...

1. South Africa

Over the last ten years, South African residential real estate has performed very well, growing by as much as 40% per year in key areas. Stretching from St Helena Bay in the west to Durban in the east, the Western Cape is one of the most popular areas for Brits to buy property; prices on "the Garden Route" are now comparable to Spain.

In response to such spiralling prices, ANC Lands Minister Angela Thoko Didza recently proposed a ban on foreign ownership of freehold property. According to Cape lawyer Michael Judin, however, this announcement created a perverse effect. He told A Place in the Sun magazine, "Ironically, after an initial lull, the comments prompted a property-buying rush - many foreign buyers hoped to 'get in' before any action was taken. Even though that now looks unlikely, the buying remains frantic."

South Africa's most popular markets are now relatively pricey and growth has decelerated. However, yields remain healthy averaging 12-15% according to Homes Worldwide magazine, and with the country set to host the football World Cup in 2010, the government is improving transport infrastructure.

The domestic market is looking good too. South Africa's economy is doing well and SA's expanding middle class are now spending heavily on property. The country has strong property rights and of course world-beating, landscapes, wildlife, wine and climate.

2. Montenegro

Montenegro has been dubbed the "jewel of the Adriatic". 19th century romantic poet and wild child, Lord Byron was also a fan, writing, "At the birth of our planet, the most beautiful encounter between the land and the sea must have happened on the coast of Montenegro."

Although tiny (the country is half the size of Wales), Montenegro has a beautifully rugged landscape with the largest fjord in southern Europe (the bay of Kotor), the largest lake on the Balkan peninsular (Lake Skadar) and the largest canyon in the world after the Grand Canyon (Tara Canyon). In the 1960s, the Montenegrin fishing village of Sveti Stefan was converted into a single hotel, attracting movie stars and royalty. Forming part of the Dalmatian coast ruled by the Venetians in the 1400s, Montenegro has an impressive stock of beautiful buildings and UNESCO heritage site Kotor has been likened to a smaller version of Dubrovnik.

Having gained independence from Serbia last year, Montenegro is now looking to capitalise on its rich endowment of cultural and natural attractions, investing to boost tourist visitor numbers. The main property markets are around the tourist hotspots of the Bay of Kotor and the Budva Riviera where property prices have risen by up to 50% in the last two years.

3. Dubai
Faced with depleting oil reserves, Dubai has reinvented itself over the last 20 years. Now, the emirate is a major financial and business centre as well as boasting a rapidly expanding tourist industry. Accompanying this impressive image change has been a building boom on a colossal scale. Dubai is a now a land of superlatives with the biggest shopping mall, the tallest hotel, the richest horse race and the highest tennis match. Never short on ambition, Dubai has not even accepted its natural limitations, constructing gigantic artificial island resorts, such as the Palm and the World, as well as the world's largest indoor ski slope...in the desert...now that really is climate change...

Despite much concern over impending oversupply in Dubai, one salient fact remains: the country has no capital gains or income tax, which is still pulling in foreign investors in their droves. The UAE government also relaxed property laws last year allowing foreign investors to own freehold in Dubai.

4. The Caribbean
Given its proximity to the United States, beautiful beaches and idyllic islands, it's not hard to understand why the Caribbean is such a tourist hotspot. The latest report of the World Travel and Tourism Council (WTTC) reported that whilst tourism currently accounts for around 15% of the region's GDP, this figure is set to increase to around 17% by 2014.

With property prices sky high in Florida, America's retiring baby boomers are now looking to the Caribbean in search of their dream holiday home. And the poorer islands are taking advantage of the region's popularity with property investors and holiday makers alike to develop their own tourist economies.

Ambitious resorts are currently being constructed on islands such as Isla Margarita, St Lucia, St Vincent & the Grenadines, and Turks & Caicos. Islands such as Turks & Caicos are also using tax incentives to draw in the foreign investor; its residents enjoy no income tax, no inheritance tax and no real estate tax.

5. Morocco
Morocco has long been popular with travellers in search of adventure and the exotic. But despite its close proximity and economic ties to Europe, it has so far failed to establish a more lucrative mass tourist market.

Things are changing, however, and the Moroccan government has set itself the ambitious target of doubling current tourist numbers by 2010, attracting 10 million visitors a year at that time. New resorts are being constructed along Morocco's 3,000 mile coast and 25 new low-cost air routes have been created to the UK, France and Spain.

Property prices, although rising quickly, are still typically significantly lower than their West European equivalents. The tax regime is also very attractive: Income tax is zero for the first five years and inheritance tax is also zero if the property is left to children.

6. Turkey
With its Mediterranean location, sumptuous cuisine and rich blend of eastern and western culture, Turkey enjoys a thriving tourist market. Turkish property is currently undervalued in relation to comparable Mediterranean holiday markets and easing access to finance has provoked a buying boom.

At the start of 2006, the Turkish government also clarified its position in relation to foreign ownership of Turkish property stating that foreign nationals could buy property for personal use up to 2.5 hectares in size. After owning a property in Turkey for five years, there is no capital gains tax to pay.

The majority of Brits buy on Turkey's gorgeous coastline and property prices in popular coastal areas have risen by 30 per cent in the last years. However, canny investors are also looking to the expanding city of Istanbul which is currently enjoying a strong economy and a building boom.

A key issue which will affect Turkey's property market is the progress of its bid to join the EU. With the Turkish occupation of northern Cyprus proving an intractable stumbling block and hostile attitudes from key member states such as France, it seems unlikely that Turkey will join the EU in the next 10 years, however.

7. Bulgaria
And how could we forget Bulgaria... Whilst this market is suffering from over-hype and over-supply in many areas, there have been good reasons to invest here to date. Key reasons have been Bulgaria's accession to the EU at the start of this year in tandem with its cheap property prices. Bulgaria's tourist industry has also grown rapidly, with the country taking advantage of its natural assets to promote both affordable skiing and beach holidays.

Now some investors are looking beyond the tourist markets to the city locations of Burgas and Sofia to seek out further capital gains.

Paris named top European investment market

Paris once again leads this year’s list of top real estate investment markets in Europe, according to a highly regarded real estate investment report...

Paris once again leads this year’s list of top real estate investment markets in Europe, according to the highly regarded real estate investment report, 'Emerging Trends in Real Estate Europe 2007', published this month by the Urban Land Institute (ULI) and PricewaterhouseCoopers LLP. Paris rates highly for both total return prospects and low risk, and thus its risk-adjusted total return prospects are the best in Europe.

Survey respondents point to the city’s economic stability, sustainability and its status as a global gateway as the main reasons for its top ranking as an investment market. Ample urban regeneration and redevelopment opportunities also attract investors, notes the report. As a top market for the past several years, “Paris still has good prospects for the next two years,” the report says.

Other European property investment hotspots

As was the case last year, London is rated a close second to Paris as an investment market. Survey respondents named London as the European city offering the least investment risk and the best prospects for rental growth, “reflecting optimism for property value trends supported by income growth,” the report says.

Stockholm, in third place, continues to move up the list for overall investment ratings, as its redevelopment prospects continue to strengthen.

Munich is ranked as the fourth best investment market, moving up from 17th place last year. “Rising office demand, a vibrant city centre, and an educated workforce create synergy for this city,” says the report.

Lyon rounds out the top five investment markets, with many respondents viewing that city as an attractive lower-cost alternative to Paris.

Other cities listed as strong “buy” markets: Madrid, Barcelona, Hamburg, Istanbul and Moscow. Other cities with strong “hold” ratings: Copenhagen, Edinburgh, Vienna, Brussels, Dublin and Amsterdam. In addition to Stockholm, other cities with relatively balanced buy-sell-hold ratings: Helsinki, Zurich, Milan, Prague, Rome, Lisbon, Warsaw, Athens, Budapest, Berlin and Frankfurt.

In terms of city development prospects, the report ranks Istanbul highest, pointing to its movement as a emerging global market. “The market still needs many developers rather than pure investors... real estate sectors are now in a learning curve,” notes one respondent. Says another: “Istanbul will be the star of the next decade.”

European residential outlook - France and Eastern Europe are investors' favourites

The residential sector continues to provide attractive opportunities for investment and development, due to its steady cash flows. ULI & PWC believe this sector is likely to provide modestly good total returns and rent increases for the coming year.

France remains a favourite among residential property investors. Central and eastern European markets are also seen as offering value, primarily due to the potential of redeveloping housing, much of which is now viewed as poor quality. Larger cities in Poland and the Czech Republic are among those offering substantial opportunities. High housing demand in Turkey also keeps it ripe for investment.

The survey suggests caution is advised for the German residential market. And many respondents view residential prices in Spain as "absurd". However, other respondents believe demographics in that country will continue to support the high residential prices.

Buyers outweigh sellers by two to one

Emerging Trends notes that prospects for profitability are considered favourable for real estate firms of all types, and the report shows that buyers outweigh sellers by two to one. Despite some concerns about global investors bidding up prices, few respondents indicated that European real estate is “in the grip of completely irrational exuberance,” the report says. “The assumptions people are making may be optimistic, but not fundamentally ridiculous or irrational.”

Still, despite the optimistic outlook for European real estate, the report cautions that the double-digit returns of previous years are not likely to continue. Most respondents indicated that yield/cap rate compression is largely over and that yields will remain stable in 2007. “If you want to make returns, you’d better focus on markets that have good prospects for rental growth,” one participant says.

The report notes that the “chase for higher yields” is causing investors to look at alternative investment properties as varied as petrol stations, student housing, marinas, motorway services, prisons, car parks and windmills— “anything producing income.”

ULI, based in Washington, D.C., is a global education and research institute dedicated to responsible land use. Its Europe headquarters, ULI Europe, serves the Institute’s 2,100 European members. PricewaterhouseCoopers LLP is the world’s largest professional services organisation. Emerging Trends, which covers 27 markets in countries throughout Europe, is based on surveys and interviews with more than 390 of the industry’s leading authorities.

The report released this month is the fourth annual European edition of Emerging Trends in Real Estate. Full copies of the European report are available at www.uli.org/emergingtrendseurope.

London buyers took their money to the country

The country house market did well last year with prices for the average manor house increasing by £300,000.

Prices were up by 11.2% across the UK. The strongest performing sector was the manor house category – larger houses with land – which saw upwards of 11.9% growth over the year.

Knight Frank’s head of residential research, Liam Bailey, commented: “With the city economy performing well and the prime Central London housing market going from strength to strength, London buyers have taken advantage of continued high price growth and have taken their money out to the country.”

“The strength of demand over the past 12 months price growth in the country market rise to its highest level since mid 2004.”

Prices for all property types rose over the final three months of 2006 – country cottages (average price £530,000) were up by 1.9% farmhouses (average price £1,240,000) up 1.7% and manor houses (average price £2,940,000) have increased by 0.5%. This growth is equivalent to the average price of country cottages, farmhouses and manor houses growing respectively by £3,591, £9,580 and £26,358 each month in the year to December.

Liam Bailey said: “This strong performance of the prime country house market, especially in the South of England, is being driven by both the health of the service sector economy, and importantly the booming financial industries based in the City and Canary Wharf; as well as the shortage of supply that has become critical in many markets across the UK.”

“This strong performance emerged in October 2005, fuelled by then record-breaking city bonuses, and has continued to the present day. The same phenomenon is expected this year as we move into the 2007 bonus round, with both bonuses and demand expected to be higher than last year. These expectations, coupled with current stock levels being at a lower level than the previous year, means we can only expect strong performance in the market in the first half of 2007.”