Is There a Real Dark Side of FDI in US Properties?

In case anyone out there ever wonders which man gains from another man's loss, investment news from the UK tells part of this age old saga. Stonehage Investment Partners, advisers to some of Britain's wealthiest investors  comes right out and tells of portfolios built on the backs of US homeowner losses, everyone's losses for that matter. Seeing the overall picture, may be a revelation for some. What if there is a really dark side to Foreign Direct Investment (FDI) is concerned?

This news bit on Your Money dot com titled aptly; UK's wealthy investors pile into US real estate, may not appear as a revelation to some ' or even be noticed for the matter, but you get bet your bottom dollar taking advantage in this case can be taken literally. With home prices in the US down by half, the conspiratorial mind has to be thinking about now; 'Hey, who caused the housing crash in the first place?' Or more appropriately, 'why?'

Stonehenge says roughly 8 to 10 percent of wealthy people's portfolios of investments there are now into American real estate. Of course Stonehenge and other businesses that help the ultra rich gain advantage, these are not directly focused on buying up your neighbor's foreclosed upon property, nor even the 'paper' on your house ' the method is a bit more round about than this. Indirect ownership of American properties is accomplished via funds and mortgage backed securities. Some big name players in the UK investment world are spotlighted via this document entitled Rich List 2010.

While investment banking and advisement is as you already know from Wall Street a complex and ultimately boring for most topic, any gain achieved at one end of the spectrum can generally be deducted from the other. In short, the 40% yield Stonehenge's Chief Investment Officer
John Veale (at left) spoke of in the aforementioned article? Well, just ask your banker if your house or rental office space is worth 40% more this year than it was last. You don't get the point yet? I know.

Remembering the movie and the book Rising Sun, I now recall seeing reports on 'real' US investment from overseas about the time everybody in America was panicked over Japan buying up the country. The truth then and now was far from Japan buying the American dream, and China doing so now. While nobody can categorically paint the Japan scare as some diversionary tactic (even though it was), it helps the intelligent citizen to know who the real landlord is, at least in my book.

It may interest you to know that the United States actually received more foreign direct investment (PDF) last year than any three other leading industrialized countries combined. And, at the height of the so called Great Recession, FDI reached an all time high of some f $328 billion in 2008 according to the Department of Commerce Executive Summary published in 2010 (PDF). Only China received more inflows of investment than the US in 2011, and the Chinese outflow of investment in its entirety is less than half of what UK investors send abroad. Without looking at the tiny bits and pieces of UK economics though, perhaps the most significant figure to look at is 'investment stocks' in UK as a percentage of their Gross Domestic Product. The chart below from the OECD is interesting at least.

Highlighted excerpt from latest investment figures from OECD

As you can clearly see, other than Switzerland and Luxembourg (banking centers primarily) only the UK is more dependent on investing for survival. Finally, if you download the Investment Outlays to Acquire Established US Businesses from the US Bureau of Economic Analysis here, not only will you find the UK spends more acquiring American businesses, but that the BEA suppresses data about how much China spends. Even despite this suppression, it seems clear UK investors spend more than all the Asian countries combined snapping up American opportunity. According to the 2007 figures, some $56 billion.

Still, as I said before, the complexity of all this is staggeringly boring, and difficult to consumer. If one examines just UK investment flows even, funds going into the 'Americas', versus what was taken out by UK firm subsidiaries there (PDF take note of negative investiture dogma), it almost seems like some sort of collections racket to a casual observer. Such money out, deflate economies, buy back at a bargain ' or at least this could be argued. According to this Wall Street Journal report from the Summer of last year, as that time it was suggested nearly 5 million homes were lost by their owners to the Great Recession 2007 ' 2012. Despite this, on the other side of the pond investors sip the world's most carefully prepared martinis.

The world famous martinis at Duke's ' courtesy the hotel website

 

We are working on our own figures as to how many businesses and commercial properties went into the 'investment pool'. But until then, perhaps the best 'take away' here comes from Stonehenge's polling of New Year's resoluteness from venture decision makers. One in particular, David Charters of Partner Capital, somehow tells as much as any balance sheet about UK investors and taking advantage. His resolution was:

'To drink more martinis (U'luvka vodka, made by Allessandro at Duke's Hotel) and smoke more cigars (Coheba Maduros) than in 2012. Why? Because I deserve them.'

 

Trulia Bosses to Participate at Goldman Sachs Tech Conference

Real Estate search Titan Trulia, Inc. announced yesterday their CEO and CFO will participate in the upcoming Goldman Sachs Technology and Internet Conference. Scheduled to take place on Valentine's Day, the event will be held at the Palace Hotel in San Francisco.

According to the news, Trulia's CEO Pete Flint,  and Chief Financial Officer Sean Aggarwal will offer a presentation at 9 AM to be broadcast via the web. The presentation will also be available via Trulia's Investor Relations section of their website. Other presenters at the conference include: Yahoo!, RPX, Lexmark, MoneyGram, PMC, AMD, and many more.

For more information on this news please contact Ian Lee, 415-400-7238 (Investor Relations)

Investors Scramble to 'Cash In' on Housing

Investors of every ilk are rushing to take advantage of present real estate conditions, 'buying up companies and assets in every part of the housing supply chain', such as foreclosed homes, undeveloped land, home builders and building parts manufacturers, according to a report in CNN Money.

Image courtesy BAKOKO

This surge in investor buying activity, which includes private equity firms, hedge funds and rich individual investors alike, is being driven by a growing realization that the window of opportunity could be about to slam shut as market conditions improve.

Brad Geisen, CEO of Foreclosure.com, tells CNN Money that many investors believe that the days of rock bottom prices and a well-stocked inventory will be short lived.

'No one knows how long it will last,' explains Geisen. 'So these investors are trying to buy as much as they can right now.'

The Blackstone Group is a classic example of an investment firm scrambling to take advantage of the situation while it still can. Last year, it spent around $2.7 billion on the purchase of some 17,000 foreclosed homes, which have since been turned into rentals. Even now, the firm continues to snap up thousands of homes each month while it still can. Meanwhile, Pine River Capital Management's Silver Bay Realty Trust has recently jumped onto the bandwagon, buying up more than 2,500 homes in some of the country's worst-hit markets since it went public last December. The trust has plans to buy another 3,000 homes, according to CNN Money.

Investors are also seeing opportunity away from distressed homes. John Paulson, manager of the Paulson & Co., hedge fund, is betting on the new home market picking up steam in the coming months and years, buying up swathes of undeveloped land in states like Arizona, California and Nevada. So far, the firm has snapped up enough prime real estate to accommodate 25,000 homes.

Finally, investors are also looking to the stock market as a way of cashing in on housing, with publicly traded home builders like KB

Five Things Renters Should Not Overlook

Renting is an ideal option for those who enjoy exploring new cities or have recently moved to a new area, as it allows a great insight about the benefits and drawbacks of living in an area without the long-term commitment of owning a home. However, with many rental leases calling for a yearlong agreement, renters must consider several things that could ultimately add to or detract from the renting experience.

Read the following top five overlooked things to consider when signing a lease.

1. Laundry is a situation that varies on the type of rental property. Rental complexes with several units can offer coin operated shared washing facilities or hookups within each unit. If there are hookups consider the cost of purchasing a washer and dryer if they are not included. When laundry facilities are offered in a common area, consider if they are easily accessible in all types of weather or if climbing stairs with laundry is something that fits into your lifestyle.
2. Refrigerators are another big appliance that is not always included in a rental. Some may see the lack of this essential appliance as a deal breaker, but remember that purchasing a secondhand model online offers an affordable option. For those unsure if they will be staying in the area past the length of the lease, reselling the appliance can be done just as easily.
3. Proximity of neighbors and the materials separating the units can make or break a tranquil home environment. There are rentals which are detached, but the majority of rentals will involve neighbors next door and possible even on other floors. Opting for an upstairs unit gets rid of hearing noise overhead, and there are many units which use noise cancelling materials and firewalls between units that make living with neighbors much easier.
4. Storage can be another issue, especially for single renters looking for a modest sized place. Even if the rental does not offer up loads of closets, there are many ways to add in storage space. Furniture such as benches that offer storage space inside are always great picks, as are the multitude of organizational tricks to be found on lifestyle websites such as Pinterest. With inexpensive home décor shops in most big cities and an abundance of online options selling space saving furnishings, the modern renter can live in a studio apartment without ever feeling cramped.
5. Outdated décor can send many renters running for more stylish suites, but there could be an incredible opportunity to make updates while saving money. Ask the landlord if you do work such as painting, making small repairs, and updating finishes if you can receive an agreed upon discount on rent. Many will be happy to work with renters on finding a deal that works for both parties. A whole month rent free might be hard for a landlord, whereas splitting it up over two months, with you paying 50% each month,  would give you the same break but make it easier for the landlord financially.

These five things can easily be overlooked when focusing on location and price, but will factor greatly into how the rental will work for you. Taking them into consideration beforehand can save both money and frustration down the road.

Darren Kolman contributed this guest post on behalf of RentersVoice.com ' a guide with apartment people reviews. Darren is a real estate consultant and freelance writer. His articles mainly appear on property blogs.

Feature image via © goodluz ' Fotolia.com.

Manchester Airport Expansion Approved

News from Manchester in the UK tells of a project for an airport business park being approved there. The 65 acre project to be situated along the M56 will cost in the neighborhood of £650 million. Manchester Airports Group (MAG) will offer a mix of office and hospitality spaces. Work on the project is set to being within the next few weeks.

Courtesy the Manchester Airport Master Plan

Speaking with Property Aspects, Bart O'Sullivan, Contracts Director of Ennis Construction, revealed the challenges and the positives of this ambitious project that will create thousands of jobs, and forever transform the landscape of Manchester Airport as well. The Woodhouse Park aspect in Wythenshawe, for one, will include over one million square feet of office space, along with 1,3oo hotel beds, plus over half a million feet of manufacturing.

'It's not just about access and parking for people travelling by foot, car and bicycle once the place is finished, but about providing clear and proper work access while the extensive build is going on. There's also the age-old problem of making sure your works doesn't impact on the roads and businesses around you. This especially important when you are working on or near airports, as unnecessary disruption to passengers or flights is completely unacceptable. Lines have to be drawn from the start about how everything is going to fit together otherwise it will become costly for a number of people.'

The airport project is but one of a great number of Ennis developments in the works. Others of their construction projects include; the Liverpool Business Park, the Manchester Metro Link, even added seating for Manchester United's Football stadium. As for MAG, the airport's master plan (PDF) calls for broad strokes to take advantage of the growth of air travel to and from Manchester.

For more information, please follow the prescribed links.

Cramped Quarters Gardening

No matter how small your apartment or how limited your desk space at work, there's always room for a little plant life. In fact, having plants around you at work can help with your psychological health as well your physical well being. According to a recent study conducted by the Department of Horticulture and Landscape Architecture at Washington State University, placing potted plants in a windowless workplace was shown to help increase employee productivity and attentiveness while at the same time reducing stress. And having a home garden can not only provide you with a stress-reducing activity, it's also an inexpensive way to keep healthy greens on hand year round.

Your home garden could be an ideal place to relax (Photo © Patrizia Tilly ' Fotolia.com)

Greening up the office

Plants' ability to fight indoor air pollution has been recognized by organizations such as the National Aeronautic and Space Administration (NASA), which conducted a two year study on the effect of potted plants on 'sick building syndrome.' The study found that plants such as bamboo palm, ficus, peace lily, and Chinese evergreen were effective at purifying the air, and spider plants helped to reduce the amount of airborne formaldehyde. Chrysanthemums and gerbera daisy were also beneficial in scrubbing the air of benzene, a carcinogen mainly found in tobacco smoke, exhaust and industrial emissions.

Other plants that do well in low light and don't mind a little neglect include philodendrons, spider plants and snake plants. Rubber plants are also good at removing air pollutants and English ivy has been known to help eliminate mold.

Planning your home garden

All a plant requires is a little soil, water, sunlight, and a little food now and then. If all your apartment has is a window that catches a handful of sun every day, you can still create a garden.

The first step is to determine how much sunlight your selected garden space gets every day. This could be a balcony or fire escape, a window sill, a window, a sun-lit handrail, or even an empty outdoor wall if your landlord grants you permission to use it.

Finding out the amount of sun exposure your garden space gets can be a tedious process. Some people choose to take hourly pictures of the space during the planting season (late spring to early fall) and others mark the sunny spots hourly with chalk. If you don't have the time to hang out and take pictures on the hour, however, you could check out the sun's movement around your neighborhood using the SunCalc app or leave your smartphone at home for the day and use a time lapse app to take pictures of your garden area during daylight hours.

If your garden space gets six or more hours of sunlight, you can plant it with full sun foliage. Four to five hours is considered partial sun and two to four hours is partial shade. Less than one hour of sunlight works best for shade plants.

Planting: get creative

Now the fun part'planting! Once you know how much sunlight your plants are going to receive, finding a place to grow them can lead to some creative innovating and repurposing. I've seen gardens grown in just about everything, from fragments of old tires to wine boxes and even old rubber boots. Following are a few ideas for planting in cramped spaces:

Windows: Take a plastic bottle and make sure the cap is screwed tightly on the top. Then turn the bottle upside down, cut off the bottom (now the top) and punch four holes equidistant from each other around the top of the perimeter. Run some strong wire, rope or twine through the holes to hang the bottle from and fill the bottle with gravel at the bottom and a mix of half potting soil, half mushroom compost. Plant your greenery, hang and you're done! Water your plants as required and unscrew the cap on the bottom every once in a while to filter off the used water. You can also take it a step further and decorate the outside of the bottle by painting it, covering it in decorative cloth or even doing a creative decoupage.

Walls: If you have a little wall space, or can borrow some, you can create a quick vertical garden with several plastic plant pots and an old wooden palette. To make the garden, knock out every other slat in the palette and lean it against the wall where you want it to stay. Then wedge the plant pots in the space between the slats. Fill each pot with a small layer of gravel and then a mix of potting soil and mushroom compost, plant and you're done.

Balconies and fire escapes: With the floor space provided by an outdoor balcony or fire escape, consider planting some vertical and/or sprawling plants on lengths of chicken wire or even butcher's twine spaced about one to one and a half inches apart and up to three feet high. Above the vine plants you can place hanging baskets and around them you can do layers of potted plants with plants that require more shade placed half under a small shelf and half sun plants above that. Consider doing some companion gardening as well in order to maximize your garden space. The three sisters'corn, beans and squash'grow well together, and flowers such as marigolds and mint help to keep insects away. Be careful with the mint, however, as it is invasive and can quickly overtake a potted plant. It might be wise to plant these separately and place them among your other pots.

No matter what kind of space you have to work with, keeping greens around is a healthy idea and if anything, plants can help to brighten your mood and bring a little of Mother Nature into your home.

What are some ways you've found to plant in limited spaces? What are some vegetables that you've found work well together? Do you have a favorite office plant?

Our guest author, Mike Tuma, is a Home Depot store associate in the Chicago area, where he has been helping customers since 2005. Mike focuses on outdoor products ranging from a standard chipper to chainsaws and lawn mowers.

A Top Five 'Just Listed' in the US

Here are five properties 'just listed' from some of America's leading real estate brokers. The properties are presented randomly and across the spectrum of price and location. RealtyBizNews offers these listings as an industry service, we are in no way affiliated with the companies mentioned.

634 Wickhams Fancy Biltmore Lake, NC

This wonderful and rustic home situated on listed by Preferred Properties of Asheville affords the new owners custom crafted features like vaulted ceilings, a huge stone fireplace, covered back porch looking out over a private yard, entertainment spaces, and more. For the price of $745,000 the home also offers:

• 5 Bedrooms, 3 Full Baths, 2 Half Baths
• Stunning Custom Craftsman
• Private Backyard overlooking Greenway
• Master on Main/4 additional bedrooms on 2nd
• Large Entertainment Area in lower level
• Abundant Storage, alarm system, sprinkler system

207 Willard Street, Berlin NH

Listed for $99,900 this 3 bedroom and 2 bath colonial is an architectural gem featuring pellet stove heating to reduce energy costs. Formal dining and living spaces, a huge family room, and bunches of closets plus a mother in law apartment make the home a steal at this price. Below are listed more features by Bean  Group, one of the nation's top rated real estate companies.

• 2476 sqft
• Built in 1910
• Master BR 17 x 13
• Lot Size: 0.150 acres
• Local schools - Hillside Elementary School, Berlin Junior High

317 Mountain Laurel Walk, Canton, GA

This almost new home listed at $219,900 is situated in the 'Great Sky Community' of one of Northwest Georgia's fastest growing cities. Just renovated, with stainless appliances and granite counter-tops  the house also features a fabulous master suite and other amenities. The community pool, tennis courts, playground and other features add to the value of this super nice home. Below you'll find more features of this Palmer House Properties listing.

• Bedrooms: 5
• Baths: 3
• Living Area: 3010 Square Ft.
• Lot Size: .21 Acres

Rancho Cucamonga ' 10803 Foothill Blvd

A Cal American Homes offering, this home at the end of a quite cul-de-sac boasts a beveled glass entry door leading to a formal living room, kitchen featuring granite counters and recessed lighting, and new fixtures throughout. Listed at $324,900, and only on the market for 45 days, the home has four bedrooms and three full baths. Here are some more home numbers:

• Approx. Sq. Ft. : 1853
• Year Built : 1978
• Acreage : 0.166

303 Bannock St
Fort Collins, CO

303 Bannock St, Fort Collins, CO

This Dry Creek Subdivision model home is featured as an open house by ColoProperty.com. The 5 star energy rated home features 9 foot ceilings, lawn sprinkler system, patio, oversized garage, and walk in closets. The home is listed for $194,000 with Kendra Adams as the listing agent. Other features include: