Real Estate: Romanian Investors made A Record €200million Investment in 2018-Report

The year 2018 ended with a significant premiere on the local real estate market: Romanian investors ranked second in the volumes generated by nationality. Almost EUR 200 million were paid to buy commercial properties (about a quarter of the total volume), a significant leap to more than five times their investment in 2017, according to Colliers International real estate consultancy.

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“The increased presence of the Romanian capital on the real estate market marks a possible turning point, because one of the observations we have received so far from some foreign investors without activity here was: if Romanians do not trust the local assets, why should we? At the same time, it is also a sign that the Romanian economy as a whole has grown so much in the last decade to lead to capital accumulation, a positive aspect for longer term prospects,” said Robert Miklo, Investment Services director, Colliers International.

On average, in the Central and Eastern European economies, local buyers accounted for 23 percent of the business, so Romania approached the other countries in the region for the first time. Another observation would be that South African capital still dominates in Romania, with a share of almost one-third of the investment volume, double the share it has in the region as a whole.

A second memorable event of the past year is that two of the signed deals are among the top ten largest real estate transactions.

“The sale of The Bridge and Oregon Park offices in Bucharest is one of the top 10 largest real estate deals ever made in Romania. If Romania’s economy does not go too far from potential growth in 2019 (about 4 percent), and the global economy will remain in a relatively favorable dynamics, growth in the real estate market can also be seen. Last year yields in the Central and Eastern European capitals continued to decline, increasing the gap with prices in Romania. Thus, despite the more difficult economic context and higher uncertainties than a year ago, there are premises for 2019 to generate new positive surprises, and these two records recorded in 2018 could even be overcome,” added Miklo.

The largest transaction made by the Romanian capital also marked the entry into the real estate market of the Dedeman group, which bought the Bridge project in Bucharest’s center-west area for a total value close to 200 million euros (in the metering of investments in 2018, a lower figure for this transaction was taken into account as the third phase will be completed in 2019).

Other transactions made by local stock companies were smaller but relevant for the market: the acquisition of the Bucharest Corporate Center office building by One United Properties or Oradea Shopping City by Sapient Center Oradea.

Source: business-review.eu

Top Seven Traits Of A Successful Real Estate Investor

Real estate is said to have made more millionaires than anything else. For those who have successfully made money in it, it’s not hard to see why. With so many different ways to grow wealth investing in real estate, there are tons of opportunities for many different people with different skill sets and talents to be successful, make money, and improve their financial position in meaningful ways.

There are recognized patterns in the abilities of an investor that often lead to their success. I’ve compiled a list of some of the traits I see pop up time and time again among the most successful investors I’ve met. Whether it’s a house flipper, residential home landlord, or large apartment complex owner, these same traits are almost always involved.

1. Knowledge

There is no substitute for knowledge. When you see the very best doing what they do, they always seem to know more than those around them. Real estate investors with large portfolio simply know more about what drives markets, how to time market cycles, and which things to watch out for. They are much more likely to recognize shifting markets before others do and are prepared to take advantage of these opportunities when they present themselves.

The very best never stop learning, and real estate is no exception.If you want to focus on where to grow your knowledge, I recommend starting with developing the following skills:

  • The ability to analyze a property for cash flow
  • The ability to recognize an under-valued property
  • Developing a basic understanding for estimating rehab costs
  • Learning the economic factors that drive a market
  • Learning the various pieces at play when it comes to owning rental property (property management duties, etc)

The more you know about real estate investing, the less fear you’ll have. Overcoming fear is one of the best things you can learn to do if you want to carve out a successful career for yourself in real estate.

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2. Patience

Having patience may sound simple, but that’s not always the case. When it comes to real estate investing, there is a lot of pressure on you to move and move fast. The best deals go quick, and allowing projects to run past the agreed upon timeline can be expensive. Investors are constantly facing pressures to do more, do it faster, and do it cheaper.

The best investors have learned to temper this pressure with wisdom and patience. They know when they need to run fast, and when they need to stop and wait to see how things develop. Patience can take several forms when it comes to real estate investing. Learning to recognize areas where you’ll need to practice it can save you from a lot of expensive mistakes.

One big area investors make mistakes on is buying a property solely because it allows them to meet a goal they’ve established in their own mind. Many newbie investors set deadlines for when they’d like to buy their next property, then feel pressure to make it happen-even if the deal isn’t that great. The best investors don’t feel the need to buy a pre-determined number of houses a month. They know if they don’t buy one this month, they may just buy two next month instead. Having patience to wait for the right deal is crucial, and having the fortitude to wait until it comes along is a valuable trait to possess.

Another problem novice investors make is jumping in at the wrong part of the market cycle. When everyone else is buying a home, it can be tempting to want to get involved yourself. Top investors zig when everyone else zags. They are fearful when others are greedy and greedy when others are fearful. Waiting for the market to slow down, or crash even, can require more intestinal fortitude but it is also a much better time to be picking up assets.

Managing the friction between pressure to act and patience to wait is a tough skill to develop. The best real estate investors have mastered this and reap the rewards of it.

3. Vision

While real estate investing may look like it’s all about the numbers from the outside, this is rarely the case. While buying cash flowing property and holding on to it for a long period of time will generally build your wealth, the very best investors do more than just buy and hold. They buy and improve the assets in their portfolio, adding value in additional ways.

Having the vision to see what a property could be, and then pursuing that vision, is what sets apart the average investors from the best. In real estate there is a term called “highest and best use.” It describes the concept of finding the very best use for a property and working to help bring that to fruition. Good investors do this well.

In a hot market, you don’t just find good deals. You make good deals. Top notch investors see ways to add value to properties without spending more money than they have to. For those with the vision to bring it about, there can be big rewards for those who buy the ugly duckling and turn it into the beautiful swan.

Some of the common ways investors do this are:

  • Adding bedrooms to a house in a house with less than three
  • Adding bathrooms to a house with less than two
  • Adding square footage cheaply. Often by converting car ports, Florida rooms, efficiency rooms, or covered storage areas to make them part of the property
  • Buying properties with strong bones that need cheap cosmetic upgrades
  • Buying income property and increasing the rents
  • Buying commercial property and decreasing the expenses

There are many ways to add value to a property and the best real estate investors have mastered this. Whether it’s a big time real estate developer who creates an experience buyers will pay top dollar for, or a weekend warrior handyman who buys a fixer upper and does the work himself, the top notch investors all have the vision to take something as it lies and make it better.

4. Efficiency

Efficiency is a skill practiced by the best business people around, and real estate investing is no exception. The vast majority of us would accomplish much more than we do in life if we had the ability to cut through distractions and get things done faster. Top real estate investors excel in this area.

In order to become efficient at what they do, smart business people look for things that take up time throughout their day that aren’t adding to the bottom line. Answering every email, taking unscheduled phone calls, and following up on tasks that are someone else’s responsibility are all examples of ways we prevent ourselves from focusing on what really matters.

Once you understand how important it is to be efficient, you are more likely to start demanding it from those around you. Contractors are much less likely to miss their timelines when they know the boss is an efficient person who expects the same. This principle drips its way down through every aspect of the business.

The best investors expect information to be delivered timely and in the format they understand best. They use their time wisely, listening to audio books and podcasts during their morning commute and leveraging assistants to respond to emails and phone calls. If you want to take your business to the next level, start with increasing your own efficiency and see if it doesn’t have a direct result on your productivity.

5. Focus

This one should come as no surprise. The best investors are highly focused, know what they want, and do not let anything prevent them from getting there. Obstacles are not a problem for the focused. A light bulb shines it’s light throughout a whole room. Its energy is spread out and covers a large area-that is its purpose. A laser, however, is highly focused. Its energy is narrowly concentrated in a specific direction. Lasers can punch though obstacles that light bulbs cannot.

The best investors have the focus of a laser. They don’t let obstacles stop them, and they know exactly where they are going. The “Pareto Principle” (also called the 80/20 rule and developed by Italian economist Vilfredo Pareto) can be summed up by stating 20% of your efforts will result in 80% of your results. Top business people adhere to this belief and it’s philosophy is seen in their business plans. By focusing their efforts on the 20% of the job that produces 80% of the results, they outperform their competition and make progress where others stall.

Don’t believe me? Look at the way income is distributed throughout the world. Look at the way the top 20% in most industries get 80% of the business. Whether it’s at a macro level (20% of a nations population control 80% of the wealth), business level (top 20% of salespeople are responsible for 80% of the revenue generated), or personal level (you wear 20% of your closet’s clothes 80% of the time), you’ll see the 80/20 principle at work.

Top investors understand this and narrow their focus to concentrate it rather than expand it to weaken it. The ability to focus increases production and allows them to punch through obstacles that would stop others.

6. Relationship building

If you want to know what the best business people focus on in their top 20%, it’s relationship building. Those with the best relationships always seem to win. Whether it’s getting the deal first, getting their permits approved by the city, winning the bid for the project, or getting the best pricing for the construction, those who have the best relationships are going to succeed.

We’ve all heard “it’s not what you know, it’s who you know”. The top investors have stopped fighting this fact and embraced it. Want to know why the wealthiest business people want yachts, expensive huge homes, and take lavish trips? It’s not always purely ego. These people understand that assets like these can open doors for relationship building that pay off bigger later.

That yacht can be a great way to get to know someone to give you the business loan your company needs, and that vacation home in the mountains can come in really useful when trying to build a relationship with someone who ski’s. Owning assets isn’t the only way to improve your relationship building, but it is an indication that smart business men and women understand this.

Bringing value to others is the foundational bedrock of relationship building. Learning it’s not always about you and taking steps of faith to pour into someone else first can open big doors for you later. Books like “How To Win Friends And Influence People” are timeless classics because they lay out the fundamentals for relationship building. Many of the top real estate investors I’ve met read this book over and over again every year!

7. Leverage

The last trait I’ve noticed that is common amongst successful real estate investors is their ability to use leverage. If you want to do anything at a large scale level, learning to learn leverage is absolutely crucial.

Leverage can come in several forms, but the three I see most commonly mastered by the top investors are money, people, and opportunity.

Money:

OPM, or “Other People’s Money” is one of the most commonly taught tenants of successful real estate investing. At a certain point in every successful investors career, they end up with more deals and more opportunity than they have capital to buy. At this point, the ability to use other people’s money (and pay them for it) is the best way to scale. By leveraging the resources of others, top investors grow their wealth and the size of their portfolio while creating win-win scenarios for those partnering with them through financial backing. If you aspire to be a successful real estate investor, you’d be wise to assume at some point you’ll be needing OPM.

People:

Successful investors also leverage people. By hiring talented, hard working trustworthy people (or partnering with them), top tier investors get much more done than they ever could by themselves. In any project, job, or business, there is a specific number of tasks that need to be completed to move forward. One of the biggest mistakes of the amateur is to assume they must be the one to complete all these tasks. Successful business people have learned to leverage the talents and abilities of other people to allow them to focus more on the 20% of the business that will bring them more results. If you plan to be a top notch investor, start learning as much as you can about how to hire talented people to work for you.

Opportunity:

The final thing I notice the best investors leverage is opportunity. Successful business people learn that every win isn’t just a win, it’s an opportunity for another win down the road. When a project is completed and the investors in the deal are happy, it is much easier to leverage that success into getting their capital again in your next deal. When you develop and sell land in an area with high demand, it is much easier to learn from that experience and do it better the second time around. One successful endeavor almost always leads to more opportunity to repeat it, and the best investors are always looking to capitalize on this fact. The best don’t waste opportunities to do even better the next time.

Consider the Golden State Warriors, considered to be one of the very best basketball teams ever assembled in the history of the NBA. After winning the league championship, they were able to recruit Kevin Durant, considered to be a candidate for best player in the league. How did the Warriors accomplish this? Their winning formula created an attractive environment that enticed top talent to join them, making it even easier to win another Championship the next year (they went on to win two more in a row). How does this play out in real estate investing?

  • Buying more deals creates stronger relationships with those who find deals. The top investors get these deals first.
  • Doing more rehabs helps investors learn new, creative ways to save money on rehabs in the future.
  • Learning to rehab rentals can lead to opportunities to also flip houses. The skill sets between the two have a large overlap.
  • Learning how to read a profit and loss statement and manage employees can create opportunities to start newer side businesses.
  • Owning a large portfolio of rental properties can create opportunity to open your own property management company and scale up.
  • Flipping large numbers of homes can create an opportunity to build a real estate brokerage to sell them, save on commissions, and scale up.

When it comes to real estate investing, very little is new or innovative. The vast majority of the best investors are simply learning from what others are doing and then putting it into practice better than their competition does. If you want to be the best yourself, start studying what they do, how they act, and the way they think. If you do what the best do, someday you’ll become the best yourself!

Source: forbes.com

Forbes: Trump Sold $35 Million in Real Estate in 2018

Though President Donald Trump has given this two oldest sons, Don Jr. and Eric, control of the management of his assets while he is president, he still owns his business, and they sold $35 million worth of real estate in 2018,Forbes reports.

Forbes looked at local property tax records and federal filings.

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The largest sale was from a housing complex in Brooklyn that went for $900 million, according to Forbes. Trump owned 4 percent of the property and walked away with about $20 million before taxes.

The Department of Housing & Urban Development had to approve the sale, Forbes noted, which falls under the leadership of President Donald Trump.Other sales found by Forbes:

  • 36 units in Trump Tower in Las Vegas for $11 million. (Trump owns 50 percent of the tower with casino owner Phil Ruffin, according to Forbes.)
  • Three empty lots near his LA-area golf course for a total of $5.6 million.
  • Three parking spaces at Trump International Hotel and Tower in Chicago for $170,000
  • A warehouse in South Carolina for $4.1 million.

Among ethical concerns cited by Forbes is the fact that about a third of the Vegas units were purchased through limited liability companies, allowing buyers to shield their identities.

“In other words, people were pumping cash into the president’s coffers without disclosing who they were,” Forbes reported.

Further, the report noted, that one of Trump lawyers promised before he took office that “No new foreign deals will be made whatsoever during the duration of President Trump’s presidency.” Yet, on Oct. 2, a man named Yu Zhang who listed his address as Taiyuan City, China, bought a Vegas unit for $255,000, according to Forbes.

Source: Newsmax.com

NMRC lists N11b bond on Nigerian Stock Exchange

The Nigeria Mortgage Refinance Company (NMRC) has listed its N11 billion 13.80 per cent Series 2 Fixed Rate Bonds on the Nigerian Stock Exchange (NSE), paving the way for bondholders to trade on their investments.

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The N11 billion bond was part of NMRC’s N440 billion Medium Term Note Programme. NMRC had launched a high-stake capital raising plan to support its mandate.

The NMRC is a private sector-driven mortgage refinancing company with the purpose of promoting home ownership for Nigerians while deepening the primary and secondary mortgage markets. Most of its shareholders are corporate institutions.

NMRC was incorporated on June 24, 2013 and obtained its final operating license from the Central Bank of Nigeria on February 18, 2015. In July 2015, NMRC successfully issued a 15-year N8 billion Series 1 Bond under its then N140 billion medium term note programme, backed by an unconditional Federal Government of Nigeria guarantee.

NMRC is listed on the NASD OTC Securities Exchange, the over-the-counter platform for trading in shares that are not listed on the Nigerian Stock Exchange (NSE).

Head, Shared Services Division, Nigerian Stock Exchange (NSE), Mr. Bola Adeeko commended the NMRC for listing the bond on the NSE, assuring that the Exchange would support the company in the realisation of its

Reasons Lafarge Africa has a SELL recommendation

Buy Sell Hold is picked from the top gainers and losers of the previous week, as well as various analyst results.

Custodian Investments: SELL

Recent ResultsResults for the nine months ended September 30, 2018 show that gross revenue increased from N31.8 billion in 2017 to N36.2 billion in 2018. Profit before tax increased from N6.1 billion in 2017 to N6.8 billion in 2018. Profit after tax also rose from N4.6 billion in 2017 to N5.1 billion in 2018.

Price Information

Current Share Price: N 5.80

Price to Earnings Ratio: 4.56X

Price to Book Ratio: 0.8

Year to Date Return: 2.7%

One Year Return: 59.88%

External View 

Analysts at Afrinvest Securities have a “Reduce” recommendation on the stock. They have a 12-month target price of N6.10, which is 0.2% above the stock’s price of N6.10 as at when the report was prepared.

Our View 

Custodian Investment is a SELL in Nairametrics’ opinion. The stock is currently trading close to an all time high, and could decline further in the coming weeks.

Upcoming elections have led to bearish sentiments on the Nigerian Stock Exchange, and are likely to remain dominant. Investors would be better off waiting for significant correction before taking a position.

Julius Berger: SELL 

Recent Results: Results for the nine months ended September 30, 2018 show that revenue increased from N105 billion in 2017 to N118 billion. Profit before tax increased from N85 million in 2017 to N5 billion in 2018. The firm made a profit after tax of N3.4 billion, as against a loss of N349 million recorded in the comparative period of 2017.

Price Information

Current Share Price: N28.4

Price to Earnings Ratio: 7.87X

Price to Book Ratio: 1.24

Year to Date: 41.3%

One Year Return: 0.24%

External View

Our View

Julius Berger is a SELL in Nairametrics’ opinion. The stock is trading at a 6 month high, and could decline further if negative sentiments in the markets are pronounced. The NSE has fallen sharply in the first few days of trading, and could decline further in the coming weeks prior to the election.

The stock has also out peformed the index by iver 30% in just a few weeks of the year, in what is turning out to be a bearish month. Investors are best exiting the stock for now.

Lafarge Africa: SELL 

Recent Results:

Results for the nine months ended September 30 2018, show revenue increased from N223 billion in 2017 to N234 billion in 2018.

The firm made a loss before tax of N14.3 billion in 2018, as against a profit before tax of N1 billion for the corresponding period of 2017.

Price Information

Current Price: N12

Price to Earnings Ratio: None 

Price to Book Ratio: 0.8 

One Year Return: N75.42

Year to Date Return: -3.6%

*Lafarge recorded a loss in the 2017 financial year, hence the absence of a PE ratio.

External View

Analysts at United Capital have a ‘Buy’ recommendation on the stock. They have a target price of N13.7 which amounts to a potential upside of 21.2% from the stock’s price of N11.3 as at when the report was prepared.

Analysts at FBNQuest have a ‘Neutral’ opinion on the stock. They have a target price of N21.5 which represents a potential upside of 89.8% from the stock’s price of N11.3 as at when the report was prepared.

Our View

Lafarge Africa is a SELL in Nairametrics’ opinion. The stock is currently trading close to a 5-year low of N11.5 and may slide below that whenever full year 2018 results are released.

The company is very likely to record a full year 2018 loss, and will witness dilution following the listing of the additional shares from its rights issue.

Investors would be better off waiting for first quarter 2019 results and/or the listing of the stock’s additional shares before taking positions.

Source: Nairametrics

How Policy decisions, interest rates slowed the real estate market in 2018

As real estate market stats pour in from across Canada, it is becoming abundantly clear that property markets in 2018 lost the momentum of recent years.

Households, governments and industry watchers alike are concerned about the direction real estate markets have taken. Even though sales and, in some places, prices, are lower than before, housing affordability has not necessarily improved.

Many wonder if it is the right time to buy or sell. Others wonder whether real estate markets are going to decline even further, or if the markets will turn around in 2019.

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The answer to these questions is: It depends. It depends upon interest rates, job growth, wage increases, demand for housing, government interventions and more. While one can speculate about the future, it is always beneficial to first understand what has transpired in the past.

The Greater Toronto housing market, the largest in Canada, has recorded fewer sales in 2018 than it did in any year in the past 10 years. In fact, the last time Toronto’s real estate market recorded fewer than 80,000 sales was in 2008.

That year was exceptional for two reasons. First, the Canadian economy was showing signs of weakness as it and most others around the world entered into the Great Recession. Second, the City of Toronto imposed a new land transfer tax that made some buyers advance their home purchases to 2007, resulting in fewer sales in 2008.

But even in 2008, nominal housing prices did not fall relative to 2007. That means 2018 is unique because the average nominal housing price actually declined by 4.3 per cent.

Vancouver’s housing market, in which 24,619 sales were recorded in 2018, was no better. The Real Estate Board of Greater Vancouver noted that sales in 2018 hit “the lowest annual total in the region since 2000.” The composite benchmark price in December 2018 declined by 2.7 per cent from a year earlier.

Despite declining prices, many believe that housing affordability is unlikely to improve. A recent report by the Royal Bank of Canada (RBC) observed that homeownership costs relative to median incomes will continue to rise in Canada. The RBC report said that by the end of 2019, “owning a home will take up 79 per cent of the median household income” in Toronto.

In Vancouver, home ownership costs claim 88 per cent of the median household income. RBC expects home ownership costs to rise in Calgary, Edmonton, Ottawa and Montreal.

The high levels of household debt in expensive housing markets is another source of concern. The Canada Mortgage and Housing Corporation reported that the debt-to-income ratio was 208 per cent for the residents of Toronto. For Vancouverites, it was even worse at 242 per cent.

Most of the household debt is mortgage debt, which is sensitive to changes in interest rates. The Bank of Canada has raised interest rates multiple times in the past few years. The Bank’s decision Wednesday not to raise rates any further suggests it is mindful of the slowdown in the global economy that has been worsened by the trade tussle between the U.S. and China.

While the consensus is lacking about the future of interest rates in Canada, many believe that the fundamentals are missing to justify significant interest hikes in Canada in 2019. This will be good news for home ownership.

Housing markets have withstood a series of policy interventions by provincial and federal governments that include additional transactional taxes on foreign homebuyers, stringent mortgage regulations, stress tests, rising interest rates and more. The slowdown in housing markets, one must realize, is the expected and intended response to a series of regulatory changes and hence must not be viewed solely as a sign of market weakness.

At the same time, one should also consider a long-term view of the property markets. Housing is a durable good that provides shelter and other amenities while growing in value as an asset class. The average home price in the cities and surrounding areas of Vancouver and Toronto is up 100 per cent over 10 years.

The increase in average housing prices over the long run should, therefore, provide perspective to those who own or are considering buying a house.

Five Ways To Prepare Your Real Estate Business For The Year Ahead

Nothing inspires me more than a new year. It represents a fresh start and a reboot. While some hardly seem to notice, my energy is at full throttle because I see 52 weeks of new opportunities to celebrate success ahead. I get excited about new beginnings, fresh ideas, updates to marketing plans and promotional tools.

Prepare To Hit The Ground Running

When we are busy, time passes quickly. Maybe last year you felt like you were always playing catch-up. If you promised yourself that wouldn’t happen this year, you still have time to make a good start on your business preparedness.

Here are five suggestions to help you gear up for the year ahead that have personally proven to be time well spent.

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1. Update Your Professional Profile

Review your biography. Your bio is often your first introduction to a potential client. Make it an outstanding one. If you haven’t refreshed it in the last few months, consider a rewrite. Kudos to you if you crossed that off your to-do list recently. In that case, review and add any new professional designations, awards or achievements. You should also include a new professional head-shot. Don’t forget to update all your social media platforms and websites where you are featured.

2. Follow Up With Holdover Leads

Contact people on your list of leads or past clients who were holding off on buying or selling until after the holiday season. Follow up with sellers who wanted to list in the spring. It is not too early to inspire them to begin preparations for a March or April listing. Last but not least, connect with your general mailing list, and update them on what is new and exciting about the housing market or your agency.

3. Review Your Tools Of The Trade

Take stock of your work and tech tools. Is your phone, tablet or computer holding you back and making your work more difficult? Then it’s time for an upgrade. For real estate professionals, the year’s busiest months are right around the corner, so don’t hesitate. Do it now when you have time to shop and get accustomed to your new tools.

4. Improve Your Chances By Listening to the Experts

Listen to the experts. Find out what they see ahead for the economy and how it will affect housing. When you set your professional goals and priorities, it’s imperative to have a sense of what to expect on the national scene and the local front.

5. Establish Your Goals, Budget And Marketing Plan

Do a general review of your business. Establish your 2019 goals, and include any from last year that were not accomplished but are still relevant. Take a look at your budget. Did you have a surplus or fall short last year? Make adjustments and establish your business expense priorities for the coming year. Review your local housing market statistics. How has the situation changed, or what do you see happening differently this year? Determine how this fits into your overall marketing plan.

My expectations for the 2019 real estate market are high, and falling short is not on my bucket list. We may not be able to control everything, but we can position ourselves to be ready for anything.

Joe Houghton is Founder of The Minnesita Property Group,providing outstanding real estate services to the Twin Cities metro area.

Real Estate Investment Trust: Corporate governance will drive investor confidence

The South African real estate investment trust (Reit) sector’s focus on improved corporate governance is expected to support positive sentiment for investment in listed property this year, says real estate analyst Wynand Smit.

He explains that the performance of local Reits in the coming year will be influenced by improving levels of confidence in the listed property sector.

Additionally, he states that the local Reit sector’s positive performance prospects signal “double-digit growth in returns to investors”, which Smit believes should be around the sector’s historical annualised ten-year total return of 14%.

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He further notes that improved confidence levels “will depend on the steps taken by individual companies but, more importantly, steps taken by all stakeholders and relevant industry bodies such as the SA Reit Association.”

Since its inception in 2013, when Reit legislation was introduced in South Africa, the association has prioritized driving transparent, clear and comparable financial reporting for the sector.

The association is currently updating its best practice recommendations (BPRs), which is intended to reduce divergence in reporting implementation among sector counters. The updated BPR will reflect new accounting and regulatory issues, address issues raised by asset managers and integrate changes proposed by key industry stakeholders.

The association has resolved to revise its BPRs with an even more vigorous focus on consistency and transparency in the financial reporting of Reits, says Smit. Pointing out that there is a big focus on sustainable earnings in the sector, Smit says “investors have voiced their preference for clean, sustainable earnings”.

Transparent reporting ensures that a Reit’s sources of income are clearly stated, Smit adds. The association expects to share its progress with the market in this regard early this year.

Meanwhile, SA Reit Association marketing committee chairperson Andrea Taverna-Turisan believes “the time is right” to take the next step and issue more robust guidance for Reits.

“Our members want investors and stakeholders to be confident in the consistency of reporting from the sector. Overall, the Reit sector has established a record of transparency and trust, and we want to reinforce this in the market. We are putting the sector on the best footing for best practice as it enters 2019,” he said.

Additionally, the statement noted that Catalyst Fund Managers expects 2019 to stand out from the past year as a result of the big focus on improving governance in the sector.

Improved corporate governance, Catalyst’s Mvula Seroto explains, will make Reits a good investment this year.

Besides an improved focus on governance in the sector and its positive performance outlook for this year, factors that market commentators believe will make local Reits appealing investments in the year ahead include the sector’s historically high yields and the good value to be found in the share prices of many Reits.

Global building and construction plastic market to reach $104,507 million by 2025

The global building and construction plastic market was valued at $57,908.8 million in 2018 and is expected to reach $104,507 million by 2025, growing at a CAGR of 7.6%. Building and construction plastics are polymers that are treated chemically to obtain products for building and construction industry. These products are used for various purposes such as flooring, cladding & roof membranes, cables, flooring & wallcovering, insulation, piping, and window & door panels in the building and construction industry. Different types of plastic composites in flooring includes wood plastic composite (WPC), luxury vinyl tiles (LVT), and stone plastic composite (SPC).

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The demand for building and construction plastics is increasing due to rapid rise in investment in the residential and commercial infrastructure. In addition, major players are adopting various strategies such as product launches and acquisitions to stimulate the growth of the market. For instance, in November 2016, INEOS Olefins & Polymers USAacquired 100% shares of the WLP Holding Corp.

Therefore, such developmental strategies are estimated to drive the growth of the global market. However, rise in ecological concerns and stringent laws by regulatory bodies regarding use of plastics are expected to restrain the growth of the global building and construction plastic market. On the contrary, technological improvements to produce eco-friendly and recycled plastics are anticipated to provide lucrative opportunities for the growth of the global market. 

The global building and construction plastic market is segmented based on type, application, and region. Based on type, the market is bifurcated into thermoplastic and thermosetting plastic. The thermoplastic segment is further categorized into polyethylene (PE), polyvinyl chloride (PVC), polystyrene (PS), polypropylene, polycarbonate, polymethyl methacrylate, and others. The thermosetting plastic segment is further divided into polyurethane and others, which include polyesters, epoxy resins, and phenolic resins.

The thermoplastic segment is anticipated to dominate the global building and construction plastic market during the forecast period. By application, it is categorized into flooring, window & door panels, siding, piping, roofing, insulation, and others (weather boarding, paint, varnish, adhesives, and thin coverings). The flooring segment is further divided into wood plastic composite (WPC), luxury vinyl tile (LVT), stone plastic composite (SPC), and others.

The others in the flooring segment include fiberglass composite and bamboo composite tiles. The piping segment is projected to grow at a significant CAGR in the near future. 

The global building and construction plastic market is analyzed across North America (U.S., Canada, and Mexico), Europe(GermanyFrance, UK, Italy, and Rest of Europe), Asia-Pacific (ChinaJapanIndiaAustralia, and rest of Asia-Pacific), and LAMEA (Latin AmericaMiddle East, and Africa). Asia-Pacific is expected to dominate the market during the forecast period. 

Rising Number of Female Investors in Real Estate

Real estate sector in India has grown enormously in the last decade and currently contributes 5 to 6 per cent to the GDP of the country. Real estate sector is expected to contribute 13 per cent of GDP by 2025 and reach a market size of US$ 1 trillion by 2030 from US$ 120 billion in 2017. India is one of the fastest growing economies across the globe makes real estate a subject of interest for investors. Real estate is considered as the male-dominated industry, however, with women entering into the sector, the industry has changed significantly. The number of women in real estate has been increasing gradually over the past few years. Be it an investment or running a real estate company, women have made real estate their domain.

Several factors are playing as a catalyst and have led to the rise in a number of female investors in the real estate industry.

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Increasing Financial Capacity

Indian economy has grown by leaps and bounds and has strengthened the financial capacities of working women living in the country. In metropolitan cities like Mumbai, females are more ambitious and career driven. The ratio of earning is equal to the male counterpart. Entrepreneurship is a trending culture which is being picked up very quickly by young female aspirants living in major urban areas. Women in today’s world are well educated, qualified and have global exposure. They have the quality needed to excel in the real estate industry. Government policies to support the startups have created a positive environment and have given women an extra spur to run their own company. For instance, many female entrepreneurs are running their own real estate company and gaining prominence in the commercial real estate.

Increased spending capacity in cities has made women savvier about their finances and monetary investments. Women are becoming active and aggressive investors in real estate. Majority of the working women prefer to invest in property rather than investing in share market and mutual funds.

Affordable Housing: a Most Promising Solution

Women in old days were supposed to get married at a certain age and a single woman was considered an oddity in the society. But in today’s world, there is an increase in

the cohort of single, working women living in major urban areas. They are being liberated by the salaries they earn and are not shying away when it comes to buying a home of their own. But in a city like Mumbai drubbing property prices makes it difficult to buy a home in the city centre where the price of an apartment with 450 sq ft space ranges from 90 lakhs to 1.5 Cr. Hence affordable housing is the most fitting solution for women who are leading an independent lifestyle, staying away from family. Keeping that in mind developers are coming up with housing projects which are affordable and convenient as well along with better connectivity to urban areas of the cities.

Advantages to the sector:

1. Eminent Leadership

Real estate in India is the most recognized sector and is the 2nd largest employer after agriculture. Participation of women in the higher productivity sectors has fuelled economic growth. Women are getting recognition steadily for their distinctive work ethics and leadership quality in the industry. Women are blessed with the power of multi-tasking& transporting successfully both personal & social competency by bringing out the power of their personality to serve the purpose.

2. Better Client Relationship

Women in the industry have an edge over their male colleagues. Empathy and “Never give up” spirit are the two qualities that already exist in the DNA of women. Women are more caring, nurturing patient in nature and sensitive towards the needs of the clients.

Women know how to balance things and are good at multitasking which is a crucial aspect of real estate. Educated women are able to balance the things and are able to bring compassion, determination and the needed synergy to take the business forward in an efficient manner.

This article was written by Rohit Poddar. A real estate professional based in India.

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