Posts Tagged 'Growth'

Don’t let the depressing national real estate news fool you: things are looking up for San Antonio real estate.

San Antonio was one of the lucky few cities in the country to only receive a glancing blow from the fallout of the housing market collapse, as it held onto a strong workforce and an equally strong local economy.

In short, San Antonio did still experience a decline in home sales and an increase in foreclosures, much like every other part of the country. However, the difference between San Antonio and other large cities across the United States is that San Antonio has already begun showing strong signs of growth, which is why most analysts expect San Antonio real estate to make a rapid improvement in 2010.

Why San Antonio Real Estate Keeps Moving Along

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Don’t let the depressing national real estate news fool you: things are looking up for San Antonio real estate.

San Antonio was one of the lucky few cities in the country to only receive a glancing blow from the fallout of the housing market collapse, as it held onto a strong workforce and an equally strong local economy.

In short, San Antonio did still experience a decline in home sales and an increase in foreclosures, much like every other part of the country. However, the difference between San Antonio and other large cities across the United States is that San Antonio has already begun showing strong signs of growth, which is why most analysts expect San Antonio real estate to make a rapid improvement in 2010.

Why San Antonio Real Estate Keeps Moving Along

1. Federal Tax Credit

There is no question that the federal tax credit, and its extension into June of 2010 has had a strong impact on the home sales in San Antonio. In fact, many analysts are referring to the tax credit as nothing less than a godsend for the San Antonio real estate market. The tax credit, which offers new homeowners (those who haven’t owned a home in the last three years) a cool $8,000 if the purchase a home before June 2010, and $6,500 for homeowners who purchase a home and sell a home that they have lived in for at least that last, five consecutive years, has been a huge deal for the San Antonio real estate market.

Many analysts expect this tax credit to affect the entry-level market the most, as homes priced under $200,000 made up 76 percent of the home sales in San Antonio during 2009. Home analysts expect this trend in the entry-level San Antonio real estate market to continue throughout much of this year.

The bottom line is that active listings are falling, inventory is falling and demand is up among homes under $200,000, and the federal tax credit can certainly take a lot of credit for this trend.

2. Interest Rates

Interest rates are still near historic lows, and that has certainly helped buoy the San Antonio real estate market in 2009. Many economists, however, expect that interest rates will soon begin climbing, likely towards the second half of the year. Even with this increase in interest rates, however, there will likely continue to be a demand for San Antonio real estate because interest rates will remain at incredibly low levels. In other words, a small increase in interest rates towards the end of the year will not likely have a huge influence on people’s decision to purchase San Antonio real estate.

3. Job Growth

San Antonio has many good things going for it, and job growth is certainly one of them. The San Antonio job market has always buoyed along San Antonio real estate, and 2010 will be no exception. Simply put, new jobs to San Antonio will always bring a need for real estate.

Even though San Antonio lost a few jobs in 2009, it still remains one of the most recession-proof cities in the country. Some of the newest job announcements to hit the San Antonio market include the addition of a new corporate campus for Nationwide, which is expected to add 838 jobs to the region, as well as a Tacoma production plant for Toyota, which is expected to add another 1,400 jobs to San Antonio.

eral Tax Credit

There is no question that the federal tax credit, and its extension into June of 2010 has had a strong impact on the home sales in San Antonio. In fact, many analysts are referring to the tax credit as nothing less than a godsend for the San Antonio real estate market. The tax credit, which offers new homeowners (those who haven’t owned a home in the last three years) a cool $8,000 if the purchase a home before June 2010, and $6,500 for homeowners who purchase a home and sell a home that they have lived in for at least that last, five consecutive years, has been a huge deal for the San Antonio real estate market.

Many analysts expect this tax credit to affect the entry-level market the most, as homes priced under $200,000 made up 76 percent of the home sales in San Antonio during 2009. Home analysts expect this trend in the entry-level San Antonio real estate market to continue throughout much of this year.

The bottom line is that active listings are falling, inventory is falling and demand is up among homes under $200,000, and the federal tax credit can certainly take a lot of credit for this trend.

2. Interest Rates

Interest rates are still near historic lows, and that has certainly helped buoy the San Antonio real estate market in 2009. Many economists, however, expect that interest rates will soon begin climbing, likely towards the second half of the year. Even with this increase in interest rates, however, there will likely continue to be a demand for San Antonio real estate because interest rates will remain at incredibly low levels. In other words, a small increase in interest rates towards the end of the year will not likely have a huge influence on people’s decision to purchase San Antonio real estate.

3. Job Growth

San Antonio has many good things going for it, and job growth is certainly one of them. The San Antonio job market has always buoyed along San Antonio real estate, and 2010 will be no exception. Simply put, new jobs to San Antonio will always bring a need for real estate.

Even though San Antonio lost a few jobs in 2009, it still remains one of the most recession-proof cities in the country. Some of the newest job announcements to hit the San Antonio market include the addition of a new corporate campus for Nationwide, which is expected to add 838 jobs to the region, as well as a Tacoma production plant for Toyota, which is expected to add another 1,400 jobs to San Antonio.

Don’t let the depressing national real estate news fool you: things are looking up for San Antonio real estate.

San Antonio was one of the lucky few cities in the country to only receive a glancing blow from the fallout of the housing market collapse, as it held onto a strong workforce and an equally strong local economy.

In short, San Antonio did still experience a decline in home sales and an increase in foreclosures, much like every other part of the country. However, the difference between San Antonio and other large cities across the United States is that San Antonio has already begun showing strong signs of growth, which is why most analysts expect San Antonio real estate to make a rapid improvement in 2010.

Why San Antonio Real Estate Keeps Moving Along

1. Federal Tax Credit

There is no question that the federal tax credit, and its extension into June of 2010 has had a strong impact on the home sales in San Antonio. In fact, many analysts are referring to the tax credit as nothing less than a godsend for the San Antonio real estate market. The tax credit, which offers new homeowners (those who haven’t owned a home in the last three years) a cool $8,000 if the purchase a home before June 2010, and $6,500 for homeowners who purchase a home and sell a home that they have lived in for at least that last, five consecutive years, has been a huge deal for the San Antonio real estate market.

Many analysts expect this tax credit to affect the entry-level market the most, as homes priced under $200,000 made up 76 percent of the home sales in San Antonio during 2009. Home analysts expect this trend in the entry-level San Antonio real estate market to continue throughout much of this year.

The bottom line is that active listings are falling, inventory is falling and demand is up among homes under $200,000, and the federal tax credit can certainly take a lot of credit for this trend.

2. Interest Rates

Interest rates are still near historic lows, and that has certainly helped buoy the San Antonio real estate market in 2009. Many economists, however, expect that interest rates will soon begin climbing, likely towards the second half of the year. Even with this increase in interest rates, however, there will likely continue to be a demand for San Antonio real estate because interest rates will remain at incredibly low levels. In other words, a small increase in interest rates towards the end of the year will not likely have a huge influence on people’s decision to purchase San Antonio real estate.

3. Job Growth

San Antonio has many good things going for it, and job growth is certainly one of them. The San Antonio job market has always buoyed along San Antonio real estate, and 2010 will be no exception. Simply put, new jobs to San Antonio will always bring a need for real estate.

Even though San Antonio lost a few jobs in 2009, it still remains one of the most recession-proof cities in the country. Some of the newest job announcements to hit the San Antonio market include the addition of a new corporate campus for Nationwide, which is expected to add 838 jobs to the region, as well as a Tacoma production plant for Toyota, which is expected to add another 1,400 jobs to San Antonio.

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Commercial property loans are used by many sectors of the business world to finance future investments and expansion efforts to grow a business.

With the recent collapse of the U.S. sub-prime mortgage market, credit is increasingly difficult for consumers to come by. Lenders are reducing their exposure to high-risk ventures. Lingering uncertainty about the credit market as well as the stability of the international money market causes widespread reluctance to finance ventures.

Fortunately for investors seeking commercial real estate financing, the commercial sector is not directly affected by these developments. Although riskier ventures will still be more difficult to finance with credit, the current economic climate has not stalled lenders.

With the recent developments in both the U.S., and across the international credit market, debt is becoming a well known concept.

While economic uncertainty would demand that all investors be prudent about entering into debt, most Organization for Economic Co-operation and Development countries are not in recession. In fact, they have actually experienced record growth and prosperity over the past decade. This lends some robustness to the major western economies.

Most business expansion is financed using commercial loans, so provided debt is entered into for purposes of investment, building, and expansion of the business (rather than a fundamental cash-flow problem). Debt is not in itself a negative thing. It is the return on that debt that is the problem.

Commercial real estate financing can be secured to fund the purchase of land for infrastructure and services development. Power plants, streets, utilities, shopping complexes, office or apartment buildings, parking facilities, parks, resorts, and golf courses, and even medical clinics or private hospitals are just a few such real estate investments.

Frequently, commercial property loans are sought as a means of refinancing existing debt to increase the total value of the investment. It is possible for private investors and companies to make a career in the reiterative process of reinvestment. Financing the cost of expansion against the projected profits of the venture can be quite lucrative.

It is true that there is still some volatility and uncertainty about the stability of the western economies. Consequently, investors should be as vigilant as ever about entering into unprofitable arrangements. Such factors influencing profitability include cost blowouts, too little potential return, or inherently risky ventures.

Investment consultants have made a market for themselves in advising smaller scale investors on commercial real estate financing, and providing them with the means of determining which projects are worth entering into, based on the available information. This includes taking into account the possible blowouts, and considering what might go wrong with any given project.

By applying basic rules of thumb, and not investing beyond certain thresholds, investors can increase their chances of sticking to projects that are within their means.

With the use of specialized software, this process can be further streamlined, allowing financiers to quickly weed out which projects are potentially unprofitable. Based on the available data and taking into account uncertainties and potential threats to the project, financiers can make smarter lending decisions.

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Recently analysis was performed for Gluten Free Pages on the growth of whole country gluten free e-markets (using Google data) for the US, Australia, Canada and the UK.

That research showed that the US (42%) and Canada (18%) had the largest growth (gluten free searches on Google from 2004 to 2009), while Australia had 10% per annum growth and UK essentially zero.

This information is tempered by the actual base level of searches in each country. Previous analysis of what is termed ‘Celiac searches / mth’ within each country ranks the four countries of interest as : Australia (4.2 searches), Canada (3.3), USA (2.7) and UK (2.2). The analysis adjusts values to take account of internet usage and Google market share. Of course the US has the largest population of each country under analysis so in absolute terms the US has the most searches (over 3 million) however ‘searches per celiac’ gives a truer indication (level of saturation) of a market in each country. 

The GFP Matrix is a construct that compares a country’s ‘celiac searches per month’ V ‘GDP per person’. This analysis shows that there is a logarithmic relationship between these two variables. That is, the greater the wealth of a country, the higher the diagnosis and the higher the e-demand for gluten free products.

To better understand the dynamics of these each countries markets it is best to analyze the lowest level of analysis that Google allows – down to state level. Firstly consider the US.

AMERICAN STATES

Following this theory of country wealth being related to the level of gluten free market maturity, it is useful to compare the top ten economic US states with the bottom ten states and see if this rule applies within countries.

The data below is “measured by median household income” and is sourced from: The U.S. Census Bureau in 2007.

The 10 richest states with the highest median household income

          STATE              INCOME     POPULATION

          Maryland           $65,144    5,296,486

          New Jersey         $64,470    8,414,350

          Connecticut        $63,422    3,405,565

          Hawaii             $61,160    1,211,537

          Massachusetts      $59,963    6,349,097

          New Hampshire      $59,683    1,235,786

          Alaska             $59,393    626,932

          California         $56,645    33,871,648

          Virginia           $56,277    7,078,515

          Minnesota          $54,023    4,919,479

The 10 poorest states with the lowest median household income

          STATE          INCOME      POPULATION

          Montana        $40,627     902,195

          Tennessee      $40,315     5,689,283

          Kentucky       $39,372     4,041,769

          Louisiana      $39,337     4,468,976

          Alabama        $38,783     4,627,851

          Oklahoma       $38,770     3,450,654

          Arkansas       $36,599     2,673,400

          West Virginia  $35,059     1,808,344

          Mississippi    $34,473     2,844,658 

US POOREST STATES ANALYSIS 

For the three poorest states in the US, Google “does not have enough search volume to show graphs.” Of the other seven, data only starts in late 2008 and is very intermittent and unreliable.

You might consider that the Google data cut off applies because of low searches caused by low state populations. This might seem also seem to be the case for rich states too as the three ‘rich states’ out of the top ten that do not have data record (Hawaii, New Hampshire, Alaska) ALL have populations under 1.3 million people. However two of the rich states that Google’s does record data for: Connecticut (pop 3,405,565) and Minnesota (pop 4,919,479) both have lower populations than four of the poorest ten states that don’t have a Google record.

This rules out population size as the only predictor of data availability or market maturity. Two preliminary likely causes that may lead to lack of data for low wealth populous states is that they are likely to have low internet usage and low diagnosis rates. Without diagnosis, their need for gluten free products would not exist and search demand would be very low.

US RICHEST States analysis

Data is available for Maryland, New Jersey, Connecticut, Massachusetts, California, Virginia and Minnesota. Data is not available for Hawaii, New Hampshire, Alaska.

The similarity in growth profiles between the ALL American growth trend and the wealthy states suggests that these states have the most effect on the total countries growth in general. It is noted that the vast majority of these wealthy states are all geographically close by to each other in the north east of America, so they are likely to have cultural similarities.

The ‘ALL American’ gluten free e-demand growth trend is one of the highest of all the developed countries under analysis. Of the top ten wealth states in the US, California has the largest population but has only an average market growth rates, compared to the other rich states. High wealth is likely to be contained in its largest cities like San Francisco and LA with regional wealth and interest in gluten free searches reducing the overall growth rate. Also as a whole the state is likely to have achieved its growth relatively early and may have a high absolute search numbers already, reducing its growth rate potential.

Lowest growth rate HIGH WEALTH states

Connecticut and Maryland are the first and third highest wealth states in all of America yet over the last couple of years they have had the lowest of the rich states growth rates. In particular Maryland has the highest ‘wealth per population’ value and the lowest growth profile. This could mean that it has already peaked in absolute search terms or that it simply isn’t growing as fast as expected. Of equal influence maybe that Maryland state while having a high population of 5,296,486 and a high density of 222 people per square km, however it has a relatively small ‘largest city’ of Baltimore with around 635,000 people.

Connecticut is the third richest state but only has a population of 3.4 million people. Connecticut area is 12,548 square km with a population density of 279 people per square km but again its largest city is Bridgeport with a population of 140,000.

It is believed that besides the need to have a minimum state population, that a relatively high urbanization may be required to achieve critical mass of both diagnosis, word of mouth and a substantial gluten free market.

Highest growth rate HIGH WEALTH states  

Massachusetts (popn 6,349,097, sq km 20,305, popn density 320) is said to have most of its population in the Boston metropolitan area. Boston itself has a population of 600,000.

Virginia is the highest growth of the wealthiest states. (popn 7,078,515, Area is 102,547 sq km, popn density 75). The population density is low, but this is because compared to the other states analyzed above, it has one of the largest areas. However with its large area, it still has a very high level of urbanization, with its top five cities accounting for nearly 1 million people: Virginia Beach, 438,415; Norfolk, 231,954; Chesapeake, 218,968; Arlington, 195,965; Richmond, 193,777;

For America, It would appear that high wealth, high urbanization, and states above four million people are needed to generate the highest growth in gluten free demand.

AUSTRALIA

Australia’s three most populous states and capital cities (abs data June 2007) are:

          NSW      6,888 M    (Sydney = 4.334M)

          VIC      5.204 M    (Melbourne 3.805 M)

          QLD      4.181 M    (Brisbane 1.857M)

          TOTAL Australia population = 21.015 M

From the population information it can be seen that the three largest states in Australia comprise the majority of Australia’s population, and within those states, the populations are largely within the capital cities.

At the start of this article it was stated that Australia has a ‘celiac search per month’ value of 4.4 compared to America’s 2.2. Thus while Australia has a much higher search value per celiac, its gluten free search growth rate is much less than America because it is closer to maturity and plateuing.

The net worth data shows that apart from house prices (much higher in Sydney than Melbourne) that Sydney and Melbourne have a similar wealth profiles. As these two cities have similar populations, level of urbanization, wealth, education and race profiles it can be seen that their gluten free growth trends are also very similar. Also note that just like the less populous states in America, Brisbane is the lower wealth and lower population capital city, of the three states analyzed in Australia, which has resulted in it having the lowest growth trend of the three largest states.

The high level of urbanization (large proportion of state populations in large cities) seems to be one of the main reasons that Australia’s ‘celiac search / mth’ rate is higher than the US.

CONCLUSIONS

From the analysis of America’s top ten wealthiest states and Australia’s three wealthiest states, it appears that the wealth of a state (per person) is a good indicator of the gluten free searches GROWTH trend (and most likely the awareness of celiac disease). The highest ‘wealth per person’ states have a much higher growth rate of gluten free markets compared to the poorer states. This suggests that the markets are still in their infancy as the high wealth states are growing fast but beginning off a low base. This is in line with general low diagnosis rates.

It also appears that there is a population threshold for states where gluten free registers in the ‘publics consciousness’ to have them search in sufficient numbers to be recognized by Google. For example Connecticut (population 3,405M) is the third richest US state (per person), but it has one of the lower populations and lower urbanizations, which leads to one of the lowest growth trends of the wealthy US states. Queensland’s capital, Brisbane (population 1. 857M), is a lower proportion of the state’s total population (compared to NSW and VIC) which leads to QLD having a gluten free search growth profile that is substantially lower than VIC or NSW.

It would also appear that a high wealth states with high urbanization are also likely to have potentially higher educated populations and more likely to seek out resolutions to health conditions such are caused by things like celiac disease.

Wealthy states that are more rural populations are likely to have less access to internet, and have less experienced (regarding celiac disease diagnosis) doctors causing less gluten demand and low gluten demand growth rates.

At the other end of the scale it appears that the largest wealthy states are likely to have already generated a substantial base for gluten free searchers several years ago and thus the relative growth trends of the wealthy most populous cities in America (California) and Australia (Sydney) are not the highest growth trend states because they are beginning off a high base and may be slightly more mature markets.

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Commercial real estate investing is a kind of investing which is used for business purpose. The commercial real estate investing property is different from other real estate investing like agriculture, residential and other industrial purpose. Commercial real estate investing property provides reasonable price consideration from the investment property and also provides income for long period. In real estate investing, real estate investors make investment on commercial real estate investing. Commercial real estate investing is made by most of the real estate investors, because it fetches more profit for the seller at the time of sale of real estate investment property.

The main purpose why people prefer to make their real estate investing is that commercial real estate investing provides stability and high return in the market. The other advantage we obtained from commercial real estate investing is that it provides investment securities for the real estate investment property purchased from the real market. Real estate investing market is said to be the stable market and it also carries high returns on investment for the property purchased. It is the obligation of the real estate investor to see that the real estate investing property fetch more profit among the customer and it realize more profit. Some of the standard features of commercial real estate investing are

High return

The main advantage of commercial real estate investing property is that it carries high return on investment. More number of people procures real estate property because of its returns provided. Real estate investor enjoys the benefits provided by the real estate property with high return and turnover during the period of sale of real estate investment property. Real estate sector is the wide sector where it carries huge number of properties required with desire prices.

Stability

The other unique feature of commercial real estate investing property is that its stability and consistency with the world market. When though more number of real properties are available in real estate investing market, still commercial estate investment obtains more demand among the customers for reasonable price consideration. Real estate investing benefits are provided more in real estate investing and it is due to the stability provided in the real market.

Commercial estate investment provides long term security of cash flow for the real estate investors who had made their real estate investing. Commercial real estate obtains more demand among the customer and they provides more return on investment with principal and interest. This kind of investment obtains more demand, growth, return and stability compared to other real estate investment property in the real estate market.

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