The Rise And Fall Of Dubai Property Market: Abu Dhabi Property Market

Prior to 199 the right to purchase property in Dubai was restricted to the citizens of Arab states that made up the Gulf Cooperation Council (GCC). However, in 1999 when new residential and commercial projects was launched, the Dubai Government decided to open selected projects to foreign investment.
The policy makers were of the view that this measure would open doors to international property investors from France, Spain, the UK and US. They were right; and people from all over the world, including Pakistan, invested in the Dubai Property Market.
The peak period started in 2002 and saw Pakistanis invest more then US$10bn. According to the data available, 3290 property unites were booked by UAE nationals, 3243 by British nationals, 2510 by Pakistani nationals and 2450 by Indian nationals.
The third quarter of 2008 saw the Dubai market slump to unprecedented levels. This was due to a number of reasons including surplus supply, the hike in property prices, negative population growth, lack of mortgage facilities, defaulting buyers and the cancellation of many building projects by builders. By the end of 2008, foreign investors had disappeared from the Dubai market due to the global economic crunch.
Ever since, the glut in residential and commercial property has compelled owners to slash prices by more then 50%. Yet this too has failed to lure investors back, as they are anticipating a further decline in Dubai property prices in 2011.
TO make matters worse, the Dubai Government recently announced the imposition of a five percent tax on residential units and a 10% property tax on commercial units. This is in addition to the one percent transfer fee based on the selling price that is payable by the seller and purchaser of the Dubai property. Such taxation measures are bound to reduce the number of transactions taking place.
Stay in touch for the second part of the feature.

Buying And Selling Property: How To Sell Property In Reasonable Price:Tips On Selling Property

As the world wide slump in the real estate market continues, a definite trend in consumer behaviors has emerged which has seen more people interested in selling property rather then buying property.

In Pakistan, the stagnation in the market has considerable drop in both the purchase and the selling of property for a variety of reason including:
- The wide gap between the prices demanded by sellers and what buyers are willing to pay.
- The higher collector rates announced in the current budget.
In such a scenario, the question is what should people who wish to sell their property and do still obtain a reasonable price?
Property owners have two options:
1) Hold on to the property until the market picks up, which may be a few more years.
2) Sell the property immediately based on the higher offer made by a legitimate buyer.
One of the drawbacks of adopting the first option is the uncertainty attached to when better times will come and more importantly the fact that prices are unlikely to rise significantly any time in the future for sellers to make sizable profits.
The Second option on the other hand provides the opportunity for seller to not only sell their property at reasonable rates but to further invest the money earned from such sales in low prices property currently available in the market. The point is that in these slow times there are always some desperate property sellers willing to sell their property at bargain price and changing rates from seller to buyer is much easier to do now then under normal market conditions.

What Techniques Should A Credit Analyist Use For Consumer And Small Business Lending

There are some techniques which a credit analyst should use to assess the consumer(individual) and small business lending. Individual consumer loans are scored like mortgages, often without the borrower ever meeting the loan officer. Unlike the mortgage loans for which the focus is on property, however, non mortgage consumer loans focus on the individuals ability to repay. Thus credit scoring models for such loans would put more weight on personal characteristics such as annual gross income, the Total Debt Service score, and so on.
Small Business are more complicated for a credit analyst, because the FI is frequently asked to assume the credit risk of an individual whose business cash flows require considerable analysis, often with incomplete accounting information available to the credit analyst. The pay off for this analysis is also small, by definition, because loan principal amounts are usually small. A $50,000 loan with a 3% interest spread over the cost of funds provide only $1500 of gross revenues before loan loss provisions, monitoring costs, and allocation of overheads. This low profitability has cause many Financial Institution to built small business scoring model. These models often combined computer bases financial analysis of borrower financial statements with behavioral analysis of the owner of the small business.

What Is Corporate Finance:Corporate Financing:Corporate Finance Solutions

1.  Corporate Finance:

                 Corporate Finance is an area of Finance which deals with corporate level. For Instance when company deals with their financial issues specially when they are seeking to minimize financial risk in order to improve their performance that is known as Corporate Finance.
It actually deals with the financial ratios and other financial issues of corporate level. Companies always wants the solutions of their financial issues. Such like Tax, risk and other issues related with capital budgeting. Here i will discuss the solutions of Corporate Finance. I will explain briefly here that how we can try from the heavy tax by doing some change in leverage and owners equity. But before talking about the solutions of Corporate Finance we need to know that what type of issues can be raised at corporate level, Further more we will see that how these issues can put impact on the performance of companies. The first issue is of Tax. No company wants to pay a big amount as a tax they just want to minimize their tax by adopting different techniques.
How To Minimize The Tax:
                  Every company always try to minimize the tax. Tax is basically depend upon the value of the company and in the value of company Both Debt and Equity is included. Higher the value higher will be the tax amount impose on the company. The Companies who are without leverage always have to pay greater amount of tax as compared to those companies who contains leverage. So Debt occurs as a Tax Shield for the companies which contains Debt. So If any company want to minimize the burden of tax they should not be Debt free and should must take some Debt from the Financial institutions.
        Second problem is about the Risk. As for capital budgeting heavy investment is involved, as we are dealing with fixed assets so we always try to minimize the risk.
How to Minimize The Risk:
              For Minimization of Risk companies should forecast the situation and they should analyze the Risk that how they can minimize the risk regarding with their purchase of fixed assets. Moreover they should forecast the profit which can be given by that capital budgeting. They should never focus on the large profit from their heavy investment instead of this they should focus on on small risk, As we all know that higher the profit higher would be risk.
   Third Issue which could be raise for the companies is actually of Time Value Of Money(TVM). I am expecting that everyone who is reading this article would be familiar about the time value of money. So the solution of this problem is this that companies should not leave their cash in the idle form they must have to invest their canst in some financial instruments such like T bills and Bonds etc, They can buys the shares of other companies also. This is the only solution to overcome the problem of time value of money.
  These are the few problems which frequently faced by the companies, and the corporate level. Related with that i have discuss solutions of corporate finance as well. I think this article would be helpful for those who are beginners or who have little bit practical information about the problems of Corporate Finance.

Pakistan's First Floating Hotel And Mall: Karachi pakistan Hotel

Rumor has it that Pakistan's first five star floating hotel and mall, designed by internationally reputed architectures and promoted by local developers, will be built and completed by 2010 at a total cost of six billion Rupees.
This gigantic commercial "complex", will be located on a ship(330feet long and 110 feet wide) towering five storeys high and will be encored offshore near sea view, DHA V and VI, in Karachi Pakistan. It will be built by the Karachi shipyard and Engineering works. The floating hotel and mall will be operated by a hotel management firm. The ships will have shops, restaurants and play areas fro children.
The mall is said to have a security plan that will comply with the International ship and port security code (ISPS). The ISPS code stipulates various minimum regulations, such as the installation of a ship security alert system, CCTV to monitor sensitive areas, restricted access to these areas and fire prevention measures.
There will be 110 shops on board the ship ranging in size from 100 to 1,000 sq feet. Although the prices of the shop have not been made public, a couple of interesting details have emerged regarding the financial aspect of the project. To begin with, buyers will deposit money into as escrow account rather then paying it directly to the developers. However, there investment will be fully insured by a reputed insurance agency in case developers default on any aspect of this project, the first floating hotel and mall in Karachi Pakistan.
Although there will be no restrictions on buying and selling, investors wishing to sell their space will have to pay a one percent transfer fee to the developers. The transfer fee will be based on the prevalent selling price.

Building PR In Real Estate:Real Estate Pakistan

Most real estate agencies lose business due to one basic reason: they do not bother to call clients, once the deal is completed. Nor do they maintain a database of those clients with whom deals could not be completed and a result lose out on an opportunity to maintain goodwill in the market. The fact of the matter is that real estate agencies are more earned inclined to earn revenues rather then build credibility and do not bother to allocate a separate budget properly put together a list of clientele.
Here are few tips that can make real estate agencies more effective in building PR:
1) Develop a comprehensive website of a real estate agency describing the areas of expertise.
2) Send E-mails to prospective clients, describing the salient features of the properties from inventory list.
3) participate in events and program that can give maximum exposure to your real estate agency.
4) Develop a working relationship with people who have authority and can take decision to buy, sell or rent properties. Be proactive and send them relevant news and articles from time to time.
5) Publish articles online to your position your agency as a leader in the field.
6) Find out what kind of properties your target audience is searching for on the internet.
7) Conduct real estate seminars to spread information among property buyers and sellers. If the seminar become popular, invite the local media to attend for print and electronic coverage.
PR can strengthen your real estate marketing program with credibility and targeted exposure for the fraction of the cost of traditional advertising, but it requires patience and persistent. Remember that although real estate PR takes time and effort, the results end up in financial gains.

The Pre-purchase House Survey: Buying A House: Check List For First Time Home Buyer

Buying a house is one of the most important decisions will make, and as a buyer you need to check many aspects of a property before making your final decisions, including location, look, and finish.
Once a decision is made many home buyers take a long time negotiating the deal with the seller and then vetting the property's title documents. Although this is important, what most home buyers forget to do is hire the services of a professional building surveyor.
There is little sense in spending million of rupees buying a house and then discovering that the house needs another investment of few million to make necessary repaid to put the house in order moving in. It is far better to be aware of any potential repairs before the house is purchased, and this is where a professional building surveyor can be of great help. When a surveyor is hire they will evaluate:
1) The Foundation.
2) The drainage system.
3) Floors, stairs, interior walls and ceiling.
4) Windows, doors, ventilation.
5) Electricity wiring.
6) Cooling and Heating system.
Having a pre-purchase building survey carried out by a reliable building surveyor during the buying process can save millions of rupees on matters that can be put right by the seller or builder before the property is sold.
Remember, Buying a house is not an easy task and it is wiser not to make the biggest purchase your most costly mistake.