| The current worldwide boom in residential | | | | the real estate and lending businesses are |
| real estate prices is "the biggest bubble in | | | | making hay when the sun shines. Their |
| history," according to a disturbing new | | | | credibility is questionable and of late the |
| report in the Economist magazine. In spite of | | | | mushrooming of such companies has begun to |
| the scams, rising prices and other factors | | | | take shape in the form of regional services |
| visiting the market, there is so much demand | | | | that go serving the customized needs of |
| running through every individual and business | | | | individuals. But what's their background? And |
| requirement, especially in the United States. | | | | how reliable are they? |
| It's never a dormant market globally. | | | | |
| | | | Global news on lending, mortgage and real |
| Lending and home purchase… | | | | estate |
| | | | |
| US real estate market which is one of the | | | | One of the affluent media giants, The Wall |
| largest and the most happening has | | | | Street Journal reports that investors and |
| experienced one of the largest increases in | | | | other mortgage buyers are starting to battle |
| home prices over the past year, with the | | | | with lenders over taking back loans that |
| average cost of a home rising by 12.5 | | | | borrowers are unable to repay or that contain |
| percent. Surprisingly, the trend seems to be | | | | underwriting errors. This is a reminder to |
| the same across several other countries of | | | | beef up their underwriting criteria. |
| the world. Other countries have showed gains | | | | |
| even higher than the US in the last year, | | | | Another globally relable news source The New |
| with prices rising by 23.6 percent in South | | | | York Times reports that mortgage fraud |
| Africa, 19 percent in Hong Kong and over 15 | | | | climbed to $1 billion last year from $429 |
| percent in Spain and France. | | | | million in 2004, with experts attributing to |
| | | | lenders' dependence on brokers and appraisers |
| It's believed that the global housing market | | | | push deals through. The lending industry is |
| is undergoing correction and no economic | | | | being scrutinized for not undertaking more |
| recession is anticipated. | | | | due diligence, considering that it uses |
| | | | numerous means to identify fraudulent loans. |
| Why this global rise? | | | | |
| | | | A word of caution… |
| Mainly because the other forms of investments | | | | |
| are turning out to be riskier. Experts say | | | | As real estate or loan requirements are |
| that the trend is expected to continue not in | | | | almost inevitable, it becomes a difficult |
| one but in many countries. Whether you are a | | | | task when seeking help. Though there is dire |
| businessman or an individual with anything | | | | need, the credibility of companies has to be |
| else as your profession, there is at some | | | | completely dissected before any investment is |
| point when you reach out to real estate | | | | made with them. Big companies with nationwide |
| requirements in the form of land, apartments, | | | | presence can be better alternatives as |
| residence, villa, commercial place, etc. | | | | reliable sources. However, there are others |
| Owning space in prime localities is a higher | | | | who are small yet render trusted results. All |
| investment al together. | | | | said, a little probing into their background |
| | | | before investing will result in fetching |
| Not to say the least, small size companies in | | | | returns at a later stage. |