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