Real-Estate Mortgage: an Easy Option to Solve the Housing Problem

In an interview with one of the Kuwaiti daily newspapers it was revealed that Kuwait Credit Bank is currently conducting a special study on real-estate mortgage. Salah Al- Mudhaff, Kuwait Credit Bank manager said that real-estate mortgage is still being studied. This study will not be readyat least before six months. Afterwards the study will be submitted to the Minister to submit it to the cabinet.

The experts added that the mortgage processes should be under control. Guarantees should be available to keep the rights of the banking sector which will finance such mortgages. As banks are the backbone of the country’s economy. The experts pointed that this system contributes to solving the housing problems and it is applied in most countries worldwide with different concepts. Here we provide details.

Investors, don’t be Allured by Low Prices and High Returns of Abroad Investments

In the light of fluctuations and risks in local, Arabic and Regional markets along with high increase of local real-estate prices in Kuwait, a large portion of Kuwaiti investors are heading currently towards international real-estate investment abroad as a safe haven in such unstable circumstances. It is considered a cheap investment suitable to the savings of the largest section of investors.

Meshaal Al-Melhem, Vice President of Blue Print Real-Estate Consultations Co. in a statement to Al-Anbaa Kuwaiti daily newspaper said that these trends are currently clear. However the investors are often unaware of all elements related to the issue. Most of them focus only on investment prices and returns, ignoring many serious aspects in this field.

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Meshal Al-Melhem: Real-Estate Market Suffers from Legislation Crisis Not Land Problems

Blue Print CEO Meshal Al-Melhem emphasized the importance of real-estate sector in Kuwait, taking into consideration the weakness of services, agricultural and industrial sector.

In an interview with the Kuwaiti Magazine Finance and Business مال وأعمال, Al-Melhem said the Kuwaiti real-estate market faces many challenges such as shortage of liquidity, lack of suitable legislation and shortage of the private sector support.

There is no shortage of land. It is well known that 95% of the land of Kuwait is vacant and considered an open land. The problem is that there is no legislation or a wish to find alternative solutions for the housing crises.

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Real-Estate Experts Call For Control Authority to Prevent Fraud and Misleading

The outstanding marketability of some abroad real-estate projects seduced many investors. The offers were widespread to buy apartments, student studios and even villas with unbelievable returns, especially in the current circumstances.

However, many of the companies which marketed those projects have excellent reputation and trust, due to their clean history in marketing and paying project’s returns. Yet many emerging companies in this field turned to make clients feel unsafe. Thus clients call for establishing an active authority to control and monitor the new markets before it could be “real chaos”!!

This issue was the main topic at a “diwaniya” (symposium) hosted by Kuwaiti Real-Estate Union. Al-Rai the Kuwaiti daily newspaper, participated in the event. Real-estate experts were involved in a heated debate on fraud and misleading actions in the European real-estate projects. The stimulation of investors is based on the promise and expectations of big profits and returns.

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Exclusive interview with BP, Knight Frank, and Weston Homes

The UK Property Market : An exclusive interview with Blueprint Advisory Services, Knight Frank, and Weston Homes discussing major issues that property buyers question regarding Post UK elections, how the UK property market is effected, taxation, and the exclusive launch from the well reputed developers, Weston Homes, the developers of Grand Central – Cambridge.

Blueprint Real estate Investment and Advisory Services in association with Knight Frank UK, discussed in depth the major concerns and factors about the UK Market today. CEO, Eng. Meshal Al Melhem with intensive detail, discusses all aspects of the pros and cons of the UK market, whether you would like to invest, own, or reside in the UK. Most Kuwaiti investors major concerns is the upbringing of new taxation laws, and the effect that it may have regarding owning property in the UK, Eng. Al Melhem explains the transparency of the UK market, and the stability and security of owning UK real estate.

Knight Frank, leading independent global property consultancy, address in the interview the forecast of the UK property market for year 2015, expecting the UK property market to rise within the next upcoming months of 2015 and the next years to come.

Chairman of Weston Homes, Bob Weston, in a one on one discussion, concentrates on Cambridge, the famously known historical city and the major benefits of property investment. Cambridge is well reputed for being an academic empire, holding one of the most eldest universities in the world, The University of Cambridge, and talking about the beauty of the city itself. Cambridge is well known for the beautiful serene nature of open green space, historic architecture, the city of academics and working professionals. Bob Weston, elaborates on the investment securities when investing in Cambridge, when owning a property in Cambridge, investors benefit from the major demand in letting, capital growth, and competitive advantage. Grand Central – Cambridge is a newly underdevelopment property scheme in the central city of Cambridge, providing new modern homes for investors and property owners with easy access to transportation, facilities, educational facilities, companies, and leisure.

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The market needs real-estate mortgaging system and taxation tools

Local real-estate market in Kuwait is still in need of more measures and rules – like those in other countries to organize and facilitate work. It is necessary to set up criteria to control prices, selling and buying transactions and controlling taxes. There should be more clear rules and fixed systems for real-estate mortgage to solve the housing problem and activate the real-estate sector and other local investment sectors.

Many real-estate investors in Kuwait say that most of the real-estate controlling measures are still outdated and there is a real need for more developed measures like those taken in other countries.

They say that real-estate investment in Kuwait is still better than real-estate investments in other countries. Local security and safety could be deemed as prevalent as and much better than abroad.

Mortgaging is a practical tool to activate real- estate market and can attract more investors. This process needs more investors. This process needs more insurance measures to protect the banking sector which finances these mortgages as it is the case in other countries nowadays.

Experts in the real-estate market say this market needs the right measures to increase its stability and put an end to its rising prices besides the negative state of stagnation. They emphasize the dire need to activate the market through more practical and developed measures. We can benefit from the promoted criteria followed in other countries that witnessed more advancement and prosperity in the field of real-estate investment.

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New tax structure – To solve Kuwait housing problem

In an exclusive interview with the Kuwaiti newspaper Al Jarida, Blueprint CEO, Mr. Meshal Almelhem said the solution of the residential problem in Kuwait needs new taxing laws and legislations. He also confirmed that there are more than 100 elements to be taken into consideration before starting the right real estate investment. Unfortunately, most of the investors take wrong investment decisions abroad. Kuwaiti’s constitute the largest community of investors outside their country. As a result many companies exploit this fact and put forward real estate international investment offers most of them are not effectual or rewarding. “On our side, we affirm the Kuwaiti real estate investment market is the most internationally rewarding investment market in the world with higher returns. There are no competing real estate investments from foreign parties”, Al Melhem said. “Sorrowfully despite the huge capitals available inside Kuwait, there are no notable investment fields other than the real estate investment one”, added.

Al Melhem emphasized that Blueprint Company offers many real estate investment profitable opportunities. It is the only company in Kuwait that offers consultative services for the benefit of its clients. It has its real estate experts inside and outside Kuwait such as those in Britain (i.e. Knight Frank). These experts offer their services concerning finance, real estate types, interest rates, best locations etc.

He praised real estate investments in Britain because of laws transparency. Unlike Middle East, investments in Britain are most stable, protected and having better infrastructure.

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European Real-Estates Attract Gulf Investors, Britain and France in the Front Line

Gulf real-estate investors are strongly attracted to the European real-estate products nowadays. This is because their prices are steadily rising proving their higher value in the market especially in Britain and France. This is the cause of the late flourishment of the British and French real-estate and the rising of the European real-estate product prices.

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A word of caution for investors regarding European properties being marketed in Kuwait

Blueprint’s Vice Chairman and Managing Director Mr. Meshal Almelhem said in a press interview with Alrai Newspaper that “Investors should take extreme caution when purchasing real-estate properties abroad” as some of the local companies are providing misleading information to their clients to encourage them to purchase.

The clients should satisfy themselves of the availability of supporting services in the location such as health services, local law enforcement, Land Registry & Taxation as well as rules and regulations regarding a purchase of real estate property in that country.

He also warned investors about some international and local companies promoting agricultural lands which promises high returns saying that they could be converted into residential lands by obtaining a planning permission from the local council in the near future. In most cases this information tends to be inaccurate and those lands can only be used as agricultural proposes. Moreover, these companies always charge a premium to these properties depriving investors of original value and even when the investor tries to sell them, they face a huge erosion in the capital invested by them in such transactions.

The original article can be found here.

Alwatan Newspaper interview with Mr. Meshal Almelhem

Alwatan Newspaper, Kuwait, 1st March 2014

Vice Chairman and Managing Director of Blueprint Real Estate Investment Advisory, Eng. Meshal Almelhem, said in an interview with Alwatan Newspaper that “The Kuwaiti citizen is among the nationalities that purchase more properties abroad around the world & takes the lead in owning properties in many countries (Dubai, Turkey, Jordan, Egypt and Lebanon) although his country is secure.”

He added “during international real estate exhibitions we see the exhibited properties are local and only a small portion is international. while in Kuwait, we note that all exhibitions specialize in displaying the international property which captures record acceptability compared with its marketing in other Arab and foreign exhibits.”

Why does the Kuwaiti national buy property outside Kuwait although he enjoys security and economic prosperity at home?

The answer to this question is twofold, he said. The first is purely material and the second is psychological. The Kuwaiti buys real estate abroad due to the lack of investment channels inside. The Kuwaiti has high income and high liquidity but this liquidity of 100,000 and 150,000 Kuwaiti dinars is not adequate enough to buy a piece of land or home in Kuwait.

He added that after the bad stock exchange experiment and lack of investment channels, the Kuwaiti national resorts to the international real estate as investment substitute. Therefore, we find that about 70% of the cases that took refuge to global real estate investment were subject to deception and lost their funds because they relied on bogus schemes, or agricultural lands that may be transferred to residential land. Most of these are promises that led to the loss of nationals’ funds.

the rest of the article is available at this link

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