Peak Performance For Property In The French Alps

As the 2007/2008 ski season enters the final few weeks of the winter, the alpine property market continues to show positive results in popular mountain resorts. The French Alps have long held great appeal for those seeking to buy ski property and it appears that the British love of the great outdoors has continued to push prices upwards despite a sluggish property market at home.Recently released reports show that property prices in the ski resorts of Haute-Savoie increased by over 13% for re-sale apartments in 2007, with some mountain destinations showing price growth of over 20% year-on-year. According to figures released by the estate agency association FNAIM, the average price per square metre in the northern French Alps has almost doubled since 2002, and now sits at 4,844 euros.Property in the French Alps is amongst some of the most sought-after and therefore the priciest locations in France and much of the growth in the past 10 years has been influenced by British buyers. The British now account for over 18% of the property sales in this part of the Alps; 10 years ago their market share was 2%. Property for sale in resorts such as Chamonix, Morzine, Les Gets, Megeve and Samoens is still highly desirable and a distinct lack of land to build on ensures that demand for the French Alps continues to outstrip supply.Buyers are increasingly choosing the northern French Alps because of the fantastic flexibility a property in this part of France can offer. The region is home to some of the largest ski and winter sports domains in the world, yet less than 50% of annual visitors to the Alps actually come here to ski. The summer seasons can be equally as popular as the winter; with breath-taking scenery, a multitude of outdoor pursuits to enjoy and a hot if sometimes unpredictable summer climate. As a result a property in the French Alps can cater for family holidays throughout the entire year. In addition to enjoying winter and summer holidays in the area, owning a property in the Alps offers great scope for seasonal rentals; enabling owners to really capitalise on their investment and recover many of the costs of their second home. Proximity to a major international airport at Geneva is another strong plus point; low-cost and scheduled flights arrive from the UK throughout the entire year and most resorts in the Haute-Savoie region of the French Alps can be reached within 1 hour of the airport.The future of any mountain destination really hinges on its ability to anticipate and adapt to client needs. Property hunters in today’s market are buying into a lifestyle product; they want to buy a ski property in a resort that has retained its alpine charm, that offers access to good and reliable skiing but also has plenty to enjoy in the summer, with lots of character and a distinctly old alpine French feel. The property needs to be a spacious and comfortable mountain retreat where the whole family can enjoy relaxing short breaks and longer stays. The northern French Alps and in particular the Haute-Savoie region are well matched to buyers’ requirements and this winning formula is reflected in the impressive price increases experienced by many of the mountain destinations in 2007; the price per m² in Flaine/les Carroz has leapt up by 23% in the past year, La Clusaz by 22% and across the Evasion Mont Blanc ski domain by 22%.With such high demand for ski property for sale it is no surprise that one property sale in four in Haute-Savoie is in a mountain destination. The highest concentrations of British buyers across the northern French Alps are in the Grand Massif, the Portes de Soleil, the Mont Blanc region and the Three Valleys ski domains. In these areas property in Chamonix and Megeve has always held a huge draw for British buyers and the resorts of Morzine, Les Gets and Samoens have all developed and grown massively over the past 8 years. These destinations are well placed to offer the quality and size of property that British buyers are seeking, combined with the allure of a year-round and attractive holiday destination.Developers of new build property in the Alps have increasingly listened to buyers’ requirements and are now focussing on providing more spacious properties with multiple bathrooms. 74% of all apartments sold in the resale market are studios and 1-beds. In new build apartments the most popular purchases are 1 and 2-bed apartments accounting for 72% of sales. The popularity of the larger properties in the new build arena is indicative of changing consumer needs and property designs have adapted accordingly.The repercussions of the 2007 US sub prime credit crisis and its subsequent impact on the UK housing market has tightened many buyer’s budgets and consequently the alpine property market has recorded a slower pace during the first quarter of 2008. This coupled with the recent fall in the sterling-euro exchange rate has caused buyers to think hard about what they can afford to invest in their alpine property. In recent years ski property for sale in the popular resorts was so scarce buyers had to move quickly and with little or no negotiation in order to secure their property. In today’s market prices are more negotiable, although resort centres are still recording a fast sales turnover and buyers do need to move quickly when they find the right property.Many of the vendors in the French Alps are British and planning to convert their euros back into sterling once their property has sold. The current euro-sterling exchange rate weighs heavily in their favour and as a result they can afford to be flexible when it comes to negotiation on the asking price of their property. The outcome is that both buyers and vendors are able to achieve a purchase price that they feel is fair and vendors are still able to cash in the benefits of a very healthy capital growth on their second home.Looking forwards to the remainder of 2008 it is anticipated that property prices in the French Alps will be stable, with some continued strong growth in developing resorts such as Saint Gervais les Bains and Les Contamines. More price negotiation will take place over the coming months and vendors that plan to convert their euros back to sterling will be able to capitalise on the exchange rate, which is not anticipated to improve until the final quarter of the year. Many buyers will consider a smaller property investment initially, with plans to sell and upgrade over the next 2-5 years. Land to build on is increasingly rare and the continued limited supply of property for sale across the French Alps will help maintain a buoyant property market.

Choosing a Commercial Property With Financial Advantage

When assessing commercial real estate, it is necessary to understand the financial factors that the property creates. This is before you price the property or consider it suitable for purchase. In doing this, it is not only the financial factors today that you need to look at, but also those that have formulated the history of the property over recent time.In this case, the definition of ‘recent time’ is the last three or five years. It is surprising how property owners try to manipulate the building income and expenditure at the time of sale; they cannot however easily change the property history and this is where you can uncover many property secrets.Once the history and current performance of the property is fully understood, you can then relate to the accuracy of the current operating costs budget. All investment property should operate to a budget which is administered monthly and monitored quarterly.The quarterly monitoring process allows for adjustments to the budget when unusual items of income and expenditure are evident. There is no point continuing with the property budget which is increasingly out of balance to the actual property performance. Fund managers in complex properties would normally undertake budget adjustment on a quarterly basis. The same principle can and should apply to private investors.So let’s now look at the main issues of financial analysis on which you can focus in your property evaluation:
A tenancy schedule should be sourced for the property and checked totally. What you are looking for here is an accurate summary of the current lease occupancy and rentals paid. It is interesting to note that tenancy schedules are notoriously incorrect and not up to date in many instances. This is a common industry problem stemming from the lack of diligence on the part of the property owner or the property manager to maintain the tenancy schedule records. For this very reason, the accuracy of the tenancy schedule at time of property sale needs to be carefully checked against the original documentation.
Property documentation reflecting on all types of occupancy should be sourced. This documentation is typically leases, occupancy licences, and side agreements with the tenants. You should expect that some of this documentation will not be registered on the property title. Solicitors are quite familiar with the chasing down all property documentation and will know the correct questions to ask of the previous property owner. When in doubt, do an extensive due diligence process with your solicitor prior to any settlement being completed.
The rental guarantees and bonds of all lease documentation should be sourced and documented. These matters protect the landlord at the time of default on the part of the tenant. They should pass through to the new property owner at the time of property settlement. How this is achieved will be subject to the type of rental guarantee or bond and it may even mean that the guarantee needs to be reissued at the time of sale and settlement to a new property owner. Solicitors for the new property owner(s) will normally check this and offer methods of solution at the time of sale. Importantly, rental guarantee and bonds must be legally collectable by the new property owner under the terms of any existing lease documentation.
Understanding the type of rental charged across the property is essential to property performance. In a single property with multiple tenants it is common for a variety of rentals to be charged across the different leases. This means that net and gross leases can be evident in the same property and have different impact on the outgoings position for the landlord. The only way to fully appreciate and analyse the complete rental situation is to read all leases in detail.
Looking for outstanding charges over the property should be the next part of your analysis. These charges would normally stem from the local council and their rating processes. It could be that special charges have been raised on the property as a Special Levy for the precinct.
Understanding the outgoings charges for the properties in the local area is critical to your own property analysis. What you should do here is compare the outgoings averages for similar properties locally to the subject property in which you are involved. There needs to be parity or similarity between the particular properties in the same category. If any property has significantly higher outgoings for any reason, then that reason has to be identified before any sale process or a property adjustment is considered. Property buyers do not want to purchase something that is a financial burden above the industry outgoings averages.
The depreciation schedule for the property should be maintained annually so that its advantage can be integrated into any property sales strategy when the time comes. The depreciation that is available for the property allows the income to be reduced and hence less tax paid by the landlord. It is normal for the accountant for the property owner to compile the depreciation schedule annually at tax time.
The rates and taxes paid on the property need to be identified and understood. They are closely geared to the property valuation undertaken by the local council. The timing of the council valuation is usually every two or three years and will have significant impact on the rates and taxes that are paid in that valuation year. Property owners should expect reasonable rating escalations in the years where a property valuation is to be undertaken. It pays to check when the next property valuation in the region is to be undertaken by the local council.
The survey assessment of the site and tenancy areas in the property should be checked or undertaken. It is common for discrepancies to be found in this process. You should also be looking for surplus space in the building common area which can be reverted to tenancy space in any new tenancy initiative. This surplus space becomes a strategic advantage when you refurbish or expand the property.
In analysing the historic cash flow, you should look for any impact that arises from rental reduction incentives, and vacancies. It is quite common for rental reduction to occur at the start of the tenancy lease as a rental incentive. When you find this, the documentation that supports the incentive should be sourced and reviewed for accuracy and ongoing impact to the cash flow. You do not want to purchase a property only to find your cash flow reduces annually due to an existing incentive agreement. If these incentive agreements exist, it is desirable to get the existing property owner to discharge or adjust the impact of the incentive at the time of property settlement. In other words, existing property owner should compensate the new property owner for the discomfort that the incentive creates in the future of the property.
The current rentals in the property should be compared to the market rentals in the area. It can be that the property rent is out of balance to the market rentals in the region. If this is the case it pays to understand what impact this will create in leasing any new vacant areas that arise, and also in negotiating new leases with existing tenants.
The threat of market rental falling at time of rent review can be a real problem in this slower market. If the property has upcoming market rent review provisions, then the leases need to be checked to identify if the rental can fall at that market review time. Sometimes the lease has special terms that can prevent the rent going down even if the surrounding rent has done that. We call these clauses ‘ratchet clauses’, inferring that the ‘ratchet’ process stops lower market rents happening. Be careful here though in that some retail and other property legislation can prevent the use or implementation of the ‘ratchet clause’. If in doubt see a good property solicitor.
So these are some of the critical financial elements to look at when assessing a commercial Investment Property. Take time to analyse both the income and expenditure in the property before you making any final choices regards property price or acquisition.

4 Reasons The Study Of Organizational Behavior Is Imperative

The managers or entrepreneurs are the leaders who can shape the success of their organization. For a successful run, a leader needs to ensure that the business carries out its internal and core operations Organizational Behavior plays a vital role in any enterprise’s success. It outlines the system in which the company will run, where it’ll fit in the industry and it also decides the future of the company. It defines the vision, mission, and goals of the company and outlines a way in which the members of the company will interact with each other. Thus, every manager or entrepreneur should learn the core principles of Organizational Behavior for the success of the business. Here are a few more reasons that exemplify the significance of the study of organizational behavior:

1. It helps in understanding the mission of the enterprise
Every organization has its quintessence or its purpose of carrying out the intended operations. Organizational behavior aids the entrepreneurs in defining the task of the organization- what a company will do and how it’ll do it. It defines an infrastructure that will be followed by the company throughout its run. It also emphasizes on establishing a mission statement that the company wants to achieve through its operations. The mission is not only monetary but it speaks of the company’s culture and aims at bringing a change in the lives of the customers, stakeholders and all the people involved with the company. The mission statement tells everyone about the goals of the organization and can be used to gauge the effectiveness of its operations.

2. It aids in establishing clear expectations
The organizational behavior not only helps in establishing a mission, but it also helps the managers or entrepreneurs in setting expectations for the employees, stakeholders as well as the customers. It helps in formulating the chain of command performed by each employee and also decides the kinds of vendors and customers the company should expect.

3. It helps in better decision making
The organizational behavior paves way for uniformity in the company and its core values. The establishment of the uniform mission, actions and messages facilitate the managers to make better decisions that are fruitful for the company. Organizational Behavior entails an identity to the organization so the managers can make their decision aligning with the nature of operations of the organization.

4. It ensures that managers hire the right person
The employees are the main pillars of organizational behavior. The people that bring new ideas and passion to the organization are considered as the perfect employees for the organization. If the organizational behavior is clearly defined, the newly employed candidates can easily understand their duties and it also makes easy for the managers to hire the right people and communicate with them effectively.

Would You Benefit From Making Early Payments on Your Auto Loan?

Monthly payments make up an important element of the auto loan. The amount of money that you will pay each month depends on a number of things; such as the money you put down, the value of the car, loan term, your current income and credit score, etc. Many a times people wish to repay their auto loan earlier than their term or wish to get the loan refinanced. Understanding the effect of paying your loan early vis-à-vis making timely payments can help you in making a well-informed decision.

Pay Early or Pay on Time: The Auto Loan Question

· Are you interested in making Early Payments?

You know you are a financially adept individual when you think about paying your auto loan early rather than spending the money on frivolous things. The following pros and cons of prepayment will take you one step closer in making the right decision.

Pros: The reduction in the interest amount can help you save a great deal of money. Paying off your auto loan early gives you the financial freedom to use that money elsewhere. Secondly, if you are going to receive a large sum of money in the near future, it is wise to prepay your loan instead of spending it elsewhere. It will make your debt-free early and allow you to live a tension-free life.

Cons: Timely auto loan payments mean that you have planned your finances in an efficient way. If you repay your loan all at once, it may project that you are unable to manage your credit. Remember prepayment of your auto loan will not hurt your credit score, however, it will not improve the score either.

· Do you believe Timely Payments are a Good Choice in the Long Run?

Small payments made every month can surely have a positive impact on your credit rating. The following pros and cons will help you clarify the advantages and disadvantages of timely payments.

Pros: Timely payments made every month are certain to keep your credit score in check. Many a times people may forget to make the payments on time. However, automatic bank payments can help you to keep your payments regular. A shorter loan term with timely payments will help you in obtaining lower interest rates and an overall cheaper auto loan deal in the future.

Cons: An automatic timely payment means that you will have to maintain a certain balance in your bank account, which may temporarily block your finances. A certain amount of your income gets allocated to the monthly payment. Compared to a prepayment strategy, timely monthly payments carry less financial freedom.

Your Auto Loan Payment Schedule: What is Best for you?

Income is an important element that decides which option you should choose between paying your auto loan early and making timely payments. If your monthly payment is manageable and your income supports the loan, you should opt for timely payments. However, if your income source is unstable and you require a car on an immediate basis, you should opt to make a prepayment of your entire loan. On the basis of your financial situation and circumstances, make the wiser choice.