How Will The Euro Debt Crisis Affect Property Prices?

Many factors have led to the Euro Debt Crisis. First, the US economy remains sluggish, with unemployment rates hovering above 9.1% as of third quarter of 2011. Demand for goods and services remain at an all-time low.

Across the Atlantic, Iceland’s entire banking system collapsed in 2008. The Icelandic recession then sparked a cascade of financial crises that would rock the economies of Ireland, Portugal and, most especially, Greece two years later.

The problem of these economies is that their debts have ballooned to such high levels, their governments couldn’t even pay the interest, much less the principal. Credit default loomed as an inevitable bitter solution.

Sounding the alarm

Fortunately for Ireland, Portugal and Greece, they all belong to a formidable economic block known as the Eurozone. Soon after these countries’ governments sounded the alarm, the EU and the IMF came to their aid with a bail-out package.

Ireland received as much as 85 billion euros to rescue its ailing banks.

Portugal’s economy went on the verge of bankruptcy because of excessive government spending and risky debt creation. These events were further worsened by credit rating agencies’ speculations, which downgraded Lisbon’s rating overnight. The EU and the IMF shelled out 78 billion euros to bail Portugal out of this crisis.

Greek crisis

The case with Greece is much more complicated. Like Portugal, massive budget deficit and failing to pay its debts almost led to a credit default. Athens was given a bailout package amounting to 110 billion euros in 2010. In 2011, a second bailout package of 109 billion euros has been laid out.

The loans came with a heavy price. Greece must now adopt a number of harsh austerity measures to improve its market outlook. Job cuts and high taxes suddenly became the burden of every Greek. Despite all these, there is still no guarantee that Greece will not default in the end.

Ireland and Portugal are still reeling from their credit downgrade.

But there is a silver lining in all of these events.

Property prices: the silver lining

With many businesses closing shop and home rentals going down, property prices have dropped almost instantly. If there is ever a good opportunity for foreign investors to come in, now is the perfect time.

The price of one ritzy villa – complete with swimming pool, sauna, and private gym – in a prime residence area Portugal has been cut by as much as 57%. In fact, property in many areas of Europe has become so affordable, a London-based development and property search company has reported a ten-fold increase in property inquiries in Italy alone.

In Windsor, private equity investor David Hammond bought four properties in Portugal because the prices were so cheap and the properties in such good condition, he just couldn’t resist. He added that he would have had to pay twice as much for the same property had he bought them before the recession.

This has become the trend all over Europe.

Where to buy

Of course, the great European bargain doesn’t come without hassle. The governments of Greece, Portugal and Italy have either increased their property taxes or revised foreign ownership laws, in response to the real estate rush.

In Portugal, however, the process of owning a property has been streamlined to better meet the demands of a hungry market. The rules are fairly straightforward, and the fees are clearly listed down before a prospective buyer starts shopping for real estate.

General consensus among estate agents says that a Portugal property is the best value for money. Not only are they more affordable than those in other European countries, the properties are also often found in places with stunning beauty such as in the Silver Coast and in Algarve.

Risk Management Should Be Top of Mind – Stop Making Excuses

The global financial crisis is a perfect example of what can happen when nations and companies ignore risks (read: do not heed the warning signs) in the hope that the inevitable will not and can not happen. There is no time like the present to implement the company contingency plan. Below is a framework to help your team start the process of developing a risk management program. Not only is it the smart thing to do; it is the right thing to do.

Step One: Bite the bullet and get started. If you are like most companies, identifying potential risks is probably the hardest part of developing a risk management scenario. In fact, this is cited as the main reason why most companies put it off. Not only is this just an excuse; it is lazy and irresponsible thinking. If your management team is at a loss as to how to get started, you are in luck. Standard & Poor (S&P) has created a list of four major risk categories that can be just the springboard you need to hold your first brainstorming session. Listed in alphabetically order, they are:

Environmental Risks:

  • Business continuity
  • Business market environment
  • Environmental
  • Liability lawsuits
  • Natural disaster/ weather
  • Pandemic
  • Physical damage
  • Political risk
  • Regulatory/ legislative
  • Terrorism

Financial Risks:

  • Capital availability
  • Credit counter party
  • Financial market risk
  • Inflation
  • Interest rates
  • Liquidity

Management Risks:

  • Corporate governance
  • Data security
  • Employee health and safety
  • Intellectual property
  • Labor disputes
  • Labor skills shortage
  • M&A/restructuring
  • Managing complexity
  • Outsourcing problems
  • Project management
  • Reputation

Supply Risks:

  • Commodity prices
  • Supply chain

Step Two: After your team has reviewed the list, it is now time to check off the risks that apply, even tangentially, to your company.

Step Three: Review the S&P list again to see which of the risks may be catastrophic and damaging to your company. These risks warrant further consideration even if the likelihood of their occurring is low.

Step Four: Using consensus, identify three to five of the most critical risks your company faces.

Step Five: Create an action plan that deals with the critical risks you have identified. The action plan should include next steps and target dates.

Step Six: Follow up on the action plan that you just created. Make sure it is executed properly.

Step Seven: Evaluate whether your next step is to dig deeper into the action plan you have created, add additional projects to the plan, or create a more robust action plan. The first two choices suggest that you begin the process again, starting at step two. Alternatively, if you need to consider a full-blown risk management system, move forward knowing you have benefited from the initial work.

Risk management takes time, but think of the alternative. You do not want to be in a position of would have, could have, should have – if only we knew. There are many outside resources that can help you get started, so do not delay this call to action. You owe it to yourself and your shareholders.

When the economic climate changes as dramatically and as frequently as it does nowadays, contingency planning and risk management should be on every executive dashboard. Face your risks squarely and come up with a flexible ERM plan. Do not wait until you are forced to make a Mayday call to a world that is embroiled in its own crisis.

Fixing Your Student Loan Problem

College tuition is expensive, we all know about it. Even many people were depending on student loan to help them pay for college. The idea of student loan is to be paid after the student graduated and secure a job position. However, with the high amount of tuition to pay, many people are dealing with huge amount of student loans and even with the current economics, paying student loan is much harder to afford. It makes many people have a big debt problem from its student loans even years after they graduated.Like it or not, college and student loans have been among the biggest problems in our society today. It has big shares on total debt problems today. Many people are struggling with that debt problem even on the edge of failing to pay the debt. You know what kind of bad things will come when you fail to pay the debts and you know you can’t let this thing to happen. It is time to find the solution to fix that problem. First of all, review your debt account. Makes sure that you are not a victim of alleged debt making your burden bigger. Don’t get wrong, many banks and loan lenders do that thing. You can seek for legal or paralegal staff support to help you review your debt account and fix any possible alleged debt.

However, the real solution you need is how to get the actual loan paid and for that you may need to restructure it to make much affordable to pay. Debt consolidation can be a good option and 321loans.org is the right place to come. It is the right place to find the best debt consolidation solution for your student loans. You will love how they really care about your best interest and more importantly, how they really fix the problem you have.

Getting the Best Legal Advice for Business

Running your own business requires you to pay attention to several important aspects about your business. Paying attention to these aspects might allow you to run your business in more effective and efficient way. One of the most important aspects that you should notice when running your own business is your customers. It’s very important for you to keep your customers satisfied. If it’s necessary, you could use some helps from Consumer Protection Counsel, especially when you need to get legal advice about the customers. By getting the best legal advice, you will be able to solve any legal problems in your business and provide the best services for your customers at the same time.

Sometimes you might need extra cash for your business as well. When you want to expand your business or you want to open new stores, you might need extra cash so that you could get these tasks done. However, if you don’t have enough cash for expanding your business, you might need to find the best financial solution for this situation. Getting a loan could be a perfect solution for you. You could use some help from registered agent who is located in Deerfield Beach if you need business loan. Registered agent could help you in getting the loan that you need for your business without requiring you to waste too much time.

On the other hand, you also might need to get legal advice for your business when your customers sue your business due to your products or services. If you want to get the best legal advice for your business, using paralegal services could be a perfect solution for you. If you want to use legal services for your business, you need to consider the credibility and the reliability of the legal staffs that you’re going to hire. You also need to consider the cost that you need to spend for this legal service as well.