But what has stung the fly? Immersed for months in the gloom and inaction, the buyers have suddenly rushed in late 2009 to achieve their real estate project. The global economic crisis? Forgotten. The lack of confidence in the future? Zapped. Prices still high? Ignored. “It’s like a champagne cork that explodes under pressure. After having delayed their purchases, buyers have all passed the word to return,” says Natalie Naccache, Director of Fortis Immo agencies in Paris.

Boosted by strong support measures, such as the doubling of interest-free loan and the law Scellier, helped by significantly lower interest rates (1.5 percentage points less in eighteen months), real estate seems to leave . Heavenly surprise in a depressed market for months. “The year 2009 began in the disaster and pain. It ended with a real restart,” said Michel Mouillart, Professor of Economics at Paris X-Nanterre. In the former, activity, which had collapsed by 45% between October 2008 and March 2009, jumped 32% in the third quarter 2009 (compared to the first quarter of this year). Even finding in the new, where the rebound since last spring has been so dazzling that the tumble (sales had fallen by 60% in two years). But beware, fragile! 2010 could just as easily disappoint.

Meanwhile, the sudden reversal made happy. In late 2008, developers, plagued by defections and a cascade exceptional slump, had stopped as one man, all new operations, “remarkably anticipating the crisis,” said Christopher Pinault, Director General of the cluster of individuals Land Bank . A year later, benefiting from the general euphoria, they had already destocked much of their homes. In early 2010, the enthusiasm has not abated. Thus, Nexity has sold in one weekend 143 of 150 apartments in its new program to Eaubonne.

The cause of the “sharp rise” in the words of Jean-Philippe Bourgade, CEO of Bouwfonds Marignan? Government measures to boost the energetic construction. The law Scellier, with its tax cuts extremely advantageous in case of acquisition of property for rental, has transformed the market for new housing. Three months after the launch of the device, sales exploded. Today, purchases of investors representing 60% – sometimes even 70% – of sales promoters. Other aid, different clientele: the doubling of the loan (PTZ) has resolvability first-time buyers, hitherto excluded from the market by excessive increases recorded for fifteen years. “This has halted the decline of home ownership,” confirms Michel Mouillart. Normal, since, along with other aid (PLA Pass land), “the doubling of PTZ resulted in increasing debt capacity by 20% of buyers,” comments Christopher Pinault. Result, “met, investors and first-time buyers account for 80% of our customers,” observes Guy Nafilyan, CEO of Kaufman & Broad.

Led by the dynamic development sector, the market is the former, too, out of his torpor. “The device Scellier sent a positive message to the French, decided to invest back into the stone,” said Bernard Cadeau, president of the branch network Orpi. After a downturn of 22% in the first half of 2009 – “the biggest drop since 1970,” said Mathilde Lemoine, an economist at HSBC – the resale sector (between 600,000 and 800,000 transactions per year) has been a busy fall. Taking advantage of the exceptionally low rate, they have restored power to purchase, the price (- 8% a year) and especially the easing of lending by banks, buyers back on the road agencies. “The upturn is indisputable,” says the director of the Study Caraudrey (Paris IV), citing the example of the studio of 23 square meters on the fifth floor of a building without elevator Street Tournelles , right in the Marais, left 000 to 235 in less than two hours! “After a round of observation of six months, buyers make a comeback, supercharged and more determined than ever to become owners,” comments Stephane Atlan boss Royalimmo agencies in the capital. Very sought after, “the studios and one-bedroom apartments snapped with investors anxious to prepare their retirement,” says Christopher from Pontavice, CEO EffiCity. For apartments, it depends on the quality of the property. “The poor are always difficult to sell,” notes Pascal Benaud, head of the group David agencies. As the ground floor of 80 square meters, overlooking a dark courtyard, in the eleventh district of the capital, which at 400,000 euro, nobody cares.

The high end is doing much better. “It’s simple, it’s more expensive, the easier it is,” said Roger Abecassis, chief of the society mansions. “Customers are fighting for goods they did not even look there is barely six months,” Charles-Marie fun Jottras, President Daniel Féau, restart which saw sales of luxury apartments between 4 and 10 million euros. Or above for wealthy foreigners, as the princess of the Gulf has been given a mansion in the seventh arrondissement of Paris, for 66 million euros!

This sense of urgency is compounded by the lack of available properties. The offer, already structurally weak, had reduced considerably. With a fast clearance sale, the shortage of new homes is not far off. “At the beginning of the year, our available for sale cannot exceed four to five months. That little bit,” Christian de Gournay regrets, President Cogedim. And despite numerous product launches planned in 2010 – 114 for Kaufman & Broad – but that will never come to earth in 2012!

This is much better on the resale market: the agency offers is sometimes counted on the fingers of one hand. Why such a shortage? For a single reason: the owners forced to sell their property to buy another remain absent from the market, despite the recent upturn. Now, said Bernard Cadeau, “it is they who are the sustainability and health of the sector. In good years, they accounted for 55% of transactions. This is no longer the case. Fear of bridge loans, coupled with falling prices, has deterred from moving. Now, said Guy Nafilyan, “the market does start again when the” secundo-time buyers “come back”.

Some sellers try to take opportunistic advantage of this unbalanced situation and display exorbitant. Mis calculation. Even if the balance of power does not play for them, “the buyers are still buying in pain and do not want to be taken for suckers,” says Roger Abecassis. “That stuck with only 5 000-10 000,” laments a real estate agent, referring to an apartment, available at 400,000 euros is spent six months on sale, buyers stubbornly refusing to pay more than 390,000 euros.

In fact, “the market remains fragile,” says Mathilde Lemoine. “Only a dummy balance between buyers and sellers prevents it from collapsing,” added Olivier Eluère, economist at Credit Agricole. A dangerous weakness: a single grain of sand can stop the restart. “It is sufficient if the rates go up, the purchasing power to lower it falls back into crisis,” warns Jean-François Humbert, president of the Chamber of Notaries of Paris. Especially since the concern is always present, fueled by rising unemployment. “While the macroeconomic situation is not working, we can not speak of true recovery,” Michel Mouillart hammers. And then, “out of current crisis, supported by state subsidies, is artificial,” said Mathilde Lemoine. What happens when he doubled interest loan will expire in late June? For Michel Mouillart the end of the block device certainly the market, déssolvabilisant vulnerable households. Same question for the law Scellier, which will lose a little interest at the end of 2010 (see article page 90). “The risk of experiencing a real slowdown,” Jean-Philippe Bourgade concerned. What developers plunge into turmoil.

But the biggest obstacle to recovery remains undoubtedly the high prices. After rising 200% in fifteen years in the former, they are not sufficiently reduced. “In 2007 they were overstated by 20-25%. Having dropped only 8% in 2009, they have to lose another 10-15% so that the recovery is sustainable,” Olivier Eluère calculated.

This means that 2010 will be one year uncertain. With at best a sluggish recovery, confirming the stabilization of prices and a slight increase in transactions. But the market, barely recovering, might as well hang again. Especially if the sellers who make a modest resurgence in the early spring, persist in their demands. It is likely that buyers would retire for the second time in less than two years to wait for better days. They would not be wrong: it is better to keep a cool head and not give in to blackmail the shortage, while continuing to watch for the right opportunity. However, if the owners, finally realizing that the “period is unexpected, in the words of Natalie Naccache, agree to sell their property at the right price, they may be able to enjoy it too. As the seller, who, having agreed to lower the price of four rooms (815,000 instead of 900,000 euro) 100 sqm ideally located in Passy (Paris XVI), but the first floor, was able to give afford an apartment of her dreams. At a reasonable price.

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The costs of a loan is the factor that decide upon the further fate of the borrower and it is as well important for the commercial real estate issues. This is the reason why the commercial real estate loan rates should be carefully analyzed before reaching for the loan.

One should be aware of the factors that commercial real estate loan rates depend on. First one thing should be cleared out: he commercial real estate loan rates have interest rates set at lower costs. The interest rates actually depend on the security or insecurity of the loan.

The unsecured feature is given by the bad credit history and thus attracting higher rates set for the loan’s interest. With the commercial real estate loan, the lenders keep the property that the borrower plans buying as their collateral. Once the loan is secured than the lenders provide this commercial real estate loan at lower interest rate.

Commercial real estate loan rates are normally lower in range of 6 to 7%, meaning that buying any real estate ends up being cheaper opting for a commercial real estate loan. But this lower rate depends from one lender to another and on the credit history.

In the loan market the competition is also tough therefore the lenders have their own interest rates. You can reach for a comparison and further you will get much lowered interest rates.

The credit history is also a determining factor for the rate. A good credit history will confer the lender more confidence and as such they can lower more the interest rate. Another thing is to see how much of the total amount of the property value are you willing to borrow.

If the amount is very low than the property value then you can obtain reduced interest rates. Try to make a consistent down payment in order for the loan to be kept small. Having a commercial real estate loan at lower rates depends, as previously said, of a good credit history.

If you do not qualify in the aspects exposed above, then you will represent some risks to the lender and as such you will be considered to take a hard money loan for commercial real estate, when buying could range between 12 to 16% based on risk factors.

Plenty of interest rate front will depend on the researches you have done in this matter. These lenders have their online business profile and with their quotes provided you can study and compare the interest rates and choose the most suitable ones.

As a beginner you should learn a lot before venturing in this field as you will have to get yourself and your interests protected. A program into real estate investing or choosing a seminar of real estate investing can be two great ideas to introduce the beginners into real estate investing field.

What a real estate investor needs to know most of all the beginners, is the real estate law along with the rules and the regulations in order for you not to put the investment you make at risk.

Learning as much as possible on the real estate law in such a manner that no problem can appear then no risk can be present inside your investment for the fact that you have ignored various aspects. Being aware of the real estate law and the specific market, then you will be prepared to move to the next step of your real estate investing activity.

The first suggestion would be to know the current prices that are on the market of the real estate that you have in your view. Do not count on the seller’s version of a price but instead use your knowledge on the prices of such real estate on which you have previously done your homework.

Knowing in advance the market price and after you find out also the seller’s price you can be in the advantageous position to go for a deal. The best thing for you to do is know these prices as you will be able to run some negotiations that can end up favorably for both parties.

Buying a real estate as a bargain you can then consider that more money will be made then those invested. For instance if you find a seller who is willing to conclude the selling for less than 20% of the value on the market, then you should buy.

Another idea would be to buy a real estate that has a concealed potential that can be revealed and as such make the property increase in its value as a real estate. This potential must be capitalized and as such increasing the value of the house with at least 20% more after its purchase. This thing has to be done in a period of six months after the investment has been made.

Following these basics you should have no hindrances in beginning to invest as a real estate investor, and thus being able to make money. This can take a lot of time but this hard work is in the end very well paid off, so do not waste any more time into starting you real estate investing activity.