France: Paris finds new popularity
One result of the credit crunch in the property and financial markets is an upsurge in Paris property. With the US experiencing a major housing market crisis, those in the UK looking for overseas property are increasingly turning to locations with less fraught money climates.
Paris property prices continue to increase at approximately ten to15 per cent per year, depending on the district, and the last five years has seen a dramatic 60 per cent increase in property prices. One development that is likely to strengthen this trend even further is the ‘Sarko effect’ – the stated desire by new French president Nicolas Sarkozy to move the country towards a more property ownership-friendly position.
The favourable borrowing terms and relatively low interest rates, among other factors, gives Paris strong investment potential. Europe’s recent trend towards higher interest rates appears to be at its end, with just one further raise in interest rates this year to 4.25 per cent seen as likely. This compares favourably with the current US rate of 5.25 per cent. (The US Federal Reserve was expected to lower the rate by either a quarter or half of a per cent as we went to press.)
Paris-based property investment specialist VPS-Global has seen a dramatic increase in foreigners investing in France. CEO Pascal Morin believes Paris offers exciting potential for investors. ‘Given the current state of the world economy, investors are opting for more secure, stable and long-term investment opportunities. Investing in France used to be a lifestyle choice. Today we are seeing more and more of our clients choosing France as a pure investment choice, purchasing with no intention for personal occupation.’
Greece: borrowing gets easier
New lending terms from Piraeus Bank London mean investing in Greece is a more realistic prospect for UK buyers. This coincides with an increased willingness on the part of Brits to invest in ever-widening circles, both geographically and culturally – not to mention the improvements to borrowing and buying procedures in many countries.
Although familiar for generations as a much-loved holiday destination, Greece is not among the first locations prospective overseas investors think of. After all, legal procedures, construction methods and building regulations differ widely from those Brits are used to. The financing of an overseas property purchase, like that of domestic property, must be done with the support of a reputable and experienced bank arranging your finances.
Piraeus Bank London’s mortgage is available to UK and Irish residents and ex-pats retaining a UK bank account or credit connection. Mortgage terms run from five to 25 years are available for a minimum investment of €100,000. Loan-to-value requirements are 80 per cent for property and 70 per cent for land.
For investors, Piraeus Bank London offers an interest-only mortgage for up to ten years on property and five years on land. This allows savvy investors to maximize on potential gains from a property whether they are looking to flip an off-plan purchase on completion or take advantage of the huge demand for rental property by letting it.
For more information on obtaining your Greek mortgage contact Piraeus Bank London on 0845 603 6538 or visit piraeusbank.co.uk.