 |
   |
|
|
PropertiesOur properties in...
|
Which is the best property market to Invest in now? It isn’t Spain, it isn’t France and it certainly isn’t Bulgaria or Hungary, says Joe Kiernan. It’s Germany...*Germany is ´bailing out´ other European countries and quietly positioning itself as the leading country in Europe. With every ‘bail out’ Germanys banks will profit giving Germany that extra lift! *In 2010 The German Economy Minister, Rainer Bruederle, said the latest quarterly GDP figures "make growth of well above 2% possible for 2010".In truth the German economy grew by 2.2% in the three months to the end of June 2010, its fastest quarterly growth in more than 20 years, official figures show. The main reason for the higher-than-expected growth was strong exports, helped by a weaker euro. 2011 figures are even better!But the most surprising element of the numbers is an apparent contribution from the German consumer. They have traditionally been very cautious in their spending habits, but appear in 2010 to have finally opened their wallets with gusto. 2011 has a real new spending feeling. The recession is over and it may be hard to believe but the Germans seem to be going wild! *The German economy benifits from two factors - a catching up in the construction sector after the harsh winter and strong foreign demand for German goods. German manufacturers use many components from eurozone economies, helping them to grow, while strong demand for German products.Germany is performing now with highest standards and incredible economic growth.
Small and large companies are benefitting from the return of the ‘made in Germany’ demand.
*And whats happening: Germany will be cutting taxes and increasing spending. But that´s not an option for countries like Portugal, Ireland, and Greece, which are battling large deficits! This will again give Germany a huge economy lift to make it the strongest European country. Prices will go up and property prices will boost enormously. With this the rents will rise. Germans will Buy and property prices will again go up! With mortgage rates low I can foresee the Germans taking advantage of the low interest rates and the low property prices.
*It was no wonder that investors were turning towards the markets of Eastern Europe, such as those in Bulgaria and Hungary, where prices did look relatively cheap and sales people boast of the fabulous yields – 10% plus is on offer for brave buyers. But this may not be the place for those used to Western markets. The pricing systems can be opaque, there is often no established infrastructure, legal or otherwise, and there is often title risk too – how do you know and how can you prove you own a house you think you’ve paid for? The risk element is hard to quantify in emerging markets of any kind, and that is why prices are low and yields high – to compensate for the risk. These houses are cheap for a reason and they may well just stay that way. This is not so in Germany! says Joe Kiernan of Joe Kiernan Properties in Germany. We have a high but secure yield to offer. Germany offers the most stable and reliable tenants in the world. With property prices having stagnated over the last 15 years and the fast economy growth, this is definitely the right time to invest in this fantastic country!
*The good news is that Germany offers better property yields than Bulgaria in one of western Europe’s biggest and fastest growing economies.. Germany yes!, as analysts at Merrill Lynch say.
|
Search
|
|
|
