Guaranteed Rent | Investing in property: Buying in the eurozone
http://bit.ly/Mm4mfU
You cannot blame estate agents for talking their own book, but Paul Belcher of the buying agent Ultissimo, based by Lake Como, takes a similar view about realistic valuation of good-quality properties in desirable locations. Belcher says: Property values in the key locations across Italy have been stable for years as. For the savvy buyer there are potentially good deals to be had throughout the eurozone. Ian Cowie considers the options available. Never mind the macroeconomics – or even questions of morality – rising numbers of Britons are “schadenfreude shopping” for second homes in the eurozone. Squeamish souls may feel it wrong to take pleasure or profits from others’ distress. But hard-nosed home buyers with sterling to spend can benefit from a double whammy created by the euro crisis. The pound now buys nearly 25pc more of the Continental currency than it did three years ago, when exchange rates neared parity. And economic setbacks have caused property prices to plunge in some of the afflicted countries. By contrast, there are fewer lenders who will finance overseas buyers in Spain, Italy or Portugal. The maximum LTV in Spain is 60pc with interest rates starting at 4.5pc. In Italy and Portugal, LTVs up to 80pc can be obtained, but variable interest rates begin at 4.7pc and 6pc respectively. Conveyancing costs and property purchase taxes on the Continent also tend to be higher than here, usually exceeding 10pc in total. Always use bilingual lawyers and never cut corners. Britons who buy informally or without professional advice overseas often discover they do not obtain full ownership, or their title is impaired by unexpected debts. Property laws do not end at Dover and it is foolish to ignore the protection they provide... - Source
http://bit.ly/Mm4mfU
You cannot blame estate agents for talking their own book, but Paul Belcher of the buying agent Ultissimo, based by Lake Como, takes a similar view about realistic valuation of good-quality properties in desirable locations. Belcher says: Property values in the key locations across Italy have been stable for years as. For the savvy buyer there are potentially good deals to be had throughout the eurozone. Ian Cowie considers the options available. Never mind the macroeconomics – or even questions of morality – rising numbers of Britons are “schadenfreude shopping” for second homes in the eurozone. Squeamish souls may feel it wrong to take pleasure or profits from others’ distress. But hard-nosed home buyers with sterling to spend can benefit from a double whammy created by the euro crisis. The pound now buys nearly 25pc more of the Continental currency than it did three years ago, when exchange rates neared parity. And economic setbacks have caused property prices to plunge in some of the afflicted countries. By contrast, there are fewer lenders who will finance overseas buyers in Spain, Italy or Portugal. The maximum LTV in Spain is 60pc with interest rates starting at 4.5pc. In Italy and Portugal, LTVs up to 80pc can be obtained, but variable interest rates begin at 4.7pc and 6pc respectively. Conveyancing costs and property purchase taxes on the Continent also tend to be higher than here, usually exceeding 10pc in total. Always use bilingual lawyers and never cut corners. Britons who buy informally or without professional advice overseas often discover they do not obtain full ownership, or their title is impaired by unexpected debts. Property laws do not end at Dover and it is foolish to ignore the protection they provide... - Source
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