Prospects for long distance investing in Europe
With a large part of Europe undergoing a heavy recessionary phase through most of this year, it would seem like a no-brainer that any property investing overseas should be avoided like the plague. However, you’d be wrong in this assumption. In fact, while many of the Southern tier of Europe countries like Greece, Italy and Spain have experienced major recessionary upheaval, the Northern parts have been holding steady, and in some cases, like in Ireland, are already experiencing excellent comebacks.
Germany as continent leader
Germany, by far, has remained the most productive of European nations, and continues to act as the leader in the continent’s overall gains and productivity. This makes it amongst several top countries to consider for good property investment opportunities. Great Britain has remained stable through this past year, and has remained the top country for property investment dollars. This is due to more than there gains in gross domestic product (GDP) over the course of the year.
The positive effects of tourism on investors
Tourism has increased substantially this year, and is projected to grow by another five percent over the next several years in Northern Europe. A strong tourist base helps property investors as demand for housing on a regular basis drives rent increases. In addition, consumer confidence in the Northern European countries has remained high despite the overall downturn in the economies of many of the southern tier European countries. This too creates higher demand, and keeps market valuations and rents stable and increasing at a constant pace.
Immigration as another key market stabilizer
Another key factor affecting market valuations in property in Europe, relative to North America, is the high rate of immigration that has continued through the last several years, even with the downward economic trends. This helps create more stability as well as demand for rental units throughout the continent, but especially in the more popular Northern tier of countries. Ultimately, this influx of immigrants helps create a more robust property investing sector, even in this current downturn.
An excellent alternative
For all these reasons, Europe remains an excellent alternative for property investors to consider when deciding to invest in long distance rentals, as confidence in the marketplace stays high. As long as you are utilizing the services of a local property management company, the risks of such long-distance investing can be reduced substantially. This is especially true in countries where market rental are increasing and demand remains so stable.
photos courtesy of prestigeproperty.co.uk, e-architect.co.uk, hotels-accommodation.info, the666.com, pianocourses.co.uk, eurocoins.co.uk