Welcome to our latest German Property investment update.

If you require any more information on any of our articles or stock, please don’t hesitate to contact us – we are always happy to help. You can also view this update from ProVenture Property online

Exploring Yield Markets – The Case for Bremerhaven, Germany

Our job at ProVenture is to find unbeatable property yield markets for our investors, who come from across the world and have often have a global view on making investments which deliver great returns. It is an interesting task, especially in this period of financial uncertainty and rapid asset price movements. We stick mainly to seeking within developed markets, with history of prices and stability of legal process. Our work has taken us over the last 5 years mainly to Germany, as its economy powers forwards out of the global financial crisis and as one of the leaders in manufacturing and export of high-end goods. That is not to say we are myopic in our search, we continue to seek markets around Europe and also in the USA, the latter bringing some interesting opportunity of late for cash-driven investments. Perhaps you have caught our recent article on the property market in Florida.

But we are, now and for the coming years, continually being drawn back to Germany. The high-proportion of tenants has resulted in some great and stable monthly returns for our investors, and many have enjoyed very good capital growth during the last few years. Germany famously did not domestically participate in the credit binge of the last decade and property prices have remained very favourable for investors to buy into, backed by high levels of finance at historically low rates. Our work in Leipzig for example has resulted in the sales to around 50 investors, from small studios to large property property portfolios with all of our earlier investors in the market [say around 2007-08] now sitting on gains of around 20-40%. A very good result, compared to other developed markets in this period of general decline. And lets remember the average yield on purchase price for our investors has been between 10-11% during this period, producing a useful income whether the investments were made in cash or backed by finance during the period of hold.

But we cannot rest on our laurels so to speak, and have to answer the question so many investors ask us “Where is the next place to buy”. In this paper, we will research one such new market, still in Germany, the city of Bremen and its harbour city of Bremerhaven as potential places to invest in the coming years. Lets look at Bremerhaven first.

Click here to read on…

Finance Improves for International Clients in Germany

Our mainstay for finance has been the Deutsche Bank over the last 24
months, delivering a tailored service to international clients with
finance levels of 60-80% loan to value being achieved at interest rates
of around 4% for 5 year fix deals. Lending levels depend on the quality
of the property and the rental income it achieves. As our links develop
with new banks in Germany, finance levels are starting to increase with
70-80% loan to value now being the expected range for the properties we
deal with.

Additionally, banks are increasingly open for re-mortgaging
business for buyers who have held their asset for a number of years and
looking to take a new product at today’s low level of interest and
perhaps with the ability to withdraw equity.

Get in contact with the ProVenture team for more details on the current finance position, either
for new purchases or exisiting investments for potential re-mortgaging.

Germany prepares for flood of immigrants

On the 1st of May, Germany relaxed its restrictions to the members of
the so-called accession countries to the EU as the final part of the
transition of these countries into full EU membership. Poland and the Czech
Republic share long borders with Germany, and there are large wage
differentials across the borders. The German government is preparing
itself for the influx that will come as a result, as the German economy
demands increasing labour.

Famously the UK government in 2004
underestimated the coming influx of East Europeans when similar work
restrictions were lifted. Back then, the government expected a trickle
of labour. It of course turned into millions of workers on the move.
Analysts expected somewhere around 1 million workers to move as a
result, by 2020. Some expect the figure, with the German economy moving
at such a pace and the proximity to the accession countries that this
figure will be much, much higher. The impact on the economy, and the
demand for housing and the like is in most aspects a very positive
prospect for investors in Germany. Perhaps the only caution is on the
political side, where issues around integration may surface.

To read more on this story, some useful links:

BBC Website
WorkPermit.Com – German Immigration on the Rise
WorkPermit.com – Germany Allows Immigration

The Effect of the Eurozone on German Property Market

After a decade in the doldrums, whilst the rest of the developed world enjoyed a property boom, Germany property is now gaining heat and rises are being seen in many areas of the country. What is fuelling these increases and how sustainable are they? This report looks at the impact of the Eurozone economic policy, inflation expectations and current GDP growth as clues.

Well, it is no secret that the German exporting sector is providing a welcome engine to Eurozone economic growth, and has done for the last 2 years or so. German GDP rose 1.5% in the last 3 months, the fastest rate since re-unification and shows little signs of abatement. Its imports also reached an all-time high, up 3.1% to 79.4bn euros. Both imports and exports are the most since data started to be collected in 1950. The German economic boom is fuelling inflation, and prices are expected to keep rising because of Europe’s one-size-fits-all monetary policy.

Click here to read on…

Other Articles Online…

East German cities offering attractive returns

German Boom fuels inflation angst

Real Estate Bubble forming in Germany…

Latest IFO report

Latest German Property Offers

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