Newsletter October 2009

Posted on January 25, 2014 by Gareth in Newsletters






 
 

October 2009 Update
Welcome

I’d like to welcome you to the monthly update from ProVenture.  We hope you find this short newsletter of interest and that it keeps you up-to-date with the property investment scene in Germany.

 
Please click on the following titles to read the content or scroll down to read the whole newsletter

  
 

Elections – Green Shoots
  
 
FX Update

 

 
 
 
 

 

 
 
Use of Pensions for Investment
 

 
 
 
 
 
 
 
  

 
German Economic Outlook

 

Angela Merkel retained power in last Sunday’s election, which heralds a new and more coherent coalition in power. The coalition will be a centre-right one for the first time in 11 years and should prove to be pro-business and favouring lower and more simplified tax regimes.

For more on this news item, please see:

Video Link

 
German unemployment fell by 12,000 this month, according to data released on Wednesday.
The seasonally adjusted fall brings the unemployment rate down to 8.2 per cent. Germany’s economic rebound has gained momentum with a closely watched survey showing investor confidence surging to the highest level in more than three years.  The Mannheim-based ZEW institute said its "economic sentiment" indicator, which gauges expectations about economic trends over the next six months, had jumped 16.6 points to 56.1 points in August, the highest since April 2006.  Germany’s manufacturing rebound also beat expectations again this week, with industrial orders rising by a larger-than-expected 3.5 per cent in July. The monthly rise follows a 3.8 per cent increase in June .
 

 
 
Finance Update     
 
We now have an fx update from Gary  Field – Senior FX broker at Cornhill FX:

September saw sterling once again show how fragile it can be in the present recession, with a trading pattern being adopted in the market of selling the pound when it rallies. After opening at around 1.6250 at the start of the month GBPUSD rallied in the first two weeks to 1.6718. However a dovish statement from Mervyn King regarding interest rates followed by Lloyds TSB’s failure to meet the government’s stress test became the catalyst for a sharp decline by the 28th to 1.5765. By the end of the month we had seen a slight rally to 1.6100.  GBPEUR also became a victim of the above mentioned releases. With the Government also seemingly happy to see a further decline in the value of the pound to try and boost exports and reduce our budget deficit the horizon looks gloomy. By the end of the year market sentiment seems to be indicating a further decline in the rate from the 7 month low of 1.0745 that we saw on the 27th.However the rate recovered by the 30th to 1.09 and with a G7 meeting on the first weekend of October, where we are lead to believe the continuing strength of the Euro is on the agenda, there may be a temporary push back above 1.1000


 If you wish to contact Gary to discuss any foreign exchange trades – please call him on
+44 207 337 8679

 

 

 

 
ProVenture Activity   
 
September has been a busy month, with properties going to the Notary for sale in each week. The traffic to our various websites has also doubled in the past 2 months and this is starting to feed into increased inspection trips.  Currently 2 dates for inspection trips in October are planned by ProVenture staff, although meetings outside these times are normally feasible.
 
The main focus for ProVenture this month will be the forthcoming exhibition at London on 22-24th October. If you are local to London, why not come and meet the team? As well as ProVenture staff, we will have our ever helpful German banker with us as well as local property sourcing and management staff. Mat Littlecott will be speaking on 22nd and 24th in seminars, and we can organise free entry. Please get in touch for more detail or click the link from our homepage:
 
 
 
 
 

 

  
 
            


 Top Tip for UK-resident Investors- use of Pensions 
 

In recent discussions with the head of a wealth management company, the issue of using a UK pension as a vehicle to invest in overseas residential property was discussed. A number of our clients have enquired about this in the past so it was useful to get some straight advice. In essence, it is possible for UK resident or ex-pats to use their pension to invest in residential property, with all the tax and inheritance benefits this entails. It’s a huge topic, but if this matter is of interest, please get in touch and we can provide more detail and contacts for you to take forward.


 

 
 
 
 
Latest Property Offers
 

 

Below are links to some of the new property brought to the market during July. More property in Leipzig, Halle and Dresden will be brought to the market during August so please monitor the website.

 

 
Happy investing and good luck,
 
Mat
 
 
 

 
 Berlin City Centre
 
(near the famous Ku’Damm)
 
48 sqm Apartment
 
Top Quality living
 
96.750 Eur 
 
 

 
 
 
 
Leipzig-Plagwitz
 
365.000 Eur Guide
 
10.7% on delivery
 
In demand location 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Berlin
 
Range of Single Apartments
 
 
Prices from 17.000 Eur
 
600 Eur per sqm
 

 

 

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