Now is the Time to Invest in Overseas Property

If you’re interested in purchasing real estate around the world, now is the time to do it.  House prices have been sinking for quite awhile, and though that is not good for sellers, it is good news for buyers interested in committing to a sound investment over the next ten or more years.

According to Global Property Guide (globalpropertyguide.com), there has been a 15 to 18 % drop in house prices in the UK, which raises the eyebrows of potential foreign and at home investors.

Nick Barnes, who is the head of international research at Knight Frank, states that now is the time for those interested in buying their dream home in their dream location.  In some highly sought after locations, house prices have decreased up to 40%. 

The consensus is that despite falling prices now, investors are optimistic that the property market value of homes will make a steady increase over the next ten to fifteen years. 

Some of the hot spots for potential purchases are France, Spain, and Italy.
In France, the hot spots are Normandy, Brittany, the Dordogne, and the Cote d’Azur.  A 7.5% drop in house prices last year makes France a great choice for many British buyers overseas.

According to Mark Stucklin, head of Spanishpropertyinsight.com, house prices in Spain have dropped at least 20%, making it a prime time to look for investment opportunities.  Many newly built properties, even on the beach, sit empty just waiting for occupants.  Some prices have been slashed up to 40% in attempts to sell.

Italy is seeing price cuts as well.  Tuscany is a favored vacation and living area and prices have not dropped dramatically, but they have decreased enough to take notice.  Northern Tuscany, the Lakes region, and Venice have all seen prices cut up to about 20%.

The Fading Importance of EU Membership Boosts Turkish Property

The international financial crisis was a mortgage and housing market crash so spectacular that it crippled economies in most countries around the world. The boom that preceded was equally spectacular; so spectacular that it made people forget the cyclical nature of economies and house prices.

The boom was fuelled by a massive increase in overseas property investment, so-called fly to let, which in turn was fuelled by the advent and growth of budget airlines. New cheap flights opened up new destinations and made them accessible to the masses.

Turkey was popular with holiday home buyers and holiday home investors, but for the pure investors fuelling the real boom something was missing. That was EU membership.

Turkey has been an official EU applicant since 2005, but France and Germany have been staunchly opposed to Turkey's entry.

Now though, Turkey is booming while the EU is withering, and this is making investors readdress their position.

In the year to end the second quarter of this year Turkish GDP grew 10.3%. The EU grew 1%.

Turkish GDP grew 11.7% in the year to end the first quarter. EU GDP grew 0.4%

Turkey's budget deficit is under 5% and many EU countries are in real trouble bringing deficits of up to and over 10% under control.

This has made Turkish property a more attractive investment than that of Greece, Italy, Portugal or Spain, take Dubai out of the equation as well and you can see why Turkish property is currently getting so much press coverage.

Italian FM States Support for Turkish EU Accession

Italian Foreign Minister Franco Frattini has given his backing to full EU accession for Turkey, and criticised EU offers of partial membership deals.

Frattini told daily newspaper Il Giornale's politics and economy magazine Dossier Lazio that it was not right for Turkey to be offered a "privileged partnership" by some member countries instead of full membership.

Frattini went on to talk about the massive benefit that Turkey's EU accession could have on relations between the west and the Islamic world, which have fallen to tragic lows of late.

He said that as well as being seen as Islam, democracy and human rights in harmony, but that it would also be a testament to the EU's capacity to embrace different cultures.

"This is a significant historic target which we cannot give up," he said.

Staunchly supportive, Frattini was also quick to tow the party line, he said that Turkey had a long path to accession, and that currently that path did not look easy or promising. He said that Turkey's foreign policy preferences are causing doubts in some EU capitals, and urged Turkey not to give up on reforms.

Turkey should feel it has reached the finish line when it has fulfilled its present obligations, the Italian minister said, warning that it would be a grave mistake to alter the finish line.

Turkey became an official EU candidate in 2005, since then negotiations have moved at a snail's pace. Some now believe that Turkish membership is becoming as necessary for the EU as it is for Turkey, with the latter's greater growth and moves like the Nabucco pipeline.

On the flip side and for much the same reasons,EU membership has and is becoming less and less neccesary for Turkey, it would still boost the Turkey property market though.