Now is a Great Time to Buy Property in France

According to French estate agencies, now is the perfect time to by
property in the country. Prices have fallen by as much as 40% in some
areas and are now at very realistic levels. Property prices have
stabilised over the last few months, and the lower end of the market
is especially buoyant. This makes it an excellent time to buy holiday
homes, or even permanent homes for those looking to relocate as there
are still plenty of bargains around.

A budget of €100,000 is sufficient to buy a perfectly habitable
two-bedroom bungalow in Brittany, while properties that need a
complete renovation can be picked up for as little as €30,000.
Brittany is the perfect location for a holiday home, as it is very
accessible for short breaks, and enjoys a stunning coastline.

At the moment estate agents have a substantial number of
properties for sale, right across France. While certain areas such as
Provence are always popular, they are not always so quick to access
for short breaks, as that easy commute can involve several hours
drive after getting off the ferry. This can quickly become expensive
and time consuming, and can mean that holiday property is only used
for a few weeks a year.

British interest in French property has been steadily increasing
over the past few months, and some estate agents are forecasting
prices could rise by several percentage points this year. It’s also
become easier to get financing from French banks, as they are still
willing to lend on second homes and investment properties.

View France property for sale

Sales of Family Homes in London are Recovering

According to the latest quarterly report from Winkworth estate agents, sales of family houses in London are undergoing something of a revival, as sales appraisal figures increased by 7% year on year during the first quarter of 2012, and more homeowners are becoming interested in testing the market. The number of new sales instructions increased 20% year-on-year during the first quarter of 2012 compared to last year, and the number of new buyers registering at Winkworth offices increased by 12% in the first quarter compared to the same period in 2011.

The average asking price has declined slightly due to an increased number of properties for sale, and the average asking price for a greater London home is now £625,888. The luxury end of the market has been affected by measures recently announced during the budget, and the ending of the stamp duty holiday is expected to affect first-time buyers. 

There's also a growing shortage of attractive mortgage deals, but in spite of this the market for family homes is showing increasing signs of revival. Most people looking for a house in this category already own a property and have at least 20% equity, but simply need more space for a growing family. It’s estimated prices will remain stable in this sector, and the number of transactions will increase by around 5% to 10% this year.

However there are signs that the rental market within Greater London may have peaked, and there were around a third more properties available to rent during the first quarter of 2012 compared to the same period in 2011. At the moment average rental prices are £2,721 a month, but a decline in demand may put downward pressure on rental values during the coming months.

Foreclosure Figures Fall in the US

Foreclosure figures in the United States have declined slightly, and this trend is expected to continue as the spring season picks up pace. According to figures from CoreLogic, there were 65,000 completed foreclosures in February compared to 66,000 in February last year, and 71,000 in January 2012.

Since the financial crisis began in September 2008 there have been around 3.4 million completed foreclosures, with 862,000 completed in the 12 months up to February. Around 1.4 million homes were in foreclosure in February this year, compared to 1.5 million in February last year.

This equates to around 3.4% of all homes that still have a mortgage. The number of borrowers in foreclosure fell by 115,000 in February compared to February 2011, which is a decline of 7.6%.

With sales of previously owned homes up in February, and with the beginning of the spring buying season, estate agents expect the inventory to decline further.

During February more than 60 markets in the US saw foreclosure rates decrease compared to a year earlier. The combination of new jobs growth and continued low interest rates show the housing market is finally improving.

During the last 12 months those states with the highest numbers of completed foreclosures include Californian with 154,000, Florida with 87,000, Michigan with 64,000, Arizona with 63,000, and Texas with 58,000. Between them they accounted for 49.4% of all completed foreclosures within the United States.

The states with the highest foreclosure rates include Florida with 12%, New Jersey at 6.6%, Illinois at 5.4%, Nevada and 5%, and New York at 4.9%. Those states with the lowest foreclosure rates include Wyoming, North Dakota, Nebraska, Montana, and Alaska. Montana had highest foreclosure rate at just 1.4% while all the others were 1% or lower.

British Virgin Islands Feel Little Impact from the Global Economic Crisis

The British Virgin Islands have seen little impact on property prices from the global economic crisis as prices of luxury property have remained largely unchanged in recent years and are expected to continue to hold up well.

This is partially due to the nature of the market, as the British Virgin Islands consists of around 50 islands and islets, and due to strict planning regulations, there is a distinct lack of high-density development.

Around 60% of luxury homes are bought by European buyers, and there are also a considerable number of US buyers. During the latter half of 2011, some owners of luxury property revised their selling prices downwards, resulting in renewed interest from purchasers.

The British Virgin Islands is relatively well insulated against fluctuations in the market as most of the purchases are lifestyle driven, and the small size of the market has helped to keep prices high.

Most of the residents are wealthy, and it's a rarity for anyone to be forced to sell. As such most are prepared to wait for more favourable conditions before putting their homes on the market. Compared to neighbouring islands, where high-density residential resorts have struggled to sell during the past four years, the British Virgin Islands have suffered only slight price falls.

The islands attract high net worth individuals as they have a reputation as being a low tax jurisdiction, and residents aren't liable for death duties, capital gains, corporation, income, or wealth taxes. As always, waterfront property is the most attractive, and homes with private moorings are particularly sought after.