Russian Buyers Increasing in Overseas Property

A survey carried out across several major Russian overseas property exhibitions has found that almost 2 thirds of Russian investors are preparing to complete purchases in the next 6 months.

The results of 3 surveys carried out at major aiGroup property investment shows found that 71% of Russian investors are planning on completing their purchases in the next six months.

Kim Waddoup, chief executive of aiGroup also said that the exhibitors at all three shows had reported "stronger than ever interest in their properties".

Russians, once a massive force in overseas property had dropped off during the financial crisis, but are now coming back with a vengeance. The rush on overseas property is part of a wider trend of capital flight from Russia as those in the emerging market seek out safe zones for their cash.

Central Bank chairman Sergei Ignatyev has estimated $49.3 billion has left the country in the first nine months of the year, already outstripping 2010’s figure of £35.3 billion. $13 billion of capital left Russia in September alone…70% of the third-quarter total.

As far as buying overseas property goes, the Russians favourites have changed a little since the boom time. Russians were known for favouring destinations within a short-haul flight, and with a similar culture/background to their own, with Bulgaria and Ukraine being very popular, although Spain has long been the favourite.

According to a survey of 499 investors conducted by International Residence at the Moscow International Investment Show in March, Spain is still the favourite, followed by Bulgaria and Turkey is the newcomer in third place.

US Homebuyers Struggle to Find Their Dream Home

The US housing market is now encountering a new problem, as after years of oversupply in the market now has a dearth of attractive properties for sale.

At the end of September there were just over 2.19 million homes for sale, according to Realtor.com, which is a reduction of 20% on September 2010, and although on the face of it are falling inventory should be a good thing as it increases competition for suitable homes, the reality is slightly different.

Estate agents are finding people are pulling their homes off the market and are choosing to wait until prices recover. There are fewer foreclosures for sale as banks have been dragging their feet against foreclosing on properties ever since the controversy over irregularities surfaced last autumn, but demand remains soft and there is still a shadow supply of distressed property which is estimated at around 1 million.

These homes will gradually come onto the market over the next few years further constraining price gains. The decline in the number of properties the sale also means that less deals are being struck between buyers and sellers as buyers are cautious about paying too much while sellers feel they may be underpricing their homes.

In September housing inventory is for Miami were down 49% compared to a year ago, while in Phoenix this figure was 48%. Tampa, Florida has seen a reduction of 33% and Atlanta has seen a fall of 30%, while in Detroit this figure is 28%. While some homeowners are still looking for their dream home, others have given up completely, and property experts think this shortage of attractive, well priced homes is affecting sales more than sluggish demand.

Norwegian Homes Are the Greenest in the World

Research by the Royal Institute of Chartered Surveyors has shown that Norway is the top country in the world for reducing carbon emissions in the built environment. Brazil is second, while the UK comes in third, but apparently there is still considerable room for improvement. Australia and China come in fourth and fifth, but Russia Luxembourg and Canada are bottom of the list, with Greece and South Africa just above them.

Although the bottom of the list shows little movement, there has been considerable change in the middle ranking is. Between 2008 and 2010, Finland, Sweden, France, the USA, Belgium and the Slovak Republic have made improvements, while India, Italy and Ireland have slipped further down the rankings.

The RICS Global Zero Carbon Capacity Index has looked at 34 individual countries over the last three years to see how they are progressing in their carbon reduction policies.

The UK has a considerable number of carbon reduction policies in place which accounts for its high ranking in the index, but doesn't do so well in the residential sector where it remains one of the worst performers, although it is gradually improving. Norway has been top of the ranking for three years running, but Brazil has moved up six places due to its high contribution of renewable energy and low energy use. In contrast,

Germany has slipped down the rankings due to its poor performance in residential energy use and is now the fifth worst performer. This particular index has remained pretty stable from year to year due to the lead time and investment required in renewable energy infrastructure to make any appreciable difference to a country's energy use.

EasyJet Gives Boost to Holiday Homeowners in Spain

Low-cost airline easyJet has just announced a new programme of 20 new flights to Europe from Southend International airport in Essex, with five of those flights going to the Spanish Costas. The new flight schedule is due to take effect in April 2012, and fares could cost as little as £26.

These flights are bound to be hugely popular as the routes include Malaga, Majorca and Alicante, and should be a great boost to anyone who owns a holiday home in these areas.

Having cheap and easy access to holiday property is essential, and the estimated 800,000 people who will fly into Spain from Southend will be looking for somewhere to stay which is great news for anyone choosing to rent out their property, as well as those looking for somewhere to buy.

Sales of property in Murcia have already started to increase, albeit slowly due to the Paramount branded theme park which is due to be built in the region. It's certainly a great time to buy as property is at its cheapest for a decade, and local estate agents are hopeful that prices have finally bottomed out.

The new theme park is due to open in 2014, and has been predicted to attract up to 3,000,000 tourists annually. Although this may have a positive impact on property prices closer to the time of opening, as yet property prices are not rising. It looks as if some people are waiting for construction work to begin before taking the plunge to buy a holiday home here.

View property for sale in Spain

Portuguese Property Bargains on the Way

According to a leading currency exchange firm, the election of the social Democrat government in Portugal will bring about a new era of austerity in the country which should see property prices falling even further. The coalition government in the country is due to implement the austerity package being demanded by the EU in return for their £70 million bailout.

While this might seem reasonable enough, the Prime Minister, Pedro Passos Coelho has promised that his government will make even more cuts, with the idea being that deficit reduction targets will be met ahead of time, attracting investors back into the country. Cuts include selling off public services, higher health care costs and a reduction in unfair dismissal compensation.

It's expected that all this will have a negative effect on Portugal property prices as households will have less money to spend, but should prove attractive to foreign investors, especially those looking to buy property in popular destinations such as the Algarve.

Although Portugal has a similar deficit crisis to that of Greece and Ireland, it is slightly different in that the property market here has had very little effect on these problems. There has been far less re-mortgaging and high loan to value ratio loans available to the Portuguese, and in fact the country exhibited one of the most stable rates of loan default during the worst of the economic crisis. At the height of the boom in 2007 the non-performing loan barometer was just 4%, and this figure decreased to 3% last year.

Columbia can offer a luxury lifestyle for a bargain basement price

Colombia is increasingly drawing attention from property investors as it has much to recommend, particularly the city of Medellin. This city is now very safe, with a cosmopolitan atmosphere combined with perfect year-round weather. It has all the big city amenities you would expect such as a modern metro system, two airports and world-class shopping and restaurants, yet property prices here are still low. This is put down to the stain left by drug lord Pablo Escobar who died 12 years ago.

It is possible to buy a luxury apartment in a good neighbourhood for around $80,000, while a luxury penthouse can cost less than $150,000. The works out to around $79 per square foot which is incredibly low considering the beautiful location and quality of living offered in Medellin.

While prices here have remained fairly steady there is evidence that this may be changing as more international buyers are looking for somewhere new to invest. Many of these international buyers are drawn to the country by the good rental returns of between 5% and 11%, averaging at 7%.

Medellin city is committed to public architecture and has a number of beautifully designed libraries, schools and parks which have helped to turn around at some of the poorer neighbourhoods. The city, like the country as a whole has worked hard to reverse the previously negative image.

German Property Offers Excellent Value for Money

It seems as if you get a lot more house for your money in Germany these days, as home prices set at more affordable prices have peaked the interest of a rather large number of people.

The general consensus as to the reason German property seems to be such a bargain is that there is a steady growth in supply of homes. You can get a very nice four bedroom, three bath with a garage, sauna, pool, and garden in the suburbs of Berlin for under $600,000 Euros. This price has peaked the interest of foreign investors looking to purchase in the area.

When compared with similar properties in Britain, Australia, and New Zealand, Germany’s prices are quite the bargain.

Why have German house prices been able to remain stable and more affordable? According to an analysis by the German property market, the reason is because Germany’s property market has never had a big boom or crash.

Before the global financial crisis, when property markets in other countries soared, Germany’s prices actually fell. In the 7 years between 2000 and 2007, Spain’s home prices soared 94 percent, New Zealand 80 percent, and Britain’s increased 80 percent, while Germany’s home prices actually decreased by 18 percent.

Germany’s property market has been marked with stability over the years.

What distinguishes Germany from other countries is that it has built more houses and flats then other countries and has zoned more land for development to be sure that there is a continual and steady supply of housing. Additionally, German builders and developers are able and willing to make sure that the building process is smooth sailing, taking into consideration supply versus demand.

View German property for sale

New Canadian mortgage rules may affect market

Foreign mortgage insurance companies have only been allowed to operate in Canada since May 2006, and with these new regulations came a more liberal view of borrowing practices. Prior to this date it was impossible to get a mortgage without making a minimum 25% deposit, but now it became possible to get mortgages without deposits, and also to repay these mortgages over a 40 year term.

This had the effect of heating up the property market, so in the summer of 2008 the government took steps to cool it by reducing the maximum mortgage term to 35 years alongside a requirement of a 5% deposit. These actions had the effect of protecting Canada from the worst of the US sub-prime mortgage market as the government also purchased the billions of dollars’ worth of insured mortgages in order to give the banks breathing room.

The housing boom in Canada was able to continue due to low interest rates, prompting the government to introduce minimum deposits of 10% for homeowners while investors must make a deposit of 20% or more. New laws introduced last week will take effect in March and will lower the mortgage terms to 30 years which some feel may dampen down the housing market.

While this may be true there are certain areas that may always buck the trend, especially in ever popular Vancouver. The average price of a home here it over $1 million, and a dilapidated property recently went on the market for just over $1 million, but created such interest that the eventual selling price was over one and a half million dollars. Part of the reason for high prices here is the popularity of the city with investors from the Far East who have money to spare from their own booming economy.

Has the Bulgarian Property Market Bottomed?

Experts are claiming that the Bulgarian property market may have bottomed, making now a good time to reconsider property investment in the country. The market has had a tough time, arguably one of the toughest, not least because its downturn started well before the rest of us. This has led to prices falling up to 50% in the coastal resorts, and 20% in the cities according to those behind the claims. Not that I disagree.

Has the market bottomed? I don’t know and the truth is no one will ever really know when a market hits its absolute rock bottom, in fact by the time we realise that it has we will be the latecomers who have long missed the worm. The best way is to make your own judgements based on growth potential, value for money and macro-economic fundamentals.

In Bulgaria we certainly have low prices, in fact according to the Global Property Guide property  prices in Sofia are currently around 1,759 EUR per sqm, compared to 2,354 EUR per sqm in Belgrade, Serbia, 2,406 EUR per sqm in Vilnius Lituania, and 2,748  in Ljubljana, Slovenia.

This would seem to suggest that Sofia property, and that of other parts of Bulgaria is running undervalue. However, Bulgaria’s downturn bit first because of oversupply and the deep recession and drop in foreign demand caused by the global financial crisis certainly never helped that. So, it may well be the time to buy in some places, but I would still be inclined to do some length research into supply and demand in any areas I looked at.

View Bulgaria property for sale

Foreclosures Make for Hot Florida Property Investments

Ocala, Florida has seen home prices drop lately and the sales of single- family homes have increased as the abundance of foreclosures abound. With the struggling economy and higher unemployment rate, it seems as if now is the time for those wanting to relocate to Florida to purchase that retirement or winter home.

It appears that property prices for residential homes last month in Marion County were at levels that we haven’t seen since the 1990’s. The average median home price decreased from $87,800 in November 2009 to $75,900 in November 2010. That is a significant 14 percent drop and the biggest percentage drop in the Florida metropolitan area.

The home prices in Ocala have been decreasing for about three years now due to the recession and double digits unemployment rate. Home investors at home and abroad are taking advantage of the price decline and buying up investment properties. According to MLS surveys, just last month in November, realtors sold 269 residential homes compared to 251 a year ago in 2009. That is a 7 percent increase in sales mainly due to the amount of foreclosures on the market. The past year has seen many more foreclosures and distressed sales due to the struggling economy.

Almost 630 homes were on the foreclosure list in November, which equals out to one in every 251 homes were looking at foreclosure. With so many foreclosures, investors have taken advantage of such a prime market to buy up homes for short or long term rentals in the hopes of gaining significant returns in the future.

Australia’s Booming Property Market Attracting Attention of Investors

Australia’s housing market continues to grow stronger and is anticipated to remain a strong contender for drawing property investors in the upcoming year. Australia and Canada have been competing neck and neck but it seems that Australia is pulling away as Canada’s real estate sales are cooling down.

Due to low interest rates as well as economies beginning to recover, global markets have seen some rebounding this year. It has been reported that house prices rose in six of twelve industrialized countries, including Australia, Canada, France, Sweden, Switzerland, and the U.K.

Low interest rates and a strong and stable economy attract first time buyers as well as property investors looking to capitalize on the real estate market’s abundance of affordable homes. Investors have confidence that their investments will yield good size returns in years to come as the property market continues to grow strong and house values rise.

Some of the success of the property market will depend on factors such as job growth as well an income growth. Interest rates and lending rules play important roles as well. Interest rates are expected to stay relatively the same throughout next year which will help keep the market stable. Australia seems to be doing well as solid job growth is reported and high demand comes from Asia.

Other areas of the world are seeing some growth as well. The U.K. and Swiss markets are seeing some recovery and it is reported that Sweden is actually experiencing somewhat of a mini-boom. In Italy house prices are dropping some and the U.S. market is becoming more stable.

Malaysian Property Market Recovering Rapidly

Malaysia’s property market anticipates growth in the upcoming year as the economy enjoys stability and growth as well, peaking the interest of overseas investors. This is good news for Malaysia as much of the world has been hit pretty hard by economic struggles.

The Fourth Malaysian Property Summit is scheduled to be held on January 18^th, 2011 in Kuala Lumpur and will include various speakers from fields such as developers, property owners, bankers, investors, and economists. Talk of property investment potential will likely be a main topic.

James Wong, a property consultant, says that there is a huge demand for property in Kuala Lumpur and Penang. As property prices rise, it is important that the government come up with incentives to boost income to help the growth of the economy as property market and the economy oftentimes go hand in hand.

It will be essential that the Economic Transformation Programme set clear guidelines on Private Finance Initiatives so that proper funding can come from private initiatives.

It is reported that market prices have set record highs and the interest rates remain low presently. Investors from all over the world are interested in this prime location. Chinese investors already invest highly in Australia and Singapore and buyers are hopeful that they will be seeing more of such investors in Malaysia. Along with China, investors from Singaporean and Hong Kong are also interested in Malaysian properties.

It will be interesting to see just how much growth Malaysia will see in the upcoming year.

Dubai Property Victims: the Sad Story of 29 Boulevard

It's been a while since we posted a Dubai disaster story, but following the lead of the Indian TV station NDTV we thought we'd do a little digging.

NDTV's report is a bit like the one shown on British television not that long ago, an episode of the program Homes from Hell dedicated solely to the tragic tales of people who have paid thousands of pounds dollars and euros towards Dubai properties that are still no more than rotting foundations, and how, because the market developed so rapidly, the legal system still has nothing governing off plan purchases, and so there is very little that those affected can do but wait.

The NDTV report focuses on the property 29 Boulevard, a prestigious skyscraper project designed by New York architect Frank Williams and to be built near the now completed Burj Khalifa, the tallest building in the world. 100 people camped outside the Emaar offices to bag a good unit in the development, according to the NDTV report. The property has never got any further than its foundations, which are "rotting" according to NDTV.

“It’s really a disaster, the situation in Dubai,” said Silvia Turrin, a real estate agent who bought into the development, and has been unable to get her money back out. “It’s not like in Western countries. It’s very difficult to exit here if there’s a problem. And we’ll never get our money back, but now we’re stuck dealing with this hole.”

The lack of legal framework is allowing Emaar to hold onto people's down payments of up to 80%, despite failing to deliver on the project.

In a statement, Emaar acknowledged that 29 Boulevard was still “under construction” but said that it upheld transparency standards and had “taken several proactive measures to address the concerns of investors on developments that are in the pipeline.”

As we know, 29 Boulevard is far from being an isolated case, the ITV program covered dozens of couples and buyers trapped paying off loans for payments made on properties they look unlikely to ever receive.

It is ironic that Dubai's legal system is strong enough to prevent people from walking away from loans for fear of being jailed, but unable to force developers to honour contracts.

But we know all this. However, according to the NDTV report vacancy rates in Dubai are still rising. This flies in the face of a recent report by Dubai investor newsletter Arabian Money, which said vacancy rates fell over the summer. It is obviously counting a different figure for total housing stock, and potentially new supply as well, which no one really has a handle on, again this is down to the legal systems.

If one good thing has come out of all this it is that buyers are doing more digging than ever before. Checking laws, checking the season to make sure they will not be holidaying in a baron landscape off season, and checking planning permission, developer status, in short: checking everything they should be checking.

Distressed US Investment Property Supplies Increasing

Sales of distressed and bank owned property accounted for some 24% of all US home sales in the second quarter, down from 31% in the first quarter, according to the latest data from Realty Trac.

Of this bank owned properties accounted for 15% of home sales in the second quarter, and properties in some stage of mortgage distress for 9% of sales. This is down from 19% and 12% respectively in the first quarter.

This shows that sales are dropping. But the number of properties sold after receiving a default or auction notice was up 5% from the previous quarter, although it was 20% lower than last year. This would seem to suggest that supply may be rising.

Discounts on distressed and repossessed US properties are also falling, which also suggests that supply may be rising. According to the Realty Trac data, the average discount on sales of properties in default or scheduled for auction was 13% in the second quarter, down from 16% in the first quarter, and 19% in the second quarter of last year.

The average discount on bank owned properties in the second quarter stayed at the running average of 31%.

While supply of distressed and repossessed US properties rising is bad news for the US housing market, because their heavily discounted sale prices are factored into future valuations of other houses in the area, it is not such bad news for the droves of investors from across America and around the world who are getting some seriously good deals on US property.

Azure Overseas are currently marketing the Village at Town Center, a development of luxury condos just a few minutes away from Orlando's main attractions. The price of just £47k for a 3 bedroom unit is evidence of the fantastic investment potential of discounted US properties. Think of the yield you could make renting that out on a PPPN basis.

Property Investment Not as Simple as Many Think

Property investment is a lot more diverse than many people give it credit for. Many people think it is a comparatively simple investment class compared to say stocks and shares, but when you break it down it is not so simple.

Firstly there is commercial and residential property investment. They are then further sub-divided into offices, retail and industrial property investment on the commercial side, and local and overseas property investment on the residential side. Overseas property investment can then be subdivided into residential and holiday rental investments. And we haven't even covered tenures or property debt investments yet.

Commercial property investment is most often the purchase of an office, retail or industrial space, to rent out to one or more companies -- usually on a long-term lease -- for an annual figure of between 4% and 8% of the purchase price. The 4% to 8% is known as the rental yield.

Residential investment usually works on the same principles, but the number of variables is much greater.

There is buy to let investment, which tends to mean the purchase of a local property or properties for the purposes of renting out to residential tenants or holiday makers. Buy to let investments usually yield between 4 and 6 percent, but can be much higher in the right set of circumstances; namely massive repossession volumes in an area, which reduce prices and increase rental demand.

Then there is overseas property investment. This is perhaps most diverse of all, because, as well as having to choose property class, location and tenure, we also have to choose country, region and also whether we want to let residentially or to holiday makers.

The huge choice usually gives way to higher yields for the shrewdest investors. This is especially true at the moment, because of the massive price reductions in many countries, including up to 60% off repossessed property in America and Spain etc.

Spanish Property Benefiting from Resurgence of Low Budget Buyers?

When it comes to overseas property purchases reliant on mortgages, the market is very much dominated by just three countries. That is, according to the latest data from Conti, which said that of all mortgage applications received this year 85% have been for just 3 countries, namely France, Spain and Turkey.

With 43%, French property has been by far the most popular with the British buyers seeking mortgages through Conti, Spain takes second place with 24%, and Turkey third with 18%.

Conti has previously told us that France is currently the dominant force among British buyers looking for mortgages on overseas property, people see that the years of restraint in the French banking and mortgage sector is now paying dividends for France, with low interest rates and stable liquidity.

But isn't this significant news for the Spanish property market. We all know how the Spanish market was devastated by the exodus of British buyers because of the financial crisis, which compounded the emerging over supply problems and at the same time caused the latter problem to worsen to the nth factor because developments started had to be finished (where possible).

Reports began turning positive last year, with developers discounting prices between 25% and 40% and cash rich buyers snapping up the bargains. However, as I said this was predominantly cash buyers, and predominantly wealthy buyers buying in prime areas like Marbella etc.

The data from Conti indicates that Spain could be benefiting from the resurgence of low budget buyers seeking mortgages, which we know from other sources is happening across the industry. This should spread demand out into other areas of the country.

Speaking of bargain properties in Spain, Azure Overseas has just added the Alcazaba Hills Development, offering 2 bed 2 bath apartments, in a luxury resort near the Costa del Sol's ever-popular Estepona from £191,363. The development is located just a short drive from Marbella and Gibraltar, making the prices even more incredible.

Turkey Property Investment Recommended by GPG and Me

The well respected Global Property Guide publication has given a glowing recommendation for investment in Turkish property, particularly Istanbul.

According to the firm's research for its mid-year investment recommendations, yields on Turkish property in Istanbul are currently averaging 5.48%, which is higher than average yields in Italy (5.04%), France (3.85%), Spain (3.81%) and Portugal (3.63%).

These yields, as with most -- if not all -- of the GPG rental yield figures is based on residential rentals, which means they do not give a clear indication as to the kind of yields a holiday property might make, which can often by higher than residential yields depending on a number of factors.

This is unfortunate, because most overseas buyers of Turkish property are currently aiming at holiday lets, and there have been several reports of those buyers earning yields of 6% net.

Basically, yields on holiday property in Turkey will tent to be higher, because property in the touristic areas tends to be cheaper than that found in Istanbul, while rental rates on holiday lets tend to be higher, which can actually be higher than residential rents in Istanbul or the same depending on the property and exact locations in question.

Given these truths it is only a matter of how much paying occupancy the holiday home owners can achieve, which then depends on the amount of time they want to spend in the property.

The best strategy for holiday home investors in Turkish property, like those anywhere else in the world is to rent out the property for the entire season and use it during low season. This is a problem for some owners who don't do sufficient research and subsequently find out that the area they have bought in is completely closed off during low season, with not even so much as a shop to buy essentials like milk.

This is in fact one of the reasons why Turkey is currently seeing its popularity with this type of investor soar: because most buyers are currently doing a lot of research, they are finding out that most of Turkey's touristic areas are open all-year round.

Turkish Property Investment Making the News

Turkish property is currently among the most talked about in the world of overseas property, and for all the right reasons.

There are two main stories in the past week: Global Property Guide stating that the average rental yield on Turkish property is 5.48 per cent, which is much higher than the yields on offer in France (3.85%), Spain (3.81%) and Portugal (3.63%) and reports on the massive numbers of British people owning property in Turkey.

According to the Turkish Land Registry's latest figures, 32,000 Britons own Turkish property covering 6 million square meters. This is twice the area of property owned by Germans (3.5 million square meters), which is significant because Germany is Turkey's largest tourism market. The report received coverage in the Telegraph.

These reports follow several other features on the draws of Turkish property to appear in the national press, including one article calling the Turkish resort town Belek the next Algarve. If this had been a few years ago it would have been insignificant, but now, when the press is being extra cautious in its praise, this is all a big testament to the potential of Turkey.

Speaking of potential, nearly all the articles you read about Turkey, especially in the industry press, talk about the investment potential of Turkish property. However, this potential is being missed out on at the moment, because the majority of buyers are lifestyle buyers, with investment being a secondary consideration on their minds.

Sure, the majority of these people are still benefiting from the investment potential, because they are renting out their property when they or their family and friends are not using it. But the keywords there are "when ... are not using it", meaning they are not realising the maximum potential return from investment in Turkish property.

Survey Indicates UK First Time Buyers May Turn Back to Overseas Investment

OMG I thought I had fallen into a time conduit and been sucked into 2005 then... I read an article in Sky News pertaining to a survey in which nearly a quarter of UK first time buyers have said they would consider buying a home overseas for its greater investment potential and increased value for money.

Such articles were commonplace in the mid-noughties when it was thought that many first time buyers were investing in overseas property in order to use the rental income to boost their earnings sufficiently to get a mortgage in the UK.

So... seeing one now I immediately thought: what kind of source are we dealing with here; Friday night in the Tamworth Arms. I was wrong though, the survey comes from a more reputed base than any of those seen in the mid-noughties. In this case the survey was commissioned by Moneycorp and surveyed a pool of 2000 first time buyers.

Obviously it would have been better if the survey had been commissioned by someone less partial. That said: a pool that size has to be given a great deal of validity, especially when the survey's other findings are confirmed by many other sources.

Namely: the survey also found that 70% of first time buyers have given up on owning a home in the UK. This is confirmed by several other prominent sources recently.

Not least the recent report by Nationwide, which found that the average house price is now 5.5 times the average salary. This is far greater than the long-run (30year) average of 4 times. Add to that the fact that first time buyers need at least a 10% deposit in order to get a decent deal on a mortgage and you can see why owning a home in the UK is currently outside the reaches of most first time buyers.

With that knowledge the only surprise is the percentage of them considering a purchase overseas. Don't get me wrong it is a good surprise, because it confirms earlier reports that investors are once again entering the overseas property arena, after almost-nothing but lifestyle buyers since the crunch. Time will tell if considerations become determinations and desires result in increased sales.

EU Construction Output Increase Bodes Well for German Property Investment

EU construction output grew 6.8% in March compared to February. This is the largest growth seen in the EU construction sector since the crisis hit. In fact, all the other rises have been lower than or a little over the 1% mark.

According to the data, from Eurostat, construction output rose on a monthly basis in thirteen of the fourteen states that provided data. The largest increases were recorded in Germany (+26.7%), Hungary (+5.5%) and the Czech Republic (+4.7%). Sweden was the only country to register a monthly contraction of -0.4%.

In the annual data it is a different story. Construction output for the entire EU was down 5.2% in March compared to last year, and the only countries to register an annual growth were the United Kingdom (+9.2%) and Germany (+2.6%). The largest decreases were registered in Romania (-23.1%), Bulgaria (-20.9%), Slovenia (-19.7%) and the Czech Republic (-19.1%).

This is the latest positive data on the EU economy, god knows it needs it after the debts of Greece blew up in everyone's face. According to recent reports, European property markets are starting to improve, and this is likely a major factor in the construction growth.

The growth in Germany is particularly interesting, because it confirms recent reports of major demand for retail and commercial spaces in the country. This will obviously fuel the residential markets in areas where the new construction is taking place. It is also good news for the German economy, which -- more than most places -- is a big factor in the shape of the property market.

In Germany only a little over 40% of the population owns their own home, and some 48% live in rented accommodation at full price. For this reason the property market is heavily restricted, with landlords only able to raise rents if wages are increasing. Thus, German property investments are most profitable when the economy is doing well.

View German property for sale