Europe ticks up

[see_change]

While there's no doubt the heat in the market in Sydney and other markets, the question is what does it mean . There are ongoing concerns about the world economy , in particular in Europe . I can't recall a good news story about Europe for a while.

So it was reassuring to hear that they now have some growthhttp://www.latimes.com/news/world/worldnow/la-fg-wn-eurozone-economic-recovery-20130814,0,6390346.story including in the southern basket case economies.

The US has been improving , China has never been that bad and now the third major economic zone is showing signs of a successful resuscitation .

The patient maybe dazed , creaking and groaning with each movement , multiple defibrillator marks across their chest , but at least there's signs of life in those old bones .

Cliff

 

[Darlogus]

Being English I keep an eye on what is going on there as I think it all adds into a global property boom and not just locally.
The attached article shows how loans are at the highest level now since before the GFC.
http://www.houseladder.co.uk/Proper...since_financial_crisis_3449.aspx#.UgwNpHwaySM


bOOM baby Boom

 

[Aaron Sice]

Wow. They printed a whole lotta money to borrow and added it to nominal gdp growth.

Awesome book cooking.

 

[Graemsay]

The UK economy seems to be showing the first signs of growth. It's certainly better than it was last year when we may or may not have been in the grips of a second dip of recession.

House prices are rising again over here. The government has been pumping money into the financial system, and will be providing mortgage guarantees from next year.

London remains in its own little bubble, and is doing a lot better than the remainder of the country. For example, there's a significant amount of new builds going up, whereas schemes in regional cities, such as Manchester, have been mothballed since 2008.

The Eurozone is starting to show life. Things are on hold pending the German elections in the autumn. Whilst it is fashionable to describe the continent as being an indebted mess, both debt and deficit levels are (in aggregate) lower than the US.

I'm not sure what the property markets are doing over there. I think that Ireland and the Netherlands are still falling, at least they were recently.

 

[outoftown]

Boom times for property here in Norway. We are pretty much at the top of the cycle with yields getting thin but plenty of petro dollars sloshing around. It is very fashionable to write off Europe but the north is much more lean and rational than us or the US while the south still believes in deficits for growth. Chalk and cheese.

 

[joeExpat]

Just been out for dinner in Barcelona, restaurant was full with locals. Hopefully the worst is behind Spain but there is still a lot of hardship, they deserve better. I´m hoping to move here permanently soon.

 

[see_change]

Interesting to here that the word on the street is not as bad as portrayed in the media over here.

Could the media be wrong .....

Cliff

 

[Graemsay]

A couple of recent articles on the Dutch housing crash.

http://www.bbc.co.uk/news/business-23681604
http://www.ft.com/cms/s/0/b0bc12ce-05b3-11e3-8ed5-00144feab7de.html
http://www.investmentandbusinessnew...n-economy-relying-on-rising-house-prices/5114

Registration might be needed for the FT article.

The problem with the Netherlands is that mortgage interest is (or maybe was) deductible against income tax, which is handy when a high earner could be paying 50% (or more) of their earnings to the government, and the banks would lend a large amount.

I queried about mortgages when I was first over there in 2006, and was told I could borrow five or six times my salary. Well, I could until I mentioned I was a contractor, and then they went all risk averse.

These have led to a build up of household debt, and that generally doesn't end well. As the Dutch are now finding out...

Much of the UK's press is rabidly anti-European. I don't know how much of this is reflected in the Australian tentacle of Murdoch's empire, but his British papers are very much that way. Similarly, the Telegraph is continually printing stories about how the Eurozone is going to implode, and these are syndicated by the Fairfax papers. As such, I think that a worse picture is being painted than is actually the case.

 

[Oscar]

I'm definitely seeing a lot more "sale agreed" signs in Dublin around my little patch. People seem to be borrowing again, albeit on a small scale.

I'm also still seeing multi unit residential buildings yielding upto 20% in central city locations, albeit the rougher, edgier north side. Very close to a sale of an old Sydney PPOR to take advantage of this "once in a life time" opportunity. Prices won't stay this low forever. Looks like Atlanta in 2011.......

 

[FormerLurker]

I'm definitely seeing a lot more "sale agreed" signs in Dublin around my little patch. People seem to be borrowing again, albeit on a small scale.

I'm also still seeing multi unit residential buildings yielding upto 20% in central city locations, albeit the rougher, edgier north side. Very close to a sale of an old Sydney PPOR to take advantage of this "once in a life time" opportunity. Prices won't stay this low forever. Looks like Atlanta in 2011.......

I am intrigued - if there is a realestate.com.au equivilent for Dublin you recomend could you please PM the site and suburbs you are looking at (I understand if you don't want to disclose suburbs).

 

[Oscar]

daft.ie is popular. North Dublin, postcodes Dublin1 and Dublin7. the secret is out now...beware, etc.....

 

[Graemsay]

If you're interested in options for other European markets:

• UK - http://www.rightmove.co.uk
• Edinburgh, Scotland - http://www.espc.com
• Glasgow, Scotland - http://www.gspc.co.uk
• The Netherlands - http://www.funda.nl (in Dutch)
• Belgium - http://www.immoweb.be/en/

I think that the Dutch are a few years behind the Irish, so it's probably more somewhere to keep an eye on, rather invest in just yet.

 

[Oscar]

looking at a dublin multi flat building today with a 6,000 euro per month income relatively low outlay. Will let the forum know how it goes....We've missed out twice on similar deals as buyers starting to pay over the advertised prices for these gems. Gross yields more like 14 to 16% now. The window is open now for the brave..

 

[Graemsay]

I took a look at Irish house prices earlier. At the peak in Dublin (Spring 2007) the median hit €430,000 (around $710,000 at the exchange rate at the time), and this has now fallen to €190,000 ($285,000 at current rates).

Interestingly, inflation has been pretty flat for the last five or six years. It's risen by 1% over that time.

As Oscar said, it's a buying opportunity.

 

[jacko18]

Just been out for dinner in Barcelona, restaurant was full with locals. Hopefully the worst is behind Spain but there is still a lot of hardship, they deserve better. I´m hoping to move here permanently soon.

Wouldn't mind a bit of real estate in Barcelona.

Maybe some of gaudi I reckon it would be worth a bit

Just been in Barcelona aswell first time out of aus

Just can't believe the mansions over here ,and how old some of the buildings are in Europe in general

The work of the catherdrals just looks so technical ,and I blow out how they bloody did it back then .

Just crazy how they took 400 years to build eye opener

 

[Highlygeared]

Interesting. I'm guessing an Aussie wanting to buy in Ireland would have to stump up cash? What are the borrowing options?

 

[luce.rocks]

If you're interested in options for other European markets:

• UK - http://www.rightmove.co.uk
• Edinburgh, Scotland - http://www.espc.com
• Glasgow, Scotland - http://www.gspc.co.uk
• The Netherlands - http://www.funda.nl (in Dutch)
• Belgium - http://www.immoweb.be/en/

I think that the Dutch are a few years behind the Irish, so it's probably more somewhere to keep an eye on, rather invest in just yet.

I'll add http://www.idealista.com/ to that list, for Spanish property. It's not a fancy-looking site, but it's pretty comprehensive. Comes up in Spanish, so look for the language-change option.