Tag Archives: finance
Low mortgage rates helps France top latest overseas chart
France has overtaken Spain to take the top spot on the latest overseas mortgage chart, with some 53% of loan enquiries in the first quarter of 2016, new research shows. Ideal buying conditions are drawing British buyers in particular back to the French property market, according to the report from overseas mortgage specialist Conti. It points out that French mortgage rates are at their lowest in decades and the country’s previously sluggish housing market is turning a corner at last, with reports of price increases and accelerating sales. Prices generally remain well under UK averages, however, and with the pound regaining strength against the euro in recent weeks, it’s more affordable than ever, according to the firm. ‘Current market conditions in France are great for prospective buyers, with some excellent deals to be made. And there’s plenty of room for price negotiation with some very motivated vendors. The country is also very accessible, by air, train and car, and the culture is familiar, which British investors like,’ said Clare Nessling, director at Conti. ‘Buyers who have been deferring their plans as they waited for the market to improve are taking full advantage and making their move before they miss out on the best deals,’ she added. In second place Spain accounted to 38% enquiries in the first quarter of 2016. Following a nightmarish few years, the Spanish property market is on the up at last and British investors are regaining confidence and rediscovering their love for this country, the report says. In third place, but considerably behind the top two was Portugal with a 9% share of mortgage enquiries. According to a recent report from the Royal Institutional of Chartered Surveyors (RICS), Portugal is one of the economies leading the euro area recovery with sales and prices expected to continue rising at a steady pace over the medium term. Conti is now offering its lowest ever fixed rate for property purchases in France at 1.8% over 10 years for loans of up to 80% loan to value. Mortgage rates are generally still at historic lows, and the best rates are not limited to those with the biggest deposits. Many of the current deals on offer are available for mortgages of up to 80% or 85% loan to value. Indeed, according to the latest report from French Private Finance mortgage interest rates in France have now reached unprecedented levels, so much so that non-residents with good profiles can now access 20 year fixed rate mortgages from as little as 2.25%. In terms of savings, compared to May 2014 when French 20 year fixed rate repayment mortgages were at 3.7%, rates have now decreased by 36%. In money terms, the total interest payable on a loan of €300,000 over 20 years has dropped from €117,571 to €72,822 a saving of €44,749, or €3,729 a year. The report adds that those with very good profiles who are buying in popular areas may… Continue reading
House prices and rents rise in Auckland in March
House prices in Auckland, New Zealand, look set to continue rising throughout this year after a buys month of March, and rents are also up, the latest index figures show. The average sale price for the month was $866,782, and the median price was $798,000, according to the latest data monthly report from real estate agents Barfoot & Thompson. The March average sales price was the third highest on record, within $10,000 of the all-time high in November last year, and 5.4% higher than last month while the median price at $798,000 is the second highest on record, within $2000 of the all-time high in December last year, and up 8.1% on February’s median price. ‘March is always one of the busiest sales months of the year, and a good indicator of where prices are tracking for the remainder of the year,’ said Peter Thompson, managing director of Barfoot & Thompson. ‘When prices are this strong in March the trend is for prices to hold steady through the year. As it has been for the past two years, lack of supply remains the main price driver. New listings in the month at 1,874 were solid, but by month end, the number of available listings at 3,093 was a decline of 6.8% on the number the month previously,’ he pointed out. ‘There has been a definite increase in the number of properties being sold under the hammer at auction, indicating keen buyer competition for available properties. Although a record number of building permits are being issued, and new homes are springing up everywhere, Auckland is simply not building homes fast enough to keep up with the growing population,’ he added. He also pointed out that Statistics New Zealand reported that in February alone the population of Auckland increased by about 3,000 people. Based on the Auckland average occupancy for houses, of three people to a property, theoretically 1,000 additional properties would have had to become available in the month to house such growth. The data also shows that in March the firm sold 474 properties for in excess of $1 million, the highest number ever in one month and it represented more than a third of all properties sold. At the other end of the scale, 146 properties, or 10.9%, sold for under $500,000. Data from the firm also shows that the average weekly rent for one bedroom properties has risen by 4.8% from $316 to $331 year on year, while for two bedrooms rents are up 6.3% from $398 to $423. Rents for three bedrooms are up by 5.6% from $486 to $510 compared with March 2015, four bedroom rents increased by 5.1% from $614 to $644 and for five or more bedroom rents were up by 5.8% from $755 to $791. Thompson explained that Auckland's usual rise in rent didn't occur in March and over the last 12 months, Auckland saw an increase of $28 or 5.8% for all property types. However in the… Continue reading
Prime commercial property rents seeing steady growth in UK
Rental values for UK prime commercial property grew by 1.4% in the first three months of 2016, matching the post-crisis high of 1.4% in the fourth quarter of 2015. They were boosted by the strong performance of offices, retail warehouses and industrial property, rents across the board sustained the highest level of growth since 2007, according to the latest CBRE Prime Rents and Yields Monitor. Prime Industrial property led the way, with rental growth increasing to 2% in the first quarter, the third steepest quarterly increase the sector has seen since 2001, the data also shows. Yields remained flat at 6%, resulting in a capital value growth of 2.1%. Rental growth was largely attributable to the London market, where demand for industrial space has been robust. In the London industrial sector, rental and capital value growth was by 3.9% in the first quarter alone. The prime office sector also drove up the UK average, with rental growth of 1.8% and capital value growth of 1.7%. The healthy performance was mirrored across the UK, with every region exhibiting either rising or steady rental growth over the first three months of the year. The main growth hotspot was in the West Midlands which saw rental and capital growth of 4.7%, as commitments around HS2 and a growing trend for ‘north shoring’ increased demand for office space in the region. Prime central London offices again showed significant growth of 2.6% across both rents and capital values. The capital also contained most of the nation’s hotspots. Prime offices in the City saw its highest rental growth in six years at 4.6%, while London Docklands saw increases of 5.4%. ‘The sustained health of the office sector shows that businesses remain confident about the UK’s economic prospects, despite the looming European Union referendum vote. London and in particular the City, is seeing sustained rental growth, mostly driven by larger space users committing early prior to key lease events,’ said Chris Vydra, head of City Leasing, CBRE. Overall, UK yields remained relatively flat in the quarter, up slightly from 5.3% to 5.4%, but remaining on a par with the average level for 2015. Retail warehouses saw the highest yield growth, resulting in an average fall of 0.8% in capital values. Continue reading
