French Mortgages - French fixed rates to achieve new historic lows?

Originally posted on October 30th 2014

A 20 year fixed rate mortgage in France hit 3.10% and 25 year fixes for 80% of the purchase price were available from 3.50% for non-resident buyers last week as the TEC 10 index tumbled to a new all-time low of 1.22%. These are now officially the lowest rates we have seen for French mortgages this century or last.

These record low rates have mainly been driven by the crashing of long term government bond yields across Europe. 10 year bond government bond yields are now also at historic all-time lows. Investors are now lending to the German government at 1% for 10 years and perhaps feeling like they got a good deal.

Of course it is all relative to the risk one has in the market but it is going to take some serious work by European Governments and Mario Draghi to raise sentiment for growth, though it is nothing a good dose of QE wont help to sort out. In the meantime those looking to buy French property can lock in incredible value at these current rates and so can European governments looking to refinance their debt pile.

French Mortgage Best Buys
Repayment

Rate    Duration    LTV    Description
2.10%    20 years    80%    Tracker mortgage 3m euribor +2%
2.20%    25 years    80%    Tracker mortgage 3m euribor +2.1%
3.05%    25 years    85%    Rate capped + 1.5% for 10 years
3.10%    20 years    80%    Rate fixed for the term
3.30%    25 years    80%    Rate fixed for the term
3.90%    25 years    85%    Rate fixed for the term

Interest Only
2.40%    15 years    70%    Tracker +2.05%
2.95%    14 years    75%    Tracker 3 month Euribor +2.85%
3.90%    15 years    70%    Fixed rate

To find out more information regarding our progress come over and have a look at out YouTube channel and get to know us a little better, Premier Property Investment YouTube Channel HERE

Golf and Spa Gated Resort in the South of France, Cote d’Azur

Originally posted on October 28th 2014

Designed by renowned architects, retaining the traditional style of Provence the residences are grouped in small hamlets within the forest and beautifully landscaped. All is in keeping with the region helping to make this one of the most prestigious destinations in Southern France.

There is a wonderful mix of housing from one bedroom apartments starting at £200,000 through town houses and villas to the latest new build villas from €1,3M. Inspired designs of housing and landscaping are enhanced by the magnificence of the pure natural forest setting with extended views over the forest to the distant red hills.

Because of it’s style and quality the resort has attracted buyers from all over the world as well as France.

To find out more information regarding our progress come over and have a look at out YouTube channel and get to know us a little better, Premier Property Investment YouTube Channel HERE

Luxury Rental and Lifestyle Apartments and Penthouses, Marbella, Costa Del Sol - Spain

Originally posted on August 23, 2014

Valley Heights Luxury Apartments and Penthouses

2 Bed from: €269,000 for a two bedroom.
3 Bed from: €334,000
4 Bed duplex penthouse from: €449,000

12 quality courses
within 15 mile radius

Uniquely designed in the form of 4 mini mansions this low density development provides spacious living accommodation. Originally Scheduled for completion in 2007 this luxury resort has been fully upgraded to the highest standards and delivered in key ready condition. 

A true golfer’s paradise, Valley Heights is nestled between the golf courses and luxury estates of Los Arqueros, La Quinta and the exclusive La Zagaleta.

This privileged zone is home to some of the most prime real estate in Marbella, which is reflected in its position as the wealthiest municipality in the region.

Steeped in tradition this tranquil location is just a short distance from the gastronomic white-washed village of Benahavis, known as “the dining room of the Costa del Sol,” and approximately 25 kilometres from the popular tourist attractions offered by Ronda Village.

Those looking for more active nightlife and beaches will find Puerto Banus Marina & Marbella less than a 10 minute drive away.

The A7 toll road exit is located less than 3 km away, providing a fast, direct drive to Malaga International Airport in less than 40 minutes.

A Good time to buy in France

A good time to buy in France

Lowest  mortgage rate

The Tec 10 index which gives a view on how much the French government pays to borrow money over 10 years in France fell today to 1.44%, its lowest ever level. This index reveals how positive the market is about economic growth prospects over the next 10 years and this new crash shows just how low economic sentiment has fallen in France.

This is positive news for would be buyers of French property as interest rates have now fallen to their lowest ever levels and may even go lower. A 10 year fixed rate in France now stands at 2.65% and a 20 year rate at 3.25%, the lowest we have seen for a little over a year and since the war before that.

It is even better for the UK buyer as the GB Pound  is currently so strong against the Euro and expected to stay that way.

To find out more information regarding our progress come over and have a look at out YouTube channel and get to know us a little better, Premier Property Investment YouTube Channel HERE

Prime central London sales down by a quarter, says top agency Sales across all price ranges have...

Prime central London sales down by a quarter, says top agency

Sales across all price ranges have fallen by a quarter in the year to June as investors from Northern Europe and the UK adopt a wait-and-see approach, says agency WA Ellis, while annual London price rises hit a record 20.1%, according to ONS figures
One leading agency warns that its sales are down in prime central London by a quarter since last year, as buyers adopt a wait-and-see attitude – just as annual price rises reach a record 20.1%, says the Office for National Statistics (ONS).

WA Ellis says there has been a 25% reduction in its annual sales across all price range in prime central London in the year to June, with buyers from Northern Europe and Asia weighing up the political and economic climate before committing themselves.

Richard Barber, partner at WA Ellis, says, “We’ve seen a 25% reduction year-on-year in sales at all price ranges across our prime central London area (Belgravia, Chelsea, Knightsbridge/South Kensington, Mayfair, and Kensington).

“For instance, in June 2014 only 185 properties were sold, compared to 249 properties in June 2013. It is the underlying reduction in the volume of transactions which is of most concern as we enter the traditionally slower summer quarter.”

Conflicting data from the Experian property index states that sales of UK property at more than £500,000 rose 30% in the second quarter of 2014 and was up 50.7% in London.

Mr Barber told OPP Connect that WA Ellis is still seeing a large proportion of Asian buyers, and that apart from the ‘wait and see’ approach, there’s also a lack of quality flats on the market for buyers, although there is a lot of house stock. The Experian data is too broad to comment on, as WA Ellis’ figures focus specifically on its own postcodes.

Jonathan Hudson, founder of leading West End estate agent, Hudsons Property, agrees that inquiries have slowed. He tells OPP Connect, “As we enter the summer, inquiries have slowed down and more stock has reached the market, meaning buyers can now take a more measured approach to home buying.”

WA Ellis currently has 374 houses listed in prime central London and 92% cost more than £2million “so it is not entirely surprising that the transaction level is lower.  Arguably, there is also value to be found as many offer greater floor area (albeit spread over 4-5 floors), gardens/patios and better bedroom accommodation.”

Buyers, including those from Northern Europe and within the UK are adopting a ‘wait and see’ approach and sellers have to “adjust their expectations if they wish to find a buyer this summer”, says Richard Barber, partner at WA Ellis.

The proportion of sales under £2 million has fallen marginally from 67%-62% but total sales are down with just 115 flats having been sold in June 2014 beneath £2 million in the area and just 27 houses compared to 49 last year.

“The underlying factors are very apparent to close observers of the market; the combination of mansion tax threats, higher stamp duty, Annual Tax on Enveloped Dwellings (ATED) and the fear of a Labour government is having a cooling effect on the market in general, but is particularly swingeing within the family house market.”

WA Ellis says it has achieved 99% of its asking prices since January 2014, “which underlines the importance of accurate and responsible pricing in a changing marketplace.”

The latest Experian property index shows that the number of listed UK homes in the UK at more than £500,000 rose 30% in the second quarter of 2014, while those from £250,000-£500,000 rose 16% – the highest level for both since 2010.

Homes worth more than £250,000 made up 41% of the total listed compared to 37% last year. Listing volumes from April-June were up 9.6% on last year, led by the North East, which saw a 25.6% rise. The only area with falling numbers was the East, where listing fell 2.6%.

London saw its listings of homes valued at more than £500,000 boosted by more than half (50.7%), followed by the Outer Metropolitan and South West.

Jonathan Westley, Managing Director of Consumer Information Services at Experian UK and Ireland, says, “The growth in houses prices suggests that home owners may have made reasonable capital gains on their existing properties, especially as they seek to move up the property ladder.

“Our latest index shows that higher end properties now form a greater proportion of properties appearing for sale, implying it is now second or third time buyers, who are more active in the housing market. But, 59% of all properties across the UK were still valued at less than £250,000 so there are opportunities for those with smaller budgets.”

Meanwhile, UK house prices rose by an average of 10.5% in the year to May 2014, the highest figure for four years, official figures show.

The average price of a house across the UK is £262,000, up from 9.9% the previous month, with London topping the rises at a record 20.1% year-on-year, according to the ONS.

Outside London and the South East, prices rose by 6.4% and were up in every region, apart from Northern Ireland, where they fell 0.7%.

Jonathan Samuels, the chief executive of Dragonfly Property Finance, told BBC news website, “Annual house price growth of 20.1% is borderline insane, but there are signs that the capital started to cool slightly in June and July.

“Things certainly have to calm down in the capital. Thirty-three 33.7% higher than the pre-financial crisis peak is mind-boggling.”

Jonathan Hudson adds, “These figures are not surprising but we predict that this figure will drop over the coming months, as a more stable London property market has emerged.

“The new measures put in place by the government and Bank of England, like overseas buyers’ CGT, tougher mortgage lending criteria and the mooted interest rates rise, will help stabilise the London market but not destroy it, as there are still a large amount of international buyers looking to invest in the relatively safe London property market.

“I welcome these measures as we don’t want to find the market blowing up in homeowners’ faces, but small incremental increases is something we expect to see over the next 12 months.”

By Adrian Bishop, Editor, OPP Connect

British student accommodation provider takes on France July 14, 2014 in Europe, Featured News, Student accommodation, World News

British student accommodation provider takes on France

Victus, a UK-based fund providing purpose-built student accommodation (PBSA) in Europe, has bought two buildings in Chambery, France, the first in its expansion into the country.

France has long been known to be short of student accommodation. In 2012, Le Havre city council even resorted to housing students in renovated shipping containers (pictured above) and around 75% of students in France have to do without purpose-built accommodation.

That shortage of accommodation, along with the lack of competitors supplying it, is clearly tempting to UK providers concerned at the crowded market for PBSA suppliers at home. UK-based Victus European Student Accommodation Fund IC Ltd is pioneering PBSA in France with this first project. The fund started off buying two buildings in Chambery, where it is going to develop 144 fully-let apartments within the buildings. Chambery, a small town in the region of Rhône-Alpes, hosts the renowned engineering school Arts et Métiers ParisTech.

Patrick Reynolds, marketing executive at Crosslane Fund Managers, the Promoter of the Victus European Student Accommodation Fund, told OPP Connect that the Fund sees tremendous opportunities in France. “There is a shortage of PBSA not only in Chambery, but all over the country.”

Victus is currently looking at various sites for PBSA in major French cities such as Bordeaux and Paris. Crosslane is working in a joint venture called CBB JV, with BBFD investments in France in order to get better insight into local market developments.

Elsewhere in France, the main student accommodation provider is Crous, with 687 houses in 244 towns across France, accommodating 154,000 students. Together with private housing providers that amounts to around 342,500 units, while student numbers are pushing 2.3 million.

Victus wants to move against the current shortage, “Our aim is to provide 5,000 new student beds in France within the next five years,” says Reynolds. This forms part of Victus’ ambitious goal to stock up from their currently owned 1640 beds in operation and development to 17,500 all over Europe within five years, turning Victus into the largest pan-European PBSA provider.

Reynolds explained, “PBSA market in mainland Europe is about ten to fifteen years behind the UK and US markets – and Crosslane would like to fill in the gap, concentrating on France, Germany and the Netherlands.”

International students number 427,000 a year in France, the third largest number of any country except the US and UK, according to the latest Unesco-statistics. New laws and regulation introduced by the French government in 2013 should attract even more in the future, especially the introduction of a multi-year visa for researchers and students. Good-quality PBSA is particularly vital for attracting international students, who can experience difficulties finding their own apartment in the private housing market.

All in all, prospects say the market is not likely to calm down in the next few years. The French government has plans to provide 11,000-15,000 new student housing units by 2020, as Crosslane stated in a press review.

Returns for investors in the PBSA sectors in France range between 6% in Paris to 25% in Grenoble (For further details consult the OPP Global student accommodation report), offering opportunities for returns outstripping the average PBSA-returns of around 6-9%. This might be one more reason why Victus chose to start investments in France – and why it decided to start off in a smaller town instead of acquiring a building in Paris, where Crous is the clear leader in PBSA and returns are lower.

Calls for PBSA are getting louder in most European university cities, as shared student apartments cause a shortage on family apartments. The cries of students wanting to move out of houses of multiple occupation (HMO) are getting louder. In the UK, many funds have discovered the investment opportunity and PBSA is more widespread than in France or Germany. Some 79% of the new student beds, which could be provided in the UK in 2013, came out of the private sector.

Besides France, Germany is a second promising new market, hosting 5% of the international students worldwide. Victus invested in Onsabrück and Oldenberg, two smaller university cities in Germany. The fund predicts large growing potential for the next years in the international PBSA market.

Pinnacle MC Global Network, another Britain-based provider of PBSA, is constantly looking at and being offered sites around the UK and further afield, as PR Officer Alex Shaw told OPP Connect: “In recent months we’ve seen a trend for sites outside of the UK. However, we feel that for the time being, our investors are best served by property based within the UK, away from the financial pressures of the Eurozone.”

Unite UK Student Accommodation Fund (USAF), one of the biggest PBSA operators in the UK, just acquired another 2,904 new beds in the UK. That means USAF will be operating 43,953 beds in the 2014/2015 academic year, as Sharecast reported . Unite are present all over the UK, namely in 22 cities and towns, but haven’t expanded to international markets yet.

By Larissa Rhyn, OPP editorial intern

Rise of Miami as ‘world-class city for luxury real estate’ More foreign investors are looking for luxury property in Miami

Rise of Miami as ‘world-class city for luxury real estate’

More foreign investors are looking for luxury property in Miami, which is on its way to becoming a first-tier city and is among the world’s top 10 cities for luxury, says a top international Realtor

Miami is fast becoming a world-class city for luxury real estate, says a leading international Realtor.

As in other areas of America, Chinese buyers are active in purchasing high-end property in Miami, but stronger demand has come from investors across South America, international marketing specialist Helen Jeanne Nicastri tells OPP Connect.

“I have some Chinese buyers at the moment who are interested in high-end condos and waterfront homes. Chinese buyers are not the most abundant, but there are some in the north east and they have bought winter houses there,” says the Coldwell Banker Realtor, who is based in South Florida.

“Mainly, overseas buyers are from South America, Venezuela, Argentina, Brazil and Columbia, as well as in Europe from France, Italy and Spain.”

Chinese investors face restrictions on the amount of money they can take out of the country, as there is a yearly US$50,000 per-person limit on taking money out of the country, although some investors find ways around this, it can still be an issue when buying prime property.

Ms Nicastri explains, “China cannot move money out easily. In the case of a $15million penthouse, say, if the client is only able to move out USS2million a month, it would take seven or eight months and by that time, the apartment will have gone.”

Half of Ms Niscastri’s business is with overseas investors and she is in an ideal position to understand foreign buyer needs having gone to school in Mexico and lived in Spain. She is also fluent in several languages and has in-depth global industry connections and experience.

The number one target for foreign buyers of US homes (23%) is Florida, according to the 2014 Profile of International Home Buying Activity, which has just been published by the National Association of Realtors. Almost three out of ten of buyers (28%) come from Europe and 26% from Latin America with 8% from Asia/Oceana.

Miami is  among the top five markets searched by Canadians in the last year, according to data from the realtor.com website.  Another strong source of prime home buyers within the US are those who are looking to relocate from New York, Ms Nicastri says.

One huge advantage that the Sunshine State has is its growing commercial sector and global businesses are increasingly looking to set up there. “Florida is outstanding in terms of business opportunities and companies like to business in Europe in the morning and North America in the afternoon in the New York, Miami, California triangle.

As a result, Miami is fast becoming a first-tier city and is among the top 10 world-class cities for luxury, says Ms Nicastri, who was Southeast Florida’s Number One Sales Associate for Coldwell Banker in 2012 and was voted Top Miami Realtor by the Greater Miami Chamber of Commerce in 2013.

“Miami is not one of the first-tier cities, but it is getting there. New York demand is very strong., They are buying second homes and want to get out of New York, and live here permanently. I came from there and was ahead of the curve.

“I only see Miami’s future going up, up and up. In terms of investment value, Miami is taking its place amongst world-class cities. It is number eight in the world for luxury cities in quality surveys.”

Ms Nicastri is a member of FIABCI, the International Federation of Realtors Worldwide and represented Coldwell Banker at FIABCI World Congress in St. Petersburg, Russia in 2012. She also represents Coldwell Banker at the French MIPIM overseas property show and is a member of Coldwell Banker’s International Federation of Realtors and speaks at the Miami International Real Estate Congress.

Culturally, Miami offers a ‘big city’ experience, including trendsetting art shows, concerts and more, she adds.

By Adrian Bishop, Editor, OPP Connect