Few good choices in Europe

This is not the time to buy in Europe. After over 10 years of property price appreciation, and one year of a property crash, European real estate markets are still too expensive, overbuilt, and borrowers still have to pay high rates, despite key lending rate reductions.

Europe’s big problems:

• We’re in a crisis. Real estate markets are momentum-driven. Now’s not the time to buy.
• Western Europe’s long-term growth has been weak - and in the short-term, there’s no growth.
• Low yields. A simple, sensible cut off point – don’t buy anything that yields less than 5% - leaves just 11 countries. Almost all are in Eastern Europe, which is very vulnerable to the crisis

We certainly wouldn’t consider buying anything in Europe at the moment. Come back when property prices have fallen, and the economies are recovering, which could take a while!