“If you want to buy a property in the Alps, now’s the time to do it."15 June
In a recent article in the Daily Telegraph Jim Mellon, who is often compared to billionaire Warren Buffet, the third richest man in the world, highlights that now is the time to invest in European property.
With Mellon’s current fortune of £850m still some way off Buffet’s net worth of $79.2bn, he still poses a commanding voice when it comes to prudent investments.
In the article he is quote saying “My Jack Russel could have forecast the euro would fall” and then goes on to suggest that against the pound and other major currencies we should not expect much more weakening, meaning now is the time to buy European property.
He expects that the ECB’s quantitative easing programme, essentially a money printing initiative, will lead to a property boom across Europe. Those who have watched prices rise in the US, UK (especially London) and Japan will note that their respective property price rises also came about as a result of QE money printing programmes.
Property prices in France could benefit greatly from Europes QE plans. Real estate prices, particularly in quieter rural areas, have been nudging down over the past few years in the face of Hollande’s austerity measures and Eurozone economic uncertainties.
Yet French property was never really hit in the same way as many of its European counterparts during the recession. This was largely due to the French approach to credit; long-term secure loans and capped rent rises helped no end.
So with the Euro at 7 year lows against GBP, French mortgage rates at rock bottom and a gentle push from Jim Mellon, perhaps more British buyers will look to secure that dream property abroad.