Connect Overseas is advising introducing brokers and their clients to look seriously at property investment in Europe in the wake of the deepening euro crisis.
The international mortgage specialist arm of Connect Group has singled out Greece and Spain as especially interesting.
“The Eurozone crisis might be the source of much bad news at the moment,” said Geoff Simmonds, Connect Overseas’ head of operations. “However, the silver lining for investors and holiday home buyers is that the property markets have not recovered and all property is at a large discount against its peak back in 2008, particularly in Spain and Greece. The possible exit from the Euro by Greece is also creating extra opportunities for buyers looking to take advantage of prices tumbling if a devalued drachma is introduced.
“The only concern is that we are seeing a move to more conservative lending from foreign mortgage providers. Mortgages in France for foreign property buyers are becoming more expensive with variable rates shooting up from 2.09% to 2.79% in the last four weeks. Also buyers looking to buy in Spain will no longer be able to source an interest only option.
“Overall these are great times for bargain hunters but I would caution buyers to source their borrowing needs in advance as the lending market is tightening.”