Weak Euro is Pushing Buyers Over to the States
As America starts to recover from the vicious worldwide recession, countries in the Euro Zone, such as England, Germany and France, are still struggling with mass amounts of debt and are preparing themselves for the possibility of a double dip recession.
With banks across Europe still being straddled with debt, they are now asking for upwards of 30% deposits on new housing loans, meaning it has become almost impossible for first time buyers to get a mortgage on a new house. Because of this, potential buyers in Europe are looking to other countries with more stable housing markets, including the US.
In areas such as Pittsburgh, Columbus, Ohio and Cincinnati the housing market is incredibly strong compared to many areas in Europe, meaning there has been an increase in new foreign buyers. European landlords in particular are looking to buy property abroad to rent, avoiding re-locating but still grabbing a property bargain.
What’s more, with a healthy volume of renters, competitive landlord insurance rates on properties and a stable job market in the area, Cincinnati ticks all the right boxes for landlords buying new properties.
This will be an interesting trend to watch as the property markets across Europe fluctuate in the coming year. If countries across Europe are hit with a double dip recession there may be a greater increase of foreign buyers across America.
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