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34 | BUSINESS Funding data WORDS |OMF & Moneycorp


BUSINESS


www.opp.org.uk | FEBRUARY 2011


In OPP’s regular monthly look at what is happening in the international mortgage, funding and fi nancial markets, our expert partners Moneycorp and Overseas Mortgage Finder review the situation in the United States, where a glut of below maket value properties has doubled the mortgage enquiry rate. They also look at the ever-rising star of the Turkish property sector and ponder Singapore’s efforts to cool things down.


Finance data analysis February highlights


enough aboout the USA. What has been happening in Europe? Like most other countries,


• Enquiries for USA more than double • Turkey’s economy shows promise • Singapore government puts the brakes on property boom


M


Turkey’s housing economy has suffered recently. However there are some positive signs for the country’s economy this year which may start to drive people back into the Turkish property market. In real


any analysts over recent months have expressed a favourable


opinion on investing in the USA, with many believing that current market conditions present a superb opportunity for investors who choose the right type of property. Below market value properties are currently widely available, with many areas experiencing a high level of demand for rented accommodation. So, it is easy to see the potential for high investment and rental returns. Last month


we experienced over double the amount of enquires for mortgages in the USA, which we believe is due to the growing exposure of these types of opportunities. Mortgages are currently available to foreign investors in America up to 75% of the property’s purchase price, with interest rates starting from 3.69% (Variable) and 4.25% (Fixed). Mortgage options start from just $50,000 and are available for the purpose of like-for-like remortgages, equity release and property purchases. But, that is


Top 10 Countries By Enquiries Country & Position 1 USA


2 Spain 3 Italy


4 Turkey 5 Greece 6 Cyprus


7 Caribbean 8 Poland 9 France


10 Portugal Mortgage Enquiries


18.83% 9.09% 7.79% 6.11% 5.22% 5.13% 5.07% 4.79% 4.54% 3.24%


Monthly chart change


 1  1  4  2  2  9  2  1  5  2


“Some economists believe that many properties in Turkey are now undervalued by European standards”


terms residential property prices have fallen 25%-30% across much of the country over the past three years. As a result some economists believe many properties in Turkey are now undervalued by European standards. Interest rates in Turkey are currently relatively low and tourism figures look likely to remain


strong. We therefore anticipate housing loan volumes to grow over the course of 2011. Currently mortgages in Turkey are available to foreign investors up to 75% of the property’s purchase price, with post finance and equity release mortgages also available. Mortgage interest rates start from 4.45% with lending available from just 30,000 Euros. In Asia, recent statistics provided by the Urban Development Authority suggest that government measures taken to prevent a property bubble in Singapore are starting to take effect. Residential real estate prices in Singapore continued to rise in the third quarter of 2010, reporting a 2.9% rise in property prices which is a significant drop compared to the 5.6% increase in property prices recorded in quarter one and the 5.3% rise in quarter two. The low mortgage rates available in Singapore has undoubtedly helped contribute to this recent property


Top 10 Countries By Lowest Interest Rate Country & Position


1 Australia - Singapore


2 New Zealand 3 Canada - France


4 Hong Kong 5 Spain


6 Portugal 7 Germany 8 Italy


Initial Interest Rate


1.59% 1.59% 1.69% 1.79% 1.79% 1.99% 2.05% 2.35% 2.39% 2.70%


Monthly chart change


- - - - -


 7  1  1  1  1


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