Project Description

STRATEGIC INDIVIDUAL PROPERTY INVESTMENTS

Europe

About the Investment:

The 2008–2013 European financial crisis began as part of the world Late-2000s financial crisis and continued as part of the European sovereign debt crisis, which has affected primarily the southern European states and Ireland.

In Europe, the crisis was generated by long-term loans (commonly issued for 25-40 years), the building market crash, which included the bankruptcy of major companies, and a particularly severe increase in unemployment, which rose to more than 25% by March 2013 in worse affected countries.

The residential real estate bubble in Europe saw real estate prices triple between 1996 and 2008 in some area’s.

As feared, when the speculative bubble popped some of the Southern European countries became the worst affected. According to various sources, over the June 2007 – June 2012 period, Spain has been the European country with the sharpest plunge in numbers of units constructed and in prices, which dropped between 30% and 40%.

Realty Access has selected to purchase various properties in Europe at large discounts, which are now part of the portfolio.

On acquisition, additional issues that are considered are the management of the properties (and other holding costs) and the proposed exit strategy.

Exit strategy:

The resale market of properties in Europe is recovering steadily, mainly due to an increased level of cash buyers from countries such as Russia, China and from northern Europe, who are looking for an investment at a reasonable price. This recovery of demand and transactions has been the main cause for a recent, encouraging increase in property prices.

This property is available in categories:

Entry Level
Standard Level
Premium Level
Executive Level