Quote:
Originally Posted by Goldberg Global
When are the Germans going to sort out there mortgage market for foreigners.
That is stopping alot of capital appreciation, and real leverage in the market.
50% loan to values, or if you very lucky 70% but nothing like it was in UK, USA, Spain, and before people say what a mess it is in these countries, the reality you could make money with very little money.
In Germany you need a wedge to get in, which deters other investors, who also need a wedge to get in.
The growth of the prices will be accompanied by the growth of DEBT, in the market, its logic.
You will only win big, if the germans or other people take on more debt. So when is the loosening of mortgages going to happen in Germany?
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You're right, this has been a bone of contention for some time.
Some of my German counterparts have been smugly crowing over the sub-prime and the market here and the US and commenting on how fragile the market was when it was driven by UK/US standards and German banks were right to keep out of it all.
Well - As a post from JMBroad on another topic on this forum has suggested far more German institutions had their fingers in the pot than previously thought and the chickens are indeed on their way home to roost.
JM - Is in a position to know these things.
In the last month I have established good 70% finance for commercial product in Germany and have only just finished celebrating the fact (I have many clients willing to buy commercial at this LTV) It will be interesting to see if this supply survives given the bombshell from JMBroad.
I rarely push myself to more than 50% LTV (My comfort zone and adrenalin requirements are unsophisticated and low)
My German partner secured a cash purchase of a house giving a 38%yield this week. A couple in their early seventies inhabit it with a death convenance which they have asked if I would re-new just to make them feel safe - We did not have to work on this long to agree. Three years ago this would not have raised eyebrows. Nowadays this is indeed a rarity.