In this particular and strange moment of market, seen by many people with distrust, is indeed a good chance of performance and of gain.
Everyone knows Mario Draghi’s reform for the resumption of the economy. The BCE’s president is lowering the interest rate, in fact, for the first time, EURIBOR 3M (the interest rate of reference for the loan) has become negative.
We can resume the current situation in this points:
- Interest rate close to 0%
- Banks need lend money and the EURIBOR 3M is close to 0%-> mortgages with very low rates
- Chances to invest in financial world are not good
- Depreciation of the Euro
WHAT SHOULD YOU DO? YOU SHOULD INVEST IN THE ITALIAN REAL ESTATE MARKET!
Some years ago has started a big decrease of the Italian properties’ prices, that will continue until the end of 2015 or the beginning of 2016; probably during the biennium 2016-2017 the prices will remain the same and during the second part of 2018 they’ll increase.
According to Goldman Sachs’ projections, by the end of 2015, euro will reach the same value of dollar and in 2016 it will collapse, until 1€ will be equal to 0.80$.
Actually government bonds and bonds’ performances don’t exceed the 0.75/1% gross.
There’re some opportunities in the stock market, but in this moment is really dangerous to invest, because the stock market is volatility.
If you invest in Italian Real Estate market you’ll have the big chance to have great yield in the next 5/7 years, or, if you don’t buy to invest, you’ll enjoy your new house. If you haven’t the cash to buy a property, you’ll may ask a mortgage with amazing interest rate, later on, if you sell the house, you’ll probably gain the same amount of money you spent to buy it.
THE PROBABLE RECOVERY
Thanks to reforms of the Italian government, probably, in the 2017 it will start the recovery, the employment rate will increase, and associated to the low interest rate, they will permit to young people to buy the first house; the demand’s growth will increase price of properties.
At the same time, in the 2018, euro will increase his value.
In September 2015 1$=1€, with 100.000$ you’ll buy a house evaluated 100.000€.
From 2016 to 2020 you’ll rent that house for 3 months a year (totally 12 months).
You’ll earn 300€ a month: 300€*12months=3.600€ (money that you’ll use for pay taxes).
At the end of 2020 you’ll sell the house for 140.000€ and 1€=1.25$.
1€:1.25$=140.000€:x$ X$=175.000$!!! +75% IN 6 YeARS!
Where you SHOULD invest
The whole Italy is beautiful, but there’s a region that in this moment has more opportunities than the others: Emilia-Romagna.
From the province of Piacenza to Bologna is called Emilia, while from Ferrara to Adriatic Sea is called Romagna.
Romagna actually isn’t a good place where to invest in Real Estate, because the prices are high and many Russian people are going to invest in Croatia.
While amazing chance is represented by Emilia, because:
- The world’s interest in Emilia is going to increase
- The Emilia’s culinary tradition is the best in Europe
- There’re great ski slopes
- The average of the prices will increase during the next 5/7 years
- Emilia is near to: Milan, Tuscany, Marche and Cinque Terre
- There are wonderful landscapes and views
Please, for further information contact us.