In nowadays of the credit crunch a number of markets

In nowadays of the credit crunch a number of markets have been singled out as not being badly affected from the crisis. While some markets are nonetheless enjoying their emerging status and France has benefited from its banks' low exposure to the US sub-prime marketplace, the German market is one thing altogether different.

Whilst a number of markets around the western world have soared in current years, Germany's has stagnated, with home prices, if they've moved at all, falling.

The explanation for this lies in the early 1990s, Speigel Online has stated. In an post reproduced in Newsweek, it explained that following the reunification of the nation a law was passed allowing investors in property in the former east to write off the investment expenses against their taxable income to get a decade. The outcome of this was a high degree of investment which produced a home bubble, 1 that didn't match up with demand.

Consequently, there was a property bubble which burst, leaving the German home market within the doldrums, where, not assisted by elements like higher unemployment and a sluggish economy, it stayed through this decade. Meanwhile, those that had invested heavily in property within the 1990s had seen their fingers burned and investors had been therefore reluctant to turn to the sector.

Yet, the post added, this has left a situation exactly where property in the nation is very inexpensive and buy-to-let is now expanding once more. The question is whether or not this now marks out Germany as a secure and worthwhile location to invest.

Based on Denis Madden, managing director of the German Home Centre, which supports UK and Irish investors in Germany, the answer is definitely yes. Mr Madden said the final couple of years have seen a major surge in overseas investment which has pushed up costs, even though even in Germany the credit crunch has triggered a slight correcting influence.

Nevertheless, he stated, this didn't mean a slump was on the way within the manner of some other countries, stating: "Right across the spectrum we've been seeing huge interest within the last two years and now what we've seen is really a general slowdown in that degree of investment, but not the cost falls which have been registered in other markets."

He added: "Whereas you've seen a fall-off in other markets, Germany has, relative to other markets, been as safe as homes. Extremely, very strong fundamentals and the cost growth only occurred in the last two years and was extremely a lot a correction from historically very low costs and extremely high yields."

These fundamentals, Mr Madden noted, included factors such as falling unemployment and Germany recording its initial post-reunification spending budget surplus final year.

For those looking to find price development, it appears the cities are the location to go, as Jurgen Michael Schick, vice-president of Germany's Genuine Estate Association, told Speigel On-line. He explained that places such as Hamburg, Nuremburg and Munich have outperformed the national average (The Royal Institution of Chartered Surveyors' European Housing Review 2008 noted that Munich prices were up six per cent within the first half of 2007) whilst places like the former east continue to become in the doldrums.

Whilst these cities are expanding, Mr Schick said: "We expect price rises of about three to four percent a year, which in the past were the monthly rises in the UK." This may appear a cautionary tale for all those seeking to make a fast return. But on the other hand, it might be appealing to longer-term investors, as steady development rather than feasible boom-and-bust might make German houses safer nonetheless.

In today's globe Property investment is a great investment choice particularly investment in UK.

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