Hope for german investors

The German Government is about to unveil a multi-billion Euro fund to assist businesses that can't obtain finance from the banking system, Chancellor Angela Merkel has revealed...

The package - worth some £95.8 billion- is aimed at helping to tide healthy firms over until normal levels of bank lending can be resumed, "We do not need 100 billion Euros of new money because this is about guarantees."

Les Calver, Director of overseas property portal Property Abroad gave his views on the plan, "Germany has been one of the most robust economies in Europe, but it is beginning to fall victim to the financial crisis; recently recording its first unemployment hike since 2006.

"Less people own their own home in Germany than any other EU country, so people investing in German property do so because of the solid residential rental market. The down-side to this is that the Government is forced to impose and maintain strict controls over the raising of rent in Germany.

"When the German economy was extremely strong, was hoped these controls may be eased. If unemployment was to continue rising these controls could become more severe.

"Therefore overseas property investors looking at Germany will be hoping the new fund, staves off unemployment before it has a chance to become a problem, and helps Germany make it through the credit-crunch without taking any drastic measures to further restrict rent rises," he added.

Source: Property Abroad