With more and more people scanning the UK property market for bargain basement prices, finding a great deal is becoming increasingly difficult. While there are still areas of Britain showing impressive growth and attractive yields, things are not what they used to be for investors.
With that in mind, many of those who wish to expand their property portfolios are now looking further afield for their next purchase. Naturally, for Brits, the first port of call is Europe. Here we take a look at the top 10 European cities for people who want to put their money into property. Let’s get started:
1) Brussels, Belgium
As Belgium’s capital city and home to the headquarters of the European Union, Brussels is somewhere that deserves more than just a cursory glance. The city has high rental demand, but be aware of the high transaction prices and the taxes that you will have to pay here.
2) Riga, Latvia
Riga, and Latvia in general, has a great pro-landlord rental market and the red tape is not as overwhelming as it can be in other parts of Europe. Transaction costs are low and GDP growth is high. Yields may not be as great as elsewhere, however.
3) Berlin, Germany
With the largest European economy behind it, Berlin is certainly a strong player in the European property market. The cost of transactions here are reasonable and the yields are very good. The rental market, however, is more tenant-friendly than pro-landlord.
4) Istanbul, Turkey
Istanbul is currently experiencing economic growth on scale that it hasn’t seen before. Despite the property market being decidedly pro-tenant here, the high yields and reasonable costs make Istanbul a place worthy of your attention.
5) Amsterdam, Netherlands
Amsterdam is another tenant-friendly city, but it certainly shouldn’t be dismissed because of it. Amsterdam has an extremely strong economy and the prices here are modest considering it is such a major city. Reasonable income tax levels are a plus here too.
6) Hungary, Budapest
Budapest has some minor ownership restrictions in place and the income taxes on rentals are a little on the high side but there are still areas worth taking a look at here. Yields are generally good and the law is more on the side of the landlord than the tenant. Transaction costs are sensible too.
7) Talinn, Estonia
Estonia is enjoying strong economic growth of late and the property market is beginning to reflect this. However, transaction costs remain remarkably low here while the yields are decent, although by no means high. Income Tax, however, is expensive here.
8) Bratislava, Slovakia
Rental income tax rates here are attractive to prospective investors as are the transaction costs. There are, however, some issues over property rights here and the rental yields are at the lower end of the scale.
9) Ljubljana, Slovenia
The property market here is very landlord-friendly and the low transaction costs can prove enticing. The economy here is good, but buyers should be aware of the high taxation policies in place for rentals before committing to a purchase.
10) Vienna, Austria
As an extremely well established city, investing in Vienna comes with a certain degree of comfort. The stable political system here means that surprises are unlikely in the foreseeable future and the transaction costs are relatively cheap considering the city’s popularity. The rental market, however, is geared largely towards the tenant here.
11) Helsinki, Finland
Finland’s economic outlook is strong and the housing market here is buoyant. Yields are by no means high here, but the transaction costs are very reasonable indeed. The balance between landlord and tenant is fairly equal here too, however, the high income tax on rentals may put some investors off.
No matter where you choose to invest it is always important to do your own research and find out as much as you can about the property market in each city. We have taken the main points from our own research and experience and wrapped them up into a cosy little nutshell for you. If you have your personal experiences to add about any of these cities, let us know! We’re always happy to hear!
Feature image credit: Charles Clegg via Flickr.
If you enjoyed this blog post then perhaps you would like to read “What The Future Holds For the Property Market if a Brexit Comes To Pass“?