While 40% of house price gains in some parts of the capital of Latvia, Riga were recorded and resulted in an increased interest of foreign investors in this new member state of the European Union, the key the long-term success is in understanding Latvian local economy.
Although Latvia is a country of attractive geographic, historic and interesting, which creates an exceptional natural environment for tourists to explore, not a tourist hotspot and not a country trying to target tourism. The success or failure of the government's commitment of Latvia to improve the levels of foreign direct investment and stimulate the local economy is key to the continued success and the real estate market of long-term investment in Latvia.
Why?
Because a real estate investor audience - whether for rental or resale of real estate - is the local Latvian people. An indication that the Latvian housing market will prove successful real estate investors and those who carefully choose their assets real estate investments in Latvia will benefit them in the medium and long term is that the mortgage market in Latvia, which is in its absolute infancy, gaining substantial strength.
Interest rates in Latvia are incredibly low in real terms and mortgages outstanding figures in Latvia are at least 40% lower than in other EU countries. This means that lenders increasingly local and international are realizing the huge profit potential in Latvia and are beginning to enter the market - it should give great confidence of investors for two reasons ... first financial institutions to engage with the mortgage market are not here for the short term and increasing the other the availability and affordability of housing loans means that a growing number of Latvians are granted greater buying power and gain strength financial. Because, as we said, is the local market that will ultimately provide an investor with your target audience, this bodes well for the long-term profitability of real estate investments in Latvia today.
0 komentar