Why this is the time to buy European real estate.
Sun-drenched tile roof houses or super-safe Socialism. Europe conjures up pictures of fun vacations and lousy movies, (I’m looking at you, Chevy Chase.) But Europe is a mess right now. The war in the Ukraine has taken a huge toll on the continent. Gas prices are up, a sense of calm is down.
But will it last? Of course not! Europe will soon go back to being the safe and stable continent that we’ve known and loved.
So if you’ve ever dreamed of owning property in Europe, this is absolutely the time to buy. I’ll tell you why:
1) The Euro and the dollar are at near-parity: The last time that happened was in 2002. What is “parity”? This means that the dollar and the Euro are essentially worth the same amount. This is HUGE. When I bought my property, in 2018, I paid 62,00 euro. It’s a small house in Central Portugal on a river. It was still a great deal at the time. BUT, at that time the Euro was at about $1.17. So, I paid roughly 20 percent more than the actual price in Euros. My property value has increased by about 200%, which is great, but it would still have been really nice to pay with a strong dollar vs a weak one.
2) With the Euro being so low, you are set to make a big amount of money JUST from the Euro going up. Basically, your property value could easily increase by about 20%. So, if you bought a house for 100,000 euro it could easily go up to 120,000 euro in value. You just made 20,000 euro! It’s like free money!
2) Europe will always be a place that people want to visit. Rome isn’t going anywhere, (although Venice might.) So you can buy in cool places now. Imagine places that are amazing to visit: Rome, Athens, Paris, etc. You can buy there with your strong dollar and you’ll almost certainly be assured an increase in value due to the currency AND due to future increases.
3) Because Europe is on-edge, there is more stock. Europe isn’t in a normal place right now. As I write this from my Portuguese apartment, gasoline has dropped in Portugal from about $8 a gallon to about $6. That’s better. But there is concern on the continent. I’d say, anecdotally, that there is less local investment. People are concerned about inflation and the war is hanging over their heads. The demand for real estate can’t help but to slow down. Also, as I write this it’s November. It’s not the high tourist season. It’s the perfect time to buy.
4) In some of these countries, your purchase can earn you citizenship. They call it “citizenship-by-investment,” and places like Greece, Portugal, and Montenegro all have these “schemes.” BUT the EU is starting to pull the plug on these schemes as they feel it creates a security risk to the continent. So, if you want it, and you have roughly 1/2 a million dollars to invest, this is the time to do it.
5) If you really want to get a great deal, pull out a map. Find the countries that are being affected by the war, and buy there. If you don’t mind risk, you’ll get great deals right now in places like Georgia, Estonia, and Poland. The beautiful Balkan countries will be on sale right now. Will Russia take over Poland? My guess is “No.” But could you possibly get a really good deal on a place in awesome Warsaw? Yes. Some of these countries do use the Euro and others don’t. But some of them are short-listed to join the EU in the near future. So, real estate in countries like Albania and Montenegro might be great purchases that could lead to EU citizenship.
I’m not a huge Warren Buffet fan, but he does have a point when he says to “be fearful when others are greedy, and greedy when others are fearful.”
It’s also not a bad time to just move some money to Europe and sit on it. It’s going to come back up. It always does.
Do you have dreams of someday moving to Europe? Of dusting off the old beret and people-watching at some cafe? Of having affordable healthcare? Of eating food that doesn’t contain FDA-approved additives? Of no longer worrying about school shootings every time you drop off your kids at the bus stop? Buy now, while your dollar is strong and the pickin’s aren’t slim.
