Salient to Investors:
In France, joblessness at a 15-year high, property prices near record highs and new taxes have made households reluctant to borrow to buy homes.
Credit Logement and CSA say the average housing investment funded with loans represented 3.73 years of the buyer’s income in March 2013, the lowest since January 2010, while the average term of home loans in March averaged 205 months.
Marc Julien at Pierre Invest said they have had a catastrophic January and February with the property tax squeeze, while banks are asking for at least a 10 percent down payment, and are unwilling to lend over more than 20 or 25 years.
French home prices have risen 163 percent in the past 15 years.
Philippe Taboret at Cafpi said banks are making hefty margins and are offering one-off discount offers, though stopping short of a rate war.
Read the full article at http://www.bloomberg.com/news/2013-04-22/paris-hit-by-property-freeze-as-taxes-deter-buyers.html .
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