For a while, the media and some important opinion leaders have spread a probable future crash of the real estate business, caused basically due to the heavy debt charge in the budget of the typical middle-class family and the increasing rates of interest applied to the US financial operations - loans.

For the common people it doesn’t seem to be a real life problem, yet.  If you ask someone if It rates of interest and real estate crash is within his/her main concerns, the answer will be - almost undoubtfully - a strong negative.

Rising property values earlier this decade lured many people into the market. Now that the bubble has burst, the crisis is quickly spreading through many country’s economies.

The collapse of the building industry marked the fact that the golden years of the real estate business are now well and truly over.

There has been a general tendency across Europe for the mortgage-debt-to-GDP ratio to increase since 1980. This is mainly due to the overall liberalisation of financial sector, to the upward trend of RE prices and to the downward trend of interest rates over the period. However disparities remain between countries.

Besides the outstanding mortgage debt per capita, the effectiveness of the monetary transmission mechanism described above might be related to the so-called ’completeness’ of the mortgage market.

The main criteria for the mortgage market to be complete are high average loan-to-value ratio3 (in particular no ceiling) reflecting banking competitiveness, product variety, high density of distribution channels, variable mortgage, rate rather than fixed rate, securitization of mortgages by banks by selling unwanted exposures to a secondary market, mortgage accounting practices based on market value, etc..

On this complex scenario some may want to move to rising markets like South America or Asia.

For the ones considering so. We recommend you to visit:  http://www.propiedades-inmuebles.com

A place to think from a very different prospective. Get to know how the current crisis opened interesting opportunities for new markets.

And for a new life.