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Low Interest Rates Will Help

As expected by analysts the European Central Bank cut interest rates by 0.5% to just 2.0% in the middle of this month, on the back of reports that the Eurozone's economic slowdown could get worse than was previously thought. If this is passed down to consumers, it could make property purchases in Bulgaria even more appealing.

Les Calvert, Property Abroad director, said that no one expects to make money over the short-term on property investment in Europe right now.

"Investors in European property are buying to hold, in the hope of making gains over the long-term after the global recovery," he said.

Calvert also said that most property investments are being made using cash at the moment, because finance is hard to obtain and because property prices are low, but that the low interest rate could boost European property investment.

"The lower the interest rates get, and the ECB rate is expected to fall to 1% in the summer, then it may become more attractive to take finance on these properties, and may make property investment more accessible in Europe," he said.

But the real clincher is making finance more readily available; Les said that:

"With the European interest rate so low and falling property prices throughout Europe, there are enough people out there wanting to buy overseas property, that if finance was to be made more readily available it could stimulate a recovery in European property markets."

Property Abroad have thousands of properties in Europe, including bargain ski-properties in Bulgaria.