The package -- worth some 100 billion Euros (135 billion dollars) -- is aimed at helping to tide healthy firms over until normal levels of bank lending can be resumed, she said in an interview with Bild am Sonntag to appear Sunday, adding: "We do not need 100 billion Euros of new money because this is about guarantees."
Liam Bailey, chief market analyst for overseas property portal Property Abroad gave his views on the plan:
"Germany has been one of the most robust economies in Europe, but it is beginning to fall victim to the financial crisis; recently recording its first unemployment hike since 2006. Less people own their own home in Germany than any other EU country, so people investing in German property do so because of the solid residential rental market. The down-side to this is that the government is forced to impose and maintain strict controls over the raising of rent in Germany.
"When the German economy was extremely strong, was hoped these controls may be eased. If unemployment was to continue rising these controls could become more severe. Therefore overseas property investors looking at Germany will be hoping the new fund, staves off unemployment before it has a chance to become a problem, and helps Germany make it through the credit-crunch without taking any drastic measures to further restrict rent rises."
Property Abroad have some solid investment properties in Germany, including a tenanted apartment in Spandau, Berlin offering a 6% rental yield. The apartment has been rented out to the same person for ten years, thus the person has a reliable income. A 6% yield is very good for Berlin, though it is likely because the price of the apartment has been dropped for a quick sale. The good thing is: rents in Berlin are so common and so regimented that even if the tenant was to become unable to pay the rent, or was to move out for any other reason, the new tenant would be found quickly without dropping the rental rates.
About Property Abroad
Property Abroad is rapidly growing into one of the best known, trusted and most successful overseas property portals in the U.K. With a slick dynamic site and very reasonable rates Property Abroad currently has among the most extensive worldwide property listings on the net.
To find out more contact Liam Bailey on liam@property-
Property Abroad LTD
182 York Road
Hartlepool
TS26 9EA
www.property-
Chief Marketing Analyst
Liam Bailey
liam@property-
