Current
and Future Markets
With the current deflation in the UK and abroad,
and with credit now more difficult to come by, many overseas markets
are succumbing to the downturn and overseas property prices are
freezing, if not falling. Many areas are seeing house prices fall
from an artificial and unsustainable high. There has also been an
increase in the number of airlines going bust. Areas affected by
these bankruptcies are seeing less holiday makers visit and this
has led to further price drops.
However, the overseas property market is still an
attractive one to investors as markets abroad can be more stable
than markets at home. Many people with money in the bank will be
watching the property markets abroad over the coming years to try
and predict the bottoming out of markets so that they can pick up
real bargains. Young investors are still managing to afford properties
in many overseas markets too, and as long as they choose to make
investments in sustainable markets, and can cover costs by letting
out their property, then these investments are still profitable.
Buying-To-Let Abroad
Although it is not possible to accurately predict the way housing
markets will move over the next few decades, property remains one
of the good long-term investment options as there is always a need
for property. Any buy-to-let
investments should be carefully considered however, if one is
to make a profit. Buying in areas where there is a strong local
demand for property, and ensuring that accurate calculations are
made when it comes to potential rental income and house prices will
all help buyers to make a profitable purchase.
To avoid losing out due to currency fluctuations, it is also advisable
to borrow money in the same country, or at least in the same currency,
as that of your chosen property.
Non-Capital Gains
Unless you are a serious investor looking to expand their portfolio,
then buying property overseas should also be about enjoyment as
well as profit. Particularly for those looking for a long term second
home, the financial side of things need not be the be-all and end-all.
Remember that you do not have to buy and sell properties to make
money - some profit can be made by restoring or renovating your
chosen property too. Choosing property in an area that you enjoy
visiting, and will enjoy visiting for years to come is an important
factor. And even if huge profits aren’t to be made, having
a holiday home that is there for you and your family to enjoy for
now and the future is just as important a reward.
