Are British buyers looking further afield for properties?

Monday, 19 August 2013 02:06

Overseas property buyers are becoming more adventurous

Overseas property buyers are becoming more adventurous

The latest figures by rightmove highlights that there was a 52.72 per cent rise in search activity of people hunting for properties overseas, and there was a particular focus on long-haul destinations. Australia moved up two places to now become the fourth most searched destination, while there were also notable rises for cities in Thailand and India. In conjunction with this, search activity for Italy and Portugal fell, suggesting that investors are shifting their gaze away from Europe.

Shameem Golamy, head of Rightmove Overseas said: “Whilst traditionally, people don’t tend to emigrate over the summer months, property prices further afield are attracting the buyers looking for a bargain."

There are many reasons why buyers would be looking to buy property abroad, such as relocating due to work or other commitments. For more short-term purposes, many will look for property abroad to use it as a holiday home and then rent it out to tenants as an extra revenue source.

Whatever the reason is behind such an investment, most of these purchases have to be carried out int he local currency of the country the property is located in. With the weak Euro and the recent eurozone crisis, it is therefore hardly a surprise that investors are looking further afield.

Charles Purdy, managing director of Smart Currency Exchange, added: “After a terrible first quarter sterling has benefitted from the release of better than expected UK economic data and from problems elsewhere especially in the eurozone. Not a great surprise that searches for Cyprus have fallen given the extent of the problems they have but we still have clients who are completing on their properties. The key seems to be to keep your surplus cash in the UK until matters become more certain, and I am sure there will be some great bargains to be had in the coming months."

Five main tips to consider when buying property abroad, especially if it's geographically further away, include:

Choose the estate agent carefully by looking at their history and asking about all the fees beforehand. The internet is a valuable tool but nothing beats going out there yourself and checking out the agency and the property yourself.

Think carefully if this is the right investment for you. The further away the property is, the more stress you will be under to maintain it.

Naturally, grandiose claims of growth and yields will be made on a viewing, so be sure not to get sucked into this. Consider all costs and note that you will be liable for taxes both abroad and in the UK.

Seek professional advice from a solicitor about important issues such as negotiating contracts, secure deposits, making international regular payments and what will happen to the property if you unexpectedly pass away.

Most importantly, do as much research as you can on tax, pensions, healthcare, retirement and insurance. All of these are particularly crucial if you are planning to emigrate in the future.

As more and more buyers look away from Europe, and reports highlighting positive growth and high yields, this may be the perfect time to buy if you have always wanted to dip your toe into the investment pool. 

 

Comments

Finance articles

View More Articles

Related stories

Top tips for buying an overseas property

Buying an overseas property can be risky

A dream property overseas is a tempting option but to ensure your dreams don't become a nightmare you need to pay careful attention to the legalities of buying home overseas.

Why travel insurance is vital even if your holiday is in the UK

Travel insurance is necessary for a UK holiday too

Just because you are not getting on a plane doesn't mean you don't require travel insurance if you are going away for a short break in the UK.

Government to limit peak time rail fare increases to RPI + 1%

Rail fare increases are to be limited to the RPI plus one per cent

The government has announced that it will limit peak time rail fare increases to the retail prices index measure of inflation plus one per cent.

Online or agent? How to find the cheapest holiday

Searching online for a holiday can save you money

Searching online to find a cheaper holiday is becoming more popular, but is using the inside information a high street travel agent has a better bet?

Flights cost less in midweek, says Which? report

Which? reports flights are cheaper in midweek

New research from consumer group Which? shows that travellers can save significant sums of money by being flexible over the day of the week and time of day they choose to travel.

How to find the right travel insurance policy

Travel insurance is a vital part of a holiday

The weather in the UK will drive many away to sunnier places this year but if you are travelling make sure you get the right travel insurance policy. Our guide shows you what to look for.

Greening admits fares will rise to pay for £9bn rail investment

Government unveils £9.4bn plan to upgrade railways

Transport Secretary Justine Greening has admitted that rail passengers will have to foot the bill for the Government’s £9.4 billion overhaul of the railways.

Exchange rates for tourists can vary by 5% in "postcode lottery"

'Regional variation' in currency exchange rates

Holidaymakers are being hit by a postcode lottery on currency exchange rates that means rates can vary by up to five per cent, research by Which? reveals.

Newsletter sign up

Interests

In addition to the weekly newsletter, which areas of finance would you like to hear from us about:

Tick this box if you would like us to send you promotions from carefully selected third parties.

By signing-up you agree to the terms of use and privacy policy.

sign-up button

Get the latest information on: