Overseas Investment Property for sale (2007)
At the moment, some of the most lucrative overseas investment property areas are Spain, Australia, Barbados, Brazil and Cyprus.
They represent significant off plan, residential and buy to let opportunities; off plan often providing the biggest return on investment (if properly researched).
Spain has always been looked upon as a safe and steady overseas investment area. Demand for properties here has been rising steadily since as far back as 1988. There are currently over 1.1 million holiday homes in Spain owned by foreigners – and half of these are from the UK.
Spain is no more than three hours away from any UK Airport and now low cost airlines are flying more frequently to more and more destinations in Spain and the Canary Islands.
Apart from the low mortgage rates Spain also has the climate; the beaches; the cuisine; the nightlife; the infrastructure; a vast and varied landscape; art, architecture; music; culture; and every type of outdoor sport activity imaginable. It’s no wonder Spain is looked upon as a sound overseas investment area.
Australia has solid economic climate, which helps boost the property market and create continual demand and investment opportunities.
Investors are looking for overseas investment property for sale within Australia’s major coastal cities and tourist hot spots. With its amazing climate and very high quality of life, property in Australia is now highly sought after. The fact that they speak English is a big attraction for UK investors, a lot of whom actually end up relocating here after a year or so.
Barbados has significant investment potential, both as an area to live and an area to invest in. As well as being spectacularly beautiful, it has a booming economy and excellent infrastructure, along with stunning beaches, a perfect climate and very friendly people.
Brazil is an emerging market with very good potential. The market is stable with high growth and excellent returns on investment. The cost of living here is amazingly low – just 20% of that in the United Kingdom and Europe.
Cyprus offers excellent value for money (North Cyprus in particular). You can buy property here for significantly less than you could in Portugal, Spain and France. The property industry in Cyprus is now very well established.
Investment options (off plan or buy to let)
If you really want to get the most out of your investment and don’t immediately need to live in the property, off plan property is the best way to go.
It’s quite simple. You buy property in a new development at a low price and by the time it’s finished it has gone up in value significantly.
Off plan properties are priced very attractively for a quick sale. Developer’s will try and sell units as quickly as possible, in order to reduce the required capital outlay and minimize their own risk.
Normally you’ll have to pay an initial deposit, followed by installments at fixed dates until the project is completed. The advantage of this is that you only need a small mortgage. You can eventually borrow more money as the payments fall due. In this way, you enjoy substantial savings on interest.
Another advantage of off plan investment is that you get to choose from the best selection of properties. If you get in at the beginning all the most attractive properties are still available – the penthouses, corner units or properties with larger gardens – which all usually sell first.
In buy to let situation, you buy a property and rent it out as soon as possible. Ideally the rent should cover the cost of your mortgage and if you’ve planned it well, you might even have some money left over.
In order for this to be successful, you need to get to know the local letting market. Targeting short-term visitors during peak seasons can bring in high rents over a short period (normally July and August). On the other hand if you have a year round tenant you’ll receive a (lower) fixed rental income all year round.
When buying to let, it’s important to purchase a property that will rent out well, not just one that you’d like to live in. Speak to your local agent for more information on renting in the area before you purchase.
