Key indicators
Why do people invest in property overseas?
- Key indicators
What should you look for when buying property overseas?
Look at the demographics and seek out areas of strong population growth.
Look at the economic conditions, is the area growing, are new businesses flourishing?
Identify areas where new infrastructure will positively affect value (roads, airports).
Look for strong retirement communities.This affluent group positively affects values.
Identify undervalued local markets.How are prices compared to other markets in the area?
Smart buyers focus on areas with strong potential for appreciation.
What is happening in the current market? Is demand increasing or decreasing?
Look for rental markets with low vacancies and a tightening of available units to rent.
Are prices affordable and is financing available?
How does the value look when compared to alternatives elsewhere?
Look for strong growth in Population.
Whilst the motivation behind an individuals desire to purchase overseas may vary the indicators of a sound investment rarely do.
Quality of Life and an Investment for the future.
Approximately 800,000 U.K. households own a property overseas (an increase of 45% in 2 years). This figure is set to rise to over 2 million by 2025.
A report by Mintel looked at the reasons for buying. It found that 'sun worshippers' (31%) and 'speculators' (31%) were the largest groups followed by 'multi-purpose investors' (22%) and 'retirement investors' (16%). The report emphasises the diversity of overseas property investment.
The recent volatility within the financial sector combined with the depressing reality of the domestic property market is making the overseas property market that bit more challenging and it is these challenges that we are seeking to address.
The potential of a rental income combined with strong capital growth is regarded by many as an extremely attractive investment proposition.
Property investment should always be regarded as a long-term investment.
It is worth considering that 50% of the individuals on 'The Times Rich List' made their money through property investment.
