We still love overseas property, but not as often as we used to
This is a legacy post from the findaproperty.com blog which is now maintained as an archive within the Zoopla blog. Links have been preserved.
Us Brits still like our overseas bricks and mortar, but we’re not buying nearly as much, or as freely, as we once did. That’s according to some new research by the property investment company Assetz, whose latest report has recently passed across FindaProperty’s desk.
Assetz says the days of high volume sales from speculative investors are over. But demand for overseas property is still solid, especially from Brits with a little extra cash in their pockets. And FindaProperty can certainly see why – it’s not surprising that these buyers would rather invest their nest egg in a French apartment or a Spanish villa and benefit from a rental income rather than have their cash languish in a low-interest savings account in Blighty.
The quality of our property purchases is also improving, according to Assetz. Before the global economic downturn approximately 20 per cent of prospective investors would organise a viewing trip to their chosen development in order to investigate the developer, the local area and the quality of the scheme. Today, Assetz says, 80 per cent of those thinking about investing in property abroad will devote quality time to cautiously researching developer credentials, land ownership, local facilities and rental demand.
Most Brits who are investing overseas are also putting down more money as a deposit, according to Assetz chief executive Stuart Law. “The position, facilities and quality of build must be spot on, with strong tourist rental demand and plenty of scope for personal use,” he says. ”Most buyers are putting down deposits of around 50 per cent, as opposed to the 0 – 10 per cent commonly seen just a few years ago, and focusing almost entirely on long-term rental income rather than capital gains.”