We are starting to hear more positive news for economic growth, not only in the UK, but also in other areas of the world. Therefore, this could be a good time to consider investing in an overseas property, but where would be a good place to consider?
FRANCE – continues to attract clients with varied tastes and requirements and all areas seem to be picking up, with interest rates staying low (especially with the recent ECB rate drop), but opportunities seem to be available. Mortgages are also available up to 80/85% loan to value.
USA – 2013 was a good year for an increasing interest in USA property, especially in Florida, New York and California and a number of “bargains” were snapped up, which has resulted in many repossessions and other types of properties being sold, leaving the potential for 2014 to be very promising. Interest Rates are also quite low and maximum loans to value vary between 70%-to 75% dependant on the State and type of property being purchased.
SPAIN - There has been mixed press regarding Spain, but the number of enquiries are increasing and as Europe’s most popular destination to go on holiday, it was inevitable that this market would start to increase once other country’s economies started to flourish. There are some potential bargains to be had, however any “bargains” do need to be investigated thoroughly – both legally and structurally. Similar to France interest rates are low, but loan to values are lower, maximum 60%/70%, as lenders are more cautious with the local economy still fractious and their books still full of past property problems.
TURKEY – Unlike the countries above, Turkey was not effected as badly with a slump in property sales and was not caught up in any Euro problems. As a result it has built a good base of property owners, which has helped it to “spread the word” of the potential opportunities and good value available in this country, alongside a very amicable climate. Interest rates are high compared to others and mortgages are available between 50% and 75%, dependant on an applicant’s location and financial status.
PORTUGAL – A country that always seems to be in Spain’s shadow when it comes to property promotion, but does have its own unique style, quality of build and ambience. There are signs of an increase in property sales across the country, with the Algarve showing the highest growth. Mortgages are available up to 70% and it also benefits from the current low Euro interest rates.
ITALY – Even though this country has suffered more than any of the above economically, the sales of property have started to increase and areas such as Umbria, Tuscany and Sardinia are becoming popular again. Interest rates are again low and loan to values are between 60%-70%.
Other countries to consider, which are becoming increasing popular again, are Southern Cyprus, Greece and Cape Verde, but due to past problems caused by the economic crisis, mortgages are very difficult to arrange, so if you are purchasing and paying cash, ensure all the legal and valuation checks are strictly undertaken. Looking further afield, Thailand, South Africa and parts of the Caribbean are all showing an increase interest in property sales. Mortgages are available, but can be more restrictive due to local laws.
Simon Conn
Overseas Property & Finance Specialist
T: +44 (0)7739 033266
E: simon@simonconn.com
