Is the end near for Britain’s love for owning overseas property?

Monday, 14 January 2008

Brits are renowned for being a little crazy about property. Over the past few years, this craziness has turned to near insanity. A huge number of so called investors have been buying off plan properties as far as Europe, Middle East and even Australia. Majority of these investors have been buying in places which they have neither visited or neither point out on a map!

However, with the talk of a global credit crisis, some may argue that investors could have bitten off a little bit more than they could chew. Property markets around the world are not performing (or at least it is claimed to be so) as they should. Liquid cash is very hard to come by, and hence investment dollars seem to be drying up very quickly. And with talks of recession looming over our heads, "luxury" items like overseas properties could become a myth soon.

Do you think owning an overseas property could prove to be very expensive for many foreign-home owners? Or do you still think it's the best investment you've ever made?

Readers have left 7 comments.

Posted on: 24-01-2008 14:04:20

My husband and i bought a couple of properties in the UK, and so far, we've always made money on it. We have considered investing abroad, but feel that if you can make similar returns in the uk, then why take the risk?

however, having said that, i do know that in certain parts of the world, the returns are quite amazing. i suppose if you are willing to risk more, you can win more! we are quite happy with the level of risk we take so are sticking to the uk!

Yogini Shah

Posted on: 24-01-2008 13:43:25

I am re-financing and pulling equity out of a UK property to put it into the only European market I think makes sense for the next 5+ years - Berlin / Germany. I have bought on 4 continents but never off-plan and time will tell how they all work out - the golden rule is to be in for the long-term

Guest

Posted on: 17-01-2008 16:30:23

gary, although you had a bad experience buying off plan property, you have to remember that not all properties are bought and sold off plan. you have the choice of buying completed properties. plus, it may have been the developer that was at fault.

a number of factors are to be considered when buying investing in property.

joe k.

Posted on: 16-01-2008 21:53:12

With a slow down now in the UK market, it is likely that more and more people will refrain from buying overseas.

I think a lot of people have already borrowed too much and released equity via their residential properties and won’t be willing to take further risks. Well, at least until this whole international credit crunch situation is put to bed.

I'm leaving my money in the bank for now.....lets see what the future holds!!

p k

Posted on: 16-01-2008 11:43:08

Three years ago, my wife and put down a deposit to purchase an off plan villa in Cyprus for our retirement. Since then, there have endless delays and we're still waiting for construction to commence. After several heated exchanges between the constructor and my solicitor, we're no further forward. This has been a hard lesson to learn at my age and we have vowed never to invest in off plan ever again. Although it may be right for some people, it certainly wasn't right for us.

gary manns

Posted on: 15-01-2008 17:39:02

i bought offplan in bulgaria. i started with an investment of £13,000 in 2005 and have since doubled. i still think its better to be cautious and tread carefully, but overseas property investment is well worth taking a punt on. i vouch for it!!

Guest

Posted on: 15-01-2008 16:13:42

I couldn’t afford to buy in the UK and purchased two off plan properties 3 years ago in Eastern Europe. With various finance options, I have now managed to leverage my investment and have seen a healthy return within this period. Although, managing the rental and finding tenants is a little tricky, I believe it’s the best thing I've done and would highly recommend it to anyone.

joe k.

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