Moving away

Over the last few years we have seen a large increase in the number of Brits moving overseas to live, with many attracted by the weather, the prospects and investment opportunities.  This thread offers an interesting array of areas to consider from Portugal to the Gold coast of Australia! Each and every location mentioned seems to have merits, and the majority already have an ex-pat community which can be a big help.  The internet seems to be playing more than bit part in the increase in Brits moving overseas, with many now able to explore potential areas of the world in great detail.

A question such as “Looking for inexpensive, warm place away from UK” was always likely to encourage an array of different opinions, views and options and this thread has not disappointed!  It will open the eyes of many Brits who are looking to move overseas, with a surprising number of areas around the world already housing a large ex-pat community.  It also offers a very useful comparison of the UK housing market with that in other areas of the world, where property can be a fraction of the UK price.  Until you actually begin to look, it can be difficult to appreciate how expensive the UK market is (in places) to that of many overseas countries. 

Property exhibitions

This thread has prompted a whole host of comments, the majority of which are not too complimentary of the Property Exhibition industry! It seems to have given many people an opportunity to recall their most depressing property exhibitions, and their contempt for some of those pressure sales people that we all hear about.  However, it does highlight an interest point – has the property exhibition had its day? Many people now seem to appreciate the power of the internet and the opportunity to check out information from around the world, where they want, when they want and as often as they want.

While it is debateable whether or not the property exhibition sector has been altogether replaced by the internet, there is no doubt that many people prefer to browse online for the information they require.  It seems as though the infamous hard sell tactics of yesteryear may well have been the final nail in the coffin of the industry for many, with the online experience often much more friendly.  It will be interesting to see how the sector performs over the next few years as there will need to be many changes if it can ever make a real come back.

Foreign Mortgages

This thread opens up a very interesting subject, one which many new overseas property investors may know little about – foreign mortgages.  Even different banks in the UK have different criteria, so the spread in different requirements across the world will be enormous.  However, one thing is for sure, cash is still very much King, and the more you can put down, the more chance of obtaining a mortgage for the balance.  When you also take into account the cheaper valuation of property in many overseas countries compared to the UK, it does really bring home the potential for making money from carefully researched overseas investments.

Many investors seems to assume that overseas mortgage markets will operate in the same way as the UK market – wrong.  The UK market is perhaps one of the most developed of mortgage markets in the world, with a history which goes back decades.  While even UK property buyers will often complain about the process of obtaining a UK mortgage, it can seem simple compared to other markets around the world.  Many investors also seem to forget about potentially higher legal costs when dealing overseas, something which can add upwards of 8% to your purchase price!  When dealing in overseas property, never assume that it will be the same as your home country because there is every chance that it won’t be!

30k To Invest in Buying Overseas

As more and more property markets around the world become heavily saturated with investors, we are seeing many looking further up the property chain to try and gain a foothold prior to the big sell.  Off-plan investment has grown in popularity over the last few years with many investors looking for a quick buck.  Unfortunately there is no such thing as a risk free investment, which seems to be what many are looking for.  Every investment has risks and anybody who tells you they can guarantee you a profit is either very gifted, or not informing you of all of the risks – if it was so easy why don’t they do it themselves?

The market for off plan investment has grown in popularity over the last few years, as have the scams and tricksters who operate in such markets. There is no way that someone can guarantee you a profit (why don’t they do it themselves?) and the opportunity to turnaround an off plan investment within 12 months (and make a large profit) is like gold dust.  On paper a profit may look easy, but when you take off all of the taxes, expenses and finance charges it can often look a little different.  There is also a distinct lack of regulation in many overseas markets and off plan investments have proved disasterous for many.  Be very careful.

50k To Invest in Buying Overseas

While £50,000 would not buy you a property in the UK, it can offer a useful platform to building up your overseas exposure.  This thread has attracted a number suggested destinations for the £50,000 available with Morocco, Cyprus, Philippines and the UAE all mentioned on a number of occasions.  The author of the thread had initially asked about the possibility of using the funds available to obtain a spread of investments, but realistically the amount available is no where near enough – without buying sub-quality assets and taking excessive risks about the potential to resell.  Looking after one overseas investment is hard work, but trying to monitor and maintain more than one at the same time may be asking for trouble.

This thread highlights the fact that areas of the world such as the UK are very expensive when it comes to the price of property.  The outflow of investment funds from the UK property market has increased over the last few years, although this has been masked somewhat by growing demand for buy-to-let properties.  A number of potential homes for the £50,000 available are credible and have the potential to deliver long term capital growth, but there is a need to really know your market.  One contributor hit the nail on the head when suggesting that you should really go with your own instincts and feelings for an investment – every agent has a reason to tell you their property offers great value because they want you to buy it!