With the British pound getting stronger local investors have more options to choose from when they are looking for good-value-for-money deals.
New research by FXcompared Intelligence, the research division of money transfer comparison site FXcompared, found that almost half (46 per cent) of UK property investors are keen to take advantage of the strong pound to buy property abroad.
A combination of financial factors are persuading property investors now is the right time to put their money on purchases outside the country and get higher returns.
Almost a quarter (23 per cent) of those polled by FXcompared Intelligence said they are considering buying property abroad in the next year or year and a half. The reason for that, they said, is the stronger economic climate for business and residential lettings in foreign countries.
The Conservatives winning the general election in May has also contributed to many people’s decision to invest abroad with one in five (20 per cent) saying this is the main reason for them to do it.
⇒
Other key drivers for foreign property buys after the election named by respondents are:
*Easier access to mortgage funding (22 per cent)
*Changes to UK stamp duty and property tax (16 per cent)
*Access to pension funds (14 per cent)
*Better mortgage deals abroad (12 per cent)
⇒
Top lifestyle factors influencing investors’ decision where to buy abroad are:
*Better weather (48 per cent)
*Easy access to the location of the property (42 per cent)
*Finding an up-and-coming area to invest in (21 per cent)
In half of the cases, currency and exchange rates were either the main factor (16 per cent) or had some influence on the decision (34 per cent) to make an investment.
⇒
Factors which would put investors off:
*Heavy regulation – 43 per cent of respondents said they have no interest investing in countries with draconian real estate legislation
*Complications around the purchasing process – almost a third (29 per cent) are worried about how the property purchasing process works in certain countries
*Lack of language skills – 23 per cent of those polled said the language barrier would be a turn-off
⇒
Daniel Webber, co-founder & managing director of FXcompared, said:
“With unprecedented opportunities for overseas buyers given the low euro, property investors believe they can get more bricks and mortar for their money abroad.
“Over the next 12-18 months we could see a trend among residential and commercial property investors, focusing heavily on major European countries such as Spain, Portugal, Italy and France.
“Aside from the financial reasons for pursuing foreign property ownership, lifestyle choices are still playing a big role too, with better weather and transport links major factors when choosing where to buy investment property.”
