UK house prices are continuing to rise just as the world is opening up to the global market place. This means that more and more people are searching overseas for foreign property investment. Foreign property investment is seen as a cheaper and easier way to make money than the UK house market, and is allowing more people to become involved in overseas property. However, there are things that you should consider before deciding on foreign property investment. Apart from regular mortgage concerns, you also need to look at the factors for each country you are considering purchasing property in. Here are some tips about foreign property investment to get you started in the overseas property market.
Why choose property abroad?
Going into foreign property investment used to be rare, but it is now something that many people are looking into. This is because buying property overseas is generally cheaper than the prices in the UK. Also, the weather and standards of living are often better for many people, meaning that you can get a beautiful property for much less than in the UK with the added bonus of great scenery and weather. It is generally a little easier to make money through foreign property investment, although like all investment it is a risky practice.
Differences in legal matters
One thing you need to consider when choosing a country for your overseas property investment is the difference in local laws to the UK. You might know what the laws and regulations are for property investment within the UK, but these might be quite different abroad. Some countries have tough restrictions on foreigners buying property, and so you need to check this out before looking for a property. A good place to get information from others who have bought property in a country is through an investment property forum. One of the best investment property forums around is www.singingpig.com. Make sure you know the legal issues so that you don’t get into unforeseen trouble after you have purchased your overseas property.
Country and currency factors
Two other things you should think about are the country you want to choose and the currency you want to borrow money in to pay for the property. The country you choose all depends on what sort of property you are looking for and the budget you want. Generally, try and pick a country from an emerging market, but make sure the country is stable enough in terms of security and economy to make the investment less risky. In terms of borrowing money, it might be cheaper to borrow in that country’s currency, although it depends on the exchange rate. If their currency fluctuates a lot up and down, then borrowing in UK sterling might be a better idea. Some of the best markets to look at right now are the new entrants to the EU. These countries have proven their stability by being allowed into the body of the EU, yet house prices are still relatively low. With these countries having economies that are improving all the time, they are a good bet for foreign property investment.
Julie-Ann Amos is a freelance writer with http://www.exquisitewriting.com on business and property investment. She recommends http://www.singingpig.co.uk as one of the most effective sources of information for small businesses and property investment. Their property investment forum is a place to find information hard to locate elsewhere.