Thinking about buying a property overseas? Here are the reasons why you should
To buy or not to buy? That is the question many property investors are asking themselves during a slump. However with signs of global recovery are already in progress, now is the time the act.
Whilst the housing market is still moving slowly at home and banks are paying next to no interest on savings, people who are looking to buy an overseas investment property are being given one message from experts: buy now.
Barry Luhmann of Lloyds TSB International commented: “Many people preferred to wait to see how the markets and their finances would be affected by the recession. But after this recession lull we expect interest in overseas property to return.”
Here are some reasons why now is the time to buy.
1. Cheaper properties
There are much cheaper properties available overseas. The Daily Telegraph reported last year that the tourist resort in Altinkum, Turkey, has well-priced apartments that are very popular. Tourism in Turkey rose 9 percent last year (31.4 million tourists) and this year is expected to be even higher.
2. Long term investment opportunities in emerging economies
Some countries offer a good long term investment opportunity where they have a good future. Egypt has been identified to have an emerging and growth-leading economy (EAGLE). The EAGLE concept is considered to be more updated than previous ones like BRICs and CIVETS.
3. Saves money on family holidays
Having your own property abroad means you can save a huge amount of money on holidays. All you need to pay for are your flights! Popular family spots are Red Sea resorts in Egypt such as Hurghada and Sahl Hasheesh. According to news agency Reuters, Egypt is expecting 13 million tourists in 2012 so if you want to rent your property out for the rest of the year you can.
4. Perfect for retirement
The Daily Telegraph reported last year that most buyers want to use their overseas property themselves as a holiday home, for inheritance purposes, or for retirement reasons. A property expert in the news story stated there are four main ‘drivers’ when looking for a property abroad, “Lower cost of living, less tax, better climate with lower heating bills, and bargain discounts that have become available because of the recession.”
5. Greater returns on your funds
Investing in an overseas property means you will get greater returns on your funds than just leaving it in your bank account as UK interests are currently very low. Especially those giving genuine Guaranteed Rental Returns which can be up to 8% per annum or those in locations where they can be rented out for a maximum number of weeks a year like Egypt with it’s all year round warm weather.
We are only touching the surface on good reasons to buy a property overseas. If you are still not convinced, read some of our previous Blogs on areas that are becoming hugely popular with property investors. Here at Rivermead Global we are seeing a big increase in people asking about both Turkey and Egypt, especially as mentioned above Altinkum, but also Akbuk. These two areas in Turkey are close to Bodrum but a fraction of the price however, as we all know prices in adjoining districts normally align themselves once the word gets out about how good they are.
In Egypt the lower priced properties are proving very popular with the Tiba family of developments selling out within months of release, we are currently doing research on a beach-front development which will be aimed at the younger population with a Kite Surfing school on site and modern designed apartments.
Sources: Daily Telegraph, Reuters