According to a survey from the organisers of Property Investor Show (17 to 19 September) Sunshine, retirement and golf are attracting Brits to money-making properties abroad.
Figures released today reveal that 54.9% of respondents believe that overseas property presents the greatest opportunity for investors compared to only 25% in last year’s survey. Almost one quarter (22.1%) of property investors are actually planning to buy an overseas property in the next year [see graph 1], up from 16.3% last year.
Less than one third (31.9%) believed that the UK residential market presented the best opportunities for investors, with 13.3% citing the commercial market in anticipation of the advent of ‘PIFs’ commercial property investment vehicles.
Exhibitors
This year’s Property Investor Show reflects the trend for the booming interest in overseas property, with over 80 overseas property exhibitors. The scope of exhibitors is also expanding with companies this year specialising in areas as diverse as Shanghai, New Zealand and Hungary as well as the more traditional destinations such as Florida, Spain and France.
Sunshine and investment
While rental income and capital gains are the main reasons for overseas property purchase overseas, the prospect of better weather and better quality of living were also major reasons for purchase. One fifth of respondents were planning on buying overseas for retirement with a further 15% planning on taking advantage of sports and leisure opportunities such as golf.
New opportunities
The expansion of the European Union in May this year together with more relaxed regulations on overseas ownership has opened up countries such as the Czech Republic and Cyprus to property investors. Additionally, with the stockmarket and pension funds failing many people, investors are keen to put their money into new ventures.
Nick Clark, Managing Director of Homebuyer Events who organise the Property Investor Show, says: “Despite the long-term popularity of property in overseas locations such as Spain and France, there are still plenty of good investment opportunities in overseas property. We are seeing continually increasing interest in this sector as the UK residential market slows and overseas schemes develop. For example, investors can now become involved in commercial property in Shanghai or corporate let apartments in Budapest as well as the more traditional holiday homes and villas in the Mediterranean.”
