Send to a friend

News

Legal expert identifies opportunities - 11 September 2008

Overseas property legal guru John Howell used a briefing to members of the press yesterday to identify the opportunities that exist in the current international property market. Despite the effects of the Credit Crunch, he pointed out a number of different areas of expansion that should see the international property market continue to grow in popularity.

On the day after announcing that his company, The International Law Partnership, was joining forces with Italian law specialists Giambrone Law to provide the public with an even more extensive range of services in the UK and overseas from 1st November, Mr. Howell was optimistic about the prospects for those buying overseas. He pointed out that cautious and informed optimism was the order of the day, rather than the blind optimism that has previously marked the international property market.

Mr. Howell identified France as one of the best markets for growth in the next few months, citing the ‘Sarkozy Effect’ as revitalising the prospects of our closest neighbour. The new President has reformed French bureaucracy to encourage more legitimate business, as well as promoting home ownership and buy-to-let schemes across the country. This new openness should encourage even more emigration from the UK, he said, increasing sales of property in France to UK buyers. The European Commission has identified France as one of the economies

Another trend that is likely to become more popular as the economic downturn continues is that of early retirement. Recent change to the way in which many public sector pensions are calculated mean that it is less likely that those nearing retirement age will benefit from working longer, which will prompt many into heading for retirement overseas. Falling house prices in the UK and a rising cost of living mean that moving overseas will allow pension money to go further. Even those who are not planning to retire fully may feel this is the right time to try something new and work from a property overseas in a new business they want to set up.

The final thing to consider in the present market and economic conditions across the world is that buying in what were previously premium locations is now more affordable than it has been in years. Property in Paris, Berlin, San Francisco, Rio and Miami is now being offered at rates far below what they were originally advertised for, and this should result in a ‘flight to quality’ in the investment market. After all, why look at emerging markets and developing countries if the returns and opportunities are just as good in the established capitals.

However, Mr. Howell also points out a number of issues with the overseas property market that buyers will have to take into account in the coming months and years, not least of which will be the price of oil. Despite a recent drop in the price of a barrel of crude oil, Mr. Howell believes the rate will settle around $120 per barrel next year. At this level, fuel costs now account for 50 per cent of the price of an air fare, up from 25 per cent in recent years. This threatens not only the low-cost carriers that buzz across Europe, but many of the flag-carrying airlines.

Combine this with the increase in ‘green guilt’ about individual carbon footprints, and the likelihood is that destinations closer to the UK will grow in popularity as buyers consider high-speed rail as an alternative to air travel to get to their property overseas.

Mr. Howell also pointed out that the next months will see an increase in the number of developers, agents and projects that go bust, resulting in more legal claims from individuals seeking their money back on investment projects that will no longer happen.

For more details of the services offered by the new International Law Partnership (Giambrone Howell) LLP, see www.lawoverseas.com

Post this article to:

del.icio.us Digg Newsvine Reddit MyYahoo! Facebook

Related Articles

• Buying a Property in France
• Emigration Fact Sheet
• Living the dream
• Retirement Guide