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UK Investors Play Both Sides of the Overseas Property Market - 9 December 2009

Brits once again feel confident to dive into the overseas property market, making moves to both buy and sell homes in traditional European hotspots, experts say.

A recent report by the merchant bank, Close Brothers, says that UK investors who bought overseas property in Sterling pounds without a foreign mortgage four years ago could cash in now for higher gains. As a result, Brits are selling up, and therefore, turning a profit on investments they made in 2005, when the pound wasn’t nearly as inferior to the Euro.

The four-year, 27-percent increase in the value of the Euro against the pound has offset the overall drop in European home prices this year. Close Brothers says Italian properties have risen up to 65 percent, where as Spanish properties have increased as far as 59 percent since 2005.

But Brits aren’t just selling off old homes without reinvesting. Experts say that as long as the prices of real estate in their home country continue to rise, British investors will continue to shop for properties overseas. UK-based realtors and property websites have reported an increase of up to 50 percent in the last few months by British clientele seriously looking to buy.

However, experts say that as far as property location goes, investors are still playing it safe. They are less apt to think in terms of flipping properties, and are more interested in seeking stable, long-term gains. Traditional favorites France and Spain are still in high demand, they say.

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