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Overseas Property Investment Regains Traditional Formality - 28 September 2009

Perhaps it will go down in history as a unique era, but the past decade helped migrate an image that was previously associated with wealthy investment stereotypes, over to the sheer casualness of recent years – where everyone had a friend or neighbour talking about it. By that, we mean investment in overseas property.

In many countries around the world, regulations were cut back and prices looked like bargains in relation to home. Cheap flights and online communications made the world a smaller place. As the market grew for over ten consecutive years within the U.K., prospective property buyers gave up on the house that they couldn’t quite afford – looking towards the property overseas that not only came with a beachside view perhaps, but for only a fraction of the price tag (often overlooking legal fees and the research). And so demand went up, and thus prices went up. It kept going up, up, up. But buyers kept coming, even when the “deal” wasn’t the greatest of deals anymore. Experts would debate back and forth on “untapped” regions. And the buyers kept going, wherever that may have been.

So where are those casual buyers and experts now? For quite a few, they’ve moved on. It’s all about the potential of Asian markets such as China and India say many articles on the news these days. But they’re also coming back to the U.K., from abroad. The reduced value of the pound, combined with the increased details and regulations that the U.K property market sector provides – has given investors from overseas a bit more comfort. Investors from Australia, China and Qatar for example have recently increased investments in major parts of cities like Birmingham and London.

So let’s go back a few years. The potential property investors still don’t fit the old fashioned stereotype – but, they certainly are doing a lot more research, seeking impartial advice and expert views on places like BuyAssociation. And in some ways, there’s a “retro” property movement.

For example, despite the recent news about falling property markets in Spain, many property buyers are still looking there. If anything, some of the trendiest markets a couple of years ago, have faded out since – such as Bulgaria (where Conti reported a 22% decline in property prices in the first half of 2009), Cape Verde and Montenegro. The “trendy” markets may have moved further east. But the traditional markets for British investors and buyers looking for overseas property are still in tact. After all, this is often where the more casual investor that just wants a summer home or a second home wanted to go in the first place. Away from home… But not too far.

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