As
further proof of the resurgence in the foreign property
market, a brand new magazine, Abode2, has just launched,
specialising in the finest resort homes and developments
across the globe for investment, lifestyle, rental
and retirement purposes. This is the first property
publication to launch since 2007. A surge of investment
interest has been stimulated in the expansion of foreign
resort developments following the popularity of the
shared amenities and luxury facilities that these
resorts offer. Abode2 is a must-read for anyone serious
about investing in a resort-home abroad and is packed
with practical information and analysis of the latest
property market news and trends, including investment
prospects, honest location reviews, detailed resort
case studies and ‘how to’ buyer advice.
Abode
2 editor, Laura Henderson, reports a flight to quality
shift in international property buying patterns: "A
decade ago developing markets such as Eastern Europe
had property investors rushing for the high returns
and relatively low capital outlays they offered; but
since 2008 money has been moving away from those areas
due to a lack of transparency, over-supply and title
issues. In contrast, we’re seeing a shift in
interest to more established markets with proven long
term results. Investors buying a city pad for example,
can instantly reference it in terms of its value and
rental rates against current market conditions, as
well as making a smart lifestyle choice.”
Laura
continues, “We are seeing Increasing buyer interest
in capital cities in particular, which have great
investment potential, for example new-build property
values in Buenos Aires are tipped to rise a further
15% by 2015, since house values have more than doubled
there since 2002 . Similarly the value of Toronto
real estate has increased by 5%+ in the past year
and yet property in a prime Toronto district is only
half the price of similar property in downtown Manhattan.
Capital city prices can be quite competitive too,
as flats in prime residential sub-districts of booming
city Berlin like Wilmersdorf and Dahlem, can be snapped
up for just £200,000.’
Some
Quick Tips for Buying Abroad:
-
Visit
your desired location twice, preferably at different
times of the year
-
Clear
the rosey mist from your eyes and really think
about what will suit your long term needs
-
New
or old is a personal choice so think about whether
you want a period character property or a contemporary
younger building and also what the maintenance
implications are
-
Double
check that the price quoted is the price you are
paying as there are often hidden costs
-
Get
your currency right and bear in mind currency
conversion costs
-
Make
your purchase pay by renting the property out
when you are not there but remember this income
will be subject to UK tax laws
-
Don't
get too excited by guaranteed returns as they
are often added to the asking price
-
Think
ahead and plan longer-term rental strategies especially
if you have a guaranteed rent period
-
Plan
your escape route and have an exit strategy
-
Appraise
the resale market in case you want to take this
option
