There are a number of factors that make investing in a property abroad attractive at the moment. With interest rates sluggish, many people are searching for an alternative to savings accounts to make the most from their money. The freedom offered by new pension reforms also means that investors are looking for alternatives to annuities too.
The combination of this demand and a generally steadier domestic economic picture with a strong pound means it is worth looking at the investment opportunities to be had from overseas property markets.
It’s one thing knowing that you want to search for a property, however, other than hiring a land agent, how do you pick the best locations when you’re searching for international investments on the likes of FT Property Listings?
One of the most obvious places to make an overseas investment is in Spain. Many holidaying Brits have long-dreamt of owning their own villa as a permanent base for breaks in the sun. There has already been big interest in Spain in 2015 and this isn’t just about the sunshine. Property prices in Spain have yet to recover to pre-recession levels, while the stronger pound means greater value too. There is the chance to pick up properties with lots of land, sea views, near golf courses or, indeed, all three in the south, while Barcelona is an attractive city location that is also proving a worthy investment. Beyond Spain, there remains strong interest in Portugal, France and Italy for British buyers who prefer to remain closer to home.
Properties in Florida dropped in value by about 30 per cent at the height of the recession and are only now recovering with the potential for any home bought today to enjoy double-digit growth in its value. There is great potential for rental income in this popular holiday destination – and if that’s your goal then make sure you pick a property in a convenient location with space for lucrative groups of families. A population boom, coupled with investments in the road and rail networks and an expansion of Orlando International Airport, should all be seen as positive signs for potential investors.
While prices may not be cheap, there are also a number of high quality flats on the market in Manhattan – and New York shows no sign of losing its appeal for business or pleasure.
After a price ‘wobble’ of its own, Dubai is back on the up – and it’s a rise that is only set to continue as the 2020 World Expo approaches. With developments such as the stunning Burj Khalifa offering the ultimate in high rise living in the world’s latest iconic landmark, Dubai offers a safe Middle East investment and the chance for stunning properties that many other locations would struggle to match.
The South American giant is ripe for investment. It has already benefitted from investment in infrastructure and housing ahead of the football World Cup, but continues to grow as it prepares for its second sporting tournament in two years when the Olympic Games comes to the country in 2016. Experts feel there is still scope for growth, especially in Rio de Janeiro and Sao Paolo.
Looking for properties abroad opens up a whole host of possibilities for investors – from beaches to cities and remote rural getaways in every imaginable setting. The four locations above have immediate potential and properties here can prove a more sensible investment than an annuity or savings account. However, as with any financial investment you make, research is vital so that you can weigh up the consequences of your decision and – as with any property purchase – it’s important to carry out checks on the home you intend to buy to ensure you invest in quality.