Information on Overseas Property
Common categories of investorsFinding your perfect property
Recently a huge amount of information in the media has concentrated on property, be it at home or overseas. There are a number of new programmes on the television, as well as the existing ones such as Channel 4's 'A Place in the Sun', and new publications have been sprouting up all over the place; testament to the near obsession that Brits have with the property industry currently.
Those looking for a property to start, or indeed add to, their property portfolio are looking overseas more and more. The property boom in the UK, which has been incredibly bad news for first time buyers, has meant that many people who had resigned themselves to a life of minimal luxury are now able to start looking at affordable property overseas, thanks to finance from their homes which can be freed up a number of ways.
This information has been put together to help people understand more about the process of investing in property overseas, and how it can work for them. Throughout the information, Turkey is used as an example, however, if you'd like to know about property investment in another country please call us on 01706 216333 and we'll be happy to help.
Common Categories of Investors…
There are different types of overseas property purchaser;• the first-timer
• the buy-to-let investor
• the holiday-home investor
• the future retiree
the first-timers
As the UK housing market continues to increase in price, first-time buyers are finding it increasingly difficult to get onto the UK property ladder, and as such, are looking to more affordable markets for their first property purchase.
With properties starting as low as £20,450 for an apartment in Altinkum (click here for more information), first-time buyers could get finance for the property, then rent out the property to generate an extra stream of revenue, before selling the property at a profit once the value has increased – and put the capital towards a property in the UK.
the buy-to-let investor
Buy-to-let investors invest in overseas properties to benefit from the extra revenue letting out the property generates. Of course, many of the buy-to-let investors visit the property from time to time, but the main onus is letting the property out. To give an idea of the rental income available, in Bodrum a three-bedroom property can demand around £400-£500 rental per week.
the holiday home investors
The holiday home investor invests in their overseas property for themselves, friends and family to use. The property will usually be easily accessible via regular flights and a comprehensive travel system, with a warm, sunny climate, low cost of living, high standard of healthcare and so on, so as they can get maximum satisfaction out of the property.
the future retiree
As pensions are becoming more and more problematic, retirees and future retirees are looking to relocate abroad. Statistics from Saga; that 15% of those looking to buy a property are doing so with retirement in mind - verify that retirees are looking to emigrate due to a number of reasons. A climate with sunshine and warm temperatures is thought to lift the spirits meaning conditions such as arthritis and skin disorders can disappear over time. The possibility of the whole family coming to stay is also a desirable factor for the future retiree.
A current trend also means that those retiring within the next ten years or so usually have children who are looking to get onto the property ladder and with the average house price in the UK being £210,578 (according to bbc.co.uk), the future retirees are downsizing their property in order to generate capital to give their offspring to purchase a property.
These four categories mean that overseas property is universally appealing, and as such there are many, many people looking to invest. Of course, these common categories aren't mutually exclusive; many potential and current investors fall into two or more of the categories; for example, investing in a property mainly for use by the family, but which is rented out in the free periods to capitalise on the revenue potential.
Finding your perfect property…
Basic steps to choosing and purchasing your perfect overseas property…consider your usage
When, how often and for how long would you use your property? Are you looking for somewhere to eventually retire to, somewhere all the family can visit a few times a year or somewhere to rent out as much as possible over the year? You should also consider what you'd expect to gain from the property, for more information on this look at the common categories outlined above.
prioritise your perks
Work out what you want from the location of the property:
• Location-wise, how far from the beach, shops and local amenities
• Climate-wise, should it be warm / hot / sunny, etc
• Cost of living, are you loking for somewhere where general living costs will be low
• Schooling
• Standards of healthcare
• English speaking
• A comprehensive transport infrastructure
What you expect from the property itself:
• Size
• Features, such as garden, terrace area, swimming pool and so on
• How many bedrooms and bathrooms
• Space to rent out, e.g. a seperate ground floor flat?
look to the future
Assess what evidence there is that the tourism levels in the region will increase, or indeed stay as they are if they're already rather high – which will improve your chances of letting the property out, and selling it on if and when you want to. For example, in Altinkum the Tourism and Culture Ministry has invested in a new marina which will be completed in 2009, as well as a new main road for improved transportation, and two new golf courses are planned for the area.
the fun bit!
When you have a good idea of the location you want to buy in, the fun bit starts! The process of searching for your perfect property with your International Property Agents consultant can be really exciting, especially when you embark on a viewing trip, for just £199 per person, to go out and see your favourite properties.
Click here to make an enquiry or call 01706 216333 for more information, or click here to start your search for your perfect property...
