Mixed Messages About Overseas Property Investors’ Confidence
Published on Wednesday, November 11th, 2009
Since 2007 when property markets around the world really began to take a nosedive, the media has struggled to put across a coherent message about how property investors have coped with falling values of homes overseas. This issue continues to this day with two recent reports in different publications highlighting the very real problem.
For example, Homes Overseas magazine – which naturally has a vested interested in the positive promotion of property abroad as an ongoing viable opportunity – recently reported that investor confidence was on the increase.
This message is sharply contrasted by a hard hitting piece in the Irish Independent that investigates how many Irish citizens have been forced to literally walk away from their properties abroad and give up the money they had invested in them because of a string of issues relating to everything from financing to corrupt builders. These mixed messages about overseas property investors’ confidence do nothing to help those wondering about whether now is a good time to buy in…so we thought we’d delve a little deeper in the pursuit of some truth!
Once upon time fractional ownership was called timeshare and it was something that people were conned into and regretted, but in recent years timeshare has been vamped up and received celebrity endorsement and is now referred to as fractional ownership. However, is fractional ownership a good way to buy a property abroad or not?
Despite the recent economic turmoil in the UK and across much of the rest of the world, many of us still maintain an interest in buying property abroad. It seems to be a British passion and a national weakness!
If you’re thinking about venturing abroad to make the most of weakened property prices and falling property markets in many international locations, we’re right there with you! Opportunities are abounding at the moment for the brave – and those with cash in their pocket. However, if you want to make a profitable venture abroad there are a whole handful of points to keep in mind.
The recession is leaving us all needing to do whatever we can to scrimp and save and avoid falling into (any more) debt. In order to save money people are cutting financial corners wherever they can, cutting back on essentials and even cutting out inessentials. However, there is actually a limit to how far you should go in terms of cutting out essential items such as insurance.
We Britons are famed for leaving our brains on the plane when we venture abroad to buy property – we lose all commonsense at the first sight of a sea view and are signing on the dotted line the minute a swimming pool is mentioned. And as a publisher that places a fair amount of emphasis on examining real estate prospects and opportunities abroad, we’ve heard more horror stories than most about people who have ventured forth and bought a home overseas without doing any homework.
The Chancellor’s announcement that higher rate taxpayers will soon lose 50% of their salary in income tax was greeted with disdain amongst many wealthy Britons. And not only are wealthy individuals leaving the UK as a result, but companies such as McDonald’s are moving their company base because they are very worried about the way the UK’s economy is headed.
With the news that the British pound is still holding strong in countries like Egypt, Tunisia and Turkey where interestingly property is still highly affordable too, many Britons are still actively contemplating buying a holiday home abroad as an alternative investment.
