More Brits than ever, unimpressed by soggy summers, have set their
eyes on eloping to sunnier climates, with many seriously considering an overseas
property investment. We spoke to A Place in the Sun's presenter and
property expert Amanda Lamb about the risks involved in buying overseas - and
got her top tips for getting the best bargains.
According to new research by Yorkshire Bank, two in five Brits are considering the idea of buying a property abroad in order to enjoy some much-needed time in the sunshine. The survey revealed that just over half of Brits believe foreign shores present the opportunity to lead a more relaxed lifestyle, making it a much more attractive option than remaining in the UK. Amanda Lamb gave us her top property tips, to help make your dreams a reality!
What are the risks involved in buying overseas?
I think some of the biggest concerns that a lot of people have is that they're
going to get ripped off; that the builders are going to run off with their money
or the deeds are going be problematic or they won't be able to deal with the
language barrier.
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Will overseas property prices continue to rise?
Absolutely. I don't know whether you'll see the huge increases in property
prices that we've seen years ago, but most of the places I looked at in the
last series have risen on average between 10% and 30% a year. So yes, there's
still a lot of room to find some bargains.
Where are the best bargains overseas to be found?
It really depends on what you're looking for. Southern Italy is an area at
the moment that's quite exciting, and some of the Eastern bloc countries are
also becoming popular. But then you've also got the good old favourites, the
ones that us Brits seem to love and go back to all the time, like France and
Spain. Spain is actually still the most popular destination for Brits to buy
abroad.
Is Spain too expensive?
No, if anything it's had a bit of a dip. It's the supply and demand thing.
When you go along the Spanish Costas now, everywhere you look there are buildings
going up, and because the markets leveled off a bit, if you're in the market
just to buy a holiday home for you and your family and friends to use, the Spanish
Costas are a great place to look because you've got a lot of choice and there's
a lot of room for bargaining. And then obviously if you want the traditional
Spanish lifestyle you can head inland a bit, where you can still find the little
whitewashed villages up on the mountaintops and places where everyone speaks
Spanish, and it's very authentic.
But does that mean it's not such a good investment any more?
No, I still think that buying a property abroad can only be a good thing as
long as you're careful. And this is the big thing, what the majority of people
are scared about is handing their money over and then finding that the developers
run off or gone bankrupt. So one of the big pieces of advice I'd give to anybody
thinking about buying abroad is to make sure that you get yourself a good lawyer
and good financial advice before you even set foot on a plane. There are lots
of different companies in this country that do that. Yorkshire Bank have just
set up a new scheme where you can walk into any branch and get someone to do
all the hard work for you.
The other piece of advice I'd give is to make sure you do your research. Think
about it really seriously before you do it because you're not buying a pair
of shoes or a handbag here, you're buying a property, which is a huge investment.
Do people tend to impulse buy overseas properties?
Yes, I think a lot of the time people forget that they're actually buying a
property. They'll go on holiday for a couple of weeks and think, 'oh isn't it
lovely, and the sun always shines and lets just buy that little villa over there.
If you're serious about it and its something you want to do, my advice would
be to go for it, but make sure you're really sensible about it as well draw
up a big list of the pros and cons first.
What else should investors look for before they buy abroad?
You need to think about what you're buying the property for. Are you buying
it purely for a holiday home or are you buying it with a view to wanting to
retire there? Because then you've got to think about the medical side of it
and if you're buying in a country where the hospital and healthcare system isn't
great you may want to think twice.
If you're buying a property with a view to renting it out, which a lot of people
do because often that's the only way that they can afford to do it, you need
to make sure you can afford to cover the repayment costs on any loans that you
might have. Don't guarantee on the rental income because if you can't rent the
property out for 6 months you've still got to pay those costs off. You also
have to think about who you're renting the property to. If you're renting it
to families, does it have a swimming pool? Is it close to the beach? How far
is it from the airport, shops and local amenities? You need to find your market
and make sure you appeal to them.
Where do you own an overseas property?
I own a property in Southern Italy, an apartment in an old palazzo in Puglia, in the heel of Italy.
Do you think buying in Africa is risky?
I have only done one programme in Africa, in Cape Town in South Africa. I think
Cape Town is a fantastic city, just beautiful, and I went out there with very
preconceived ideas. I think in terms of the travel it's a long haul destination
but great for the winter months. The property prices keep going up there all
the time and the political system is getting a lot more stable.
I think there's an element of risk involved in any property, whether it be
in South Africa or France or Spain. As long as you get good legal representation
I don't think you'll go too far wrong.
Are there any areas you would advise against investing in?
No. You've got low risk and mid-term risk. The low risk areas are the areas
that we've all bought in for years, places that we know and are comfortable
with like France, Spain, Portugal and Italy. And then you've got Bulgaria, Poland,
Romania, or any country where the foreign property market is in its infancy.
If it's cheap, there's a reason that it's cheap it's because the infrastructure
of the country isn't up and running yet. So you need to look at that as a mid-term
investment. But having said that, if you're buying in an area where the foreign
property market is in its infancy, the best piece of advice again is to get
good legal advice. It can save you a hell of a lot of heartache.
To find your dream overseas property, whether for investment, retirement
or second homes, visit: www.justoverseas.co.uk