UK appetite still strong for overseas property

Money

Retirement

UK appetite still strong for overseas property

Brits are keener than ever to snap up properties abroad despite the gloom and doom of the credit crunch, writes Holly Thomas

Currency specialist FC Exchange has reported that over a month spanning April and May it signed up more people planning to buy an overseas property than in any single month in the past year.

Managing director Nick Fullerton said: "There are a number of reasons that could explain why people are more prepared to invest their money overseas in the last month.

"These include a reluctance of many to invest in the UK property market as prices start to drop, or first time buyers who are still determined to get on the property ladder and rather than take a hit in the UK market they see the overseas property market as representing more opportunity for growth and better value for money."

Fullerton suggests many have been watching exchange rates tumble and now seem convinced that the markets will remain depressed for quite some time.

He said: "These record figures are encouraging and demonstrate the continuing appetite to invest in overseas property."

However, many do not just buy for investment - according to new statistics, two million Britons have left the UK in the past decade - the greatest exodus from this country in almost a century.

It brings the number of Britons living abroad to about five million. The prospect of a better quality of life abroad and to escape the British weather prompts millions to leave.

Investment experts say that while investing in property abroad has become more attractive, many are put off by the thought of the legal work involved.

However there are a number of services that offer help with your purchase by doing a quick internet search.

Be wary of relying on a lawyer recommended by the estate agent who may not be the most competitively priced.

As well as legal fees there's the issue of converting currency. While sterling is strong against the dollar it is weak against the Euro, making many properties in Europe 16 per cent more expensive than they were a year ago.

So make sure you do all your homework first about the area in which you buy to make sure it does represent a good investment.

Be prepared to pay for translation of important documents into English, and visit an estate agent in person.

* Holly Thomas is the deputy personal finance editor of the Daily Express and Sunday Express. Her opinions are her own and for general information only. Always seek independent financial advice.