Why Brits go mad for overseas property

The UK has seen steady growth in the overseas property market. The traditional buyer has always been a couple in their fifties heading retirement. Moving abroad and retiring to the sun is a common desire amongst the British and this still remains. Spain and France and Florida are the typical locations for these types of overseas property buyers. However this profile is changing and it is changing for a number of reasons.

Overseas Property investors

The British have done very nicely in the UK property market with many homes doubling in price over a 10 year period. The Buy to let sector of the UK market is so big that many economists feel that property investors are in part responsible for consistent house price increases. UK government interventions have failed to slow the climb of housing prices; this could well be attributed to property investors who are so keen on expanding their portfolios they are not perturbed by the odd interest rise. These investors are now looking to property abroad for larger capital returns. The type of buy to let investor is so broad that it is difficult to give a profile. These investors range from a single person who has now moved to their partner's property and has let their own premises to builders, lower income individuals who own their local authority home, to high flying city bankers. What ever the profile they have all seen good gains in their UK investment property and want to do the same overseas. Many regions from the emerging markets such as Bulgaria, Romania, Croatia, offer such low prices that buyers now include individuals that do not own a home in the UK

Young Brits want a home even if it means it's overseas

The young are having a hard time getting on the British property ladder . British Mortgage lenders realise that soon their will be no first time buyers and no business if they do not act to help. Recently lenders sanctioned new lending criteria which mean buyers can borrow 5 times their salaries in the UK. This has been a lifeline for some and it indicates how hard hit the young are in the UK. The prospect of 30 year mortgages that take a huge percentage of your salary has not been everyone's idea of fun. Young people are more than happy to rent and get their foot on the property ladder abroad. This gets them an investment that in 5 years could allow them to enter there own housing market.

Low Cost airlines from the UK are playing their part.

Low cost airlines which are sometimes know as no frills airlines are so popular in the UK that barely a month goes by without one of them announcing a new route. These airlines target destinations which are popular and tend to use the less popular airports in that region. Airlines such as Jet2.com, Easy Jet, Ryanair, and BMI Baby, are making cheaper overseas property locations accessible by the British public at the price of a 10 minute ride in a London Taxi. It's good news for buyers and better news for property owners and is definitely playing its part in the attraction of overseas property.

Travel industry makes the Brits more adventurous.

The travel industry in the UK is proactive in finding new destinations for the more adventurous British holiday maker. The link between successful tourism and emerging property markets is no more clearly defined than in Africa. Growing numbers of tourists in search of new discoveries unspoilt by the commercialism of the usual holiday hot spots are creating emerging property markets. Tour operators are contributing by providing cheaper air fares, whilst specialist tour operators serve to enlighten tourists about Africa as a holiday destination. One such destination is Cape Verde barely known until a holiday programme named the West African country a desirable holiday hot spot. Cape Verde now attracts huge inward investment from property investors keen to get in on the act at an early stage. Many investors feel that an investment in Cape Verde over a 5 year period will see them double their money.

Living abroad working at home

Technology has made working from home a viable option for many office bound workers. Business will soon catch on that employing this type of worker will save them money on business premises and many see it as the future. Well the future has arrived with UK agents seeing buyers prepared to live abroad whilst working for a company based in the UK. Trips to the office are planned in advance and with low cost airlines and faster rail travel it offers a real opportunity to get away from the rat race.

Living abroad is now easier.

A Brit who lives abroad can be surrounded by the things they love from home. Football, shopping, speaking to friends and relatives are all a lot easier and cheaper than 10 years ago. Globalisation means that many of the products Brits love such as Cornflakes, designer shoes, PG Tips Tea, Heinz Ketchup, Pizza, and Beer are all available overseas. So who misses the comforts of home? Anyhow low cost travel makes being home sick less likely and sunnier climates make the move irresistible.

UK companies are relocating to overseas locations

British companies and those companies that have offices in the UK are hard hit by rising rents and property prices. Foreign governments want these blue chip countries paying taxes and bringing their high spending employees to their shores. Dubai for example offers tax free zones cheap cost of living and a real desire for foreign investment. This is proving hard for companies to resist. Overseas property buyers are now made up of those who have relocated owing to company relocation it makes more sense to buy property rather than rent as the employee is set to win on their capital investment.

The future for the overseas property industry

The Brits appetite for overseas property appears set to increase as overseas lenders become more daring allowing smaller deposits and better lending rates. However some overseas property regions will become almost too popular driving prices up, locals out and taking the thrill of owning a property abroad.

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