Overseas property sector – should there be doom and gloom?

Overseas property sector – should there be doom and gloom?

Overseas property and finance expert, Simon Conn, has over 35 years’ experience in the overseas property market and in this article, gives his opinion on overseas property investment in the wake of our decision to leave the European Union.

Since Brexit, there have many different comments in the press about how people feel the market and economy will develop during the next few months and most, unfortunately, have been rather dour.

From my experience of the overseas property and mortgage sector, although some clients have put their plans temporarily on hold, there have been very few outright cancellations.

As I have stated in previous comments once the Brexit vote was known, there should not be any knee-jerk reactions and it will take time for markets to return to normality and further key decisions to be made – such as interest rate setting, Theresa May settling in as PM, exercising Article 50, new Trade deals to be sorted – HOWEVER, there are still opportunities to be sought.

In the most popular countries I deal with (France, Spain, Portugal and the USA), there are clients who are still purchasing, but with the following observations.

Interest rates continue to remain the lowest they have for many years, with many now choosing to also consider Fixed Rates with terms longer than 5 years, where pre-Brexit Variable Interest Rates or 2/3 year Fixed Rates were the norm.


Although prices may have increased for a Sterling buyer by 10% for those purchasing in a Euro or Dollar Zone, previous cash purchasers or those with a higher deposit are now approaching me with a more specific mortgage request, to cover any shortfall due to the currency exchange changes or shortfall.

For those UK based clients purchasing to rent out the overseas property (and not requiring a mortgage on the new asset), they could possibly benefit from the higher rent to be received when their Euro or Dollar rental payments received are converted back to Sterling.

With the speed of the political changes in the UK and the subsequent impact on the money markets, it is therefore definitely worthwhile in the next few months keeping watch on the overseas property industry and the different mortgage options that could be available.

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Latest Comments

Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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