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

SecomTech
SecomTech 22 Jun 2017

AT Last...This was discussed years ago and there was a move towards landlords registering their bad tenants on a database..(can't remember where) It seems a logical step though our leaders will probably...

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Bertrand
Bertrand 02 Jun 2017

How about the Welsh Govt introducing a scheme to protect landlords against "rogue" tenants who are then taken to court for criminal damage to the properties they trash. Pretty unlikely I suspect and politically...

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AmberMorris
AmberMorris 25 May 2017

"Please don't pick a novelty tune-playing doorbell. They're not 'fun'. They're stupid." Laughed a lot to this. It's actually true, though.

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Oliver Conway
Oliver Conway 18 May 2017

Making a neat inventory is a good idea, but if the seller is not willing to provide it, can the buyer demand it?

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Bertrand
Bertrand 17 May 2017

First step to nationalisation of the private rented sector IMHO. Nanny state poking their noses into things yet again. I object, as a decent landlord, sometimes having to deal with some pretty awful tenants,...

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Izzy
Izzy 16 May 2017

This is such a great a post. I love the detail you've gone into. It's a very useful article for helping those who are looking at deciding which sector they would like to go into! When I first started investing...

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paul burnham
paul burnham 30 Apr 2017

Jeremy Corbyn's pledge that a Labour government would build 500,000 new council houses must electrify the general election campaign. Reliance on markets and the profit motive has brought huge housing-related...

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CommercialTrust
CommercialTrust 28 Apr 2017

Sadiq Khan?s announcement of an online database of landlords and letting agents who have been convicted of housing offences, appears on face value to be a variation of the already implemented Database

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warren
warren 26 Apr 2017

You're very welcome Mary! Glad you enjoyed them :)

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Mary Ward
Mary Ward 26 Apr 2017

Thank you for the wonderful ideas. First impressions can make or break a deal. It's sadly that many homeowners drop the kerb to create an off-street parking space.

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Tony Gimple
Tony Gimple 14 Apr 2017

I'm not at all surprised that so many landlords are still confused about what the tax changes really mean and how it will affect them. In particular, the blind rush to incorporation is leaving landlords...

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MH
MH 13 Apr 2017

You are right that the bank holidays are going to be spoiled in looking for the properties. But people who want to sell their property and looking for the better relocation, they can get benefits of this...

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