New product offers key to buying property abroad

As uncertainty continues within the UK property market, buying abroad is becoming an increasingly realistic option for those looking to get their foot on the property ladder or to invest in property.

In fact, British and Irish residents currently own up to 3.81 million homes abroad (excluding time share and fractional ownership schemes) and this figure is expected to grow by approximately 8% to 10% over 2008.

Dogged by unfavourable reports of dubious developers and poor quality builds, the overseas property market also has a reputation for becoming a potential money pit rather than a money earner. Therefore, it is opportune timing that a new product has become available to help remove the financial burden within buying property abroad.

Recognised by homebuilders worldwide, the Overseas Exchange Bond is a direct replacement to the traditional cash deposit. Instead of putting down the 10-30 per cent cash lump sum usually required as a deposit, the buyer can choose to pay the full agreed price on completion. This means the buyer continues to have control and use of funds that would otherwise be tied up while the developer has a guarantee that, should you default before completion, the deposit will be paid.

Lucas Zachara, Head of Overseas Development for the Exchange Bond, says: "When buying abroad, many buyers hold back because of a reluctance to part with large sums of money to developers overseas, especially on developments which may be several months or even years from completion. By accepting the Overseas Exchange Bond the developer offers the buyer a less burdensome option for securing a property and reassures the buyer that if the developer fails to perform, the buyer retains their deposit money."

In order to secure the Overseas Exchange Bond, the buyer simply pays a small premium to the Exchange Insurance Company. The Overseas Exchange Bond can be validated for a period of between five months and five years depending on the predicted completion date and the premium is valued according to the deposit amount and the length of time it is required.

Created initially for the UK and Irish property market, the innovative Exchange Bond product has been tried, tested and approved by many top developers, including Taylor Wimpey, Bryant Homes, Crosby Lend Lease and Higgins Homes. It is now being adopted by a rapidly growing list of developers abroad. Employable for property transactions almost anywhere in the world, the Overseas Exchange Bond is already being accepted across developments in Portugal, Cyprus, Greece, Cape Verde, Turkey, Spain, Italy, Hungary, Canada, UAE and Grenada (the Caribbean's).

Please visit exchangebond.com for more information.