UK buyers do not control the overseas property market
“UK buyers do not control the overseas property market and are not the governing body where the world’s property market is concerned”, says Serge Cowan, MD, Unique Living, London based agents working in niche property markets throughout the world.“The current credit crunch is giving the UK buying public expectations of dramatic price reductions, but this is a misconception with the overseas high end market. The world is a big place, the UK market although important is not essential, so buyers holding back or expecting major price falls in overseas property hot spots (marketing at £500,000 and above), are going to be disappointed.
The Scandinavians, Dutch and certainly the Russians are very keen to purchase in Southern Europe. Many are buying in the French Riviera, in the south of Cyprus and the Costa del Sol, where our offices are reporting very busy turnover.”
Serge Cowan, feels strongly that UK buyers are 1. Expecting dramatic reductions which are untenable. 2. Think they are the ‘saviours’ to the owners, when clearly they are not.
Continues Serge, “Buyers should look to regions where growth is still strong, so that even though they may lose on the conversion they gain on the capital growth. The French Riviera is one perfect example where prices cover a whole spectrum, with steady capital growth and where there are excellent opportunities for rental income – just the Cannes Film Festival and the Monte Carlo Grand Prix bring a multitude of wealthy people desperate for accommodation”.
Being canny when borrowing to buy, can provide enormous savings. Mark Bodega, Director at foreign exchange specialists HiFX says, “Most buyers work to a budget and changes in the Euro/Sterling exchange rate has therefore led to people reviewing what properties they can afford.”
A good tip from HiFX is to fix the exchange rate by using a forward contract, which means that individuals can buy the currency now, and pay for it later ( when they need to make the individual stage payments). Added Mark, “We always remind clients that they would never agree to buy a property in the UK without knowing the final cost. While exchange rates could go in your favour, they are just as likely to go against you, and we strongly recommend that people who are working to a tight budget fix the rates at the outset to protect themselves and ensure they can afford the property when it completes”.
To sum up, Serge says, “Clearly there are ways of ensuring you know the true cost of your purchase, up front, so that takes away any fear factor. Also, if you travel abroad you will see a fairly healthy market place, slightly dampened by the lack of UK buyers, but certainly not flat and it is this that UK buyers should bear in mind.
In certain hot spots where demand outstrips supply, prices continue to rise steadily so your investment could show more capital growth pa than in the UK. Cyprus is reporting around 8% pa.
Also, if you are buying for rental income, then again, you should see good returns as people will still need holidays and long term rentals. In a slow down, long term rentals usually pick up.
Just remember that you can make an offer on a property abroad but do so with some realisation that there are other buyers, from other countries, also keen to buy so you must be realistic in your negotiating.”
Unique Living offers superior homes, in prime locations throughout the world.
Currently available offering exceptional good value for money is a six bedroom villa overlooking Saint Tropez bay. In a prime location with infinity pool and landscaped grounds the property also has an independent studio. 12,000,000 euros/£9,513,162 approx.
Also available is a four bedroom, three bathroom, villa in Mougins, Grasse, on the French Riviera for 1,100,000 euros/£864,635 approx.
This is a Provencal style villa in perfect condition and located in the green countryside of Grasse. There are lovely countryside views, together with landscaped garden with swimming pool and bbq.
For more information, visit uniqueliving.com.
