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Many people are now looking to overseas residential property as an alternative to traditional investment products such as stock market equities and pension products. Since the spectacular burst of the technology bubble, stock markets have been in decline, and are now expected to stagnate for some time or show a conservative increase at best. Pension products have attracted a huge amount of bad press, with many people now fearful that their savings will simply not be enough to support them in their later years. In addition, there is something understandably bland about giving your hard-earned cash to somebody else for safe-keeping every month, in the hope that it increases in value.
Since the mid 90s, most people living in the harsher climates of Northern Europe have been seeking a greater quality of life, combined with optimum use of their ever-decreasing leisure time, brought about through excessive working hours and increasingly stressful jobs.
When you combine the financial outlook with the lifestyle issues, it's easy to see why so many people are looking at property investment overseas as a solution.
There are several ways to look at the investment angle when buying an overseas property. Most buyers take a long-term view, seeking to benefit from increasing property values over the course of long-term ownership, whilst also benefiting from free use of their very own holiday home whenever they desire. Other investors seek a quick fix, or a pure buy to let investment.
For those buyers with a long-term view, it's vital to make the right decision in choosing the location of your investment property. If you are planning to use the property yourself, then its location is important. Do you prefer beach or golf?... apartment or villa?... in town or hillside? Most northern Europeans understandably head for the sun, and Spain undoubtedly leads the way as the destination of choice for those seeking a warm year-round climate.
Channel 4's 'A Place in The Sun' estimated in January 2006 that £100,000 invested in a property in Spain would be worth £289,000 in ten years if you take into account forecasted capital growth and rental income during that period.
The obvious difference investing in property against equities and pensions is that you have a tangible, saleable product. Every market has its ups and downs, but at any stage along the traditional cycle, property ownership gives you the opportunity to personally enjoy your investment or to cash in on your investment.
The combination of capital growth and rental income provides a two-pronged investment option, as well as providing a lifestyle investment for personal enjoyment - a great combination!
