Overseas property more profitable

Permalink: Overseas property more profitable
by Kay Murchie

According to BuyAssociation, the current financial state in the UK means that more money can be made overseas. The group is advising newcomers to the market to consider buying abroad.

A spokesperson for BuyAssociation said there is more money to be made through investing in foreign markets than in the UK due to rental yields and capital growth being more favourable.

The spokesperson added that investors want to make money and there are far more opportunities overseas in terms of capital growth and, in many cases, rental yield.

BuyAssociation recommend that buy-to-let landlords looking at overseas property should co-operate with the local neighbourhood because if not, you can be in danger of cutting yourself off from the local community.

Almost £20 billion was spent by UK buyers on overseas property last year according to the Association of International Property Professionals (AIPP). The average price of a British-owned property was just over £98,000.

The AIPP also reports that the British Office of National Statistics (ONS), which states that it has the most reliable figures, reported that 231,000 Britons owned property overseas in 2003-04.

In addition, the total amount of properties held by Britons abroad was £23 billion – a vast increase on the £7 billion recorded in 1994-95. An increase of 228% in almost a decade. This indicates a rise in property value and a rise in the number of properties that Britons own overseas.