Interest in international property remains high
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by Gill Montia
Searches for international property increased by 109% between May 2009 and May 2010, according to Primelocation.com.
Month-on-month searches were up 3%, with eight of the top-ten countries registering an increase in interest and Spain regaining the top spot from France.
The two countries were responsible for over 60% of searches, a proportion that has remained steady despite the debt issues affecting the eurozone.
The US, Italy, Portugal, Cyprus, Turkey and the United Arab Emirates follow on in terms of search popularity.
Commenting on the data, Primelocation suggests that international buyers are taking a strategic long-term view on any potential investment and remain optimistic over prospects for long-term capital growth in many markets.
In addition, interest has been buoyed by a euro-sterling exchange rate that has remained favourable to British buyers.
The firm’s international development manager, Ann Wright, comments: “Despite challenging market conditions, interest in international property remains high as buyers recognise the potential for growth on offer from foreign homes.”
With regard to the euro-sterling exchange rate, overseas mortgage specialist, Conti, recently pointed out that British property investors who took out euro-denominated mortgages earlier this year are already seeing benefits.
For example, an investor who took out a euro mortgage of €250,000 in February 2010 on the exchange rate at that time of around €1.1 per £1, made a commitment of around £227,000 to pay off the loan.
The exchange rate has since improved to around €1.2 per £1, reducing the cost of the debt by £18,000 in just four months.
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