Member Article

Buying Abroad – Great Opportunity or Unnecessary Risk?

With an improving economy in the UK and a strong pound, there are great opportunities for investors buying property overseas. Indeed, the desire to invest particularly in Europe is strong as it has long been the aim of many people.

However, buying abroad comes with a myriad of potential hazards and costly problems. In recent years there has been the “land grab” fiasco in Spain and, more recently, problems of people buying properties in Cyprus using Swiss franc mortgages to name two. There are also issues of being liable for taxes both in the UK and abroad. Add management charges, cleaning and the hassle of “tenants” changing every 2 weeks along with the associated management of bookings, and the dream investment can become a real nightmare.

So, there may be some viable or emotional reasons for investing abroad but why take the risk? Unless you will use the property personally then it can make far more sense to invest in property in the UK. With record low interest rates and rents that continue to rise, the UK is a very attractive place to invest at the moment.

When you have made the decision to invest in the UK, there are different ways to maximise the value you obtain. An increasingly popular way to buy property is through auctions. The Modern Method of Auction allows additional time and also gives the option of purchasing with a mortgage – unlike the Traditional way which is aimed primarily at cash investors. Due to the additional flexibility that the modern method offers, more and more people are choosing to buy (and sell) this way. Jamie Cooke, sales director at property auction provider iam-sold said: “Auction offers a great and speedy way to buy property. It can give exceptional value and, as we take the stress of the whole process away from you, it is proving to be a very popular choice.”

With other long term investments such as pensions not being as popular as they once were, and upcoming pension freedom for the over 55s, property investment will continue to grow in popularity, as will property auctions.

For more information, contact Paul Robinson on 0845 5193 126 or paul.robinson@iam-sold.co.uk

This was posted in Bdaily's Members' News section by IAM Sold .