UK vs International
Many property investors – both first-time and portfolio builders – now consider putting their money into overseas properties. The UK may be a known marketplace with stable property legislation and a stable currency, but some commentators fear decreasing returns.
The answer to this may be to start developing a more varied property portfolio which spreads risk geographically. There are plenty of countries where property is cheaper than in the UK, and it seems that you can get a lot more for your money.
There’s more to consider here though. While property prices might be lower than in the UK, you’re unlikely to have a good knowledge of the market – and a couple of weekends scouting won’t provide all the information you’ll need.
The challenges you could face when buying abroad include:
- Legal issues – the conveyancing process varies widely throughout the world
- Taxation – you may need to pay tax in the UK and in the property’s country
- Bureaucracy – planning restrictions and legislative risk
- Selecting the location – dealing with strong competition in popular areas
- Getting the property right – you must make sure your property has what tenants want.
We already have guides on Spain and Germany and will be adding new country guides in the coming months.