Overseas Mortgages

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Buy To Let Investors Go Overseas

As rental yields in the UK drop more and more buy to let investors are turning to property abroad where they can get better returns.

Investors are buying offshore where yields are more than 10% compared to the UK where some yields have dropped to 2%.

Location is of course the main factor but others include the economics of the country and over all rental market. If these factors are good the changes are that the investment will grow and the chance of being left with an empty property will not come into the equation.

British buy to let investors are not only investing in the traditional places like France and Spain buy also Germany and Latin America.

The European market is thriving because people are delaying in purchasing property much later in life. Problems can arise when trying to arrange finance as the UK’s buy to let market is a one off when it comes to buy to let mortgages as other countries do not offer specialist products.

UK and Irish

A recent study revealed that British and Irish people own 3.81m overseas properties (not including timeshare or part ownership properties) with 1.21m being owned by permanent residents or citizens of the UK and Ireland.

The overseas market is valued at £44.4bn with both UK and Irish estate agents forecasting market growth at 13% between now and 2012 this will practically double the total market value.

Spain remains the most popular destination and over 150,000 Irish investors own Spanish property.

France and the USA are the second most popular choices but the younger investor tends to seek out property in places such as Brazil, Croatia and Egypt.