Spiralling house prices and the recent hike in Stamp Duty for buy-to-let landlords are causing renewed interest in overseas property for UK landlords, according to Benoit Property International.
The Manchester-based firm also believes that growing concerns about the effect of the EU referendum on property prices and rental yields in the UK is encouraging more investors to consider buying property abroad.
Benoit Properties International’s Matthew Lavin says that the growth of interest in foreign property reflects the fact that an increasing number of buy-to-let landlords in the UK are not just looking to avoid the 3% Stamp Duty surcharge introduced in April, but also to secure better value for money on homes offering higher rental yields.
He explains: “We could see [12 months ago] that trends would change and that overseas property would become attractive again.
“While we do have selected properties in northern cities like Manchester and Leeds, the range of global options allows our clients the opportunity to diversify their portfolio should they feel it advantageous. Certainly at present, we are seeing a big increase in the overseas markets.”
Separate research by estate agent PropertyLetByUs.com found that 23% of UK landlords are considering buying an overseas property in order to pay less purchase tax and secure a better return on investment.
France was named as the number one overseas location for property investment by one in five landlords (23%). Spain followed at 18%, with Italy, at 11%, Bulgaria, at 3%, and Germany, at 1%, behind.
Jane Morris, the Managing Director of PropertyLetByUs.com, insists that it is vital for landlords to get to grips with the different laws and taxes surrounding property ownership in overseas locations.
If you are thinking of investing in an overseas property, the Insure My Villa blog will help keep you up to date on any financial or legal changes affecting homeowners (either expats or those with holiday homes) in various countries in Europe.
When you do decide to purchase a home abroad, remember to protect it like any other investment with Overseas Property Insurance.