Overseas property prices. Will they keep going up? Blog by Letting Focus
Are property prices overseas going to keep going up?
According to Michael Ball, who is a professor of property at Reading university and a government adviser the answer is “No”.
He says that prices of homes in many parts of continental Europe have risen too fast driven by speculation and easy mortgage availability.
He also points out that the supply of new flats had been increasing at a very fast rate - leading to oversupply in many areas. This is something that I have long cautioned about at at the speeches I am asked to give at conferences and trade shows around the UK and in Europe.
Overseas Property Investors
Speaking to the Investment Property Forum last week and reported in the Saturday’s FT, Professor Ball also observed that some overseas markets had been driven (mainly) by foreign investors “and now that is beginning to turn."
In his speech he specifically mentioned Estonia, where house prices have dropped by around 10 per cent in a year.
Savills, in another survey, showed how many foreign buyers seem to overestimate the rental returns avilable through letting.
At my public speaking events on property at lettingfocus.com and at this blog, we have always questioned whether people locally in many markets can afford to pay the rents required to give investors a decent return - given how low local salaries still are.
Big Mortgage Shock Coming for UK's Overseas Property Buyers
Also, many British and Irish borrowers are likely to come in for a big shock when their mortgage payments are reviewed following the recent credit crunch.
My advice is to only deal with a home operator who has a track record of making investments overseas – and one who has an open forum - where you can read how past investors got on with that company before.
There are a few companies around like this. And then, always, always do your own research.
ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON
We are LettingFocus.com - the landlords’ expert and I’m David Lawrenson.
I wrote “Successful Property Letting” - the UK’s top selling property and buy to let book for the last 3 years.
I have been a landlord and property investor myself for over 25 years.
At LettingFocus we offer independent unbiased group based advice for buy to let investors and landlords as well as one to one advice covering all aspects of being a landlord and investing in property.
Buy to let and property “advice” business is unregulated and as I am not linked to a property company, developer, estate agency or loan provider I am able to give unbiased independent advice on where to buy (which areas), what type of property to buy, when to buy and how to buy property at a low price. I can also explain how to reduce the risk of getting a bad tenant.
Our Events only take place twice a year.
For our NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors click here: Next Property Investing Seminar and Networking Event
We have GREAT OFFERS for landlords too, Click here: Services and Products for Landlords to see our Landlords Resources (Useful Links) page. (Selling services to landlords and property investors and have a national coverage? You could be a partner, please get in touch!)
For general info on our SEMINARS AND CONSULTING click here: Property Seminars, Networking Evenings and Consulting
ONE TO ONE PRIVATE AND PHONE BASED CONSULTING click here: Property Consulting
CLIENT TESTIMONIALS from past customers click here: Testimonials
BUY THE BOOK click here: Buy the Book at Amazon
THE HOME PAGE OF THIS BLOG click here: Blog
THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
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INTERESTING ARTICLE: There are lots of good articles at our site.
Have you seen this one, which looks at making sure you prevent problems from happening in the first place by giving tenants useul information: http://www.lettingfocus.com/pages/myarticles3.html
TO VIEW RELATED POSTS select a “Category” at the bottom of this page. Copyright: David Lawrenson 2007. This blog is updated once a week
According to Michael Ball, who is a professor of property at Reading university and a government adviser the answer is “No”.
He says that prices of homes in many parts of continental Europe have risen too fast driven by speculation and easy mortgage availability.
He also points out that the supply of new flats had been increasing at a very fast rate - leading to oversupply in many areas. This is something that I have long cautioned about at at the speeches I am asked to give at conferences and trade shows around the UK and in Europe.
Overseas Property Investors
Speaking to the Investment Property Forum last week and reported in the Saturday’s FT, Professor Ball also observed that some overseas markets had been driven (mainly) by foreign investors “and now that is beginning to turn."
In his speech he specifically mentioned Estonia, where house prices have dropped by around 10 per cent in a year.
Savills, in another survey, showed how many foreign buyers seem to overestimate the rental returns avilable through letting.
At my public speaking events on property at lettingfocus.com and at this blog, we have always questioned whether people locally in many markets can afford to pay the rents required to give investors a decent return - given how low local salaries still are.
Big Mortgage Shock Coming for UK's Overseas Property Buyers
Also, many British and Irish borrowers are likely to come in for a big shock when their mortgage payments are reviewed following the recent credit crunch.
My advice is to only deal with a home operator who has a track record of making investments overseas – and one who has an open forum - where you can read how past investors got on with that company before.
There are a few companies around like this. And then, always, always do your own research.
ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON
We are LettingFocus.com - the landlords’ expert and I’m David Lawrenson.
I wrote “Successful Property Letting” - the UK’s top selling property and buy to let book for the last 3 years.
I have been a landlord and property investor myself for over 25 years.
At LettingFocus we offer independent unbiased group based advice for buy to let investors and landlords as well as one to one advice covering all aspects of being a landlord and investing in property.
Buy to let and property “advice” business is unregulated and as I am not linked to a property company, developer, estate agency or loan provider I am able to give unbiased independent advice on where to buy (which areas), what type of property to buy, when to buy and how to buy property at a low price. I can also explain how to reduce the risk of getting a bad tenant.
Our Events only take place twice a year.
For our NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors click here: Next Property Investing Seminar and Networking Event
We have GREAT OFFERS for landlords too, Click here: Services and Products for Landlords to see our Landlords Resources (Useful Links) page. (Selling services to landlords and property investors and have a national coverage? You could be a partner, please get in touch!)
For general info on our SEMINARS AND CONSULTING click here: Property Seminars, Networking Evenings and Consulting
ONE TO ONE PRIVATE AND PHONE BASED CONSULTING click here: Property Consulting
CLIENT TESTIMONIALS from past customers click here: Testimonials
BUY THE BOOK click here: Buy the Book at Amazon
THE HOME PAGE OF THIS BLOG click here: Blog
THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
To JOIN our Free QUARTERLY NEWSLETTER simply send an email to david@LettingFocus.com - Please note we WILL NOT send spam or sell our mailing list to advertisers!
IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG POST OR OUR WEBSITE?
WANT TO BE KEPT UPDATED WITH OUR LATEST BLOGS?
Simply copy the site feed link into your News Reader or News Aggregator.
If you have a website & are thinking of reproducing material here, that’s fine but we DO require a link to the blog to be included, including also all the links in this section. (The full article including all links must be available to ALL VIEWERS of your site and not restricted.)
INTERESTING ARTICLE: There are lots of good articles at our site.
Have you seen this one, which looks at making sure you prevent problems from happening in the first place by giving tenants useul information: http://www.lettingfocus.com/pages/myarticles3.html
TO VIEW RELATED POSTS select a “Category” at the bottom of this page. Copyright: David Lawrenson 2007. This blog is updated once a week
Labels: buy to let book, buying abroad, buying property abroad, Investment Property Forum, Jet to let, Michael Ball, overseas buy to let, overseas property investment
This entry was posted by lettingfocus, on
Tuesday, October 02, 2007.
