Credit Crunch

Foreign Property Unaffected by Credit Crunch

Since UK property began to soar in cost, many purchasers have been buying property abroad which is a trend that is continuing despite the credit crunch.

Many forecasters are warning however that the impact of the credit crunch may begin to affect foreign property markets eventually as fewer British investors have access to funds with which to purchase property abroad.Spain, Italy or France to use as holiday homes but in recent years, a new type of UK buyer has generated a growth in the potential revenues from buying in Bulgaria, Morocco and Turkey. The new wave of buyers are purchasing property to let out to the holiday market and keeping the property until its value rises before selling and moving their money elsewhere. UK buyer. Prague and Dubrovnik are among the newly fashionable regions to benefit from UK investment.

Traditionally, British buyers have invested in property in

The new type of buyer tends to be younger and not afraid to buy new-builds in locations that wouldn’t previously have appealed to

The problem facing the younger investor is that they often fund their property purchases with mortgages and as the credit crunch bites, they may find it increasingly difficult to get the mortgage they need to buy.UK homes, so most won’t need to borrow at all.”US recovers from the subprime mortgage crisis.

However, Savills Estate Agent researcher, Jacqui Daly, told the Telegraph recently that, “We will see a return to the traditional use of the holiday home as a lifestyle choice, and that demand will actually rise in the near future.” Daly added, “Demographics show there are many more of these to come. They have a lot of equity in

The managing director of Holiday Rentals.com, Greg Grant, said that he believes owners of foreign property won’t lose out, but he expects many owners to alter their methods of letting their properties.

He told the Telegraph, “Those who have previously kept their homes to themselves may begin renting out to maximise income in these tighter times. They’ll see that a month’s rental can, if timed well, pay for much of a year’s running costs on a home.”

Time will tell how much foreign property investment is affected by the credit crunch but much depends on how the