Is it time to look at overseas property?
As the UK property market shows some signs of recovery many experts are pushing the idea of investing in overseas property before the worldwide economy moves into a growth phase. However, with various reports suggesting a mixed outlook for the UK property market in the short to medium term is there really any rush to invest your funds into bricks and mortar?
Unfortunately, so far the headlines which have accompanied the alleged indications of recovery in the UK property market have yet to materialise in the mortgage market which is the lifeblood of the UK property sector. As a consequence, there are concerns among some quarters that overseas property markets are not yet as attractive as they could be for UK investors bearing in mind the significant reduction in the value of sterling over the last 12 months. Should you wait until the UK property sector and the UK economy recover before looking elsewhere?
While the UK currency has suffered significantly against the likes of the dollar and the euro it has performed relatively well against other troubled currency. However, with more and more property investors having been exposed as overextended on their debt it may be some time before serious demand returns to the worldwide property market. Whether this offers a long-term investment opportunity for those willing to take a risk is very much something which should be discussed with your investment adviser.
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