How Eurozone Troubles Could Present the Opportunity to Begin a Foreign Buy-to-Let Portfolio

Holiday Lets June 30th, 2015
How Eurozone Troubles Could Present the Opportunity to Begin a Foreign Buy-to-Let Portfolio

 

Now could be the time to take a risk and begin an international buy-to-let portfolio as prices in the Eurozone are low whilst the pound sterling is extremely strong.

The extraordinary problems in the Eurozone could present an opportunity for UK buy-to-let investors. The danger of a Greek exit from the Eurozone could be devastating to the EU as a whole and the uncertainty has created a plummet in the Euro. With the question still looming regarding Greece’s membership, the current insecurity has led to a fall in demand in the Eurozone itself as investors are unwilling to take risks until the future becomes clearer.

Tracey Van Berg, an expert of the Spanish property market, believes now is the perfect opportunity to buy there. ‘Property prices are still hovering at about 45% lower than before the crash’. With the current possibility of a Greek exit, property prices are unlikely to rise drastically in the immediate future. Moreover, the pound has become much stronger when pinned to the euro, giving UK buyers far more purchasing power in the EU.

As property prices have plummeted, it has become a buyers’ market now. There are many bargains available for any wise buy-to-let investors. It is important to make sure the property is in an easily accessible location with good local amenities and in area popular with tourists. It can be wise to market the property using a local estate agent, who can manage and market the property locally.

Investors can also utilise dedicated holiday lettings websites and rental sites for shorter tenancies, such as Airbnb. Although the demand may be more seasonal and short-term than when compared to UK tenancies, it can still provide an extra income to the investor. Any potential investments in foreign markets should be done with caution and with special care regarding legal documents, making sure that the English translation of the document is identical to the local document, as outlined by Which.com.

Now is the time to make an investment in a foreign property for a long-term buy-to-let investment

The current strength of the pound together with low house prices in popular tourist hotspots such as France, Spain, Portugal, and Switzerland could present a great opportunity for any bold investors seeking to create a multi-national buy-to-let property portfolio. Tourism remains strong in many areas with rising non-EU visitors, whilst property prices should stabilise and increase in the long-term.

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