News: Overseas Brits escape UK rip-off

Mon, 05 Nov 07

Fly To Let is taking off as over 3 million Brits consider buying an overseas property to generate rental income...

A further 15% of prospective buyers would purchase a property abroad to invest for the future. 29% of current overseas property owners only visit their second home twice a year and could be missing out on potential rental income. Although there has been recent speculation about a downturn in the UK buy to let market, overseas properties now appear to be more attractive than ever for over three million Brits.

Of the 24 million Brits who would consider buying a property overseas, 15% of respondents saying they would buy a property as an investment for the future and a further 15% saying they would consider investing in an overseas property to provide rental income, reveals research by MRI Overseas Property*. The report highlights the increased attraction for Brits in buying properties overseas to invest for the future.

Solid returns

Olivia Mullan, Head of Rentals, MRI Overseas Property said: “As the property market reaches maximum value levels in the UK, more and more British and Irish people are looking overseas to get a solid return on their investment and holiday homes can provide the perfect solution due to a constant demand for accommodation by British holidaymakers.

“With the current economic climate in the UK and the prospect of further interest rate rises on the horizon, seasoned buy to let experts are beginning to look further afield, with 19% of British landlords saying they would looking to buy properties overseas for a better return on their investment if interest rates reach 6%.

The report also reveals that nearly a third of current overseas property owners (29%) only visit their property twice a year or less, and could be missing out on a rental income if the property isn’t rented out when it’s not in use.

Missing out on rental income

Olivia Mullen adds: “What immediately stands out from the research is that a significant percentage of prospective buyers - 25% - only plan to visit the property once or twice a year, and might not maximise their investment if they don’t have plans to rent out the property for the remainder of the year.

With the average monthly rent standing at £800, it appears that many overseas property owners could potentially be missing out on earning thousands of pounds in rental income. http://www.mrivillasandapartments.com

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