Overseas Property
As a serious property investor you know that in order to increase and maintain your portfolio you need the following:
- Property growth
- Good yield
- Minimal rental voids
- Competitive interest rates
At the moment the UK market only offers low interest rates, but how long will this last? The average rate of interest for a 75% mortgage is about 4.99% (i.e. 4.49% over bank base rate), but the base rate was at 6% just a few years ago. If rates reach these heights again, landlords will be paying up to 10.49% which could put many out of business. With average yields & minimal growth the UK market is not one of the best places to invest.
There is however a solution! Many clients are now investing in overseas property which can provide much higher returns; many providers will now guarantee yield returns for a number of years and help with funding which makes this an even more attractive proposition.