Overseas property investing has become very popular in recent years, with people taking advantage of the opportunities presented in Europe and other parts of the world. But there are a great many advantages to sticking to the UK when buying property.
Investing in property in the UK means you are governed by familiar UK laws, unlike investing overseas, where you can easily be surprised by rules and regulations you were not aware of. It is all too easy for an overseas property purchase to be delayed or even fall through completely because of unexpected red tape issues and peculiar local laws. And of course, non-residents are subject to very different tax laws, which can really cut into the profit on your investment.
Familiarity with local laws and price trends, not to mention the language, means you can enter into the process with a better, clearer knowledge of what is required. And rises and falls in UK mortgage rates and property prices are far easier to predict than the wildly fluctuating rates of other countries.
On top of that, the costs involved in buying or selling property can be much higher in foreign countries than in the UK. For example, Estate Agents fees in France and Spain can be as high as 10%, and 6 to 7% in South Africa.
While investing in overseas property may seem exciting, property investment in the UK is a safer bet, offering a better return and no hidden surprises.