Buying Property Overseas vs At Home - Nova

Buying Property Overseas vs At Home

 

Nova Financial Ltd featured in Property Question Time on the Property Sky Channel 198

Our Managing Director Paul Mahoney on the Expert Panel:

Bryony Bilsen: Paul, given the choice of buying a £300,000 property in England against a much larger €300,000 property in Europe, what should I consider if I didn’t intend on using either of them myself? Making sure the value of my investment is not going to drop is my absolute priority.

Paul Mahoney: Okay, it’s a fairly common question. I’m personally a big believer in buying property in your home country. I’d say the main reason for that is currency risk, in that you could buy that same property in either country and both could go up in value, but if the currency or foreign exchange moves against you, well that gain can be wiped out. Of course, that can move the other way but it’s very difficult to predict. That’s the first point, but I’d say the determining factors would not necessarily be that, it would be about the fundamentals. The supply the demand in the area, the socio-economic levels, what the demand for certain types of properties are. Is this the right type of property for that area? What’s changing in the area?

I’m constantly saying that property doesn’t increase in value, because it doesn’t. You know there needs to be a reason for it. The main reasons for it are generally infrastructure spending, employment growth, population growth, something that’s going to create positive change. All the key fundamentals that go into selecting any property investment should be applied to any location. I’d say that would be the main determining factor in deciding where to invest.

Taking it away from the property because we tend to focus more on the person themselves, probably more importantly is, what is that person trying to achieve? Are they looking to build an asset base and therefore is growth most important to them? Do they already have the asset base and is therefore income most important to them? What are their goals? What’s their plan? Then which … I suppose, use that to select the criteria for which makes the most sense for them.

T: 0203 8000 600 W: Nova.Financial E: info@nova.financial

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