Buying Residential Property Overseas in 2017 Post-Trump and With Brexit Influences

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Buying Residential Property Overseas in 2017 Post-Trump and With Brexit Influences

February 15, 2017

After the “shocks” of 2016, how will the overseas property market be affected in 2017 and will the most popular areas still be of interest?

Although the Trump and Brexit decisions did have an initial effect on clients potentially purchasing an overseas property - where some people have deferred until the markets have settled down in the USA after the Presidential inauguration and Article 50 is finally implemented - others have seen this as a good time to look for opportunities and bargains available in the market.

Also, exchange rate changes have resulted in those still proceeding to purchase either having to borrow more, or borrowing where previously they were paying cash.

The main countries are still popular – ie: France, Spain, Portugal, Southern Cyprus and the USA, but other countries although still showing interest, are still suffering with their political and economic uncertainty – such as Greece and Italy, while Turkey has the added problem of insurrection on its borders.

Further afield, the Caribbean, Thailand, Australia, New Zealand and South Africa are still of interest for holiday and future retirement homes, and Cape Verde could still be an opportunity if more infrastructure was in place.

In 2016, France and Spain have shown equal interest, but France still offers a higher loan-to-value at 80%-85%, compared to 70% in Spain. However, better lending terms are possibly available for 70% or less in France and 60% or less in Spain.

Both the Canary Islands and the Balearics are receiving increased interest and loan-to-value rates are similar to mainland Spain.

Interestingly, in both countries higher priced properties are being sought, so the high end properties in both the ski and coastal areas of France (south mainly) and Spain, such as Costa del Sol, have had a lot of interest.

This has, therefore, benefited Portugal where mortgages are available up to 80% loan-to-value (better lending terms are available for loans of 70% or less) and there has been quite a lot of interest in the popular areas such as the Algarve, parts of Lisbon, Cascais and Estoril. Portugal’s “Golden Visa” programme has also been very well received, but the purchases here tend to be more “cash only” rather than financed.

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