Print

Look outside eurozone for property

Overseas investors should look outside the eurozone for property bargains as the euro rises in value against the weakening pound. 

Property within the Euro zone is becoming increasingly expensive for UK investors, as the pound continues to fall against the euro, currently sitting at euro1.26 to £1.

If investors consider properties in countries which are outside the zone, they will get far better value for money.

Holidaymakers are also far less likely to travel to countries within the eurozone while the currency is so strong against the pound, thus reducing demand for rental properties and impacting rental yields.

Stephen Smith, Sales and Marketing Director of Egyptian property developer West Side Village, said, "Investors would be wise to seek destinations outside the zone, where they will be more likely to afford quality investment properties in good locations, maximising their rental opportunities.

"Destinations which are served by regular cheap flights, preferably within a five hour flying time of London, such as Egypt, Turkey, Morocco or Croatia are ideal.

"With property prices falling in the UK, now is a good time to diversify into an emerging market overseas, which can offer high capital growth and strong yields.

"Investors should carefully research the best destination for them, taking into account currency exchange rates, tax laws, tourist levels and the potential for growth," Mr Smith added.

Five top tips for investors

Destinations with year round sunshine offer the greatest scope for maximising rentals and reducing void periods, which greatly enhances yields.

Invest in a country with low capital gains and inheritance tax. Some countries such as Dubai and Egypt have a rate of 0%.

Investigate the resale market, especially if you intend to sell your property in the short term, and find out what capital growth has been achieved over the past five years.

Research the lettings market and find out the rental yields other investors are achieving in your desired area.

Furnish and equip your property with your target market in mind, e.g. holiday lets or local lets.

To browse properties for sale in Egypt, or anywhere else in the world, visit www.themovechannel.com/property/Egypt/