Growth in overseas property investment is reinforced by low interest rates stimulating new strategies for property investors.

As UK interest rates rise to just under 6% and the European Central Bank maintains rates at below 4%, savvy UK property investors are reported to be repaying UK loans using more favourable, longer-term, cheaper loans from their second homes overseas.

This latest property investment news reported by Assetz Finance, highlights this global investment strategy is increasingly popular amongst discerning property investors. This growing trend in the overseas property investment market shows property owners re-mortgaging their foreign homes in order to take advantage of the lower interest rates available within some of the mature markets in the European Union, which are now offering more sophisticated mortgages for foreigners.

According to the Royal Institute of Chartered Surveyors, UK real estate reports 800,000 UK households own a second home abroad, with an average loan value of €150,000 (£100,000) taken out on foreign property.

Mark Gannon, Director at Global Mortgages Direct suggests an alternative strategy to overseas property investment introducing the Quick Build method for those serious investors looking to expand their property investment portfolio, by using their accrued equity of a property in a mature market, to purchase property in an emerging market such as Brazil, Egypt, Morocco, Turkey etc

The nature of emerging markets, characterised by high economic growth levels and significant capital appreciation, have produced substantial capital gains for property investors. Investment in these markets makes for a lucrative strategy to grow any overseas property portfolio. In light of this, it may be wise to analyse the various ‘equity release’ mortgage products in those countries where properties are located, particularly in those mature markets where more sophisticated and flexible mortgages are offered. The released equity allows for secondary property investment, which may cover all deposits and costs of a property purchase in an emerging market, or provide funds to purchase in countries where mortgage systems tend to be under-developed with limited product range.

Another strategy is to split the released equity over several properties to pay for the deposits, whilst mortgaging the remainder of the cost, providing a suitable re-mortgage product can be sourced. It is recommended with this course of action to look for properties that have rental guarantees as a safeguard for the mortgage repayments.

This strategy of continually releasing equity of appreciated properties to re-invest in emerging markets, rather than using liquid funds, could prove to be a sound method to build your overseas property portfolio.

Key to this strategy, and particularly when dealing with emerging markets, is to collaborate with knowledgeable companies who are experienced in the chosen market. Obelisk International provide a comprehensive yet simple purchase process where reliable partners have already been identified and contracted, and who will liaise and advise directly with investor clients throughout the entire property purchase procedure.

For more information on property investment opportunities within the emerging markets and to find out about Obelisk International’s latest projects, contact: Obelisk International on 0808 1600670
Or email info@obeliskinternational.com
Or visit our website http://www.obeliskinternational.com/