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Cash rich overseas buyers still seeking rock solid investments

Property investment firm Assetz reports before the global downturn, only approximately 20% of prospective investors would organise a viewing trip to their chosen development, in order to investigate the developer, the local area and the quality of the scheme, however today that figure stands at 80% according to Assetz data. Buyers are much more cautious and are spending considerable amounts of time carrying out due diligence, researching the credentials of the developer, land ownership, local facilities and rental demand.

Traditional destinations such as France remain popular with holidaymakers and are still attracting significant numbers of British buyers, as are emerging markets which have strong levels of investment and tourism, such as Cape Verde.

Assetz Chief Executive Stuart Law, said:

“The froth has been taken off the overseas market in recent years as amateur investors were deterred by increased risk and the end of sky high capital gains.

“However, a new leaner market has emerged, as experienced investors and holiday home buyers seeking a solid long-term investment for their spare cash remain attracted to high quality schemes in the best locations.

“The position, facilities and quality of build must be spot on, with strong tourist rental demand and plenty of scope for personal use. Most buyers are putting down deposits of around 50%, as opposed to the 0 – 10% commonly seen just a few years ago, and focusing almost entirely on long-term rental income rather than capital gains.”

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