Overseas Property Investment Rises as Interest rates remain Low and Stable

An estate agent survey revealed that overseas property investment is currently at its highest point since April. In fact, 72% of properties owners interviewed in the survey were confident that now is a good time to investigate overseas property investment.

Over half of the survey’s respondents believe that interest rates will remain fixed for the next year. That means stable mortgage borrowing rates, making it easier to refinance a UK home to fund overseas property investment. This is a significant change, as a survey conducted in April revealed 79% of homeowners expected interest rates to rise in the near future.

Currently, popular locations for overseas property investment include Brazil, Spain, the United States and the Caribbean. Brazil in particular has seen an increase in demand for overseas property investment from the UK. Properties in the north east of Brazil offer good value and are becoming especially popular, as the cities of Natal and Recife would be hosting the FIFA World Cup in 2014. Overseas property in Brazil is also attracting foreign investment due to the upcoming hosting of the 2016 Olympic Games in Rio de Janeiro.

While it seems likely that interest rates will hold steady, the property market is unpredictable at best, and it remains to be seen whether British enthusiasm for overseas property investment continues to grow in the coming months.