As sterling struggles, Britons are selling their places abroad to buy cheaply at home in the UK

Zoe Dare Hall for the Daily Mail reports that prices of holiday homes across the Continent have been plummeting as the tap of British buyers was abruptly switched off last autumn.

New- build properties marketed purely for the British and Irish markets are the worst hit, but anyone owning a holiday home that might appeal to local buyers will clean up given the collapse of sterling against the euro .

Foreign exchange specialist Caxton FX reports an 89 per cent increase in the number of British clients repatriating funds in the past three months of last year - mainly from people selling Spanish holiday homes. People are discounting their properties by 20- 25 per cent, as they can recoup the difference when they transfer their funds back to the UK. The falling pound has presented an excellent opportunity for buyers repatriating money.There are also a high number of transactions from British holiday home- owners in France, where property prices have remained more stable than elsewhere in Europe.The Algarve is also seeing high numbers of British homeowners willing to take a hit on their asking price if they are bringing their euro profits home.

2009 Property Investment Overseas Top Ten

Country Life the home of premium property has the list all drawn up;

1 Paris
Paris was recently voted best risk adjusted investment location by PricewaterhouseCooper. It is the most visited city in the world and well placed to weather the current recession. In Paris, location is everything. The third and fourth arrondissements are good areas to search, with heavy rental demand and reasonable prices compared to the more fashionable sixth.

2 Miami
The city was heavily hit by the property crash, and you can pick up good, central homes at half the price they were a year ago. Property is being sold at less than the amount it cost to build it – always a good test of value. Experts think the bottom of the Miami market has been reached – or nearly reached – so it is a good time to buy for capital growth in the mid-term. Buyers must choose well and a sensible rate of return – 4-5% - should be possible.

3 London
There are startling bargains to be had in the English capital. Riverside apartments are being shifted at half their original value, and they should let well until a capital gain is made. Another plus is that there are no currency exchange risks to worry about if you invest in London.

4 Berlin
Berlin has in fact proved to be an unexpected top destination for investment for the last two years. Property prices fell sharply with reunification and Berlin is a place where locals still predominantly rent, thus a supply of middle-class tenants. Taking a 5-10 year view, Berlin is a fantastic investment spot.


5 Spain
Despite recent problems, Spain will always be the nearest destination where you can guarantee good weather for most of the year and the infrastructure can support large numbers of British retirees. The overpriced market has, in effect, collapsed. Now spectacular bargains are available.

6 Distressed sales
Many people are in financial difficulty and are desperate to sell. Investment properties not pulling in a quick profit can be picked up at give-away prices. Another variation is to buy heavily discounted units direct from the developer.

7 Repossession
As ghoulish as this might appear, you can get hold of true bargains once homes are repossessed by banks. But, you need local advice and you should inspect the property before purchasing. Buying a repossession at auction can be expensive and it might be better dealing direct with the bank.

8 Investment in developers
Rather than buying a property with all the attendant worries, you can instead make a welcome fixed interest investment with a developer. Your money will be tied up for only a couple of years, but obviously you need to check out the status of the developer to ensure your money will be safe.

9 Commercial property in Slovakia
It may sound strange, but Slovakia has one of the most successful economies in Europe and is a recent entrant to the EU. Whether you are investing in a small corner shop or a warehouse, prices are competitive and returns good.

10 Morocco
A more adventurous location, but Morocco appeals for several reasons: it is close, French-speaking and has good weather almost all year round. The Moroccan government has made a commitment to improve the country’s infrastructure and there are three different markets here: on the Mediterranean and Atlantic coasts and in Marrakech

There were also very cheap flights with the budget airlines to Morrocco last Autumn so it is not so far out of the way, no jet lag and a flight time similar to Cyprus. Morrocco is also building golf resorts and gated community resorts, so its safe but with that element of the new and unknown. If I were going to Africa though I would cost in the extra flight time and cost and go for the Gambia.

Profitable Overseas Property Investments

How do you make real money? Most investors answer that if you put your money into brilliant companies, brilliant sectors and brilliant countries, then hang on, you’ll end up rich। We disagree. When something is that good, most people know about it already and your purchasing price is going to reflect that, which will limit your returns even if things go as well as the market expects. The key to wealth is to make investments “where outcome exceeds consensus expectations”. If the consensus is that something is a basketcase and it turns out instead to be merely mildly mad, or even a recovery candidate, “it’s a sure-fire way to garner riches”. The more widespread the pessimism about an asset class, the more the odds are stacked in favour of “the early and the brave”.Britons looking to expand their portfolios in emerging overseas property markets have been advised that they could face lower returns if they wait and follow the crowd.Off Plan International has said that individual investors face being crowded out of the market if they wait just one or two years after a market has become more well-known.However, the firm acknowledged that it was usually better to look at the capital city of a country, adding that press coverage and word of mouth encouraged investors to move to particular places."My advice for people if they are looking to invest in small value, one or two properties, is to look at capital cities within a country. They are more expensive than other parts of the country but you are not going to lose," noted an Off Plan International spokesperson."If you are a smaller investor, in a place that's been a hot spot for a year or two, you need to be careful where you invest.

Investment Property Sales: Emerging, Overseas & Foreign Property Investments

Why Invest in Overseas Property?

Property investors are still choosing to invest their money in property abroad over the stock market for a number of reasons:

A property abroad provides investors with a tangible asset
Property investments provide better capital growth returns on both long term and short term investments
Historically, the property markets are less volatile than the stock market
Investors in property have more control over their investments than they would investing in the stock market
Properly structured rental returns usually cover the day-to-day property costs and can provide pension incomes

The best strategies for maximum returns on investment.

Identify high quality overseas property investments within criteria
Purchase the best investment properties abroad at minimum cost
Add value to create immediate capital growth through refurbishments or comprehensive modernisation of foreign property investments
Maximise investment property rental cash flow
Chose the optimum time to sell to achieve maximum return on the foreign property investment
Build a well balanced portfolio of international property investments
Provide first class presentation to the local property rental market via websites, through press advertising, magazine and property brochures and direct contact with international relocation and corporate accommodation agencies.