Some 800,000 properties are currently under construction in Spain but, as house prices there start to decline, it is inevitable that some of these properties will remain on the market for some time. Indeed, there are now fears that the Spanish property market could go into serious freefall as supply outstrips demand - a major concern for those who have recently invested in Spain. Furthermore, rental incomes from Spanish properties are also under threat as holidaymakers turn their back on Spain, thus compounding the problem for British investors.
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New markets such as Poland, Turkey and even further afield are proving popular with some speculative investors who are looking for quick returns on their investment and are willing to accept any associated risks. However, for many individual investors, taking big risks is simply not on their agenda.
According to Belvoir, today’s smart investor is not always looking for a quick buck. Indeed the company reports that many of those turning to them for professional investment advice are now more interested in a secure long-term investment.
Belvoir's advice for them is to stick to your home turf and invest in UK property rather than running the risk of buying into an emerging market which is riddled with uncertainty over the long term.
The company’s Chief Executive Mike Goddard says: "Most people still view property as a good investment although they are perhaps more cautious than they were in previous years.
"When they come to us for advice, many of them have already considered investing in overseas property. However, increasingly they want to weigh up their options and compare any returns they might get with those secured from buying a property in the UK."
(JM)
