Is this the right time to be selling overseas property? What do the trends indicate? What’s the story so far in the overseas property market this year? Let’s find out.
#1: Investors Looking for Safe Havens Abroad.
While the U.S. economy has done pretty well so far in 2018, other nations are not so fortunate. In China, the Yuan has depreciated by quite a lot over the last 6 months and the stock market has fallen as well.
It’s the same story in other fast growing economies such as Brazil, Indonesia, Malaysia, South Africa and to an extent India.
That’s why many wealthy individuals from these countries are looking for safe havens abroad, such as properties in Spain, Portugal and other countries. So if you are trying to sell property in Spain, Portugal or France, this is good news for you.
#2: Post-Brexit World.
Brexit is now official, and nobody really knows what the final agreement between the UK and the EU is going to be like as they are still at ends about the Northern Ireland protocol which could go on for years.
Also, who really is in charge in the UK? Does Prime Minister Rishi really have the confidence of his party members? Is a Labour leader going to be the next Prime Minister? Or is it going to be someone else? It’s almost like the Game of Thrones out there!
There is just too much confusion in the UK, and this is not good for the overseas property market, as Brits are, by far, the biggest buyers in this market. The British expat community in Spain, France, Italy, Portugal and elsewhere in Europe is worried about the future and the uncertainty of the whole situation. Many British expats have resorted to selling overseas property for this reason.
They are also worried about the Pound, which has been on the decline ever since the 2016 Brexit referendum with no signs of going up. A weak Pound means lower buying power for Brits who want to buy properties abroad.
#3: Trade War between the U.S. and China
The U.S. economy, as said earlier, is doing very well. China, on the other hand, is not doing as well as it did a few years back. It is with this confidence that President Biden has started a trade war between the U.S. and China.
It is a brutal fight to the finish between the two countries, but the rest of the world is getting affected as well.
For those selling overseas property, this is not necessarily a bad thing because the trade war has spooked many wealthy Chinese business executives. They are now looking to diversify and park at least some of their assets abroad.
#4: Political Uncertainty in the E.U.
There is a lot of uncertainty in the EU. We have so many blocks within the EU today – The dominant group, which is led by France and Germany, the rebels, who are led by Poland, Italy and Hungary, and the castaways – the UK, of course. And the war between Russia and the Ukraine.
It seems nobody likes anyone or trusts anyone in the EU. That’s why for property investors, the buying a property in the Eurozone has lost some of its lustre.
Still, the smart international property investors – wealthy Australians, Chinese, Americans, Scandinavians, Russians, Brits, Irish, and other Europeans – will continue to buy property in select countries such as Italy, France, Spain, Portugal and Bulgaria.
So for those selling overseas property, there are still many opportunities to make good money.