The realities of investing abroad
I personally have always preferred the notion of investing in just the UK – especially in the current financial climate. I admit foreign properties do have their own appeal, in terms of affordable commercial properties and holiday homes, but when it comes down to financial security, I prefer the UK. Primarily, as I know exactly what I am entering into when I make an investment.
Now I know in the past I have discussed the pros of investing abroad, and I do believe that there are profits out there, but when you break each of these markets down into their fundamentals, investing in the UK has many more benefits. Let me explain.
Take the term ‘property investment’. If you were to search for it on the web, you would come across a lot of press stories telling you how profitable investing abroad can be. Their punch line? Falling house prices.
Yet here is the thing. In the UK we are going through the exact same property price falls. It is happening everywhere. So whilst the press may be all doom and gloom about the UK property market, the truth is the whole global economy is feeling the pinch…
The only real discernible difference between them is that when you invest abroad, you do so with greater financial risk.
Their land laws for example, greatly differ from our own in terms of the way they approach and broker their property deals. Their legal fees are different. So as you can see, if you are not careful and do not acquire the right awareness before you invest, you could be setting yourself up for a financial loss should something go wrong.
Then on the other end of the scale, there is the conversion rates between the pound and the Euro.
In normal climates, the pound is generally stronger than the Euro – meaning should you choose to invest abroad you would be getting more value for your money. But in the current financial climate, the scenario is much different – the Euro is stronger meaning if you are not careful you could be investing more money than you think you are.
See what I mean? Whilst investing abroad does have its perks, choosing to invest in the UK can offer you a much quicker returns, plus the security of knowing exactly where you stand law-wise.
Wendy xx
