Hello

Welcome to Property Venture's e-newsletter.

Introduction
So we've had the pre-budget report, which makes scary reading and another interest rate cut. Great news for borrowers, worse for savers. With Public Borrowing exceeding £100bn next year and the Government struggling to keep it under 60% of GDP, it is going to take a long while to sort that out. Let’s hope we are all better at managing our own personal finances. So what does this and the impending, recession mean for the overseas property market?

News
Well for a start, Chris Wood, President-Elect of the NAEA, had urged a stamp duty overhaul:

“The bill for first time buyers has more than doubled in the last five years, making it impossible for many young people to start their own home. As it stands, stamp duty is a tax on aspiration – disappointing during an economic boom but unforgiveable in a faltering economy."

But to no avail. First time buyers are having to consider creative ways of getting on the property ladder. One of which has been the buy abroad rent in Britain phenomenon (BARBie), where cheaper property is bought abroad, but the owner resides in the UK, thus getting on the property ladder, even if it is not in the UK. This provides scope for financing either in the UK or in the local overseas market.

Overseas Financing
Whilst lending at decent rates appears to have dried up for all but the “best risk” clients in the UK right now, credit is still available in some other markets, that have weathered the economic storm slightly better than the UK. Read more...

UK finance
Having recently attended a talk given by Kevan Keegan of Chacombe Place Consulting who gave an interesting perspective on the “Financial Tsunami” in the UK, there is a view that mortgage lending at attractive rates could be back on the horizon early next year in greater volume. Banks are safeguarding liquidity until year end (for most this is 31.12.08), but as the wholesale cost of money falls more in line with base rate and margins start to look attractive again, mortgage lending should start to flow. This will make it easier for releasing equity in the UK to buy abroad.

Special Offers
From time to time we produce a Common-Sense Guide. The latest version is a Free Guide: “An Introduction to Overseas Property Investment” available now. It provides useful information on what you ought to know about buying property abroad. If you don't already have it click here to download.

Featured properties of the month:

Commuter city to Warsaw: Łódź, Poland 
The property market has experienced price growth of over 25% in past years. Whilst this level of growth is not being experienced right now, the c.1.5m housing shortage, preparations for Euro 2012 and economic fundamentals mean Poland is more likely to see a bounce back quicker than many markets. Currency is Polish Zloty not Euro, which has not overpowered Sterling in the same way.
Prices start from £55,000, representing 10% below market value (BMV)

Click here for more on Polish properties 

Click here for a summary of why to invest in Poland

                               
Costa Almeria-Spain
In spite of Spain's property pain, there are still great properties at bargain prices to be found in less developed areas. Coastal property prices have "officially" come down by 9% in 12 mths to October. These key-ready apartments are available in the coastal town of Vera Playa. Good transport links, beaches and golf courses nearby, make this a great holiday home location by the sea.
Prices starting at £167,000, for 3 bed villas, discounted up to 27% available right now

Click here for more on Spanish properties 

Click here for a summary of why to invest in Spain 

Your opinion counts
We welcome your thoughts on items that should be included in the newsletter. If you have any constructive suggestions to make, then please e-mail This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Warm Regards

Louise Reynolds