Thousands of property hunters may miss out on an overseas bargain by waiting while the new Government beds in, it is claimed. Traditionally, the period around an election creates a pause in interest in investments or forward planning as people want to know what kind of government they’re going to deal with. This has not been the case on this occasion, according to the National Association of Estate Agents International.
Peter Bolton King, chief executive of NAEA International said that those buyers looking for a less risky investment were holding out for the pound to strengthen and the market to stabilise before taking the leap.
‘But waiting until the Government gets its feet under the table will not necessarily guarantee a better price on a property, or an improved exchange rate. The pound has steadily increased against the Euro for most of 2010. The market is in a better position than it was six months ago and we’ve been seeing significant price cuts due to the bottoming out of the market. As a result buyers are finding that their money goes a lot further than before,’ he explained.
‘If you can buy now and get into a good negotiation immediately then you’re in a strong position to get a real bargain. Waiting is risky, as the market is improving and prices are likely to begin increasing in the third quarter of the year,’ he added.
Stephen Hughes, Director of Foreign Currency Direct said that Sterling has benefitted tremendously against the Euro during the last couple of weeks as a result of the EU and IMF having to decide the best way to bail out debt stricken Greece.
‘With the UK entering a brand new political and economic period uncertainty will be rife and the prospect of the Euro gaining back much of this lost ground high. Remember, often much more is lost by indecision than by a poor one,’ he explained.
Meanwhile Clydesdale and Yorkshire Banks have added a add risk free option to their Spanish property service which allows UK buyers to rent a property in Spain before buying. The deal with Caja Mediterraneo (CAM Bank) means that the rent can be discounted from the purchase price if they decided to go ahead.
Rental contracts can be flexible and vary between 12 months and seven years. Subject to terms and conditions, if they choose to buy within the first two years, all the rent paid will be taken off the purchase price, a spokesman said.
‘With prices in Spain coming down so much there are potential bargains to be had for those looking to buy. However, many are intimidated by the idea of dealing with a foreign house buying process where different rules and language barriers can add to the stress and may want to see how Spanish property prices fare,’ said Steve Reid, retail director, Clydesdale Bank.
‘Our new package of services gives buyers the opportunity to take advantage of low prices in Spain by taking the stress out of the process and removing some of the risk with the opportunity to rent first,’ he added.
