Four years ago buying property overseas was all the rage and a lot of lucky people were able to do so without getting a foreign mortgage. According to the merchant bank, Close Brothers, these investors are now reaping the rewards of their investment.
For example, if you purchased an Italian property in Euros 4 years ago you will have seen the real value of your investment rise by approximately sixty five percent. The reason this is the case is a combination of a rise in property value of thirty percent and an increase in the value of the Euro in comparison to Sterling.
Close Treasury’s head of foreign exchange, Mark Taylor, comments:
“When British investors calculate the value of an overseas property they bought a few years ago, they not only need to look at how real estate prices have changed, but also what has happened to the exchange rate between Sterling and the local currency.”
He adds:
“Even though overseas property prices tend to have fallen in the last year, in many cases the fall in the value of Sterling will have offset this, and many people may still have seen the value of their homes increase in Sterling terms.”
The report goes on to add that a lot of Britons are taking advantage of this and selling up to realise the profits that are sitting on due to the weaker pound.
