One of the great dilemmas faced by property investors is just where to invest – UK or overseas? This is a question that has existed since the beginning of the buy to let revolution and one that we get asked probably more than any other. The answer of course is not that straight forward as it will be different for each individual. This is why we take the time to really understand our client’s requirements and objectives.
One underlying factor essential in making a success of property investment is that of minimising risk whilst maximising return. We all understand that every investment opportunity carries an element of risk and that often greater risk is rewarded with greater returns. Importantly every property market around the world offers different levels of risk. By investing in a number of different markets overall risk can be reduced. As the saying goes, `don’t put all your eggs in one basket’. By diversifying your portfolio you are spreading risk. When one market is performing poorly, another will be doing well and so one can support and offset the risk of the other.
The UK for instance, is a very mature and stable market. Sure there are fluctuations in house prices and rental values but we all know that the long term price trend in the UK is upwards. On the whole, property in the UK is a pretty good investment and should always form a part of your investment portfolio.
Overseas property is a little bit more, well, foreign to each of us. Different languages, different legal systems and currency differences make the whole thing more daunting and potentially more complicated, but the returns can also be much greater and most importantly overall risk is spread and therefore managed more effectively.
So in answer to the question, UK or Overseas? generally the answer is, a little bit of both. However, be sure to work with a company that understands both, but then you already know that, that’s why you’re on the Worldwide Property Group website.
