With a rare few days of beaming sunshine upon us, I’m drawn to the thoughts of sunny beaches and dinner alfresco listening to the waves crashing in the background. Bliss.. But for those who had planned to invest in such luxuries in the near future, what lies ahead in the age of Covid?
The most obvious obstacle at the moment to any sort of planning beyond these shores is of course travel. If you had planned to invest a large sum in a property or indeed properties abroad, you would obviously want to be able to physically be on site for important milestones, despite the leaps in virtual viewings and associated communications.
Another aspect would be to get a feel for the local area if you intend to move permanently ,so you can be as sure as possible that it’s a good fit for your family. At the moment, even if you were to successfully travel to your destination, life there is probably just as restricted as here, meaning no night life, no dining al fresco and businesses struggling to make ends meet. Who knows if that quaint little beach bar you liked so much last year when you holidayed is even still there?
From a purely investment standpoint, is it a good time to invest?
I suppose the answer is it depends where you look. Take Spain for example, so popular amongst us Irish. Like our own housing market, they have not only survived the worst of the effects of the pandemic, but house prices have on average increased 0.9% year on year. So those who already had property in the region who may have feared the worst can certainly breathe a sigh of relief.
Not all areas of the country have enjoyed the same success however, with the northwest suffering losses of up to 2.3%, while the Balearic Islands have enjoyed a 1.5% increase.
Much like our own situation over the last 12 months, many countries in Europe have seen a rise in house buyers looking more to the suburbs as opposed to city centre properties. The desire for more green areas and privacy to work from home topping the list of reasons. This is all obviously to be taken into account if looking to invest in property abroad.
In any sense, investing in property abroad is a big decision and you should always speak to a financial adviser before making any decisions.
If there is anything we here at KPM group can assist you with, please don’t hesitate to get in touch.