Fly to Let – Overseas Property

Some property investors have targeted new entrants to the EU. Investors have looked to places like Bulgaria and Romania as property hotspots but buy to let property in these countries may hold hidden problems.

Low property prices in these former communist countries have been the main attraction to landlords but it is easy to overlook the less attractive aspects of investing in those areas.

Some of these countries such as Slovakia have very cold winters where the temperature can reach –20 degrees centigrade for many days. The major cities may appear to have good roads but the infrastructure lags well behind the growth in tourism.

Furthermore, you cannot bank on obtaining a mortgage. UK lenders are very reluctant to invest in Eastern Europe so buy to let mortgages are scarce or at unworkable local interest rates.

You may well find that the disadvantages may make your buy to let abroad very hard to liquidate in a hurry. In some cases you could even struggle to liquidate at all.

New Tenancy Deposit Scheme

It is expected that this year will see over 60% of landlords increase their buy to let portfolios. Furthermore, when landlords were asked whether they would consider ‘selling up’ if property prices were to fall only a handful said yes. It seems that landlords are investing for the long term. With the average life expectancy of a buy to let mortgage being over 15 years it must be considered a good retirement provision i.e. Pension.