Weather The Make or Break of a Successful Overseas Property Investment?

At a time when hurricanes are causing widespread destruction across the southern United States and severe droughts are affecting Spain, can the property market continue to grow if demand from investors slows? A recent poll commissioned by The Property Investor Show (23-25 September, ExCeL London) reveals that 72% of potential investors are still considering buying abroad despite the bad weather conditions. In fact weather still tops the polls as the main pull factor for Brits buying abroad.

Florida, one of the top destinations for Brits buying abroad, escaped unscathed from Hurricane Katrina. Despite being a prime hurricane area, British enthusiasm for investing in Florida does not appear to have been dampened. Even following Hurricane Frances in early September 2004 Brits still flocked to the ‘sunshine state’ in search of an investment opportunity.

According to Adam Woolley, Marketing Manager at Property for Life selling property in Florida, “As yet I’ve noticed no effect on our business. I am certain people will continue to buy in Florida in equally large numbers, as the draw of great value property and high returns greatly outweigh the potential of hurricane damage.”

However, there are some reports of novice investors panic selling their holiday homes which are being eagerly snapped up by savvy long term investors keen to pick up a bargain.

Spain is also currently experiencing adverse weather conditions, with one of the most severe droughts ever recorded in European history. The assumption that this would act as a deterrent for many investors as water restrictions are enforced. However this is not necessarily true as buyers are still confident that the Spanish property market will perform.

Stuart Law, a property investment specialist and Managing Director of Assetz International, says that, “The popularity of Spain as a holiday destination will ensure that the rental market remains buoyant and not adversely affected by the recent droughts. Something should be done in the long run to prevent this from being a recurring problem, but for now sales have not been affected and investors are continuing to purchase investment properties confident that they will achieve high returns.

“To some extent the popularity of Spain for second homes could be at least partly responsible for water shortages. Over 700,000 homes were built in Spain last year, many of which were illegal and many of which came with illegal wells. As a result residents are using more water than officials may have accounted for, all leading up to the implementation of water restrictions.”

Nick Clark, Managing Director of The Property Investor Show, comments, “Investors and holiday home buyers will soon forget these freak weather conditions and I don’t foresee them having any long term detrimental affects on the market. Brits will inevitably continue to buy in countries such as Spain and Florida but it is advisable to carry out thorough research into all aspects of a property including climate before making a commitment.”

Posted on: Florida

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Weather The Make or Break of a Successful Overseas Property Investment?

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