As house prices continue to fall in Northern Ireland, investing in property abroad still represents a solid form of growth, an investment expert said.
Philip Orr of overseas property specialists Jamijo said that in spite of the credit crunch and the possibility of further mortgage squeezes, investment in overseas property can prove fruitful.
“Confidence in all areas has really taken a knock and the outlook appears bleak for the foreseeable future.
“Consumers are increasingly wary of how much disposable income they have,” he said.
“People have to tighten their purse-strings, so luxury outlays of money are the first things to take a hit. Priorities are changing for people as the cost of living soars. There are a number of reasons why investing abroad is a far more cost-effective means than in the local market.
“The land is a lot cheaper overseas and isn’t affected by over-inflated prices. Also, the cost to build per square metre is a lot less, so this will encourage investment abroad as they know their money will travel further.”
Mr Orr cited other reasons that have influenced these decisions and offers advice as to how your money can work for you abroad.
“New airports are cropping up over Europe, making travel to previously obscure destinations relatively easy.
“Countries such as Russia, India and China have now become cost rich and they are not afraid to flex their financial muscle. These nations have disposable income, helping to develop their home markets.
“Signature golf courses and marinas are being built or developed right beside prime real estate which only adds to the value of the area. The world’s largest hotel chains are also setting up five star developments that will no doubt prove a very lucrative attraction.
With over 20 years experience in the financial sector, Mr Orr has pointed out that there are ways that you can make your money work for you and you might not even know you had it.
“People often forget about personal pension schemes that they may have. This could have happened when moving companies for example.
“A pension can work in two ways. It can either stay as a pension fund, or all of the small pensions can be grouped together into a self-invested personal pension. This will be more effective than releasing equity from your property.
“House prices look set to fall even further, which will only drive overseas investment,” he added.