About Property Investment

The British and Irish are leading the way in overseas property buying for many reasons. Primarily because it’s so fashionable it’s inescapable. WHSmiths’ and Easons’ shelves are groaning with glossy overseas titles and TV schedulers are frantically squeezing in as many ‘A Place in... ’, ‘House Hunting in…’, ‘Living in…’ programmes as the hours of the day will allow. Over the fence conversations with the neighbour are no longer limited to the new family car or the impending fortnight in Tenerife, but extend to how much the apartment in Cape Verde has increased in value and might buy another one.

Looking at domestic markets, wage inflation is not keeping apace with house price inflation and first time buyers in particular are finding it hard to get even a little toe onto the property ladder. But whilst a meagre salary might not be able to finance the studio flat in Brighton, a more affordable property abroad could well be within reach. Homeowners on the other hand are in pole position for equity release as the UK and Ireland top the tables for house price increases over the past decade. The overseas property investment market is thriving.

About Property Investment

The Office for National Statistics 2006 Social Trends Report gives a very real indication of just how many people are now opting to buy overseas;

• UK households have, to date, invested 23.2 billion pounds into second homes abroad
• 1.1 million people in the UK now own a second home
• Between 2000 and 2004 the number of UK households that owned second homes abroad increased by 45%

There is another phenomenon that is inextricably linked to the purchase of overseas property and that’s a rise in overseas travel. The same 2006 Report found that the likes of EasyJet and RyanAir have made us into a nation of globe trotters;

• Between 1980 and 2004 the number of international terminal passengers at UK airports almost quadrupled from 43 million to a staggering 167 million
• The Department for Transport has predicted that the demand for air travel will keep rising during the 21st century and estimates that between 2005 and 2020 the number of international and domestic terminal passengers at UK airports will grow from 229 million to 401 million
• The increased availability and affordability of air travel has shown that people are travelling to short-haul destinations more often

GEM Estates thrives on the excitement of seeking and then sharing the ‘the next big thing’ with its clients. However, as a company it is keen to distance itself from a number of unscrupulous operators who set out their exhibition stands at hotels across the UK and Ireland hyping up areas which, whilst may be perfect for holiday homes, are wholly unsustainable for ‘pure investment’. GEM Estates did not start selling in emerging markets overnight and did not jump on any bandwagon. As a company GEM Estates is concerned that the general public cannot always see the fine line between shrewdness and rashness when investing into the relative unknown, particularly when faced with a slick sales pitch. GEM Estates helps its clients stay on the shrewd side of that fine line and opt for the golden goose rather than the turkey.