Britons with second homes abroad have cause to celebrate as the recent rise in the price of overseas properties and the falling pound are helping their investments.
Research by the investments group Close Treasury reveals that the average price of an Italian property rose by 30 per cent from 2005 until the second quarter of this year.
But because the value of the Euro jumped by 27 per cent against sterling in the period, the upswing for a British owner was even greater. And analysts from Close Treasury’s foreign exchange group estimate that in sterling terms, the value of an Italian property jumped by almost 66 per cent. The value in sterling of a Spanish property is up 59 per cent over the same period.
While property prices fell both in France and Portugal from June 2008 until June of this year, the rise in the euro against sterling ensured that British investors still saw a gain on their investment in the period.
Mark Taylor, head of foreign exchange with Close Treasury said: ““Even though overseas property prices tend to have fallen in the last year, in many cases the fall in the value of Sterling will have offset this, and many people may still have seen the value of their homes increase in Sterling terms.”
UKCIG Property News, from Financial Times, December 2009
Wednesday, December 2, 2009
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