11th May 2006
Property specialists warn against over-hyped foreign market
Property investors hoping to snap up bargains abroad are being advised to think twice and carefully evaluate the legal and financial requirements, not to mention the hoped for return on investment, before they reach for their cheque books.
Manchester-based property investment specialist, Urban Logic - part of AIM-listed Northern Lynx plc - today spoke out about the trend to invest in foreign climes with special reference to the recent rise in popularity of eastern Europe, where the price for a two-bedroom apartment is still tantalisingly low for would-be investors.
The company deals solely with property in the UK, focusing on the north of England where it has established a name by identifying areas that continue to see high capital growth and rental demand.
"For the last 12 months there has been a constant feed of articles in the national press extolling the virtues of various foreign hot-spots which represent the end of the rainbow for those with the cash to invest" says operations director of Urban Logic, Guy Davis. "What is often missed by the over eager, whose eyes are already blinded by the sun, is that the tax breaks aren't always that great and you need an instant major cash commitment. The deposits required can be as much as 40 per cent against as little as five per cent in the UK.
"There's also a huge leap of faith involved. The geographical distance can be critical when dealing with lettings agents and the investor is not on hand, in the event of an emergency, to sort out major problems. In eastern Europe, you also have to question the infrastructure. There's not necessarily going to be a good source of local amenities like shops, banks and doctors' practices, which is off-putting to the target rental market. Ultimately, who will you be renting or selling on to?"
Urban Logic has developed exclusive relationships with a number of the UK's leading housebuilders, enabling it to offer its clients discounts of around 15 per cent on a range of residential properties at prime sites across the north of England and Scotland.
For further information on Urban Logic, please visit -www.urbanlogic.co.uk or call 0800 916 8659
- ends -
Urban Logic, part of AIM-listed Northern Lynx plc, offers its client base a selection of well researched investment opportunities across the north of England and Scotland, with added value service options to provide a 'one-stop shop' solution.
For more press information contact Elizabeth Swain or John Butters at Bell Pottinger North on (01625) 506444 or email email@example.com / firstname.lastname@example.org