American Housing Market Turns Again

It was fun to get swept up in the reports that the US housing market had bottomed, and indeed that is what mounting evidence seemed to suggest. However, the latest round of data has really knocked the stuffing out of any hopes that we are in recovery.

The Commerce Department found that new build home sales fell sharply in June. According to the report signed contracts to buy new homes fell 8.4% from the previous month, according to the U.S. Commerce Department, although they are still up 15% from a year ago. Sales levels are now at their lowest since January.

Sales of existing homes slipped 5.4% in June to an annual rate of 4.37 million units and are down 2.6% in the second quarter (4.537 million units). Combined sales of new and existing homes fell 0.4% to an annualized rate of 4.9 million homes, following three consecutive quarterly gains.

Meanwhile the rental market remained positive, with the residential rental vacancy rate falling to 8.6 per cent from 8.8 per cent in the January-March period, the commerce department said on Friday. The second-quarter reading was the lowest since 2002.

It can still be hoped that the strength in the rental market will lead to recovery in the wider market, especially as builders break more ground on multi-family housing projects. On that note, the home ownership rate edged up to 65.5 per cent in the second quarter, from 65.4 per cent in the previous quarter, the commerce department said.

Of course, the strong rental market continues to be good news for foreign investors in the US property market, and foreign investors needn't particularly care about a recovery in the wider market as long as their properties are earning good rents. That said, if the recent run of positivity wasn't the recovery then one wonder when is the US market going to recover. However, June's data could yet come to be seen as a blip on the upward trajectory of recovery – time will tell.

View property for sale in America

Hong Kong Property Market Looks As If It's Cooling

It looks as if the Hong Kong property market is cooling, as the government recently sold land for less than the estimated value, in spite of it being in one of the most exclusive areas in the city. The 42,000 ft.² of land is situated near Repulse Bay Road, and was sold for HK$1.67 billion, although estimates had expected the land to be sold for HK$1.68 billion.

It's likely low-rise apartments will be built on the site, and could cost about HK$44,000 a square foot during the next couple of years, while new units in the area currently cost between HK$35,000 and HK$40,000. Repulse Bay is one of the most exclusive areas in the city, and is home to some of the richest inhabitants. It was developed around the site of the Repulse Bay hotel which was built in the 20s and demolished in the 80s, and which featured in several famous films.

In July Leung Chun-ying is due to take over as the leader of Hong Kong, and has already pledged to increase the housing supply in a city where property is among the most expensive in the world. Since the beginning of 2009, property prices have increased by more than 78% which is due to a lack of supply and low mortgage rates.

During the first quarter of this year, prices of luxury homes fell by 2.2% due to mortgage restrictions imposed by the government on properties costing more than HK$10 million reducing demand. Property in Hong Kong is around 55% more costly than London.

Now is a Great Time to Buy Property in France

According to French estate agencies, now is the perfect time to by
property in the country. Prices have fallen by as much as 40% in some
areas and are now at very realistic levels. Property prices have
stabilised over the last few months, and the lower end of the market
is especially buoyant. This makes it an excellent time to buy holiday
homes, or even permanent homes for those looking to relocate as there
are still plenty of bargains around.

A budget of €100,000 is sufficient to buy a perfectly habitable
two-bedroom bungalow in Brittany, while properties that need a
complete renovation can be picked up for as little as €30,000.
Brittany is the perfect location for a holiday home, as it is very
accessible for short breaks, and enjoys a stunning coastline.

At the moment estate agents have a substantial number of
properties for sale, right across France. While certain areas such as
Provence are always popular, they are not always so quick to access
for short breaks, as that easy commute can involve several hours
drive after getting off the ferry. This can quickly become expensive
and time consuming, and can mean that holiday property is only used
for a few weeks a year.

British interest in French property has been steadily increasing
over the past few months, and some estate agents are forecasting
prices could rise by several percentage points this year. It’s also
become easier to get financing from French banks, as they are still
willing to lend on second homes and investment properties.

View France property for sale

Investors Seek next Hotspot as Thai Property Recovers

We are all hearing about the revival of Asian property markets, and while much less talked about than China and India we know from recent reports that Thailand is now starting to see its share of this revival.

In the early-mid noughties when the great global property boom was finding its feet, Thailand was powering out of the Asian economic crash and Bangkok property prices were among the fastest growing in the world.

While Bangkok property is still expensive and thought to be on its money if not a little over valued, people are finding investment opportunities in new areas as they seek to find the Bangkok of this economic recovery.

Pattaya is definitely a contender to this throne. Pattaya is exactly what we are looking for in an Asian investment hotspot, it is an urban/suburban area, set to grow into a metropolis and with demand for housing growing far more quickly than supply. Oh, and property is cheap.

Take the new development from Azure Overseas, Art on the Hill is an equisite development offering fully-furnished 1 bedroom apartments in the Pratumnak district of Pattaya from £21,000. The development, which is located just 5 minutes from downtown Pattaya is complete with:

• Rooftop Pool
• Secure Underground Parking
• 24 Hour Security
• Modern Design
• 400 Meters from Pratumnak's best beaches
• Family Friendly Neighbourhood
• Close to all local shops and amenities

Confidence Increasing in Overseas Property

We have all heard reports that the low interest rates in the UK are causing more people to look to overseas property. The latest report to confirm this trend comes from the latest Worldwide Property Group confidence tracker; a survey of those considering buying overseas property.

The survey found that 71% of potential overseas property buyers said that the current level of rates had increased their desire to purchase a property, 64% said that they are benefiting from the continuing low level of interest rates. Interestingly.

73% respondents said that they felt that now is a good time to buy property overseas showing that confidence is returning. 68% of respondents said they are actively considering buying a property overseas.

Asked which regions they were most interested in, respondents came up favouring the US, Caribbean, and Brazil, followed by the traditional European destinations like Spain, France and Italy, with Portugal also getting a mention.

Commenting on the figures, Kevin Wilkes, Managing Director of the Worldwide Property Group said: “The results of this survey make for very positive reading. I am delighted to see that confidence in property both in the UK and overseas has reached such a high level. It is also very interesting to see that with all the fantastic opportunities currently available around the world, it is still the more traditional markets that draw the most interest. This is valuable information as it enables us to offer exactly what our clients want.”

Top Russian Portal Publishes Search Data

Leading Russian overseas property portal 1-property.ru has just revealed its first ever chart of top overseas property destinations, based on search data from users of the site.

The top 5 is as follows:

1. Bulgaria
2. Spain
3. Turkey
4. Montenegro
5. Cyprus

Firstly, Bulgaria in number 1 is particularly significant. No, not that it is a favourite with Russian buyers, who have always tended to choose Eastern Europe for their beach holiday homes, but for Bulgaria's ailing property market. The number of Russian buyers is growing rapidly, and the Bulgarian property market is in a lot of trouble from oversupply. Russian buyers could potentially increase in volume sufficiently to really pull the market out of the proverbial.

Secondly Spain, another significant result, though we have been hearing similar reports about British buyers returning to Spain, it seems the dark clouds may be lifting there as well. It also has a massive oversupply problem and needs all the help it can get.

What a result for Turkey in third. Turkey is climbing the ranks of British charts as well, and for it to be third with Russian buyers backs up the reports we have been hearing from Turkish property agents.

Montenegro certainly isn't surprising, it has long been a favourite with Russian tourists.

Cyprus, again, a market in a lot of trouble, left near-baron by the exodus of British buyers, and could gain a lot from an influx of Russian ones.

Property Investment Not as Simple as Many Think

Property investment is a lot more diverse than many people give it credit for. Many people think it is a comparatively simple investment class compared to say stocks and shares, but when you break it down it is not so simple.

Firstly there is commercial and residential property investment. They are then further sub-divided into offices, retail and industrial property investment on the commercial side, and local and overseas property investment on the residential side. Overseas property investment can then be subdivided into residential and holiday rental investments. And we haven't even covered tenures or property debt investments yet.

Commercial property investment is most often the purchase of an office, retail or industrial space, to rent out to one or more companies -- usually on a long-term lease -- for an annual figure of between 4% and 8% of the purchase price. The 4% to 8% is known as the rental yield.

Residential investment usually works on the same principles, but the number of variables is much greater.

There is buy to let investment, which tends to mean the purchase of a local property or properties for the purposes of renting out to residential tenants or holiday makers. Buy to let investments usually yield between 4 and 6 percent, but can be much higher in the right set of circumstances; namely massive repossession volumes in an area, which reduce prices and increase rental demand.

Then there is overseas property investment. This is perhaps most diverse of all, because, as well as having to choose property class, location and tenure, we also have to choose country, region and also whether we want to let residentially or to holiday makers.

The huge choice usually gives way to higher yields for the shrewdest investors. This is especially true at the moment, because of the massive price reductions in many countries, including up to 60% off repossessed property in America and Spain etc.

Spanish Property Benefiting from Resurgence of Low Budget Buyers?

When it comes to overseas property purchases reliant on mortgages, the market is very much dominated by just three countries. That is, according to the latest data from Conti, which said that of all mortgage applications received this year 85% have been for just 3 countries, namely France, Spain and Turkey.

With 43%, French property has been by far the most popular with the British buyers seeking mortgages through Conti, Spain takes second place with 24%, and Turkey third with 18%.

Conti has previously told us that France is currently the dominant force among British buyers looking for mortgages on overseas property, people see that the years of restraint in the French banking and mortgage sector is now paying dividends for France, with low interest rates and stable liquidity.

But isn't this significant news for the Spanish property market. We all know how the Spanish market was devastated by the exodus of British buyers because of the financial crisis, which compounded the emerging over supply problems and at the same time caused the latter problem to worsen to the nth factor because developments started had to be finished (where possible).

Reports began turning positive last year, with developers discounting prices between 25% and 40% and cash rich buyers snapping up the bargains. However, as I said this was predominantly cash buyers, and predominantly wealthy buyers buying in prime areas like Marbella etc.

The data from Conti indicates that Spain could be benefiting from the resurgence of low budget buyers seeking mortgages, which we know from other sources is happening across the industry. This should spread demand out into other areas of the country.

Speaking of bargain properties in Spain, Azure Overseas has just added the Alcazaba Hills Development, offering 2 bed 2 bath apartments, in a luxury resort near the Costa del Sol's ever-popular Estepona from £191,363. The development is located just a short drive from Marbella and Gibraltar, making the prices even more incredible.

Investors Dominant in US Market – Little Wonder

Foreign investors are so heavily active in the US property market right now that, along with their US counterparts they are preventing first time and low income buyers from benefiting from the massively reduced prices on offer on repossessed and distressed sales.

Who can blame them though?

2 million homes were repossessed in 2008, 2.8million were repossessed in 2009, and a higher figure is predicted for this year. Not only does this mean 4.8 million homes being sold dirt cheap -- add on well over a million for this year already --, but it also means a high proportion of 4.8 (to 6+) million people moving back into the renting circle.

The downsides are: A: we need first time buyers and occupant buyers for a healthy market, and B: with such a high proportion of houses being bought by investors there is the potential for a severe jolt if they all (or too many of them) try to sell at once.

Luckily, we know that most investors today -- not only in America -- are investing for rental income, with capital appreciation being considered a bonus.

But this may only severely delay the problem. There is still the potential that years down the line, when the market has really strengthened, droves of them will sell up to recapitalise their business of for whatever reason and kick the market, or at least some local markets in the teeth for a bit. But anyway we are getting ahead of ourselves.

For now, all we need to say is that there are millions of great deals out there. And while it is sad that people are losing their homes, it is them, the economy and irresponsible lending (the banks) that are to blame, so there is no point in investors cutting off their nose not to capitalize on it.

Overseas Property: Has Private Investment Really Been Killed?

This week, overseas property portal Primelocation ran a report on how 91% of all property searches were for property in France, Spain, Italy and the US. But we know from recent reports that the world’s investors are focussing heavily on places like Turkey and Egypt, which are growing strongly at the moment. Surely pure property investment hasn’t been killed on the private level, has it?

It seems to have been according to portal searches. Rightmove Overseas’ results also showed no sign of Turkey or Egypt recently.

Thank fully we know that it hasn’t been. We know that buyers are still heavily interested in Turkish and Hurghada property because we talk to them everyday.

So where is the deficit? Well, the keyword is buyers. Most of us heard about the recent battle of the apps as both Rightmove and Primelocation brought out Apps for the much reveered Ipad at around the same time (Rightmove won by the way). These of course followed Iphone apps by not only Rightmove and Primelocation but all the other major portals as well.

These apps, and technological advances like it have not only made it easier to search for overseas property, but they have made it fun. Unfortunately this has increased the number of people searching for overseas property who have no serious intention of buying anytime soon.

Anyone who has ever dreamed of buying an overseas property (and let’s face it, who hasn’t?) in the sun is now searching for their dream home on the miserable commute home from work. Whereas before people would have played mini-games to escape the akward silence of the train, now they are playing with their apps.

This is great for the portals, but not such great news for the agents receiving their enquiries. So, while the portal search enquiries are an indication of the lasting popularity of the traditional destinations with those seeking a lifestyle buy, they do not neccesarily indicate an end to pure investment on the private level.

Any Briton on a low budget looking for an investment or holiday home investment they can afford now, and easily and affordably get to, is buying in Egypt or Turkey, and that will be the case for the foreseeable future.

Turkey Property Investment Recommended by GPG and Me

The well respected Global Property Guide publication has given a glowing recommendation for investment in Turkish property, particularly Istanbul.

According to the firm's research for its mid-year investment recommendations, yields on Turkish property in Istanbul are currently averaging 5.48%, which is higher than average yields in Italy (5.04%), France (3.85%), Spain (3.81%) and Portugal (3.63%).

These yields, as with most -- if not all -- of the GPG rental yield figures is based on residential rentals, which means they do not give a clear indication as to the kind of yields a holiday property might make, which can often by higher than residential yields depending on a number of factors.

This is unfortunate, because most overseas buyers of Turkish property are currently aiming at holiday lets, and there have been several reports of those buyers earning yields of 6% net.

Basically, yields on holiday property in Turkey will tent to be higher, because property in the touristic areas tends to be cheaper than that found in Istanbul, while rental rates on holiday lets tend to be higher, which can actually be higher than residential rents in Istanbul or the same depending on the property and exact locations in question.

Given these truths it is only a matter of how much paying occupancy the holiday home owners can achieve, which then depends on the amount of time they want to spend in the property.

The best strategy for holiday home investors in Turkish property, like those anywhere else in the world is to rent out the property for the entire season and use it during low season. This is a problem for some owners who don't do sufficient research and subsequently find out that the area they have bought in is completely closed off during low season, with not even so much as a shop to buy essentials like milk.

This is in fact one of the reasons why Turkey is currently seeing its popularity with this type of investor soar: because most buyers are currently doing a lot of research, they are finding out that most of Turkey's touristic areas are open all-year round.

Turkish Property Sales Increasing, Set to Continue Growing

Conti, one of the largest mortgage brokers for foreign property purchases has revealed that it issued twice the quotes for mortgages on Turkish property in May than in April.

The firm said that this huge growth followed steady growth over the last year, which it put down to the strong Euro highlighting the better value for money Turkey offered as a tourism destination and in property purchases.

Clare Nessling, Conti's operations director, says: "These factors, combined with low interest rates and some bargain property prices, have made Turkey increasingly attractive, as well as more affordable, for UK buyers. Property purchase costs and taxes there tend to be lower than other popular hotspots. Accessibility is important too and the country has a wide choice of airports which are well served by flights from the UK. Bodrum, for example, is only half an hour's drive from the international airport."

While Conti pointed out the steady growth in demand for Turkish mortgages over the last year, looking back to June last year, we can see that Conti then released data revealing a 143% growth in Turkish mortgage quotes in the previous two months, and a 65% increase comparing the opening 5 months of 2009 to the closing 5 months of 2008.

This is a very positive sign for Turkey, especially at a time when overseas property sales in the lower-budget category -- which Turkish property falls into -- are on the increase.

Of course, with the pound now strengthening against the Euro, Turkey will have to compete with Eurozone destinations.

This shouldn't be a problem though, Turkish property sales accelerated rapidly between 2005 and the second half of 2008 when the crunch went global, so it is a safe bet that Turkey will see strong sales again as part of the natural progression of recovery in overseas property demand. In fact if anything, the downturn will prove to have done Turkish property a favour, by increasing its status as a global property destination.

Why Demand for Overseas Property is Increasing so Rapidly Right Now

Overseas property buying is on the increase once again, and rightly so. Around the world there are literally millions of properties available at heavily discounted prices. The discounts range from 40% off to 60% off. Even more importantly; the trend is that the hotter the market was during the boom, the more discounted properties there are now.

Spain, America and the UK in particular are offering an abundance of exceptional bargains. Within that, sub-sections of the most popular areas are now where to go for the biggest bargains, Florida, London, and Marbella have thousands of distressed sales, repossessed and otherwise discounted properties.

Therefore, it is understandable that the first signs of recovery in the global economy, by being enough to life the panic over the extend the crisis could reach, would be enough to cause significant increases in demand for property in these markets.

At the height of the boom millions of properties around the world were being purchased every week by buyers foreign to the country of purchase. This died very quickly, and for every person that lost money in the crash, there was at least 1 person who was actively looking to buy but just hadn't got so far as to do so.

As many of you will know, once you have started looking at and/or longing for something like an overseas property, it is hard to stop wanting it even though you can't (or in this case shouldn't) get it. So, to say there was pent-up demand is somewhat of an understatement.

Anyone who wants to buy an overseas property will surely be buying it now, while no one (analysts and pundits included) is absolutely sure when prices will start rising again, but almost everyone is pretty sure they won't be falling very much further. Therefore, this explains why demand for bargain properties is really accelerating at the moment.

Bright Signs for Overseas Property in 2010: But What About the Second Bite?

There is no doubt about it: as of the end of 2009 and for at least the first quarter of this year, the fear over the depth the financial crisis could plumb has subsided and anyone who has not been put in financial straits during the last 2/3 years is making plans and taking actions as if things are completely back to normal.

Some people are shouting about a second bite, including me in some areas, but I just wanted to explore the possibility that people going back to normal as they are could feed economies sufficiently enough to avoid the dreaded second bite as the stimulus rugs are pulled out from below us.

Okay, firstly there was a report of massive traffic increases to the prominent UK portals: traffic up 25% to Rightmove Overseas, 32% to the Move Channel and 38% Property-Abroad.com, all in the first seven days of the year. Of course there is the possibility that it was as much to do with the freak weather giving people more time to browse, but one thing about the freak weather is that is will have also increased the inclination to browse for a home in the sun.

Now, we have 133% increase in the sales of Miami condos. You will hear a lot of over 100% rises in the first quarter of this year, but this one holds weight because it gave figures. Condo Vultures research showed that 1655 condos were sold in Miami in the "latter part" of the year, compared to only 711 in the first 6 months.

HolidayLettings.co.uk, Rightmove's sister site has now reported an increase in traffic of 55% as over 1 million people visit the site in the first ten days of the year.

Yes, again this can be put down to the winter blues as Britain experienced freak weather, but I was here during the freak weather, and so was all my family and none of them were on holiday lettings booking trips or looking into buying property overseas on Rightmove.

The fear over the second bite comes from the fact that, at some point, probably within the next 4 months central banks, including the bank of England will start to pull back from their stimulus. This will lead to rising interest rates and falling liquidity. It will also mean more job losses as the government starts paying for the stimulus.

However, everyone knows this is going to happen. The people who work in the government departments likely to be affected by the cutbacks know that they work in the departments likely to be affected by the cutbacks. Therefore it is fairly safe to assume that those currently doing the browsing are able to spend in relative security.

Of course people will get caught out, but no more than normal. And of course there will be people browsing for the sake of browsing, but also, no more than normal.

I think that this current surge of activity is genuinely a very bright sign for the overseas property and tourism industries in 2010.

Overseas Property Industry Trends from 2009 to Influence or Expand in 2010

I just read a great article in Overseas Property Professional titled: LESSONS FROM 2009 TO PROSPER IN 2010. The article linked to several other articles explaining what had been selling in 2009, how this would carry forward into 2010, and some of the difficulties that would still be faced by some markets in 2010.

Actually one of the articles given as an example of the latter was most interesting of all: in the last few months the rebound in British and foreign demand for international property developed so quickly, that the reports can easily blind us to the fact that 2010 is still going to be a very difficult year for some parts of the industry.

The most enlightening was the one on Portugal, which told of a conference held by major players in the Portuguese tourism and realty industries on how they could work together to increase foreign trade and purchases of property in Portugal. The conference spoke of the pressure being applied to developers for them to cut prices, which many still refuse to do.

Since April the reports have been circulating of increasing British buyers in the Portuguese property market. However, these reports all involved UK based agents who are obviously finding it easier to attract the UK buyer.

Another hot seller in 2009, to continue doing well in 2010 is repossessed and distressed sales in established markets, namely Spain, America and the UK. America is expected to be particularly hot next year, with a record 3.9million repossessions expected according to RealtyTrac. The article said that distressed opportunities in Florida would dry up pretty quickly, while there would be opportunities to buy distressed property in Detroit for sometime.

It is no secret that America will be offering some pretty fantastic buy to let yields for as long as the repossessions continue, and that is why America was 3rd on our list of top investment destinations for 2010.

Another trend we have commented on here was highlighted in the OPP article:

“Our clients are pulling away from any risk, and are looking for guarantees. This is why we have decided to only recommend key-in-hand developments, and those that also offer a guaranteed leaseback are top of the list,” said Daniel Wentworth, International Sales Manager, Promonova.

We have written many articles on the risk-aversion of the buyers currently active in the market, and of the offers developers are having to lay on in order to increase sales, as is covered in the article linked by OPP as related news.

One trend missed by OPP that we are sure is in emergence (though it is covered indirectly in a few of the related articles and quotes) is the rise of buy to let investment in overseas property. This was again confirmed by Germany being 3rd most popular on portal Property Abroad.com in December.

The single biggest reason foreigners buy German property (obviously there are exceptions) is for buy to let investment. Germany is also known as one of the safest and most stable places in the world to invest, which ties in with the risk aversion also.

Another thing tying 2009 to 2010 missed by OPP was the chance given to Turkey to shine. Turkey property had been growing in popularity with foreign buyers for some time, but the effect the credit crunch had on foreign exchange rates has benefited Turkey in 2009 and will do so even more in 2010.

The strong euro/pound rate caused British tourism to Turkey to see accelerated growth. It also led to British sales of Turkish property surviving better than many European favourites.

We have just taken on a new development in Turkey that is certain to be a favourite in 2010: 2 bedroom apartments by a reputed developer in the South West Aegean Coast resort of Akbuk for £50k. Click here to find out more.

Turkey Has Outgrown the Need for EU Membership [Opinion]

Turkey has outgrown the need for EU membership and become a world beating property investment destination while doing so, writes Liam Bailey.

There has been a lot of talk in the press this week about how Turkey -- frustrated by the EU process seemingly going in the wrong direction -- is turning to the east in the hope of expanding its global influence and economic growth potential. While reading these articles it suddenly occurred to me: Turkey has outgrown the need for EU membership -- it is going on fine without it.

What benefit would full EU membership have to Turkey's property investment package? The answer is: very little.

In the Eastern Bloc, EU membership brought about a substantial gain in the economies of several countries, by bringing about massive growth in tourism, exports and their services sectors.

Tourism to Turkey has grown massively in the last few years; hitting over 28million visitors last year. Even this year, during a global recession Turkish tourism has continued to grow massively.

The economy has taken a battering but that is hardly a criticism given the number of economies it shares a common recent history with. No one is saying that UK property is not a worthwhile investment just because its economy fell into recession - are they?

In fact it is the way the crisis has affected Turkey that make property in the country look like an even better investment.

Yes, the economy has contracted by over 5% this year. But the economy has not collapsed into a heap, and/or been forced to take its begging bowl to the International Monetary Fund in order to survive, as some other EU members and hopefuls have been: Hungary, Ukraine, Latvia, and Belarus. Even Russia is falling over itself trying to protect the rouble against a $33 barrel of oil.

Even Germany, Europe's largest economy is expected to have contracted by 9% this year. Meanwhile Turkey has been outside of IMF assistance since May this year, and Turkish Prime Minister Recep Tayyip Erdogan is resisting signing a new deal, because it would weaken his growing international prowess as a regional power.

Meanwhile in Turkey, like many EU countries and those around the world, economic prospects are beginning to improve. Everyone is picking themselves up and surveying the smoking rubble to see just how bad things got, and how bad things could have got.

The Turkish real estate industry grew by 2% in the two months ending October according to Turkish news agency Hurriyet. This, an acceleration on the 3% growth recorded in the previous 9 months.

This is mainly based on domestic demand, because of the low interest rates, but in terms of private buyers from overseas, there has never been a better time to buy Turkish property, especially if you're British.

While the pound is struggling to gain any real ground against the euro and US dollar -- largely because the Bank of England wants it to stay weak so UK companies can gain a better international export foothold -- the good old British currency is riding high against the Turkish lira.

In the last few weeks Turkish property has fluctuated between being 9% cheaper to British buyers than it was in April, and being 11% cheaper to British buyers. As the currencies currently lie Turkish property is almost 12% cheaper to British buyers than it was in April (based on a 1.00GBP/2.516TYR exchange rate at the time of writing.).

Forex company Moneycorp recently told Write About Property in a podcasted interview that the pound would be staying strong against the lira for the foreseeable future, but it is not an ever-lasting window of opportunity.

Nor is the record low borrowing rate in Turkey. It is a misconception that foreigners cannot get mortgages in Turkey. Yes, it is true that mortgages can only be obtained on completed properties. This rules out off plan purchases, but on completed properties, foreigners are just as able to secure finance as Turks.

The borrowing rate in Turkey has recently been cut by a further 25 basis points to the record low of 6.50%. This means that foreigners can pay off loans much quicker, reducing the necessary financial commitment, and putting a Turkish property purchase within reach of more people than ever before.

View Turkey property for sale with Azure Overseas today, including the new key-ready Casmark golf apartments on the Bodrum Peninsula priced from £16,500.

£700K Greek Property Sale to British Buyer Tells a Lot about the Overseas Property Industry Today

I just read a press release. Apparently Azure Overseas have sold a 3 bedroom villa on the Greek island of Samos to a Brit for £700k. As the press release rightly points out, this is a massive signal that the reports of increasing appetite for overseas property is increasing within Britain. This is undoubtedly as a result of major increases in consumer confidence in the last few months.

I have had a look in the Halcyon Hills development, obviously I don't know the full details of the sale, but the finance on properties is up to 80% LTV, which means a 20% deposit, which means this person -- a solicitor from Surrey according to the release -- paid a deposit of about £170k for this property.

But the biggest part of the story for me, is the fact that the property is off plan. During the worst of the credit crunch, when the reports of developments being postponed and cancelled in Dubai were never going to end, there were people who believe no one would ever buy an off plan property again. Then, a couple of months ago, Overseas Property Professional, in a report into increasing demand for overseas property, said that the demand for off plan was rising also.

However, the reports that the new breed of overseas property buyers would be doing their own research at great length, and not buying on the strength of the agent's word are also confirmed by the press release.

I always said that anyone who did their research would not have bought in Dubai, and that off plan property will always be a great investment if the research is done properly. Thank fully the new breed of researching overseas property buyer is not discounting the potential of off plan property simply because of the over-publicised risk.

Of course -- as the OPP article pointed out -- most properties currently being sold to the international buyer are off plan, which means it has to be considered to any consumer wanting a decent level of choice.

For anyone considering buying an overseas property, either as an investment or lifestyle choice, there is an excellent guide to researching an off plan purchase here, and for investors I recently found the most comprehensive guide to overseas property investment I have ever read.

Overseas Property Industry: the Worst is Over - the Buyers are Back

Well, it certainly seems that the worst is over. I'm talking about the global financial meltdown that started in America first in late 2006, spreading throughout the world's developed economies like an unstoppable disease into 2007, and breaking down the immune systems of emerging markets, most of which ended up being affected sometime in 2008.

My regular readers will know I am somewhat of a pessimist that can spot a pundit talking up the market to create false optimism a mile away. That said: at the moment there is just too much positivity about to brush away, and, more importantly activity is increasing in the overseas property industry, people are buying again (in numbers).

If you are an overseas property agent, or anyone with a vested interest in the sales of overseas property (to British buyers), and you have survived this far, you can breathe a slight sigh of relief. However, we mustn't rest on our laurels; we must step up a gear and secure every possible sale we can while the going is good, in case things drop off again when the world's government's pull back on their stimulus spending.

The credit crunch, however has brought about changes that will not be reversed for sometime, if ever. No longer are people so quick to hand over their money because an agent tells them that the returns will be huge. People are eager now to do their own (due-diligence) to research the pros and cons of a development and region. Another change is that people are tending to look for cheap property abroad.

This is a good thing, because reports of people losing money because of fraudulent or incompetent developers do the whole industry damage.