Overseas property investment is a pension fund booster

10 April 2007

Principal International, a leading overseas property investment company, say that more and more Brits are choosing to buy property overseas to use as a long term fund to boost their pensions.

Primarily targeting investors, Principal International specialises in selling overseas investment property to UK buyers. Paul Cooper, Director, says that there is a huge market in the UK for established European destinations such as Cyprus and Spain.

Principal International say that its not only investors with portfolios that are looking to expand, but also the general public who are concerned over the ever decreasing pension funds and are securing their future by looking further afield into overseas property.

Typically those investing abroad look for areas where capital growth is likely to exceed their home market and where there is a high return on rental yield. There are new breeds of buyer coming to the market, first time buyers and future retirees included, research shows that at least 50% of second home owners in the UK have invested overseas.

Many Brits are choosing to live within the Cypriot community says Paul Cooper, most of whom started by holidaying there, then investing, then finally moving there. It remains a popular choice due to its similarities with the UK legal and banking systems which make it easy to buy there.

Principal International say that with the potential adoption of the Euro in 2008 as its national currency, Cyprus is likely to be one of the top destinations in Europe for investing in property and prices are likey to remain attractive.

In addition, the renovation and expansion of the airports coupled with the increasing numbers of flight only bookings to Cyprus, means that buying property there to rent will offer further enticement to investors.