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More Mortgages for Overseas Property Investment

A sure sign of the return of confidence in overseas property investment is the rise in the number of mortgages. The homesoverseas.co.uk portal recently reported that September had seen a surge in the number of applications for a loan on a property abroad.

Although many northern Europeans chose to stay at home this summer rather than holiday abroad, it appears that interest in property investment overseas is back. As the long winter approaches in the northern hemisphere, the appeal of a home in the sun has returned.

As reported by Homes Overseas, Conti, an overseas mortgage specialist, saw a 20% month-on-month rise in the number of mortgage applications in September. Reasons behind this are falling property prices - house prices in popular resorts in Spain such as the Costa del Sol have dropped by as much as 40% - and record low interest rates. Although the report believes that the main reason behind this marked increase in mortgage applications is "a growing feeling of confidence among overseas buyers".

The international economic downturn led to a drop in property investment overseas, but as some major world economies start to emerge from recession - for example, France, Germany and Brazil - property investment abroad is seeing renewed interest.

As well as in overseas mortgage applications, the re-found confidence is also seen in the number of sales. Overseas Property Professionals (OPP) recently reported that online lead sourcing companies have experienced an increase in the number and quality of leads from overseas buyers, particularly from the UK. According to OPP, there is a change in mood with keen buyers appearing on the market.

The Property Investor Show has also discovered the same rise in confidence. The Managing Director, Nick Clark, said that "there has been a strong shift in the market with savvy UK investors beginning to re-explore overseas opportunities". Clark believes that this is because investment in property abroad is generally seen as a better performing investment vehicle than savings or stocks and shares.

The tandem of low property prices and rock-bottom interest rates means that these savvy investors have plenty to choose from. Whether it's a traditional favourite such as the Costa del Sol, Dordogne or Florida - prices are at their lowest for years in all three places - or an emerging market presenting high returns such Panama or Brazil, real estate investment is there for the picking.

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