WILL CORBYN BRITAIN LEAD TO AN OVERSEAS PROPERTY DASH?

As Theresa May’s position looks more and more vulnerable, the thought of a radical socialist Brexit Britain is not an enticing thought for many high net worth individuals (HNWI). Britain; in particular London, has become so less certain than ever before. The country, if you pardon the pun, is beginning to look rudderless. The divisions on Brexit are manifold and despite a lot of championing of new agreements, it appears now that both sides are even further apart than before. Problem is that the clock is ticking. So what about this property dash?

For people looking to escape what they might perceive to be a half-sinking ship, the options have to be more far reaching. The traditional autumn exodus to Spain, France and Portugal of about 30-40,000 newly -bred expatriates is no longer the safe escape route. There are no clear terms or conditions on how these people are actually going to live full time in these countries. No guarantees at all. Pensions. Taxation. Visa Residency requirement and certainly no agreement about any ability to work.

Spain

Spain is eager to get back Gibraltar at all costs. So the big bargaining chip will be between the UK doing a sovereignty deal or throwing all the Costa expatriates to the winds. The border could be slammed shut any time after 2019. Mrs May is not going to wish to go down in history as the Lady Prime Minister  who lost Gibraltar as opposed to Mrs Thatcher, the Prime Minister who saved the Falklands. So Costa folk will be left on their own.

Canary Islands

The only anomaly that exists in the EU/Spain are the Canary Islands as technically they are outside the Customs union. So technically they could carve special residency rights out of an agreement and neither the EU nor the mainland Spanish government would be unable to do anything about it. So if it is Spain, that tickles your fancy for a new life, think further South. There are some fabulous properties on Lanzarote and South Tenerife.

Portugal

Things Portuguese take on a more civilized tone. Portugal after all is England’s oldest ally. They also have a very friendly tax regime and the options are plentiful. Lisbon is gradually filling up with HNWI. All of which can easily get a visa with the 250,000 Golden Visa qualification. Definitely start to buy now as increased HNWI demand will drive up prices.

Cape Verde

Moving further afield Cape Verde is an interesting non- EU option. The problem is that the projects are not very enticing. They are still very 70’s in their look and feel. Nothing classy at all except for one project that is Residential Suites.

Morocco

Morocco is always exceptional value but very high risk when it comes to title and personal property rights. There are at least 100 riads up for sale in Marrakech, some for as little as 200,000. But buyer beware, why are these mini palaces; that make you gasp when you go in, up for such little money? Normally, it is an issue of title or ownership. Get at least three pairs of legal eyes on every document and be prepared to add at least 50% more on to the asking price of any property to sort out disputes.

Red Sea Riviera

The Red Sea Riviera is perhaps one of the most interesting escape options. Why? Residential visas for one year cost about a £30 and are valid as proof of living abroad in the UK. Egypt's climate is one of the best within three hours of Europe and the real estate projects are stunning at very reasonable prices. The cost of living has been slashed due to the devaluation of the local Egyptian Pound, that saw the cost of living for sterling and euro denominated residents HALF overnight.  As for bang for your buck, a stunning 3 bedroom apartment with Bali style garden and private plunge pool in an exclusive gated development in the private town of El Gouna will set you back £160,000.  Somabay also offering some attractively priced options. With guarantee winter warmth and sunshine, Egypt just has to be worth a look!

South Africa

Corruption, crime and a worldwide publicised drought in Cape Town; leading to stand pipe distribution in the streets, has sent this once popular get away to the bottom of the wish lists. Stunning scenery and a comparatively low cost of living has not managed to save it from having a reputation for violent robberies and the on-going background music of black resentment over the lavish lifestyles of the white and rich. The taxation system is equally brutal and getting your money out of South African when you resell! Well.  ‘Enjoy the ride!’.

Dubai and Emirates

People are lulled into a sense of false western world security when they first go to Dubai. Outward appearances look luxurious, western, liberal and accepting. This could not be further from the truth. There are still some seriously archaic rules about marriage, dress code and co-habitation that when convenient, they throw at people and imprison without trial.  In spite of the fact that the place is littered with five star hotel cocktail bars, it is technically illegal to drink in them whilst it is fine for the hotel to serve them. Get your head around that.  The Emirate property market is largely inflated by ‘smoke and mirrors’. Everything is sold out and rented out they say, when you look at a towering skyscraper at night without one single light on. Also the building standards are very poor. Drive around and you will see cladding falling off buildings and it is the only place where my bathroom literally exploded with boiling hot water and flooded the entire floor of a hotel complex. Everyone is secretly trying to sell to get out of Dubai. Don’t get sucked into the whirlpool!

The Caribbean

Hurricane Marie put a firm end to most of the really pretty islands with even Richard Branson taking a total right-off hit. Insurance policies are now more than the value of most houses and frankly until someone comes up with a fool proof hurricane design for buildings there, the place and your investment lives on a knife edge for four months of the year.

USA

Will the Donald welcome you with open arms? Well he might but the US tax man will make you pay for it. There are still heinous taxes to be paid for non-resident owners and getting green cards and work permits are a nightmare. Great offers in Florida but only in the grim parts. Cool spots such Key West, South Beach and Palm Beach hit the “millionaires only “buttons about two years ago.  The US market is frighteningly cyclical and suddenly you can find yourself at the wrong end of a massive and totally unexpected down turn such as in 2009.  If you really are tempted by Florida, buy wisely and bargain very hard to protect against negative equity.

Switzerland

Switzerland is possibly the little Brexit winner. If you are prepared to spend about 600,000 CHF (£480,000) then surprisingly there are some quite nice opportunities on the market. Andermatt in the Swiss Alps has the excellent Gotthard Residences projects that start at around 600,000 CHF offering skiing and ‘Heidi sunshine’ in the summer. Safe and secure but can be a little too quiet for some.

Montenegro

The one to watch out for! Montenegro is not part of the EU and offers some excellent property options. It is also breathtakingly beautiful. The country has branded itself as being boutique and it is quietly attracting the old wealth families as well as new wealth. Stunning new developments such as Lustica Bay, Porto Montenegro and Porto Novi lead the price field with units from about  £350,000. However you can pick up a stone farmhouse, sea view and jetty for as little as £200,000 if you are prepared to go local and do some renovation.

Athens Riviera

Greece is not a place that would spring to mind as being a “sensible” investment given the appalling state of the national finances. For those who are prepared to think laterally, the posh suburbs on the Athens Riviera offer exceptional value for money.  You pick up a lovely two bedroom apartment in Glyfada complete with cosmopolitan shopping, excellent restaurants, beach clubs and marinas for only £250,000. The once Kensington of Athens is still very good value for money. You also can have a full working expatriate life as well as holiday rental life. You are only 15 minutes away by tram to central Athens, 20 minutes ring road to the airport and 10 minutes away from Piraeus the main ferry port for all the Greek island getaways. Greece wants you! So taxes, residency visas and the cost of living are very low.

In conclusion, Athens Riviera, Egypt and Montenegro are the big Brexit 'property dash' winners. Switzerland comes in second for the quiet but suitably rich. Portugal makes a firm case. All the other usual destinations come with firm wealth warnings.

'Happy Buying!'

For more information on any of the above: please email : ehill@mepm-property.com