Panel of experts debate unregulated market

 
Britons spent nearly £20 billion on overseas property in 2006, reflecting the country’s continued fascination with overseas property investment. The industry is increasingly a more competitive and difficult market place with a growing number of investment opportunities but a lack of definitive information or figures.

Clarion Events, organiser of the International Property Investment Expo (IPI) has seen a steady increase in the number of Independent Financial Advisers (IFAs) receiving requests to provide information on investing in overseas property.

In response, Clarion has gathered together a panel of senior industry experts including Chris Cummings, Director General of Association of Independent Financial Advisers (AIFA), Ian Tonge chairman of the National Association of Estate Agent’s (NAEA) international working group and Paul Owen CEO of Association of International Property Professionals (AIPP).

The panel will discuss and debate the issues surrounding the unregulated international property investment market including financial guarantees, transparency, poor practice, payment terms, commissions, consumer protection, IFA protection and legislation.

Its aim in facilitating the discussion is to encourage greater awareness among the financial community of the attraction of international property and to promote best practice in its sale as an investment.

Siobhan McAfee, International Property Investment Expo show manager said: “We are identifying the main concerns behind this growing industry interest including that while IFAs and intermediaries are heavily regulated, the international property investment market is unregulated.”

“This could prove a major issue as there is a desire among international property companies to form business relationships with IFAs in the UK.”
The process is consultative, which means the panel is currently calling for submissions from the financial services market, international property industry, agents developers and consumers. At the conclusion of a series of discussions, the group will prepare a report of recommendations for distribution amongst the industry.

The International Property Investment show is being held alongside The Mortgage Business Expo at Earls Court, London from 14-15 November.
A free seminar series will include the details of the international property panel discussion and report back on the essential issues that will affect the industry in the next 12 months. The 2007 seminar programme will encompass everything from remuneration to buy-to-let, technology, equity release and secured loans.

If you would like to have a say, complete the submission form from www.ipi2007.co.uk or download the submission form and send by email to: propertywhitepaper@ashcommunications.com

• Overseas property investment is providing solid returns, in comparison to the continuing news of increased UK house prices, failing pension systems and short property funds claims property specialist, Obelisk International.

Following a recent study by the company, sales and marketing director Kevin Prior said: “Property in the emerging markets is earning the best returns and, with good advice from experienced brokers, investments can provide lucrative results.

“Fears of an impending pension crisis in the UK have followed on from reports that many older people have not started saving towards retirement. According to figures published an alarming number of people in the UK have not begun to save for the future - let alone their retirement years.”

Property research has also shown that 50 per cent of independent financial advisers (IFAs) believe that overseas property investment provides stronger returns with over 30 per cent of IFA’s experiencing an increase in the sector within the last year.

Prior concluded: “Investors are realising the advantages of overseas real estate and the increased financial power it can bring. For example, an off-plan investment in up and coming areas essentially presents the control of a tangible asset worth much more than the initial capital outlay.

“Overseas real estate is considered a safer asset with investors tending to behave more calmly than their counterparts on, for example, the stock market. The real estate arena is also less subject to the effects of panic selling than stocks and shares.

“Investors can benefit greatly from foreign currency and foreign mortgage rates, as these products allow borrowers to take advantage of the low interest rates and favourable exchange rates when purchasing real estate abroad."