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HomeNews WireLandlords in Britain Face Squeeze as Attractive Alternatives Abound Abroad

Landlords in Britain Face Squeeze as Attractive Alternatives Abound Abroad

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Landlords in the UK are facing challenges such as rising interest rates, high property prices, and increased regulations, making buy-to-let investments less attractive. As a result, many landlords are considering alternative options abroad. While investing in foreign properties comes with its own set of complications, some owners are exploring long-term rental opportunities.

In France, areas like the French Alps and Côte d’Azur are popular for buy-to-let investments. Rachel Holford, from Edinburgh, bought a property in the French Alpine resort of Saint-Gervais-les-Bains and has been renting it out to a pilot from New Zealand. Holford emphasizes the benefits of long-term rentals, saying that it provides a stable income without the uncertainty and hassle of holiday lets.

Buy-to-let buyers in France often take advantage of the “loi pinel” schemes, which offer tax relief for investors who purchase apartments and rent them out for six, nine, or twelve years. However, these tax breaks are only available to French taxpayers.

Spain is also attracting landlords looking for alternative investment options. While holiday lets are a popular choice due to increasing tourism, there is a growing market for medium and long-term rentals on the Spanish Costas. Graham Hunt of agency Valencia Property explains that temporary rentals have different regulations compared to short or long-term rentals. Demand for medium-term rentals has prompted the creation of specialist rental divisions like Stepping Stone.

Barbados has seen a surge in interest from remote workers through its “Welcome Stamp” program, attracting tenants looking for long-term rentals. This has made long-term rentals a more appealing option for property owners, as it offers a predictable income stream and lower operational costs compared to holiday lets.

In central Orlando, Florida, UK buyers are investing in buy-to-let properties in addition to the region’s popular holiday rentals due to the area’s booming economy driven by sectors like healthcare, biotech, and aerospace. Alistair Brown of Alistair Brown International Real Estate highlights the favorable investment conditions in Florida, such as significant write-offs and benefits for investors.

While investing in foreign properties can offer higher yields, it is important for landlords to be aware of tax obligations and comply with local, state, and federal reporting requirements.

As the buy-to-let landscape in the UK becomes less lucrative, landlords are exploring opportunities abroad in countries like France, Spain, Barbados, and Florida. However, it is crucial for investors to thoroughly research and understand the regulations and tax implications of each country before making any investment decisions.

More detail via The Telegraph here… ( Image via The Telegraph )

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