Safety in Numbers
The world is an ever-changing place, and quite dangerous one too. When you buy a property abroad, safety has to be one of the most important issues affecting your choice of where to buy. You need to look both now and into the future, because owning a home tends to be a medium to long-term investment. So when you choose a place to buy a property abroad make sure you can tick the three big safety boxes:
1. A Safe Currency and Financial System
The recent economic fallout has shown us all how important it is to have a safe currency and financial system. If the value of your investment is to be protected then you must make sure that you will be able to sell your home in the future. Potential buyers will need to be able to raise mortgages, deal with the local banks and exchange currencies. If you purchase a home abroad, do so in a country with a modern financial system.
2. Safe Environment
The environment is a prickly subject, but it is clear that the world is changing. Global warming will alter the face of the planet and at the speed it is going, it will do so during the term of a mortgage taken out today. Hurricanes, rising sea levels, lack of water and all sorts of environmental hazards are likely to affect many of the world's vacation areas. If you are purchasing a home today then you should take heed of the climate predictions for the future. ( See the section on climate change in our updated Market Report).The safe environment can also mean other things, for example many people are put off the idea of countries like Australia because of the number of dangerous creepy crawlies!
3. Political Safety
Just a few months ago property buyers were taking a keen interest in Egypt. Today the whole area has turned upside down and there are unlikely to be many holidaymakers visiting this year. Political stability is a factor often ignored by potential property buyers and many countries that are not modern democracies are very tempting for investors simply because the prices are so low. However for most second home buyers who are investing their savings, the risks far outweigh the benefits.
Happily, Tenerife is one of the few holiday destinations in the sun that tick all the boxes The Canary Islands mark the southernmost (and sunniest) point of Europe and bask not only in perfect weather, but also the economic zone’s safety and security. Unlike most sunny places, there are no beasties that bite and the global warming forecasts no great catastrophes for the area. Tenerife adds up as a safe place to invest your savings in a second property.