A green market for investors

Those interested in the buy overseas property market may well be concerned with a variety of issues over the type and location of property they invest in. Many questions will need to be asked by an investor looking to put their money where their mouth is without losing it. Is the building sound? Is it in a growing market? What are the local legal issues and regulations? Is there plenty of tourism to make letting viable? What are the transport links like? All such issues are legitimate considerations.

To these has been added another: green issues.

Anybody remotely familiar with property issues will know of the growing awareness of matters such as carbon footprints and the need to ensure homes are energy efficient, be it thanks to better loft and cavity wall insulation, recycling and water saving facilities, or the use of energy-saving lightbulbs.

Now the issue has been exported. Property group MRI Overseas Property has carried out research which has shown that many of those looking to buy second homes overseas would give serious consideration to environmental issues when looking for their overseas abode, the Press Association reports.

Among these, a quarter of people said they would look for a property only a short distance from the UK, out of which 26 per cent cited environmental reasons for this choice. Furthermore, four per cent even said they would only go to somewhere they did not have to fly to. Thus locations such as holiday property in France and the low countries might be among the most appealing to such people, although ferries do serve the Iberian Peninsula as well as Scandinavia.

Overall, the survey still showed that some more time-honoured concerns headed the wish-list, with 40 per cent putting proximity to a beach top of the list, but there was a 25 per cent fall since 2006 in the number who would avoid the guilt of flying all the way to Australia or New Zealand to do this.

While the survey was of second home-buyers, it may well be that the same is true for those who would regularly let overseas. After all, those frequenting Spanish beaches might be concerned that it could get just that bit too hot if global warming increases. Besides which, those who use energy-saving devices at home out of environmental concern may be just as keen to do likewise when overseas.

Europe is certainly keen on developing its environmental strategy on several fronts, with home energy efficiency one element. The European Commission president Jose Manuel Barroso stated in a speech today that a 20 per cent improvement in energy efficiency must be a key policy in this aim, Edu Bourse reports.

As the green revolution grows, those investing in buy-to-let overseas should take note. It may just be that more and more people looking for somewhere to rent overseas are attracted by the eco-friendly option, which means those looking to invest may have another question to ask before buying - how green is the property?

Jim Barnaby is a real estate investment broker and successful property investment adviser delivering research and selected UK and overseas property investment solutions with experience in spanish properties, french property investment, German property, Cyprus holiday homes, Property in Cape Verde, German property investment, cape verde property buy to let property