60 Seconds with: Simon Conn, Industry consultant
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You have been in the market for 30 years, what changes have you seen in that time?
When I started in 1980 there was a restricted market. There were no foreign banks or clearing banks - there were mortgage queues. You could only borrow to buy a house and if you wanted to do anything more you’d pay a higher rate.
Then everything changed in the early 1980s with wholesale and American banks entering and this opened up the whole market.
Now it has gone backwards and we’re seeing the same thing that happened 30 years ago repeated with foreign banks coming in and leading the market.
European banks were not as badly hit as UK banks largely because they have a safer policy when it comes to lending. In Italy for example the maximum you can borrow is 30% of net income less existing liabilities. In France it would be 30% to 40%.
What overseas markets are good to invest in now?
It depends what you want. Areas such as Portugal, Turkey, Cape Verde and parts of Florida are good right now. Morocco is also good. If you’re buying for pure investment purposes you will want to stay away from Bulgaria, Eastern Europe and Spain. But if you want a holiday home and you’re in it for the long-term then there’s nothing wrong with buying in Spain.
What problems can arise when buying overseas properties?
The problem with places like Spain is that many of the properties sold are built on rustic, arable land without proper titles. Buyers should make sure they do all the relevant checks. Many don’t because it’s cheap and looks lovely and that’s all that matters. But you need to do all the checks you would in the UK. Look at the developer, find out how long it has been in business. What other properties has it sold?
You left Conti Financial last year, what are you doing now?
I specialise in a number of areas from overseas property to residential mortgages. I work with consumers looking to buy abroad and act as a consultant for people with clients who are in trouble as I have a number of contacts and connections with lawyers overseas.
Also, I am looking to set up a helpline for overseas property investors. The problem is how long it takes for them to come to us when they need help. If they try to sort it out themselves they can make a bit of a mess and upset people.
Interview by christine toner
