P
erhaps the most fundamental thing to determine when deciding where to buy a property abroad is why you want to buy it.
Only by having your priorities clear in your mind will you begin to narrow down where best to buy. When looking for a holiday home, you may think your plan is pretty simple – a place in the sun to which you can escape for some much-needed relaxation. But have you asked yourself how many times a year, and when you want to go? Will you need to rent it out to cover its costs, and if so, for how much of the year will this be practical? Climate will bear strongly on this. Affordability is of course a key consideration, and low property prices must be weighed against the cost of travel to the property. Brazil and Malaysia may be relatively cheap for beachfront villas but the fl ights to reach them won’t be. Closer to home, you must think about which carriers fl y to a region, and the possibility of them dropping their routes or going bust. If you are treating the property as an investment as well as a lifestyle choice, consider which areas show good capital appreciation, and what the resale market is like. Timing is important; exchange rate variations will have a bearing on how much you can afford in different areas of the world. For those wanting to relocate or retire abroad permanently, the decisions are usually simpler: climate, cost of living, tax, and quality of life tend to dominate choices, if job opportunities or family links haven’t already dictated the destination. Mediterranean Europe combines a benign climate with accessibility, making Spain, Turkey and Cyprus popular, whilst common cultural ties and lack of language barrier make America and Australia top choices.
The more adventurous might head to the Far East instead, motivated by the
ability to live a far grander lifestyle on their income than they could do in Europe. But don’t confuse what you want from a holiday home with what you seek from a permanent home. Some areas are buzzing all year round, whilst tourist areas can be dead out of season; plus think about how warm the winters are. For pure lifestyle buyers, second homes are usually sited where they like to holiday. In Britain we holiday most in France and Spain making these top destinations for overseas property buyers. Spain’s property crisis may have deterred some buyers, yet many realise that it will recover, and there are good deals available for those ready to buy. The recent popularity of non-Euro destination
holidays in the era of the weak pound – Morocco, Egypt and especially Turkey – has also been refl ected in property-buying patterns. If purchasing property solely as an investment, distance from the UK will be less important. Think about regions with high rental demand, either from the local population or from holidaymakers. Tenerife, Lake Como, Orlando, or city-break hotspots such as Paris or Barcelona are some of the busiest for holiday rentals websites. Finally, don’t forget to think about your exit strategy: a region which is popular with many nationalities rather than merely British buyers, plus a strong local market, will generally mean an easier re-sale.
Top Tips
• Be clear about why you want to buy overseas; this will help determine suitable locations for your property abroad
• Identify your budget and if relying on an overseas mortgage to fund the purchase, consider that mortgage terms and availability vary from country to country
• Do your research; ask lots of questions and explore different options. Don’t rely on only one source of information
• If rental income is important to you, consider that some locations won’t have year-round rental demand
AIPP CONSUMER GUIDE 11
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60