by Mark Johnston
Are More People Buy Holiday Homes?
It seems that a holiday home is an alluring dream, prices are lower and skies are bluer.
5.4 million Britons are considering buying abroad, according to HSBC, even more than before the financial crisis.
Data shows that Spain and the Balearic Islands are the top dream destination, attracting 30 per cent of buyers, followed by France at 16 per cent. Italy, Portugal, Greece, Cyprus, the Caribbean, Florida and Turkey are also dream home hotspots.
James Yerkess, HSBC Head of Foreign Exchange, said: “The economic downturn has had an impact on the income and savings of many but it has also helped lower the price of property in numerous overseas locations.”
The fact is Spanish holiday home prices have fallen more than 30 per cent in the last five years, but the thing to remember is that buyers in the UK are paying in sterling, which is also down 20 per cent against the euro.
Some owners might have bought their home as an investment during the property boom years, and want to wait until the market goes up before they sell, but don’t want to have to shed out for any more expenses until then. Others managed to get a great deal on house or apartment they wish to retire to one day, and are covering their mortgage and maintenance payments in the meantime.
One of the most common reasons why people choose to rent their holiday homes is to cover their expenses.
One third of the owners pay at least half of their mortgage payments by renting. On top of that another 1/3 of all advertisers cover their entire mortgage.
Most owners have a strong emotional attachment to their holiday homes, and worry about having strangers stay
However, the majority of would be buyers would prefer to keep their roots in the UK and not move abroad permanently.
Although this said David Kerns, personal client dealing manager at Moneycorp, said ‘With the UK’s shortage of affordable properties, large deposits required and challenging mortgage applications, for the first time it makes sense for younger buyers to simply look overseas for affordable and exciting alternatives.’
It appears then that some first time buyers are increasingly looking abroad in order to snap up a property in order to get onto the property ladder has increased substantially in the last year as they attempt to swerve rising house prices and steep deposits.
current research surprisingly shows that it is the US, rather than Europe, that is the number one hotspot for these buyers, as they are attracted by job opportunities and cheap land and properties.
The research comes as figures released from the Office for the National Statistics showed that 154,000 Britons moved abroad last year, a figure that has risen by a fifth since the Coalition came into force.
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