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Latest Property News 
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Top 10 places to buy abroad
The housing market may be slow at home, but for Britons looking for an
overseas investment property, the message from the experts is simple: buy
now.
Research by Lloyds TSB International shows price falls of up to 25 per cent in
Florida and even more in troubled Spain. Yet France is already showing
modest price rises for the first time since 2007. This suggests that a slow
global recovery may be on the way.
Many people preferred to wait to see how the markets and their finances would
be affected by the recession, says Barry Luhmann of Lloyds. But after this
recent lull we expect interest in overseas property to return, possibly
quite strongly.
Prospective investors at home should take a different tactic. With the UK
lettings market soaring thanks to staycations, the holiday rental industry
anticipates a healthy summer. The outlook for property investors looks
better now than at any time since the beginning of the downturn.
Estate agency Savills says the classic long-term British rental property, a
flat on the fringe of a city centre, today costs 90 per cent of its 2007
price. Savills believes that it will rise by about five per cent in the next
few years. During that time its rent will also rise by a fifth to give a
typical yield of seven per cent. This is more than you can find in almost
any savings account.
The strategy of buying good lettings properties with low capital values looks
sound. The time to act is now, says Jacqui Daly of Savills research team.
So where are the best investment locations? With the help of estate agents and
housing market analysts, here are two top 10 lists one global and one
domestic - for the canny property investor.
Where to buy overseas
1 Tuscany, Umbria, Lake Como areas of Italy
In times of trouble, classic favourites are safe havens. Italy's prices have
fallen, but not to the degree of other countries, and demand from Britons is
reasonable despite the poor exchange rate. These locations offer lifestyle
investments with an excellent infrastructure for airports and roads. There
is also easy access from Britain and all-season facilities, including coast,
skiing, countryside, cities.
2 Florida, United States
Prices are 30 per cent or more off peak and must rise soon. Sales in hot spots
such as Sarasota have risen by 24.2 per cent this year. This suggests a
market on the move. Expect to pay £150,000 for a three-bedroom villa, while
another £20,000 gets you a private pool.
3 Tarn, France
As properties have held their value on the Cote d'Azur, the Tarn region has
become increasingly popular and represents good value, Just over an hour from Toulouse, the area is easily accessible from more
than a dozen British airports. Prices are not cheap, starting at £350,000
for a small house, but properties will hold their value.
4 Franschhoek, South Africa
This upmarket part of the Western Cape is typical of undiscovered South
Africa. Although the World Cup did not kick off overseas home ownership in
the country as hoped, it is still a popular tourist destination.
5 Barbados
Despite high prices, demand is good. Homes take years to sell, so are ripe for
hard-talking bargain-hunters. Low cost apartments go from £300,000, while
the Sandy Lane set spend millions on their homes. Barbados is for long-term
investors seeking rents, who are in no rush to sell.
6 Berlin
Germans rent more than they buy, so where better for investors than a city
many regard as the new capital of Europe? Eastern central Berlin is now more
chic and pricier than the West. In the central area, expect to pay
£300,000 for a well-located apartment.
7 Turkey
The tourist resort of Altinkum has cheap flats (£25,000 upwards), but there
are many of them so rental yield is unlikely to be high. Braver investors
may pay £150,000 for Istanbul apartments hoping for big returns if Turkey
ever joins the EU.
8 Brussels
There are rental yields of 5.5 per cent here, where canny landlords let to
Eurocrats or offer short lets to tourists. New apartments start at about
£140,000 and the Royal Institution of Chartered Surveyors says the city's
housing market has proved resilient in the downturn.
9 Malta
Many retired Britons rent here for the winter, so the lettings market is
buoyant (small flats starting from £60,000) and property taxation is less
strict than in much of Europe.
10 Atlanta, United States
You can buy repossessed properties in Atlanta, complete with sitting social
tenants and two years of guaranteed rent. Prices are low. |
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