In 2006, some 385,000 Britons owned holiday homes overseas, but that figure rose to a record high of 430,000 in 2010, according to research by Savills and lettings website www.homeaway.co.uk.
“It’s even more surprising because some previous owners will have sold in the interim. The net increase means there has been a sizeable number of Britons buying abroad since 2006,” says Savills’ Rebecca Gill, the author of the report.
France is still the most popular place for Britons to buy. It is easy to reach by car, boat, air and train. Spain has fared less well. The number of Britons owning there has roughly halved owing to the country’s property crash. Other areas with growth in British ownership include the US, Portugal, Italy and Turkey.
The research analysed data from British and overseas government bodies, and also involved questionnaires to 1,700 Britons owning abroad, plus 1,000 British tourists renting homes overseas.
Exclusive to The Daily Telegraph Property section, the survey gives a unique insight into where holidaymakers rent, and what they are looking for in a property abroad. Here are the top 10 places to buy:
1 France
The perennial favourite of Britons because there is so much choice. Small houses in Brittany and Normandy are easily accessible. More than 50 per cent of those who own French holiday homes drive, rather than fly. Other Britons own apartments in Nice, while wealthier buyers aim for rural Provence or Champagne.
Prices across France fell 20 per cent between 2007 and 2009, but are bouncing back. Estate agent Century 21 reports an 18 per cent rise in Paris last year, while FNAIM, the estate agents’ association, reports five per cent rises across France this year.
“French banks have continued to lend on second homes, stimulating the market,” says the Savills report. Now is the time to buy before further increases. A flat in central Nice could be just £225,000, while an 18th-century mansion house in Brittany would cost around £400,000. Bargain hard, because prices are rising again and sellers know it.
2 United States
Prices are down as much as 40 per cent in tourist hot spots, but it looks as if the bottom of the market is definitely within sight. “Purchasing has reignited, especially in the Florida sunbelt, popular with US and international retirees,” says Gill.
You can buy a vast five-bedroom, 10-reception-room house with two acres of land in Orlando for £500,000. Or a more compact three-bedroom house at Kissimmee near Disneyworld for under £100,000.
There are plenty of homes to rent but if you market your property well, you can make one of the highest holiday-rental returns of any country in the survey. Most estate agents in the US are in “shared” multi-listing systems. They show all properties, even those listed by rival agents, so you don’t need to register with more than two agents.
3 Portugal
The euro crisis has not dampened enthusiasm for this country. It is loved by those wanting golf properties and a-round-a-day holidays. Prices are not cheap and have fallen less than in much of the rest of Europe (under 4 per cent drop in 2010, according to the Lisbon government). Yet demand is high on the southern Algarve coast and on the island of Madeira.
A secluded four-bedroom villa in the Algarve hills could cost as much as £650,000, while an apartment in a golf complex would be £340,000 upwards. Many holiday homes have been on sale for a year or more. Owners are keen to do deals in case the economy worsens, so be ruthless when negotiating.
4 Italy
The country’s economy may be in crisis, but the housing market has suffered less than elsewhere. This is because mortgage debt is low and there has been no significant oversupply of new holiday homes. Values are down 10 per cent since 2008, says a survey by the Royal Institution of Chartered Surveyors. However, the number of sales has dropped by 20 per cent, which means sellers are keen to strike deals.
Britons are drawn to properties around Lakes Como and Garda. Buyers are also fond of Umbria and Chianti as well as the Aosta Valley. Expect to pay £450,000 upwards for a Tuscan farmhouse.
Not every home goes on sale publicly. Consider recruiting a buying agent (www.gkitalianproperty.com; www.thepropertyfinders.com). They will scour the area, use contacts to find out what is coming to the market, and may negotiate on your behalf, too.
5 Caribbean
Although demand has fallen, this region remains a hot spot for well-heeled British buyers. The star performer remains Barbados, where one-bedroom flats may be as cheap as £125,000. Esteemed schemes such as the 500-acre Royal Westmoreland, however, can cost many millions. You will have Wayne Rooney, Joe Calzaghe, Rio Ferdinand, Gary Lineker, Freddie Flintoff and Ant and Dec as your neighbours.
Many agents, such as Knight Frank and Sotheby’s, have affiliates on different islands. If you use these, you can avoid the pitfalls common with small estate agents working informally.
6 Spain
It is still Britons’ favourite place to rent but holiday-home prices on the Costas have fallen up to 50 per cent. Has the bottom of the market been reached yet? Top-end locations, including Majorca and Ibiza have seen smaller falls and sustained demand. Institutional investors are starting to snap up bargain flats on the mainland.
“They know what counts: ease of access, climate, infrastructure and rental demand. There are great deals as the government has cut VAT from 8 per cent to 4 per cent on new-builds,” adds Gill.
A two-bedroom inland home in a Moorish hill village can be yours for £50,000 these days. But great family-size villas on the seafront can still hit £750,000 or more. It should be easy to get sellers to reduce their asking prices, but be careful. Quite often the same property is listed with different agents at different prices, so do your homework.
7 Cyprus
An enduring favourite for older buyers, but although prices are low, so are rental returns. Expect to pay £100,000 for an apartment or £200,000 upwards for a three-bedroom villa, although twice that amount for the same property next to a golf course. Paphos is the big favourite in the south – if you buy in the north, you may face legal and mortgage restrictions, so ensure you use an independent lawyer.
8 Turkey
Is this the new Spain? Many think so, with remarkably cheap homes in areas such as Altinkum, starting at £40,000. On top of that, property-advisory service Buy Association says some developers are offering 40 per cent reductions on completed, but unsold apartments and villas.
Rental yields are high because budget airline flights to the country are still expanding. Buy now for what could be a canny long-term investment. Turkey can be slow and quirky for foreigners. You will need agreement from the defence ministry, among other government offices.
9 Greece
Corfu has always been a popular choice, but some buyers have been deterred by Greek economic woes. As a result, prices are down by about 15 per cent on 2008 highs. The occasional old olive press is on sale at a sky-high price, yet many good-quality apartments and villas are available from £200,000.
Next year, expect new upmarket homes to become available on the Ionian island of Kastos. Try to use estate agents with links to firms back in Britain, as there are worrying tales of fake land deals and ripped-off buyers.
10 Switzerland
“In difficult times, the super-wealthy look to property in prime destinations to safeguard their money. It’s often an ideal hedge against inflation,” says Gill. This explains why interest in Swiss property has remained high during the downturn.
The market is diverse. Some Britons buy ski chalets from £200,000 to £1 million, while a three-bedroom “banker apartment” in central Geneva will be at least £1.5 million. For low-cost ski properties, try Alpine Homes’ apartments at Leysin (www.alpinehomesintl.com), priced at a snowflake over £250,000.
Holiday-home drawcards
Factors influencing where to buy
1 Good nearby restaurants and bars
2 Proximity to beach
3 Closeness of airport
4 Museums, theatres and other cultural activities
5 Good local supermarkets
6 Golf, tennis and other sporting facilities nearby
7 Children’s entertainment
8 Good nightlife
Facilities preferred by renters
1 Balconies and terraces
2 Private swimming pool
3 Air conditioning
4 Internet Wi-Fi
5 Private garden
6 Shared swimming pool
7 Garage and parking
8 Sauna and Jacuzzi
1 France
The perennial favourite of Britons because there is so much choice. Small houses in Brittany and Normandy are easily accessible. More than 50 per cent of those who own French holiday homes drive, rather than fly. Other Britons own apartments in Nice, while wealthier buyers aim for rural Provence or Champagne.
Prices across France fell 20 per cent between 2007 and 2009, but are bouncing back. Estate agent Century 21 reports an 18 per cent rise in Paris last year, while FNAIM, the estate agents’ association, reports five per cent rises across France this year.
“French banks have continued to lend on second homes, stimulating the market,” says the Savills report. Now is the time to buy before further increases. A flat in central Nice could be just £225,000, while an 18th-century mansion house in Brittany would cost around £400,000. Bargain hard, because prices are rising again and sellers know it.
2 United States
Prices are down as much as 40 per cent in tourist hot spots, but it looks as if the bottom of the market is definitely within sight. “Purchasing has reignited, especially in the Florida sunbelt, popular with US and international retirees,” says Gill.
You can buy a vast five-bedroom, 10-reception-room house with two acres of land in Orlando for £500,000. Or a more compact three-bedroom house at Kissimmee near Disneyworld for under £100,000.
There are plenty of homes to rent but if you market your property well, you can make one of the highest holiday-rental returns of any country in the survey. Most estate agents in the US are in “shared” multi-listing systems. They show all properties, even those listed by rival agents, so you don’t need to register with more than two agents.
3 Portugal
The euro crisis has not dampened enthusiasm for this country. It is loved by those wanting golf properties and a-round-a-day holidays. Prices are not cheap and have fallen less than in much of the rest of Europe (under 4 per cent drop in 2010, according to the Lisbon government). Yet demand is high on the southern Algarve coast and on the island of Madeira.
A secluded four-bedroom villa in the Algarve hills could cost as much as £650,000, while an apartment in a golf complex would be £340,000 upwards. Many holiday homes have been on sale for a year or more. Owners are keen to do deals in case the economy worsens, so be ruthless when negotiating.
4 Italy
The country’s economy may be in crisis, but the housing market has suffered less than elsewhere. This is because mortgage debt is low and there has been no significant oversupply of new holiday homes. Values are down 10 per cent since 2008, says a survey by the Royal Institution of Chartered Surveyors. However, the number of sales has dropped by 20 per cent, which means sellers are keen to strike deals.
Britons are drawn to properties around Lakes Como and Garda. Buyers are also fond of Umbria and Chianti as well as the Aosta Valley. Expect to pay £450,000 upwards for a Tuscan farmhouse.
Not every home goes on sale publicly. Consider recruiting a buying agent (www.gkitalianproperty.com; www.thepropertyfinders.com). They will scour the area, use contacts to find out what is coming to the market, and may negotiate on your behalf, too.
5 Caribbean
Although demand has fallen, this region remains a hot spot for well-heeled British buyers. The star performer remains Barbados, where one-bedroom flats may be as cheap as £125,000. Esteemed schemes such as the 500-acre Royal Westmoreland, however, can cost many millions. You will have Wayne Rooney, Joe Calzaghe, Rio Ferdinand, Gary Lineker, Freddie Flintoff and Ant and Dec as your neighbours.
Many agents, such as Knight Frank and Sotheby’s, have affiliates on different islands. If you use these, you can avoid the pitfalls common with small estate agents working informally.
6 Spain
It is still Britons’ favourite place to rent but holiday-home prices on the Costas have fallen up to 50 per cent. Has the bottom of the market been reached yet? Top-end locations, including Majorca and Ibiza have seen smaller falls and sustained demand. Institutional investors are starting to snap up bargain flats on the mainland.
“They know what counts: ease of access, climate, infrastructure and rental demand. There are great deals as the government has cut VAT from 8 per cent to 4 per cent on new-builds,” adds Gill.
A two-bedroom inland home in a Moorish hill village can be yours for £50,000 these days. But great family-size villas on the seafront can still hit £750,000 or more. It should be easy to get sellers to reduce their asking prices, but be careful. Quite often the same property is listed with different agents at different prices, so do your homework.
7 Cyprus
An enduring favourite for older buyers, but although prices are low, so are rental returns. Expect to pay £100,000 for an apartment or £200,000 upwards for a three-bedroom villa, although twice that amount for the same property next to a golf course. Paphos is the big favourite in the south – if you buy in the north, you may face legal and mortgage restrictions, so ensure you use an independent lawyer.
8 Turkey
Is this the new Spain? Many think so, with remarkably cheap homes in areas such as Altinkum, starting at £40,000. On top of that, property-advisory service Buy Association says some developers are offering 40 per cent reductions on completed, but unsold apartments and villas.
Rental yields are high because budget airline flights to the country are still expanding. Buy now for what could be a canny long-term investment. Turkey can be slow and quirky for foreigners. You will need agreement from the defence ministry, among other government offices.
9 Greece
Corfu has always been a popular choice, but some buyers have been deterred by Greek economic woes. As a result, prices are down by about 15 per cent on 2008 highs. The occasional old olive press is on sale at a sky-high price, yet many good-quality apartments and villas are available from £200,000.
Next year, expect new upmarket homes to become available on the Ionian island of Kastos. Try to use estate agents with links to firms back in Britain, as there are worrying tales of fake land deals and ripped-off buyers.
10 Switzerland
“In difficult times, the super-wealthy look to property in prime destinations to safeguard their money. It’s often an ideal hedge against inflation,” says Gill. This explains why interest in Swiss property has remained high during the downturn.
The market is diverse. Some Britons buy ski chalets from £200,000 to £1 million, while a three-bedroom “banker apartment” in central Geneva will be at least £1.5 million. For low-cost ski properties, try Alpine Homes’ apartments at Leysin (www.alpinehomesintl.com), priced at a snowflake over £250,000.
Holiday-home drawcards
Factors influencing where to buy
1 Good nearby restaurants and bars
2 Proximity to beach
3 Closeness of airport
4 Museums, theatres and other cultural activities
5 Good local supermarkets
6 Golf, tennis and other sporting facilities nearby
7 Children’s entertainment
8 Good nightlife
Facilities preferred by renters
1 Balconies and terraces
2 Private swimming pool
3 Air conditioning
4 Internet Wi-Fi
5 Private garden
6 Shared swimming pool
7 Garage and parking
8 Sauna and Jacuzzi
No comments:
Post a Comment