First-time buyers invest overseas
At the end of a long period of rising house prices at home, more and more people are looking at buying abroad. In 2005, UK residents bought foreign property worth a total of over £1.6bn.
The market is traditionally split between those buying-to-let and those buying a home to live in, as either a main residence or a sunny second home. But, since things have become increasingly more unaffordable in the UK, first time buyers are using buying overseas as an option to ecru enough capital to put down a deposit on their first home in the UK.
Increasingly a number of young people priced out of the British market have been looking overseas as the only option for buying a first property. And whilst prices in most UK regions have hit a plateau, several European and further a field countries' markets are still rising and at a rapid rate.
Increasingly a number of young people priced out of the British market have been looking overseas as the only option for buying a first property. And whilst prices in most UK regions have hit a plateau, several European and further a field countries' markets are still rising and at a rapid rate.
Those buying abroad are making a capital appreciation of up to 50% on the full property price in one year! Rental yields are great ranging from 5 – 12%. First time buyers are realising that they can get their foot on the ladder by investing as little as £10,000 deposit and getting 70% mortgages at a great rate, often better than what is available in the UK. Then once the properties have appreciated a good growth in capital value, they are able to sell, thus making them enough to put down a decent deposit on a property in the UK.
“Absolutely,” says Mark Bodega of foreign currency broker HIFX in the Independent on Sunday, “overseas property offers first-time buyers an investment they could never have afforded back home”. Hannah Davies, director of Shooba.com, agrees. She says that “not only can upfront costs be fairly low, but in some areas, buyers could 'double their money' in less than three years”.
“Absolutely,” says Mark Bodega of foreign currency broker HIFX in the Independent on Sunday, “overseas property offers first-time buyers an investment they could never have afforded back home”. Hannah Davies, director of Shooba.com, agrees. She says that “not only can upfront costs be fairly low, but in some areas, buyers could 'double their money' in less than three years”.
