Buying property abroad: Hotspots

Friday, 01, Jul 2005 02:23

Florida, South Africa, Australia and Spain continue to be hot favourites among Brits buying property abroad. Mike Hayes, editor of Homes Overseas Magazine, examines the reasons why:

Florida

With the dollar still languishing at around 1.8 to the pound, property in the United States has never been more attractive to British buyers, and with some 90 per cent of all British tourists making a beeline for Florida, property there has potential, both for investors and for holiday-home buyers. Orlando's rental zone is the centre of attention for Brits, with Disney World, Universal Studios and Discovery Bay for the kids, and tons of eateries, shops, bars and golf courses for the bigger kids.

The process of property rental is a well-oiled machine in Orlando, with everything taken care of, from pool cleaning and lawn mowing, to the replacement of cutlery and linen. Of course, it all costs, and you should not expect to clear a large profit from renting there. A combination of a small amount of rental return and a potential for good capital growth, though - plus a strengthening dollar over the next few years, should make for a sound investment.

South Africa

New developments in Cape Town and along the Garden Route in the south-east, are continuing to attract large numbers of British buyers to South Africa. House prices rose by more than 30 per cent in real terms last year, and look set to continue with strong growth over the next few years, due to low property prices, relative to the rest of the world, an excellent standard and low cost of living, fabulous weather and a wonderful natural environment.

Luxury developments - especially luxury golf and marina resorts - are at the forefront of this booming market, with the likes of Fancourt in George and Pezula in Knysna current favourites with both the investor and holiday-home buyer markets. Average house prices in Cape Town, one of the country's most popular and expensive destinations, currently stand at around £65,000, which compares very favourably with most countries in the Western world.

Australia

The days of the ten pound Poms may be long gone, but some 10,000 Brits still leave our shores each year to live in Australia. Destinations such as Sydney, Melbourne, Perth, Brisbane and Adelaide are all on the hit list, and the weak Australian dollar - along with fantastic weather, great beaches, a low cost of living and the locals' 'no worries' attitude - is tempting Brits to take the plunge.

Sydney is the most popular and expensive place to buy property, with its period terraced homes, modern and Art Deco apartments, and grand mansions, yet prices here average only around £150,000 - and cheaper properties are easy to find away from the Central Business District.

Of course, Australia is no weekend getaway destination - buyers will either need the time to visit for lengthy periods or make an investment based on capital gains and rental returns.

Spain

What can you say about Spain: excellent year-round weather, a superb infrastructure, plenty of sport and leisure activities (including some of Europe's finest golf courses), great food and even better drink. No wonder this is the number one destination for both holidaymakers and holiday homers - and looks set to remain that way.

Having said that, southern Spain - and the Costa del Sol in particular - are having something of a tough time at the moment; property prices are high, the papers are full of reports of agents overcharging on commission, money laundering scams and 'land grab' horror stories. Yet, the famous costas march on, because, the truth is, nowhere else in Europe can match the year-round sun and fun of Spain, or the range of holiday property available - and all just a two-and-a-half-hour budget flight from the UK.

Furthermore, Spain is a big country with many possibilities for investment; inland properties can represent excellent value, city apartments are easy to rent, and previously 'undiscovered' parts of the coast are now emerging for bargain hunters.

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Home Overseas Magazine is 40 years old this year, and to celebrate it is giving away 500 copies of its special anniversary issue. To receive your copy please email homesoverseas@blendoncom.com

The July edition of the magazine contains an A-Z of features on property abroad, along with articles on buy-to-let, off-plan purchases and historic renovations.

Copies are available on a first-come, first-serve basis, so email now to get your free copy.

For more information see www.homesoverseas.co.uk/magazine