IT IS an image that will resonate with many Britons: you’ve just got back to
work after an idyllic two-week family holiday on the French coast; the boss
is still away; but instead of kicking back and enjoying long lunches, you’ve
been spending every waking hour pounding away on your computer. This fervent
activity is not being channelled into lastminute profit and loss
presentations for the CEO. Rather, you are on Google tapping in search terms
such as “property Sardinia sea views under £200,000”. In your mind’s eye it
is already July 2008 and you are on that flight, escaping to your bolthole
in Turkey, Greece or Spain.
You are not alone. Buoyed by strong house-price increases at home (7,076 homes
changed hands for seven-figure sums last year, almost double the number in
2005, according to Halifax), comparatively low values abroad, and a glimmer
of hope of decent weather, the attraction of a bolthole abroad is obvious.
The number of Britons with an overseas home increased by 45 per cent between
2004 and 2006, according to the market research company Mintel. And although
estimates of the number of Britons with homes abroad vary wildly – a study
by Grant Thornton and Lombard Street Research puts the number at 300,000,
Mintel at 800,000 – all the reports concur on two points: there are a lot of
holiday-home owners, and the number is growing.
The commonplace nature of overseas home-ownership should not, however, be
confused with it being easy. An “authentic” Bulgarian bargain for £20,000
may be tempting, but cut corners on research and you could be in for a bumpy
ride. We’ve all heard the horror stories of Britons “buying” properties they
don’t legally own – only last year, a handful of unfortunate homeowners
learnt that their homes would be demolished after an anticorruption
crackdown in Marbella. So, make the most of the boss’s absence to do your
homework: scour these top 50 overseas property websites, and you could soon
be on your way.
FACTS, FIGURES AND BUYING GUIDES
When it comes to the great British appetite for buying abroad, no country is
left unexplored. From investment flats in Rio or Reykjavik to sprawling
villas in Seville and Sydney, you’re sure to find a British buyer after
profit and pleasure. According to Savills, Greece and Singapore experienced
double-digit price growth last year. Meanwhile property price rises in
Poland, Bulgaria, Canada, Sweden and Spain all outperformed those at home.
But last year’s hotspot could be next year’s “not spot”, so it is important
to understand the dynamics of the property markets in these far-off places.
Consult as many sources as possible before making up your mind – and beware
of those with a vested interest who insist that their development (four
hours from the airport and built on industrial wasteland) is going to bring
in 15 per cent rental yields and 40 per cent house-price growth. There is no
such thing as doing too much research into the local property market.
The Move Channel: info on
buying in France, Italy, Poland, Portugal and Spain, plus homes for sale
worldwide. www.themovechannel.com
Nubricks : blog specialising in
new homes and podcasts. Look out for the “101 overseas property resources”
links. www.nubricks.com .
Expatica : essential website for
expatriates living in France, Spain, Germany, Belgium or the Netherlands. www.expatica.com
Buy Association : more
than 100 overseas property podcasts and buying guides. www.buyassociation.co.uk
Global Property Guide
: country “investibility” ratings and analysis of property markets overseas;
will delight number-crunchers. www.globalpropertyguide.com
CIA
World Factbook : gives a snapshot of demographics, unemployment and
GDP for every country. https://www.cia.gov/library/publications/the-world-factbook
PROPERTY SEARCH ENGINES
Now that you have a good overall picture of the market, it’s time to work out
what your money will buy you and where. Search engines are a good place to
confirm whether your budget is more Bansko than St Tropez. But don’t be
tempted to put in any offers yet.
Properazzi : Europe’s largest
property portal with sales and rental listings delivered via whizzy
interactive maps. www.properazzi.com
Primelocation : properties
for sale and rent worldwide, as well as country guides and contacts for
insurance brokers and international movers. www.primelocation.com
Propertyfinder :
for real estate from Antigua to Venezuela search at http://international.propertyfinder.com;
the website also has “local” branches in New Zealand (www.allrealestate.co.
nz ) and Australia (www.realestate.com.au
)
Rightmove : 45,000 homes in
more than 80 countries – the site will be adding an improved search soon. www.rightmove.co.uk
World Properties : website
backed by the International Consortium of Real Estate Associations. It has
property listings and guides detailing local property buying rules. www.worldproperties.com
ESTATE AGENTS
Finding a good estate agent is a large part of the battle when buying abroad.
Fortunately, there are some professional bodies that require their members
to operate under codes of conduct; some of the big agencies in the UK also
have offices overseas. Make sure that you grill agents on the state of the
market and always seek second or third opinions if in doubt.
Federation of Overseas Property Developers:
Agents and Consultants: a self-regulating body that vets its 215 members,
who adhere to a code of conduct. Search the member database by area and
consult country guides. www.fopdac.com
Association of International Property
Professionals : another industry body with a strict code of conduct.
From financial services in Antigua to estate agents in Venezuela, all the
services are covered. www.aipp.org.uk
Knight Frank : upmarket estate
agent that covers 30 countries. www.knightfrank.com
Savills : search for top-notch
waterside homes, townhouses, châteaux and farmhouses, from the Caribbean to
Asia. www.savills.com
Chesterton :
specialises in new developments in places such as St Tropez and Switzerland. http://international.chesterton.co.uk
Colliers CRE :
wide-ranging choice of new homes in countries including China, Morocco,
Philippines, Thailand and Turkey. www.ccreresidential.co.uk
Quintessentially Estates
: luxury homes in exclusive locations – only the wealthy need apply. www.quintessentiallyestates.com
VEF : French property experts. www.vefuk.
com (see also Latitudes :
www.latitudes.co.uk )
Kyero : Spanish property search
engine, with lots of excellent stats. www.kyero.com
MORTGAGES
Unless you have plenty of cash, contact with a mortgage broker will be
unavoidable. This may not be the most “fun” part of your overseas adventure,
but good advice will help you to choose the best provider, currency and
term.
Conti Financial Services
: home loans in 40 countries. www.mortgagesoverseas.com
Baydon Hill : money transfers,
insurance, mortgages and guides. www.baydonhill.com
Savills Private Finance
: overseas mortgage provider, but limited information online. www.savillsprivatefinance.co.uk
Banco Halifax Hispania : Spanish
mortgages. www.halifax.es
Barclays :
saving, offshore banking and mortgages; useful guides on retiring abroad. www.barclays.com/internationalpersonal
HSBC
: Spanish, French and Maltese banking services. www.hsbc.co.uk/1/2/personal/travel-international/buying-property-overseas
Leeds BS :
euro mortgages in Spain. www.leedsbuildingsociety.co.uk/spain
Lloyds
TSB : mortgages in Spain, France, Portugal, Dubai, New Zealand, Hong
Kong, Singapore, Australia, US and Canada. www.lloyd-stsb.com/mortgages/specialist_mortgages.asp
Norwich &
Peterborough BS: this site will help you to fund your Spanish
purchase. www.npbs.co.uk/mortgages/spanish-mortgages.asp
Royal Bank of Scotland International
: home loans and equity release in Spain. www.rbsint.com
INSURANCE
If you let your holiday home to tenants for most of the year, you’ll want to
know it’s protected against damage. Rather than risk a local policy written
in a foreign language, opt for one of the firms that specialises in the
particular requirements of holiday-home owners.
Saga : lots of useful
general information as well as insurance. It provides title indemnity for
Spanish homeowners, which insures you against claims on subjects such as
access rights, invalid documentation and a neighbour building an eyesore
that encroaches on your land. Your legal fees will be covered in such cases. www.sagaoverseashomes.co.uk
Andrew Copeland
: aimed specifically at Britons who want to insure their homes abroad
against fire, flood, theft, burst pipes or subsidence. It covers most of
Western Europe and owners can leave their properties unoccupied for long
periods and sublet to tenants. www.andrewcopeland.co.uk/ovprop.htm
CURRENCY EXCHANGE
Even the smallest fluctuations in the money markets will affect the price you
pay for foreign currency. The average amount transferred for people buying
or selling an overseas property is £130,000. With banks typically charging 4
per cent, the websites below could save you more than £5,000 on a typical
transaction.
Currencies Direct :
offers free transfers over £5,000 and has up-to-date exhange rates. www.currenciesdirect.com
Foreign Currencies Direct :
includes jargon-free market reports and overseas properties for sale. www.currencies.co.uk
HIFX : has a weekly market review,
with key information such as rate rises across world markets. www.hifx.co.uk
Moneycorp : established more than
25 years ago, the company offers a daily market update. www.moneycorp.com
Travelex: everything from sending
money abroad to holiday cash and opening bank accounts in other countries. www.travelex.com
Capital IFX : foreign
exchange service to help with purchasing properties, cars, yachts or other
assets. www.capitalifx.com
LAWYERS AND ACCOUNTANTS
Getting good legal and tax advice is essential. Do not scrimp on the ground
work, and make sure that any advice or agreements are legally binding in all
relevant countries.
John Howell & Co : legal
services, free comprehensive country guides. www.lawoverseas.com
The International
Property Law Centre : legal advice and free country guides online. www.internationalpropertylaw.com
Institute of Chartered Accountants
England and Wales : search the database for accountants who
specialise in the tax affairs of UK residents overseas. www.icaewfirms.co.uk
Blevins Franks : expat
financial services and tax advice but low on information online. www.blevinsfranks.com
Grant Thornton : can
advise on international tax issues, though limited information online. www.grant-thornton.co.uk
MOVING ADVICE AND RELOCATION AGENTS
Thirteen million British nationals live abroad, according to the Foreign
Office. But emigration presents myriad organisational headaches, so make
sure that you obtain the most comprehensive advice before heading to the
airport.
Direct
Gov : this wide-ranging site has information on everything from
schools to tax, cultural awareness and working abroad. www.direct.
gov.uk/en/BritonsLivingAbroad/index.htm
The European Relocation Association
: this provides lists of relocation agents across the globe, not just in
Europe. The emphasis is on corporate services but many agents also cater for
private clients. www.eura-relocation.com
Association of Relocation Agents:
agents to help you with everything from settling in to concierge services.
It is mainly aimed at immigrants to the UK, but many agents also deal with
Brits heading abroad. www.relocationagents.com
AND FINALLY . . . A BIT OF FUN
The Real Estalker : hot
gossip on the property habits of the stars. http://realestalker.blogspot.com/
Forbes : for the truly
wacky, look across the pond – Forbes has compiled slideshows of
real estate bling. www.forbes.com/realestate
Star Driveways : only in
America . . . the driveways of the rich and famous, past and present. www.stardriveways.com
SCREENSAVER
JULIE MINNET, above, is hunting online for a property in northern Majorca for
her father, who plans to retire there this year. “My father is
computer-illiterate so it has been down to me to do as much research as
possible,” she says. “I can’t imagine how people managed buying abroad
before the internet. It’s been great for researching tax issues, healthcare
and finding an English-speaking lawyer.”
However, she has “yet to find a website that gives you an overall view of the
area – an equivalent to lastminute.com.” Her father is planning to visit
Majorca in the autumn to view properties and will have a stack of paperwork
from Julie’s hours on the internet. “There’s just so much you can do online.
Nothing beats going out there and looking at the area and properties for
real,” she says.
LORNA BLACKWOOD
TOPTIPS
Spain is still the top location for the British buyer. There is an increased
interest in inland areas and Granada, Jaén and Tarragona. Barcelona and
Madrid are the most expensive areas but sales are still healthy. France
comes a close second for British buyers with more undiscovered regions.
Currently, the areas with the largest number of inquiries are Brittany and
Poitou Charentes. There is also a growing interest in Languedoc-Roussillon.
Nicolas Sarkozy is pushing to make France a nation of homeowners, which will
help to raise prices. South East Asia is trying to attract the European
investor. Vietnam is making it easier for nonnationals to own homes, and
Thailand is proposing a change in the law to attract retirees. Germany,
below, which has the lowest home ownership rate in Europe at 43 per cent,
remains popular with investors. Berlin is still top for British buyers but
insiders also suggest buying in Munich,
Frankfurt and Baden-Württemburg. India’s property market has shot up over the
past year. Goa has long been a favourite but for pure investment try Mumbai,
Delhi, Chennai and Bangalore. The Indian Government is making it easier to
buy but it is still hard to repatriate cash. Source: OPP Magazine, www.opp.org.uk
SPANISH STEPS
Gary and Rebecca Peacock, above, moved from Manchester to Marbella this year.
“We used the internet to get a feel for the market” says Rebecca. But it
wasn’t until they arrived in April that they found their ideal property,
Arana de Mijas, a new development in the mountains with sea views. The
scheme is 20 minutes’ drive from Málaga town and within striking distance of
the airport: “Gary still commutes to Manchester each week, so the location
is a godsend.”
Their new home will not be finished until early next year so the Peacocks are
renting – which they think is the perfect way to introduce yourself to a new
country. Rebecca says: “Buying over the internet is fine for investment
purposes, but if you are looking for a property to make your home, it’s
better to actually go over there and get a feel for both the place and the
property." LORNA BLACKWOOD
