European and Spanish Hotspots back in Vogue for British Real Estate Buyers Rather than far flung destinations

GoldAcre Estates the Canary Islands and Greece specialists stated that they have started to see a significant increase in enquiries from the internet, with the Greece business seeing an increase in the numbers particularly in Crete.

This seems to be to be a trend that seems to be supported by a recent report by Global Edge and Savills International via the Global Edge website GlobalEdge.co.uk

The Canary Islands has long since been a favorite with the British and European buyer famed for its mild winter climate and laid back lifestyle, recent economic factors and adjustments in prices in Fuerteventura and Gran Canaria have been a factor in their return to favour, but according to a survey of 1200 second home owners by Savills International British overseas home buyers are reverting back to more traditional second home destinations,.During the overseas property boom, the proportion of Brits buying outside of Western Europe grew significantly as buyers became motivated by the potential for capital gains. However, since the market turned in September 2008, buyers have returned to the traditional favourites of Spain, France, Portugal and Italy.“In 2010, the overseas second home market will be characterised by cash-rich, lifestyle buyers benefiting from lower prices in traditional, established holiday home hotspots.” Says Charles Weston-Baker, Head of Savills International.The survey data also confirms that 2009 was one of the worst years for the industry. 70% of respondents invested in overseas property between 2003 and 2008 but just 2% had in 2009.Rebecca Gill, research analyst at Savills International comments. “Whilst UK overseas home ownership has doubled since 2001 recent global recessionary trends have seen take-up levels dramatically slow. Factors such as fewer overseas holidays, reduced leisure spend capacity and financing availability, unfavourable exchange rates and declining house prices have impacted second home purchasing activity.”
20 % Of existing owners plan more purchases
The positive news is that a fifth of respondents said they are considering or planning additional holiday home purchases in the future. The top ten destinations being considered were France, Spain, Portugal, the US, Italy, Greece, Cyprus, Morocco, Brazil and Turkey.However, further property price falls, better mortgage availability and a strengthening of sterling against the Euro are all necessary conditions before we see the market return to anywhere near the transaction volumes of 2007.

Cheaper Airfares with - Aer Lingus to Canary Islands, From Dublin To Fuerteventura And Belfast to Tenerife….

New flights by Aer Lingus from Dublin to Fuerteventura and Belfast to Tenerife will begin in October, brings big relief to overseas property buyers, despite plans to cut planes from some of its other routes.
Aer Lingus advanced bookings for flights to the Canary Islands has been good and it is anticipated by the airline operator that their main passengers will be people looking to purchase Real Estate or to rent holiday property independently from tour operators in the Canaries.

There is a trend now in Fuerteventura for tourists to be moving away from the all inclusive packages to finding their own apartments or villas to rent, it has been reported by Room To Breathe a local management and letting agent in Fuerteventura that they are finding increasing numbers of enquiries for rural holidays in Fuerteventura.

CREDIT CRUNCH FORCES FIRST TIME BUYERS ABROAD

- Three quarters (74%) of first time buyers (FTBs) are shelving plans to buy property in the UK due to the current financial climate
- Nearly half (44%) of FTBs plan to buy abroad instead
- Spain and France are the top choices, followed closely by the USA and Australia

Three quarters of FTBs are abandoning their plans to buy property in the UK due to market instability, with nearly half putting their hopes in property abroad.

Moneycorp’s First Time Buyers Report, which examines the FTB market every two years*, also reveals that a third have been refused a mortgage in the last six months. This statistic backs recent figures released by the Council of Mortgage Lenders, highlighting that the number of mortgage loans to FTBs fell to 17,800 in March, down almost 50% from August last year.

As lending criteria tightens and 100% and 95% mortgages disappear from the market, UK first timers are turning to foreign shores to live their investment dream - where more than four in five think their money will go further.

Spain** continues to be the number one choice for FTBs setting their sights overseas, with France in second place. The USA has pushed into a top-five position, with cash savvy Brits looking to take advantage of the weak Dollar. Australia is in fourth place in 2008 – despite not making an appearance in the top five back in 2006 – and Italy is down from third place in 2006 to fifth place this year.

And it seems this increased interest in overseas markets isn’t just fuelling the Buying Abroad Renting in Britain (BARBies) trend. More than half (55%) of those planning to make a purchase overseas will treat the property as a home as opposed to an investment – up from a third (36%) in June 2006.

“The fact that so many buyers are prepared to get their first taste of home ownership in a foreign land speaks volumes for the state of today’s domestic market conditions,” said Moneycorp spokesperson, Marc Morley-Freer.

“Our research also shows that two in five (41%) FTBs aren’t aware that favourable exchange rates can save them a lot of money when transferring funds abroad – for deposits or mortgage payments. Companies like Moneycorp make it easier – and of course cheaper – to buy overseas, as we’re able to provide better exchange rates than a bank. With more currency, first time buyers have a greater choice when it comes to purchasing their property overseas. “

Notes to editors

The research was conducted by OnePoll on behalf of Moneycorp. OnePoll surveyed 500+ first time buyers in May 2008
* The last Moneycorp First Time Buyers Report was issued in June 2006
** Table 1: Findings from Moneycorp’s First Time Buyers report in 2006 and 2008
2008 top 5 most popular countries with FTBs
2006 top 5 most popular countries with FTBs
34% Spain
27% France
22% USA
12% Italy
18% Australia
6% Cyprus
17% Italy
5% Bulgaria


About Moneycorp

Moneycorp is a trading name of TTT Moneycorp Limited, which has been dealing in foreign exchange since 1979 and last year traded over £10 billion in currencies. The Company has been accredited to ISO 9000 Quality Assurance since 1996, a unique achievement in the foreign exchange industry.

Moneycorp’s Commercial Foreign Exchange Division is the UK's leading foreign exchange specialist and provides tailored services to help companies and individuals save money on their overseas currency transfers.

Clients benefit from a Personal Dealer who they can contact directly and who will provide regular updates on exchange rate movements. They also benefit from extended office hours 6 days a week and 24-hour exchange monitoring. A range of services is available, including spot and forward contracts.

The Royal Bank of Scotland (RBS) is a significant shareholder in the Group.

A survey by Yorkshire bank found that more than two out of five Britons are thinking of purchasing a property abroad.

Of the 43% considering buying overseas 66% said it was for the better weather and 55% wanted a slower pace of life. Those wanting to buy for retirement or for a holiday home were split almost evenly but 15% thought it was the best way to get on the property ladder.
However, about half of those questioned were put off by not knowing the legal process or having to deal with purchase in a foreign language. Of course when using GoldAcre Estates we will advise you thoroughly of all the legal requirements and act on your behalf after you go home and right through the purchase process.