Most of us we dream about owning that perfect property abroad, somewhere not too far from home, but far away enough that we see a change in the climate. You know, the sort of place where you can walk to the local coffee shop, sit outside reading your morning paper, and spend your evenings in the garden enjoying a glass of wine. Europe is just a stone’s throw away from the UK and if you’ve always dreamed of owning property abroad, you couldn’t have picked a better time to invest.
#1 House prices are low
Following the recent economic slump, whereby previously the house prices were at an all-time high, house prices in Europe are continuing to drop (in most parts). Spain, for example, overestimated the demand for housing prior to the recession and now has a mass of houses to supply that completely outweighs the demand. Since 2007 the house prices in Spain has dropped by 2.43%. Italy and France have also seen a somewhat considerable drop in property prices, leaving the market wide open for those with cash to splash to grab a dream home for a dream price, with four bedroom properties in Nice (France) on the market for around £70,000 – £80,000.
#2 House prices are set to rise
After the major drop in house prices, for most countries over the past few years, there really is only one way for them to go, up. Depending on where you are planning on buying your overseas property will depend on the amount of time you may have to wait for a return on your investment. With countries like Spain and France looking set to be a little slower on the uptake than Germany, however investing in a property abroad is no short term commitment, so get it whilst it’s hot and enjoy whilst you wait. House prices in Germany are already on the up, rising 8.8% since 2007, if you’re thinking of buying a property here, better sooner rather than later.
#3 Permanent residencies anywhere within the EU
If you’re a British citizen then you’re automatically granted the freedom to move anywhere within the Europe without the need of a visa. If you wanted to move further afield there are long and stringent processes involved in applying for permanent residency, this is often expensive and you aren’t always guaranteed acceptance.
In a bid to sell its abundance of homes in Spain, they have been offering permanent residency to non-EU residents, if they buy property over the value of £130,000.
#4 Borrowing rates are low
This seems too good to be true, and a stark contrast from that of the UK, but not only are house prices low, so are the borrowing rates.
‘According to property group Athena Advisors, competition between French banks to attract domestic borrowers has pushed mortgage rates to 0.25 points below those seen at the end of World War II. What’s more, non-residents can access these historic rates with a 20 year fixed mortgage at 3.35 per cent and 20 year tracker mortgages from just two per cent’ said thisismoney.co.uk in reference to the current housing market in France. German buyers can also benefit from rock bottom borrowing costs!
#5 Specialist money transfer services
Gone are the days of using the good old fashioned bank to make international money transfers, often taking weeks and charging over the odds. There are now dedicated money transfer services that specialise in international dealings; because they deal only in foreign exchange they are privileged to exclusive exchange rates possibly saving you thousands on your move. A particularly good website for overseas property transfers is Axia FX, an expert in international currency exchange.
I’m sure you’ll agree they are five pretty fantastic reasons right there. So what are you waiting for? Get searching for your dream holiday home, before it’s too late.
Good luck.
