Buying a house on foreign soil has long been the dream of many Britons. Somewhere to escape the dull, frigid British winters; a holiday home where children can spend most of their days playing in the outdoors, and where poolside entertainment is a regular weekend fixture
Buying a house on foreign soil has long been the dream of many Britons. Somewhere to escape the dull, frigid British winters; a holiday home where children can spend most of their days playing in the outdoors, and where poolside entertainment is a regular weekend fixture.
If a sun kissed existence was not enough to lure some people into buying property somewhere warmer, the introduction of a higher rate of stamp duty on a second home in the UK means that most people will certainly now be considering a holiday home abroad. From April this year, a holiday home in the UK will cost 3pc on top of the normal stamp duties cost, while the tax for investing in property overseas won’t be affected at all.
The property market predictions for the year ahead suggest that now is an opportune time to invest in property overseas. A portfolio consisting of houses abroad (in light of the new stamp tax on second homes) is bound to be a hit with many of your clients.
The property market predictions for the following countries shows that they are going to be of sound investment value for those looking for a second home in a warmer climate.
Italy – land of good food, good wine and good living
A firm favourite with Briton’s looking to invest in a holiday home abroad – what’s not to love about Italy? Temperate climates, unbelievably tasty cuisine, delectable wine, vineyard-filled valleys and beautifully warm Mediterranean seas make Italy one of the most popular choices for tourists and therefore a wise investment for a holiday home.
The northernmost region of Italy is popular for its dramatic scenery – pressed up close to the Alps – and known for its snowfall and skiing. This is certainly not the region to buy in if sunlight is top of the priority list, but the incredible wines produced in the region are certainly an added bonus. Central Italy is famous for cities such as Tuscany and Umbria, made popular by movies like Under the Tuscan Sun. The warm weather, ancient architecture, rolling hills, olive groves and cobbled streets make the central region the quintessential picture of Italy that most people have in their minds.
Southern Italy is known for its beautiful coastlines and quaint villages. Towns such as Naples and Amalfi are popular with expats, and islands such as Sicily will always be a favourite for holiday homes due to their weather and spectacular seascapes.
Before buying property in Italy, have a look at this comprehensive article from The Telegraph, which explains everything you need to know about buying property in Italy.
If the property market predictions for 2016 are correct, Italy will be a hotspot for holiday homes and an Italian property will boost your portfolio’s worth significantly.
Portugal – land of sun, sea and fun
Portugal has been a popular spot with Britons for a great number of years. It’s proximity to home, warm weather, beautiful beaches, delightful cuisine and friendly locals have attracted tourists and expats alike for ages.
With the economic plunge in 2008, it became hard to buy property in Portugal, as banks gave out fewer loans and with the property market in dire straits. However, since the stabilising of the economy, the Portuguese housing market has gone from strength to strength and the government has implemented some changes to attract more foreign investment.
The Portuguese government has slashed expat tax from a massive 48% to 20%, removing tax completely for retirees and offering a “golden visa” which turns straight to citizenship on property purchases worth €500,000 or more. Not only do these new reforms make Portugal an attractive investment choice, the cherry on top is that despite rising property purchases, many properties remain at a fraction of the cost that they were before the economic slump.
The Living in Portugal website offers a handy interactive map and a whole heap of information that will guide you through the process of choosing the best areas in which to purchase property, and the correct process and procedures to follow when buying property in Portugal.
Worldwide property market predictions certainly suggest that Portugal is an excellent place to invest in a holiday home at a bargain price in 2016.
Spain – land of fiestas, siestas and outdoor living
Mild Mediterranean waters, long beaches, stunning coastal vistas, siestas, fiestas, food, wine and an outdoor lifestyle make Spain one of the most popular places for British citizens to buy a second home. Tourists and expats flock to Spain’s most beautiful spots year after year, and this makes having a buy-to-let property in the country rather lucrative.
The Spanish property market was hard hit by the economic crash in 2008 and was one of the most badly affected. The property market became a ghost town, with stories of buildings never being finished from lack of interest, banks refusing to give out loans and dodgy property agents taking naive buyers for all sorts of rides.
The great news is that the Spanish property market is bouncing back with a vengeance and property market predictions show all the signs of Spain being the best place in which to invest in property in 2016. Property that crashed to almost 30% of the prices pre-economic meltdown have only slightly recovered, and thus there are bargains around every corner.
Houses with outdoor entertainment areas, swimming pools, multiple bedrooms and stunning interiors can be had at a fraction of the price of what they would go for in the UK. Take this stunning property for sale in Calpe as an example which has sweeping sea views, a large garden and swimming pool, four bedrooms and plenty of space, that is selling for only €265,000.
Not only are you guaranteed bargain prices in Spain, it is also one of the most relaxed and enjoyable lifestyles in the world. The rat race of the UK is left far behind, and in Spain days can be spent swimming in the warm waters, waking up to blue skies and tucking into some of Spain’s most famous dishes (and wines of course). Gov.UK has an incredible guide on all you need to know about buying property in Spain.
Spanish property could be the creme de la creme for your property portfolio. Property market predictions indicate that Spain is going to be hot property in the next few years and foreign investment is expected to expand rapidly in the stabilising market.
If sun, sea and outdoor living sound like your client’s idea of a good time, or you are simply interested in the investment aspect of the Spanish property market, contact us to see our portfolio of only the best property for sale in Calpe and the rest of unbelievable Alicante.