Overseas property hotspots for 2019
Buying a place in the sun is a dream for many, but Brexit worries currently loom large for those looking to purchase property abroad.
British buyers haven’t been helped by the pressure on the pound, according to overseas property professional, Simon Conn, who said ‘the setting up costs and the actual purchase price are higher than in previous years’.
However, he noted that traditionally popular countries such as France, Spain, Portugal, Italy and the USA still saw ‘steady business’ in 2018.
Conn said: “There has been more interest from Scandinavian, USA, Middle and Far East buyers who have still seen some prospective bargains and this has extended to them considering purchasing in the UK for either investment or future retirement basis.
“With tourism on the increase in Cyprus and Greece, the amount of interest there has greatly increased, but borrowing in both countries continues to be difficult as they recover from their economic problems.”
What about the hotspots?
If you want to borrow to buy in one of this year’s key property hotspots, Conn has outlined the typical mortgages available, although he stressed that the interest you will pay depends on your specific cirucmstances.
France: Mortgages are available up to around 80%-85% of the property’s value, although better lending terms are available if you can put down a deposit of 30%.
Spain: Mortgages are available up to 70% of the property’s value, with better lending terms available for loans of 60% or less.
Portugal: Mortgages are available up to 80% loan-to-value. Better lending terms are available for loans of 70% or less.
Italy: Mortgages are normally available up to a maximum of 60% loan-to-value, although in some cases it can go up to 70%.
USA: Mortgages are available at 70% loan-to-value, or up to 75% in Florida.
What does the future hold?
According to Conn, a decision on Brexit could prove a turning point in the overseas property market.
He said: “I expect the overseas property market to have a more dramatic spurt as clients can then plan and purchase with a degree of comfort, knowing what their funds (and any subsequent mortgage, if required) will allow them to buy. This is especially the case for British buyers if the exchange rate recovers in their favour.”