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- Any analysis of our foreign-property-buying habits is always problematic because of the lack of definitive data. Savills, the nationwide estate agency, is the latest to have a stab. Its survey of foreign-homeowners, in conjunction with Holiday-Rentals.co.uk, suggests that 400,000 of us have property abroad, worth a staggering £52 billion in total. The bulk of second homes — some 56% — are in Spain and France, but emerging markets such as Bulgaria and Croatia are catching up fast. Average rental yields are 4.6% — barely enough to cover the mortgage in most cases.
- Assetz, the property investment group, has tipped Poland as the best place to put your money. The former communist country tops its table of 14 destinations, with a total return of 165% on cash invested, taking into account buying costs, rental yields and capital growth. Not surprisingly, given the strength of the British property market, the UK is in second place on 63%, followed by Bulgaria (54%), France (51%), Turkey (45%) and Greece (43%). For more details, visit www.assetz.co.uk .
- Britain is not the only country to see huge differences in prices between regions. According to a study by www.isutus.com , a Spanish property portal, the average three-bed house in Barcelona, the most expensive of Spain’s provinces, costs £456,406 — almost five times more expensive than in Granada, in the south, where a similar property would cost £94,770. This compares with £216,321 for the country as a whole.
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I have been buying and selling property on The Costa del Sol for over 15 years. It is just the same as anywhere else. Find a good agent and stick to him. We show a good profit and would not dream of buying anywhere else. The problem here is that too many people want to cut corners, something they would never do at home, and still think they are not opening the door to risk.
steve Leach, richmond, england
Spanish Property is in meltdown and everyone is deceiving themselves if they think otherwise! The only reason it hasn't totally crashed is nobody can afford to get out. This market has defied pure economics for years..the fact is most people who bought for profit have never sold..supply by far outstrips demand and that means only one thing...eventually.
Mr Smith, Birmingham, UK
Having property in Murcia, Spain for the last 16 years, I have seen in spoiled by huge, ugly, and cheap developments, justified by the term GOLF. These properties have been sold with developers emphasising the letting potential. There is NO letting potential, the market in saturated. Coastal properties may gain 6-8 weeks rental, La Manga Club may gain 20 weeks..if you are really working at it. You are not going to cover your mortgage with these returns.
I also do not know why your colleague keeps pluggin Haienda del Alamo. This is a resort that has simply not lived up to its potential or publicity. Incompetent management, delays and set backs in building, changing plans and the offering of what are effectively ' split ownership', have still not got this resort going. Tons of money have been thrown at the resort which is rapidly becong an expensive ghetto. Do some digging, get a reporter out there!
Please note that Hacienda is in Fuente Alamo NOT Fuente de Alamo.
Susan Dent Tasker, La Manchica, Murcia
An unregulated market where traders are estate agents (below the moral level of used car salesmen).
Good luck!!
Michele, Richmond, UK