As house prices in England and Wales reached an all-time peak in July, driven primarily by huge demand for property in the capital, it should come as no surprise that those in the market for property are casting their net further afield in order to get more for their money in foreign destinations.
July saw the average house price rise by 0.3 per cent to a record £232,969. So, what can you get for that amount in the UK and how does this compare to popular expat destinations which are gathering more and more attention as a result of offering far more for your money?
According to the Overseas Guides Company (OGC), if you look for a property in London for £230,000, you can expect to get, at most, a maisonette or two-bedroom flat in Zone 3. If you were to venture out of London, for the same price you could be the owner of a three bed house complete with a private garden and two parking spaces in Bracknell.
However, if you were to look overseas, you could get a lot more bang for your buck. The Overseas Guides Company reveals what you could get with a £230,000 budget.
In the popular expat destination of Murcia, Spain, you could purchase a five bedroom town house complete with a private pool for less than £230,000.
If France is more your thing, a three bedroom detached character cottage complete with gite complex (with rental potential), a swimming pool and huge garden in the Dordogne could be yours for the same price.
OGC says that with prices reaching such high levels, it’s no surprise that people are looking to release equity in their current homes in order to free up capital to invest in popular destinations where they can expect good rental yield. Conversely, there are many people selling up entirely and opting to make outright purchases overseas with the proceeds from the sale of their UK homes.
Here at Conti, we’ve seen cases of first-time buyers opting to purchase property abroad after finding themselves priced out of UK the market. Bargain property prices, historically low interest rates, and the fact that the pound’s value is improving against the euro are all making it much more affordable for them. There’s no doubt that the recent banking crises and economic gloom, across Europe in particular, have taken their toll on the international mortgage markets. But it’s still very possible to obtain finance, especially if you have a healthy deposit to put down and can demonstrate that your finances are in good order.