Is owning property abroad just a pipe dream? All realities have to start somewhere, and as A Place in the Sun Live gears up to take over Birmingham NEC on 26 September, we look at the top ten reasons for buying property abroad.

1. It can offer a great return on investment
Although the property market in the UK has slumped, buying abroad is still a good investment and can make a good profit -you just need to know where to look. There are 196 countries in the world that are recognized by the UN. Of these, only four are officially ‘credit-crunched’, meaning it’s getting a lot harder to borrow there and property prices are being squeezed. Many other countries are experiencing rapid economic growth, including much of Eastern Europe, Turkey, the United Arab Emirates and Brazil. And even in two ‘credit-crunched’ nations – the US and Spain – whose property markets downturned before ours, many experts believe prices have bottomed out, meaning there are some amazing bargains to be had.

2. It can save you money
It’s only natural that during the credit crunch everyone is trying to save as much money as possible. So although it may seem crazy to even think about buying property abroad, it could be a move that will save you thousands of pounds in the long run.

3. It could pay for itself
An overseas property in a desirable location could pay for itself by being rented out, meaning you wouldn’t even know you had a mortgage. Many owners of holiday homes find that they can generate an income of ten per cent or more of the purchase price each year in the peak season, leaving the owners plenty of time to use them during the ‘shoulder seasons’ of late spring and early autumn.

4. It can help you get your foot on the property ladder in the UK
The average age of a first time buyer in Britain is now 34, as many people struggle to get their foot on the property ladder. With incomes far lower than the amount needed to secure a mortgage for property in the UK and mortgage companies demanding higher deposits in current climates, many young Britons are doomed for a life at home with their parents. But the new trend among forward-thinking youngsters of buying abroad in order to buy in the UK should be considered by more. With properties abroad being more affordable (and even cheaper off plan), and some developers offering to pay a deposit and fees, it has become an attractive prospect to buy a property, wait for it to be built and then sell it at an instant profit leaving enough money left over after settling the mortgage to secure a second mortgage on a property in the UK.

5. It’s a wonderful life
A recent report by Savills estimates that there are currently 425,000 UK-owned overseas properties - an increase of 35,000 units in the past 12 months. And with ‘ideal holiday location’ rated the most important factor (85%) when buying an overseas property it seems that it’s the lifestyle that attracts buyers rather than just the opportunity to make a profit. Brits have recognised that a holiday home abroad can enhance your life and wellbeing and not just your bank balance. It can also be a great way for children to be exposed to a different culture and learn a foreign language.

6. Fed up of Brown’s Britain?
Emigrating has become a popular choice in recent years with records from the office of National Statistics showing 400,000 Brits left the country to live abroad in 2006. And this figure is set to be even higher in 2008. So, if you are fed up with the sharp increase of the cost of living in the UK, then a home abroad could be the answer. Even with the recent drop in value of UK property, your money can go further overseas. Swap your three-bed semi for a large villa with a pool and a view - sounds tempting?

7. Holidays that are a real holiday
Ever feel like you need a holiday to get over a holiday? Going on holiday can be really stressful at times, finding your bearings, getting around and finding the best bars and restaurants. With a family, it can be hard to know what is safe for the kids and how to entertain them. Holidaying every year at your own place combines the best qualities of being on holiday and at home. You get nice weather, a change of scenery and a relaxing break without the stress of finding your way in a new place. Plus you can travel light as you already have your toothbrush, swim suit and towels waiting for you at the other end.

8. Retirement nest egg
Buy a property now to secure your future whether you want to live abroad when you retire or simply top up your pension. By buying now, the property will start paying for itself with rentals and the value will have appreciated by the time you come to retire. You can then decide if you want to retire to your dream home abroad or sell it to pay for a fun fuelled lifestyle in the UK. Many people buy overseas property in their thirties or forties - taking advantage of mortgages to fund much of the cost andservicing the debt from rental income. By the time they’re ready to retire, the loans are paid off and the rental income can be used to top up or replace a pension.

9. Overseas mortgages are available
It has become more difficult to secure a mortgage in the UK due to the recent economic downturn, and those who are still offering them require large deposits. But this is not always true of mortgages obtained overseas. Many people don’t realise that they can get a mortgage from the country in which they are buying the property. A recent survey by HiFX found that fewer Britons are financing their homes abroad with mortgages from the UK and that many are planning to find a mortgage in France, Spain or elsewhere this winter. It is important that if you plan to get your mortgage abroad you do so cautiously, researching local laws carefully but there is no reason why it can not be done and be very financially rewarding as well.

10. Because YOU can
Many people believe that they can only dream of owning a place in the sun but this is not the case. With increased interest in overseas property in countries not typically considered, there are now more countries than ever for you to choose from. Turkey, for instance, boasts one of the most beautiful coastlines in the world and apartments can be bought from as little as £18,000. In Romania you can buy a house for as little as £9000 which is the equivalentof a small car in the UK.

 

see also

Search: Find  your dream properties overseas

Advice: Get expert advice on buying abroad

A Place in the Sun Live: Find out where this year's exhibitions are taking place

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