Most British people purchasing overseas property for lifestyle purposes are cash buyers, despite mortgage rates in the Eurozone currently being at historic lows, according to research from OverseasGuidesCompany.com, publishers of SpainBuyingGuide.com and FranceBuyingGuide.com, which showed Spain and France as the two most popular destinations.
“Our recent survey showed that 60 per cent of people buying abroad as a second home would use cash savings, with 18 per cent buying with a mortgage and the remainder using either equity release, a pension or another source,” said Angelos Koutsoudes, Head of OverseasGuidesCompany.com.
“Understandably, it was higher for people buying to relocate, with 69 per cent using cash, and lower for those buying overseas for investment, with 42 per cent buying outright with cash and 34 per cent gearing their property with a foreign mortgage.
“OverseasGuidesCompany.com’s survey also revealed that resale properties are most in demand from Brits looking for second homes, preferably those that need nothing doing to them (48 per cent) or somewhere that needs some minor work (34 per cent). Meanwhile, discounted resale property in need of renovation accounts for 14 per cent of the market and new-build (2 per cent).
“Of concern was the number of people who would lose money unnecessarily when buying abroad, simply by not using a currency transfer specialist, such as SmartCurrencyExchange.com to send money between the UK and their overseas bank account. Only 50 per cent of those buying to relocate said they would use a currency specialist – and the figure drops even lower for second homebuyers (46 per cent) and investors (35 per cent).”
Source: The Movechannel