Overseas Property Buyers Look Further Afield

Overseas Property Buyers Look Further Afield
Monday, 16th April 2007, 13:02
Category: Healthy Living
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Investors buying property abroad are becoming more adventurous and looking further afield than traditional "home in the sun" holiday destinations, according to a new survey.

France and Spain are still the most popular choices but the percentage of enquiries relating to Australia have doubled since the beginning of the year, more than doubled for New Zealand and trebled for Canada, reveals research from foreign currency specialist HiFX.

The league table, based on the number of overseas property enquiries the foreign currency specialists receive per country, reveals increasing enquiries from Brits looking to permanently emigrate.

Spokesperson Mark Bodega said: "We often see an uplift in the number of emigration enquiries around this time of year as people emerge from the British winter and are keen to realise their dreams of a new life abroad before the year is out.

"But some of the figures are quite alarming. This month we have seen an increasing number of enquires for the ever popular emigration destinations of Canada, Australia and New Zealand.

"Canada has relaxed its immigration policies and skilled workers such as plumbers are being tempted in droves because the cost of living there is cheaper than in Australia and New Zealand.

"With a typical three bedroom detached property in New Zealand costing £100,000, no stamp duty or Capital Gains Tax and year-on-year capital appreciation of between 10-15%, its easy to see why so many of us are upping sticks and moving out there for good.

"A paradise for lovers of the great outdoors the lifestyle on offer is healthy, fun, and affordable.

"You are still getting lots of retirees choosing Spain and France but many younger people with families are looking at more permanent relocations."

But one destination which appears to have fallen out of favour with emigres and overseas holiday home buyers alike is South Africa - with HiFX receiving no enquiries about the area for several months running.

Mr Bodega said: "We have seen a lot of fluctuation in the South African Rand recently and coupled with ever increasing airfares this could be making South Africa seem like a tricky destination for both people looking to emigrate and those just after a holiday home."

It is particularly important to consider currency fluctuation when emigrating as the time it takes between making a successful visa application and eventually moving abroad can be anything from nine months to four years.

During this time, exchange rate fluctuations can have a huge impact on a person’s future wealth because at various points during the process they will have to convert some or all of their assets into the local currency of the new country. When transferring all your worldly goods even small fluctuations can have a huge impact.

Mr Bodega explained: "Last year we saw the Australian dollar fluctuate by almost 10 per cent (9.7 per cent) so when moving £250,000 'down under' in 2006, currency fluctuation meant you risked losing as much as £24,250.

"Making the decision to move to a new country is a big undertaking, both emotionally and financially. The last thing that any family taking the leap would want to do is unnecessarily lose as much as tens of thousands of pounds in the process.

"But unfortunately this is exactly the case for the many people who entrust the transfer of their assets from old to new country to their regular high street bank.

"This huge loss could be avoided simply by people being aware of the alternatives and making sure they get the best rate for their money, early on in the process."

At the start of the year only 2% of enquiries received by HiFX related to Australia - rising to six per cent last month. A similar pattern was seen for New Zealand (two per cent to five per cent) and Canada (one per cent to three per cent).

In the same time France dropped from 29 per cent to 27 per cent and Spain from 28 per cent to 25 per cent. Property hotspot Bulgaria is also suffering a downturn from 10 per cent to eight per cent