With so many of us looking into buying a house in a sunnier place, is 202 going to be the year to buy abroad? And if so, where?
Property Reports recently spoke about how they had many enquiries from readers who wanted buy abroad. Last year, most exchange rates either slightly increased or stayed round about the same. According to Property Reporter, they saw spikes in enquiries when dates around Brexit were moved and from homeowners wondering if Brexit would happen.
With the ball rolling for Brexit, the exchange rate should start to improve. Property Reporter also commented that they suspect countries like Germany and Holland, who have been reluctant to lend in sterling will now open up.
In some countries and regions, there have been authorities that have tries to control foreign purchasers. This has been to protect any locals from being price out of the market. An example country of this is Canada. Areas of Canada have started putting in restrictions some of their states.
Those who are considering buying abroad need to be aware. Every country is different, so buying may include other costs that have not been factored in yet. These costs may be around covering legal fees or any government taxes. For example, in France and a few other European countries, 10-12% of the purchase price need to cover any legal fees or government fees.
Cyprus and Greece
Down in the sunnier area of Europe, tourism has started to increase, especially for Cyprus and Greece. With this, has come an increase in those interested in buying a property in either country. But, there continues to be issues in each country with borrowing money due to their difficult economic pasts.
Within the country, properties continue to have new-builds built and they are being purchased. The country has also mapped out potential areas for there to be developments. Even though most mortgages available are around 80%-85% loan-to-value, there are better lending options such as loans of 70% or less.
As may already know, areas around the Algarve, the capital of Lisbon and the Silver Coast continue to be popular for foreign buyers. The Mortgages are similar to France with most mortgages giving up to 80% loan-to-value. Although, there are still better lending terms that can be available for loans under 70%.
The country continues to flourish with Tusciany and Umbria becoming more so popular. In Italy, mortgages are generally offered at a maximum of 60% loan-to-value; however in some cases this can go up to 70%.
Spain continues to be a popular country with may new developments being built. There are mortgages on offer for up to 70% of the loan-to-value; But like other European destinations, you can find better lending terms on loans that have 60% or less.
The Canary Islands also remain very popular and also have similar rates to mainland Spain.
United States of America
The most popular states have remained to be California, Florida and New York. However, many are continuing to take an interest in Colorado, South Carolina and Texas. Most mortgages available are at 70% loan-to value. Although, Florida you can receive up to 75%.