An increasing number of adults are looking for alternative routes to homeownership, with 84% dreaming of owning a property abroad, according to research from UK house raffle provider, Cloverhut.
In fact, Cloverhut’s research found that 49% of Brits believe Brexit will prevent UK nationals from investing in property in Spain and, coupled with the negative press surrounding house raffles, many are put off taking the first step.
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Following the release of these findings, we spoke to Cloverhut’s managing director, Sascha Badelt, to gain a greater insight into what Brexit actually means for those considering property investment in Spain, as well as the stigma that is attached to house raffles in the UK.
Cloverhut recently conducted research into the holiday home destinations Brits lust after the most. What were the key findings?
“Our research revealed several key findings – some more surprising than others.
“The majority [84%] of Brits dream of owning a property abroad, with almost half [49%] revealing a home in Spain would be at the top of their wish lists.
“More than a third of Brits would ideally like to own a house with a sea view, closely followed by a villa with its own pool, and almost half [49%] of respondents said they consider an overseas property a good investment opportunity.”
Are you surprised that almost half [49%] of Brits believe Brexit will prevent UK nationals from investing in property overseas?
“Not at all. Brexit has raised several questions for UK nationals about what their rights are and how the path towards homeownership in Spain may have changed.
“Spain is a popular destination for British tourists, and figures show that 18 million UK passport holders visited the country in 2019. It’s unsurprising that buying a property in Spain is an aspiration for many, but it is crucial to understand the implications that must be considered.”
What advice do you have for those that may be worried about Brexit affecting their plans to purchase a holiday home abroad?
“Brexit shouldn’t deter those who have made the decision to own a home in Spain, as none of the fundamental aspects of buying and owning property in the country has changed.
“There has been a lot of talk about the risks associated with buying property in Spain, but none of what’s being said is true. There are even signals that the number of UK citizens making the choice to buy property and live in Spain has risen a lot due specifically to Brexit, and the Spanish construction sector is moving once again.”
What are the top locations in Spain for buyers to get the most worthy investment?
“Different locations offer different things, and it’s important to choose the location that best aligns with your investment goals. People should do their research into what makes the location special, and if they are considering buying to tourist rent, they must think about what makes this appealing.
“Alicante’s mild winters and hot summers allow investors to maximise on tourist rent, while Benidorm’s sandy beaches, local entertainment, and blue seas guarantee sensational attractions all year round.
“On the other hand, Valencia has seen sales go up approximately 16.7% year on year, according to Halo Finance, thanks to tourists’ desire for the Mediterranean lifestyle and city feel.”
Are there any schemes available for those considering purchasing a property in Spain?
“As I previously mentioned, Brexit hasn’t changed non-EU residents’ rights to buy in Spain. In fact, the Spanish government is actively encouraging non-EU residents to purchase Spanish property with deals like the Golden Visa scheme.
“This is a more flexible residence option for third-country nationals who make a substantial capital investment in Spain. It provides the freedom to come and go as you wish, including access to public services, without having to become a full resident.”
44% of respondents said lack of money is the main thing preventing them from purchasing a holiday home overseas. What are the main costs associated with buying abroad?
“It doesn’t necessarily cost more to purchase a property in Spain after Brexit. All non-EU nationals pay the same fees as EU national buyers when they purchase property in Spain.
“However, it’s important to keep in mind that they will need to pay notary fees, property registry fees, NIE certificates charges, property purchase tax, legal adviser fees, stamp duty, if applicable, and other miscellaneous charges, including bank, courier, and translation fees.”
With UK house prices continuing to rise, many people are looking for an alternative route to homeownership. Why are house raffles becoming increasingly popular?
“It’s no secret that homeownership is becoming increasingly out of reach due to price rises and other factors. As a result, many are looking to alternative routes to becoming a homeowner, and with our raffles, anyone can be in with the chance of owning their dream holiday home.
“It’s important that those considering house raffles read the full terms and conditions of the competition, as well as checking the reviews of people and companies running the prize giveaways to gauge whether they are reputable.”
There can often be negative press attached to house raffles. What is your opinion on the stigma, and why should people trust Cloverhut?
“Our company values are transparency and security, and we ensure these values are always reflected through our raffles. We’re regularly challenged due to mistrust created by other big players in the industry.
“We want to change the way people view house raffles and aim to give entrants peace of mind and offer them a real chance to win the property of their dreams with our 100% delivery rate.”
What makes Cloverhut stand out from other house raffle providers?
“Other house raffle providers hide technicalities in the fine print, which can lead to winners receiving a less significant cash prize. This goes completely against our transparency policy and is why we do not include any small print in our promotional content.
“We also don’t continually add numbers to meet demand. Once they are sold, we close the raffle. This means that if an entrant chooses to buy multiple tickets, they can increase their likelihood of winning.
“Our raffle draws are streamed by the team and are held before a notary to ensure they are conducted in a fair manner. We do this so that all entrants can see the winner picked in real-time and that the draw is fair.”
Any thoughts on the future of your company and your dreams?
“Our goal is to become the go-to house raffle in the UK for Spanish properties. We believe we are introducing a new and exciting product to the market: easy access to an affordable home on the coast of Spain.
“Our aim is to progressively conduct more and more raffles to provide entrants with a greater opportunity of winning!”
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Millie is a perfectionist with a passion for property and writing articles. You’ll find her researching the latest housing trends and the newest up and coming areas worth investing in. Read more about Millie here.