UK overseas property buyers’ money currently goes furthest in Orlando, US, where a £125,000 budget can purchase a four-bedroom home with a large garden and a private pool, compared to a studio apartment in the Swiss Alps, according to the first annual HSBC Overseas Property Report.
Florida’s property market has reached the bottom since the bubble burst in 2006, with prices just starting to rise again, enabling foreign buyers to obtain a relatively large home for their budget, which is boosted by a favourable exchange rate (1.57) and low level of purchase taxes and fees (5%).
The pound to euro exchange rate has increased the most over the past six months, largely as a result of the on-going euro zone crisis. It is up 5.7%, giving buyers with a £125,000 budget €8,563 more to spend. This will particularly grant those looking in Cyprus and Portugal higher purchase power, as purchase taxes are comparatively low. Currently Costa Blanca, Spain, offers the most space for money in Europe.
James Yerkess, HSBC Head of FX, said: “There is a huge discrepancy in the size of property that UK buyers can purchase on the same budget in some of the most popular overseas locations for second homes. This is a combined result of foreign exchange rates, tax levels and the strength of the property market. Orlando, for example, offers excellent purchase power right now, but European destinations vary and aspiring buyers who are more flexible on location should weigh up their options to secure the most space and best facilities for their money.
View the original article here