Brits buying abroad stay close to home this winter

HIFX, the currency specialist, today releases its seventh Global Property Hot Spots into trends for Brits buying property abroad and this month shows a strong surge in interest in the old time favourites France and Spain as they continue to beat off stiff competition from the bargain basement emerging markets such as the Eastern Bloc countries.

Together, France and Spain have made up just over half (55%) of all HIFX’s currency transactions for buying property abroad in November. During the same period enquiries relating to property purchases in a number of the newer hotspots either declined (Bulgaria, Turkey and Morocco), or remained the same Cyprus, Cape Verde and Dubai.

Mark Bodega, Marketing Director of currency specialists HiFX comments “Despite a fair amount of dabbling by investors in some more exotic locations, old time favourites France and Spain are still the first choice for British buyers looking for a holiday home or retirement home. With the markets in both countries having slowed down over the last 12 months, we are seeing some really good bargains coming up, and it seems that many canny Brits have also spotted this and are beginning to return to these traditional overseas markets in increasing numbers. Spain for example, pioneered the trend to own overseas property and is still one of the UK’s favourite destinations for a place in the sun. Whilst the market has cooled, the more traditional Brits are now looking for opportunities away from the traditional hotspots, in the lesser known costas and inland amongst the olive groves.”

HIFX, which buys currency for 12% of Brits buying abroad each year (25,000 clients annually), concludes that Brits buying property abroad fall into three distinct categories:

The Traditionalists

This is the largest group and covers people who have bought property in France, Spain and other locations close to the UK. These people are mostly buying holiday homes or homes to retire overseas. The close proximity means they can use the home for regular holidays with cheap flights, easily rentable accommodation and a quick escape to the sun. These people also look for a well established expat community to help them feel at home even when they are abroad.

The English Adventurers

These people are more daring and want to go further a field for their holiday home. They don’t mind travelling long distances and also often consider emigrating to their holiday home at some point. The Adventurers are still sun-seekers but in a much more exotic location than the traditionalists.

Hot Spot Investors

These financially driven people want to buy in places like China, Romania, Croatia and Hungary which could offer excellent investment returns. These countries also offer buy-to-let opportunities as a large proportion of local populations are renters. However they should be careful as the “fad” of these countries could disappear just as quickly as they have appeared.

Mark Bodega, Marketing Director for HIFX comments: “People buy property abroad for many different reasons but they tend to fall into three main categories. For some people it’s an emotional decision based on a lifelong dream, for others it’s an exciting step into the unknown and for some it’s simply a financial investment. However, regardless of what drives the decision people still need to carefully consider the currency risks associated with buying a property abroad – currency fluctuation can make a huge difference to the amount of money you pay and protecting yourself from these fluctuations should definitely be part of the planning process.”

For Brits who do live overseas or go abroad for long periods of time, HIFX has a regular payments plan allowing them to manage regular currency payments such as pensions, salary and mortgage transfers and because HIFX do not charge to send money overseas and have eliminated all receiving charges, they save their customers up to £300 each year.

HIFX’s regular payment plan also protects people against currency fluctuations, by fixing exchange rates for between six and twenty four months ahead, ensuring the same amount is debited or paid in each month and because everything is fully automated via a direct debit, customers have no need to speak to their bank each month.

For further information, visit hifx.co.uk.