High prices and instability within the UK financial markets have led to many first time buyers looking abroad to get their foot on the property ladder…
This phenomenon has been noted in The Telegraph where this breed of buyer has had to think outside of the usual buying strategy in order to secure a first home. Affectionately known as BARBies – buying abroad renting in England, they have taken a leap of faith and hedged their bets on properties overseas, and in many cases, done very well from it.
Where To Buy?
Once the decision has been made to purchase abroad the next problem is where to buy? Spain has long been a favourite with the British market until the excessive property prices and the Valencia land-grab situation. Bulgaria is very reasonably priced but supply far outstrips demand meaning that properties sit empty with many unoccupied. Portugal is emerging as a firm favourite and a long-term safe bet given the potential for capital growth in a vibrant market place and the excellent chance of rental income when not using it yourself.
Why Portugal?
Buying property in Portugal has never looked so good. Traditionally, the Algarve has been the most popular location, but the market for foreign investors is now expanding into more northerly regions, such as the Costa Verde and the Silver Coast, where prices tend to be lower, with the exception of Lisbon, Porto and some other fashionable areas.
The rental in the Silver Coast region is currently performing very well with resale prices starting at 65,000 euros. People are attracted by the temperate climate, friendly people and ease of travel from the UK. Portugal seems to have weathered the trouble affecting its neighbour Spain, with continued and steady growth, and taking out a local mortgage is becoming the norm with many British buyers. You will not find a friendlier welcome than a Portuguese one.
Surplus Properties For The UK Rental Market.
Many investors in the UK buy-to-let market are now struggling to rent out their properties. With uncertain times properties are no longer selling, vendors are being forced to cut their prices and landlords are reducing their monthly rents just to get tenants in their properties.
The UK now seems set for some turbulent times in the foreseeable future, so securing a Portuguese low interest mortgage is a good bet. As with purchasing in the UK independent legal advice is essential.
It is a win-win situation for the BARBies. Low overseas interest rates, a surplus of rental properties here in the UK (especially luxury city centre apartments) and realistic, affordable monthly rent. Typically being young, professional, first time buyers with a flexible approach to the live/work balance the property situation is not all doom and gloom.
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