That’s according to overseas property expert Simon Conn who has also flagged up Turkey as having potential for anyone considering buying a property abroad this year.
He said that while these places have all grown in popularity and, as such, interest in buying homes there have also increased, these locations were not without their risks.
Indeed, Cyprus and Greece were both emerging from economic problems and, as a result, borrowing in both countries was difficult. Meanwhile, Turkey’s eastern border could be a cause for concern if the war in Syria escalated once more.
Conn also mentioned Thailand, which has got busier thanks to interest from clients in the Far East, Australia and New Zealand, amongst his list of places which could prove popular to overseas buyers in 2019. He also identified the Caribbean, Ireland, Germany, Canada, Malta and Holland as other places of potential interest.
The Brexit effect
In 2018 France, Spain, Portugal, Italy and USA, the traditionally popular hotspots for British buyers, were quite steady, experiencing no dramatic uplift in interest. Conn blamed the pressure on the pound for making setting up costs and the actual purchase higher than in previous years.
Brexit will also have had an impact on buyers. Conn said: “Once a decision has been reached over Brexit, I expect the overseas property market to have a more dramatic spurt as clients can then plan and purchase with a degree of comfort, knowing what their funds – and any subsequent mortgage, if required – will allow them to buy.
“This is especially the case for British buyers if the exchange rate recovers in their favour.”
For anyone interested in buying in this year’s property hotspots, Conn offered an idea of the mortgage rates they could expect. He said these rates were typical, and could vary depending on each buyer’s overall personal financial profile, how much of the property’s value they wished to borrow and the purchase price. Location, type of property and amount borrowed were also factors which could influence interest rates.
France
Mortgages are available at around 80% to 85% loan-to-value (LTV) although better lending terms were available for loans of 70% or less.
Spain
Mortgages are available up to 70% LTV, with better lending terms available for loans of 60% or less. The Canary Islands and the Balearics are increasingly popular, with LTV rates on a par with mainland Spain.
Portugal
Mortgages are available up to 80% LTV. Better lending terms are available for loans of 70% or less.
Italy
Mortgages are normally available at a maximum of 60% LTV, although in some cases it can go up to 70%.
USA
Mortgages are available at 70% loan-to-value, or up to 75% in Florida.
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