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PostPosted: February 26th, 2010, 2:56 pm 
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Joined: January 20th, 2008, 1:32 pm
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The Telegraph and Savills published a report / story today. I've edited to what I thought were the interesting relevant bits.


"There has been a dramatic slump in Britons buying properties abroad, and one in 10 current owners now regret their purchase – while the rest of us increasingly regard homes abroad as lifestyle possessions and are relaxed as to whether values rise. ...

The survey shows about 430,000 foreign holiday homes are now owned by Britons. In 2008, as the downturn began, there was a 22 per cent drop in annual sales compared with the previous year, but during the 2009 recession, there was a further 80 per cent drop – meaning no more than a few hundred Britons bought abroad last year.

...

Purchases in exotic but largely unknown locations such as Cape Verde have plummeted and the idea of buying flats in places like Bulgaria and Egypt to let out, is a thing of the past. Even some classic long-haul spots such as the Caribbean have had a slump in demand. "Instead, purchasers have shifted to the trusted locations of Spain, the Balearics and Portugal, followed by the US and Italy," Gill says.

The survey shows that before last year's hiatus, one in five buyers in 2007 and 2008 had 75 per cent-plus mortgages. With prices down 10 to 30 per cent in most holiday areas – even more on parts of mainland Spain – many of these buyers are in negative equity. About 10 per cent of current owners say they regret taking the plunge overseas.

...

But the survey results are not all bad. Most respondents felt their homes had lost value but were relaxed about it, perhaps because the lettings market was doing well.

Almost two-thirds of those who let their homes, in addition to using them for family and friends, reported that 2009 bookings were well up on 2008, while only six per cent of the owners questioned had begun renting out for the first time because of the downturn.

Predictably, most properties bought by Britons had three or four bedrooms so were good for letting as well as living in. They were located within an hour's drive of major airports served by budget airlines, so were the most popular among renters, too.

Period village properties have become more popular than purpose-built resorts, although buyers choose ready-for-use properties, rather than "projects" requiring renovation. Most recent sales have been at the top end, but the survey shows more than 75 per cent of Britons' holiday homes cost less than £300,000, and 42 per cent cost less than £200,000.

While properties that require expensive flights have fallen in popularity, traditional locations such as France, the Balearics and Italy have swung back into favour and are tipped to perform well in 2010, too, thanks to the low prices available.

...

Agents in Italy also report that lifestyle buyers, not investors, are nabbing bargains. "We're seeing prices at their lowest since the downturn started. Buyers are desperate to sell and fear the market will take longer than expected to improve, so are prepared to accept very low offers," says Gemma Bruce of estate agency GK Italian Property.

....

Even so, Savills and HomeAway.co.uk think it will be some years before we see any return of off-plan sale frenzies and Britons buying investment flats in locations so obscure they could not be easily found on a globe.

Between now and then we will use our holiday homes primarily for quite a different purpose – our holidays.

2010 hot spots

Savills says three “classic” European destinations may see high demand and possible price rises this year
....
* France, especially the Dordogne and the south and south-west
* The Algarve region of southern Portugal
* The Spanish islands, especially Majorca – but not the Spanish mainland

The figures

* Britons own about 430,000 overseas holiday homes.
* 25 per cent of holiday homes are in France, another 25 per cent in Spain, and 25 per cent elsewhere in Europe.
* Top overseas city-break destinations outside the UK are Nice, Paris, Barcelona, Rome and New York.
* 80 per cent of overseas holiday homes are within 60 miles of a main airport.
* 25 per cent of homes bought recently were in purpose-built resorts; another 25 per cent were in cities; the rest were in village and rural locations."


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PostPosted: February 26th, 2010, 3:33 pm 
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Joined: October 25th, 2008, 1:31 pm
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Some interesting facts about this survey people who buy property ,or rent want the propery located within a hours drive from the airport, servised by budget airlines, This shows we need a direct flight to Lamezia for all the people on this forum


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PostPosted: February 26th, 2010, 6:54 pm 
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Joined: September 12th, 2009, 2:49 pm
Posts: 154
Only applies if you are letting to the Uk market mostly. I have let my property to Italians and they are not interested if it is near an airport , just a beach. Im full July and August....and week in October so far and not even advertised it yet.


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PostPosted: February 26th, 2010, 7:15 pm 
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Joined: March 9th, 2009, 7:37 pm
Posts: 52
hello sunflower
you seem to be successful in renting your place.
who do you use for advertising your rental property?
thanks


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PostPosted: February 26th, 2010, 7:25 pm 
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Joined: January 26th, 2008, 4:11 pm
Posts: 185
Location: West coast, Ireland & Calabria
The March issue of 'a place in the sun' covers the top 10 places to buy abroad in 2010. On price comparison only Italy has shown an increase in values between 2007 and 2010, with the exception of large discounts from distressed sellers in restored farmhouses in Tuscany and Umbria.
Overall positive outlook for Italy and expecting price increases for this year. Also the vast majority of buyers are Italians themselves.
Makes a good read when sitting in recessionary Ireland.


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