Looks like you have entered an invalid amount. We will need this to compare your money transfer.
A recent study released shows that 15% of all properties purchased in Spain this year came from UK citizens buying abroad. Relatively, that’s a very large number for just one country to contribute. Just at first glance from these statistics, its not hard to imagine that UK’s buying power overseas is not declining at all. The question we want to answer is whether it is an easier decision for the citizens of the United Kingdom to spend overseas.
Recently the nation was shocked to learn that they had said ‘yes’ to the referendum of leaving the EU. This of course set off a motion of events which impacted the country both positively and negatively. One of those effects was the pound dropping in value and property prices wasn’t. The house prices in the UK have been increasing at an exponential speed since 2008-2009 but we saw no halt or dip since the pound dropped in value.
Since this summer property prices have been fairly expensive in relation to average household income. Is this why the UK citizens are buying property overseas?
"No-one ever buys a property based on exchange rate alone, but for many astute foreign buyers the pound’s abrupt fall this week may prove a tipping point," said Nicholas Finn (Executive director of Garrington Property Finders)
A quote given from a property expert, Nicholas Finn, suggested that a drop in exchange rates isn’t a causality of buying a property, however it certainly could be the deciding factor in making a decision. If an average household can only afford something which is less than what they bargained for then buying a property overseas and getting a lot more for your money is definitely a plausible idea.
“Zoopla said the average home has piled £19,348 onto its value from January to early December - equating to an increase of £56.57 per day typically.” – Express
For average household their property is sitting on a gold mine which they can cash in on at any time. These owners are more likely to reinvest into another property and far more likely for that property to be overseas. With an average rise of £56.57 per day it’s hard not to look at it as valuable investment.
Where are UK nationals going for their overseas properties?
According to a report released by RightMove, the top 3 locations UK nationals are thinking of moving to this year are Spain (30.4 Million search - 8% increase), France (16.8 Million search - 2% increase) and Italy (6 Million search - 8% increase). For each of these locations an average of 50% buyers are financing their payments by cash and 25% by selling to buy.
1 in 4 of those buyers are going to sell of their homes in the United Kingdom to buy another overseas. What we can gather from this is that buyers A) have a better investment in other areas of Europe and B) their value for money is far better in these locations.
The buyers will be converting the money in euros before buying their property. Could this mean that exchanging their GBP in for EUR can give them an edge on their overseas property buy?
In the report released by RightMove all the locations have shown a growth in year by year values. The events of this year are taken into consideration which supports the idea that UK’s economical situation is a certain contributor to the status of emigrants and overseas property investment.
Vorto Trading partners with SendThatCash for foreign exchange comparisonTue, 02 May 2017 - 12:32 AM