Overseas holiday homes: The pound travels further in Florida when it comes to snapping up property

| September 22, 2012 | 0 Comments


By
Harry Glass

09:31 EST, 22 September 2012


|

09:46 EST, 22 September 2012

People looking to buy property overseas will see their money go furthest in Orlando thanks to a good exchange rate and lower fees, a study of 10 holiday home hotspots has found.

Buyers can snap up a four-bedroom home with a garden and private pool in Florida’s Orange County for around £125,000, according to research from HSBC.

By comparison, the price of an average house across England and Wales stands at just under £163,000, according to Land Registry figures.

Florida winner: 'Huge discrepancy' in size of property buyers can purchase on the same budget; (below) Disney World is one of the state's main attractions

Florida winner: ‘Huge discrepancy’ in size of property buyers can purchase on the same budget; (below) Disney World is one of the state’s main attractions

Florida winner: 'Huge discrepancy' in size of property buyers can purchase on the same budget; (below) Disney World is one of the state's main attractions

Florida winner: ‘Huge discrepancy’ in size of property buyers can purchase on the same budget; (below) Disney World is one of the state’s main attractions

The HSBC study found a ‘huge
discrepancy’ in the size of a property UK buyers can purchase on
the same budget overseas, due to the effect of exchange rates, tax
levels and the strength of local markets.

The same £125,000 budget would only
buy a one-bed studio apartment in Nice in southern France or Gryon in
the Swiss Alps, for example.

HSBC said Florida’s property market
is only just starting to see prices rise again since the bubble burst in
2006, helping foreign buyers to get more for their cash. Sterling and
the US dollar have seen a relatively stable relationship since March.

What a £125,000 and a £400,000 budget will buy respectively

Orange County, Orlando, United States – four-bed house, six-bed house

Alicante, Costa Blanca, Spain – three-bed house, five-bed house

Bodrum, Turkey – three-bed house, four-bed house

Malaga, Costa del Sol, Spain – two-bed apartment, three-bed house

Faro, Algarve, Portugal – two-bed apartment, four-bed house

Paphos, Cyprus – two-bed apartment, three-bed house

Pisa, Tuscany, Italy – two-bed apartment, three-bed house

Palma de Mallorca, Spain – one-bed apartment, four-bed apartment

Nice, France – one-bed studio, three-bed apartment

Gryon, Switzerland – one-bed studio, three-bed chalet

A spokesman for HSBC said: ‘The pound
received some indirect support as a safe haven, with the Government’s
commitment to tighten finances attracting investors into the UK bond
market.

‘This helped the pound to keep pace
with the more traditional safe haven of the U.S. dollar, which now has
markets increasingly wary, especially as the U.S. elections approach.’

Spain’s Costa Blanca offers the most
space for money in Europe out of the locations studied, researchers
found. The property market there experienced a fresh slump this year and
£125,000 will buy a three-bed house with a shared pool, the study
found.

The HSBC spokesman said the euro has
had a tough six months, adding: ‘Currency markets became increasingly
nervous about the euro’s life expectancy as the Greek general election
in May revealed opposition to the bailout programme and associated tax
hikes and government spending cuts and the threat of a Greek exit loomed
large.

‘As the mood on Greece improved,
fears regarding Spain intensified, centred on its weakened banking
system in the wake of a burst property bubble and ongoing recession.’

The research was carried out last month, looking at 10 locations popular for buying homes abroad on three different budgets.

The findings took exchange rates,
taxes and fees into account to calculate how far budgets could stretch,
using information from overseas property sellers to work out how many
bedrooms and what facilities were available.

Second place: Looking down at the beach in Alicante

Second place: Looking down at the beach in Alicante

Sixth place: A villa in the Cyprus sun near Paphos

Sixth place: A villa in the Cyprus sun near Paphos

Seventh heaven: A view near Pisa in Tuscany

Seventh heaven: A view near Pisa in Tuscany

Filed Under: finance news

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