Now that Christmas Day is over for another year, people’s thoughts may be turning back to the distressed state of the housing market in the UK.
Actually, compared to some countries, things aren’t too bad here! But if you’re completely fed up with the thought of living in the UK, there are some good bargains to be had abroad and it could even be possible to secure an attractive contractor mortgage with which to buy one.
Take Ireland for example. Since peaking in 2007, house prices in Dublin have decreased by more then 50%, and they’re still falling. In the first half of 2011, prices throughout Ireland dropped by 8.5%. A recent study by the Global Property guide found that the Irish housing market was the weakest performer in the world.
However, before you start planning your move to Ireland, remember the country’s economy is tied up in the current Eurozone crisis and although property prices are cheap, there’s no telling what might happen next.
If you’re happy to stay in this country, but want to generate some rental income, buying a property in Atlanta or Detroit could be the answer. It’s reasonably straightforward for Brits to buy properties in the US and prices are starting to increase in a lot of areas.
Back in the Eurozone, the Spanish property market has seen plummeting house prices since 2008. Spanish mortgage lending institutions are prepared to grant 100% LTV mortgages suggesting they believe prices will not drop any further.
Both Greece and Cyprus are seeing falling house prices, but unlike Spain, lenders are not offering incentives to foreigners wanting to buy. Bulgaria and Hungary are also no-gos at the moment with prices expected to fall further.
Buying a coastal property in Portugal could be a better bet, but avoid the cities as austerity measures are hitting hard there.
We’ll have to wait and see exactly what long-term affects the Eurozone crisis has on the global housing market. Maybe it would be better to just sit back and dream of owning an overseas property at the moment, rather than actually going out and buying one!
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