The increasing ease with which UK citizens are able to move to Spain is a factor giving a major boost to the Spanish property industry, according to Saga.
July 11, 2007 (Press Release) --
The increasing ease with which UK citizens are able to move to Spain is a factor giving a major boost to the Spanish property industry, according to Saga.
Saga, which caters for older customers, notes that a variety of favourable factors mean it is easier for people to move than it once was, particularly for those who have owned their own homes in the UK for many years, seen their children leave home and have money in the bank.
Chris Simmonds, managing director of Saga overseas homes, said that lifestyle benefits such as the large number of golf courses, food, sea views and local cuisine were all factors in the attraction of Spain.
"Retiring to the sun has become easier, cheaper and more attractive to many UK residents," he added, stating that one increasing benefit is the growing extent to which people feel at home in Spain due to the increasing size of the ex-pat population.
In addition, he said: "It's also easily accessible from the UK thanks to low cost flight operators and many Saga customers have even found that they see more of their family with a home in Spain than they did when resident in the UK."
Of course, he notes, the situation is easier for older people with money to spend and a house in Britain to sell, which may point the way for buy-to-let investors: Younger people heading to Spain may be less able to buy than older people. While Mr Simmonds states that Saga clients prefer mortgage to equity release in house purchases, those not on the UK housing ladder may be much more likely to take the letting option. Thus those looking to invest in property in the country on a buy-to-let basis should look at where the young ex-pats are going, not those retiring to a home near the golf course.
The market for British ex-pats buying homes in Spain is certainly tilted towards "the dream chasers and the lifestyle buyers rather than the investors", Laura Vergani, head of media relations at Barclays Global Retail and Commercial Banking, said. But that is not the whole picture, she notes: "Clearly there will be investors among them [buyers in Spain] as well," she added.
Ms Vergiani added that Barclays still viewed the market favourably for those who invest in the medium to long term. She said: "There is a slow down at the moment, but we believe the long-term outlook is positive for the Spanish property market."
She concluded: "Whether it's a lifestyle choice or an investment, we always suggest that it will be viewed as medium to long-term."
Saga, which caters for older customers, notes that a variety of favourable factors mean it is easier for people to move than it once was, particularly for those who have owned their own homes in the UK for many years, seen their children leave home and have money in the bank.
Chris Simmonds, managing director of Saga overseas homes, said that lifestyle benefits such as the large number of golf courses, food, sea views and local cuisine were all factors in the attraction of Spain.
"Retiring to the sun has become easier, cheaper and more attractive to many UK residents," he added, stating that one increasing benefit is the growing extent to which people feel at home in Spain due to the increasing size of the ex-pat population.
In addition, he said: "It's also easily accessible from the UK thanks to low cost flight operators and many Saga customers have even found that they see more of their family with a home in Spain than they did when resident in the UK."
Of course, he notes, the situation is easier for older people with money to spend and a house in Britain to sell, which may point the way for buy-to-let investors: Younger people heading to Spain may be less able to buy than older people. While Mr Simmonds states that Saga clients prefer mortgage to equity release in house purchases, those not on the UK housing ladder may be much more likely to take the letting option. Thus those looking to invest in property in the country on a buy-to-let basis should look at where the young ex-pats are going, not those retiring to a home near the golf course.
The market for British ex-pats buying homes in Spain is certainly tilted towards "the dream chasers and the lifestyle buyers rather than the investors", Laura Vergani, head of media relations at Barclays Global Retail and Commercial Banking, said. But that is not the whole picture, she notes: "Clearly there will be investors among them [buyers in Spain] as well," she added.
Ms Vergiani added that Barclays still viewed the market favourably for those who invest in the medium to long term. She said: "There is a slow down at the moment, but we believe the long-term outlook is positive for the Spanish property market."
She concluded: "Whether it's a lifestyle choice or an investment, we always suggest that it will be viewed as medium to long-term."
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