You are here: Home - Mortgages - Buy To Let - News -

Warning over ‘forgotten cost’ of buying property abroad

Written by: Adam Williams
People looking to purchase a dream home in the sun have been warned about the perils of buying property abroad.

Hargreaves Lansdown said that while many Brits successfully purchased homes abroad, there are still risks involved.

It said a key consideration which is often forgotten is the effect exchange rate movements can have on the overall cost of a property.

Spain, France and Italy are three of the most popular locations for foreign homes and it said the exchange rate between the euro and the pound has been ‘volatile’ in recent years.

This has generated mixed results for people buying property in those three nations.

A home in Spain worth €200,000 in 2007 has lost almost a third of its value due to currency and economic factors. Today that property would be available for £100,492, compared to £146,854 seven years ago.

A similarly priced property in Spain would have fallen to £135,420 while France grew moderately to £152,422.

Outside of Europe, the cost of buying a property in Australia has almost doubled since 2006 in sterling terms, it warned.

“Many of us dream of owning our very own ‘place in the sun’,” the firm said.

“The lure of warmer climates or delicious cuisines can indeed make purchasing a property abroad an attractive prospect. However, as one would imagine, there are a number of charges and fees involved in buying your dream home overseas.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • @YourMoneyUK Is this actually (very sadly) a bad news story @emmalunn? If the number of people qualifying for HTS i…
  • RT @BoonBrokers: “Obviously, these practices are totally unacceptable and we would hope that most estate agents would be as horrified as us…
  • “Obviously, these practices are totally unacceptable and we would hope that most estate agents would be as horrifie…

Read previous post:
TSB takeover: an update for investors

The £1.7bn cash takeover of TSB Banking Group plc by Banco de Sabadell has been approved by regulators and the...