As house prices and taxes are continuously on the rise in the UK, first time buyers are looking to find more affordable property across the sea. Research has shown that the number of 19-28 year-olds using cheaper fixed-rate mortgage services to buy abroad increased by four times in 2012. With the number of Britons in their 30’s buying abroad having increased by 25% from 50 people in 2009 to 79 people in 2012, this number is constantly and rapidly rising.
Amongst the locations for those buying overseas property, America seems to be ranking highest and most popular with those aged between 19 and 38. Research shows that this is due to an improving job market and a substantial number of plots on offer. Closely following in America’s footsteps are New Zealand, Australia and Spain.
Until now, the overseas property market was dominated by the over 69’s, however this niche of buyers has dropped by a dramatic 79% between 2009 and 2012. Young buyers have eagerly taken over to get their foot in the property door, explains David Kerns at Moneycorp, “Younger buyers are not letting the domestic housing market price them out of purchasing property altogether. More and more young buyers are going abroad to get themselves on the housing ladder. With the UK’s shortage of affordable properties, large deposits required and challenging mortgage applications, for the first time it makes sense for younger buyers to simply look overseas for affordable alternatives.”
With so many young people buying abroad and emigrating, it seems that the Government will indeed need to ameliorate and retain their efforts to keep Brits in Britain by taking a closer look at property taxes and perhaps offering alternative and more accessible options for first-time buyers.
Written by Sofia Kluge on Google+