Buying a new-build property overseas
BBC Good Homes Magazine, 1 June 2007
Thinking of investing in a second home abroad but don't know where to look? Follow our expert guide to finding your own sunshine spot
SPAIN
According to the Office of National Statistics, 27% of British homeowners abroad have properties in Spain, keeping it firmly at the top of the hot spots.
Charles Weston-Baker of Savills says, 'Spain remains the number one holiday destination, attracting more than seven million British visitors each year. 'It's hardly surprising, therefore, that there is steady growth in the property market there. However, rather than budget apartments, clever investors are today after quality developments that don't cost the earth.'
Years ago, people flocked to the coastal resorts of Costa del Sol and Costa Brava. These are now seen as overdeveloped and overpriced, so developer Promotora Golf Fain SL has turned its attention inland where the air is clean. Situated near the hillside town of Arcos 'Clever investors in Spain are after quality developments that don't cost the earth' de la Frontera in 440 acres of Andalusian countryside, Arcos Gardens Golf Club and Country Estate is the brainchild of landowner Fernando Mora-Figueroa and his family, who have owned the site since 1997. The development, due for completion in 2010, will include 470 properties, from two-bed town houses overlooking the golf course to five-bed luxury villas in the hillside. The two bedroom town houses, Fairway Gardens, are the first stage of the project and due for completion this summer. They are designed in the traditional Andalusian farmhouse style, with arched windows, vaulted ceilings. stone flooring and wrought-iron details. They have impressive green credentials, too, as they're built using local materials, with solar panelling and double-glazing as standard. Project architect Colin McLundie says, 'We felt it was important to show environmental commitment to the project, as well as to nearby industry, putting money back into the area. We've also hired local trades people, so they could be on the doorstep should anything need servicing later on.' Apart from the golf course, there is a spa, tennis courts, tapas bar and equestrian centre, or you can sample water sports on Lago de Arcos, a 15-minute drive away.
Currency exchange
Buying abroad often means taking advantage of lower prices. But this gain is lost if you swap currencies at the wrong time. If you buy a home worth £250,000, bank charges for converting to local currency can vary by as much as 4% - a buyer could lose or gain as much as £10,000. But if you use a currency exchange firm to buy in advance at a fixed rate, you don't pay fees. 'A huge loss could be avoided by making sure you get the best rate early on/ says Mark Bodega of HiFX. Currency firms can also warn you about problems in specific countries. Thailand's government shuts down currency sales for long periods/ says James Hickman, properly consultant for Caxton FX. 'You can buy homes in US dollars, but you must first buy it in that currency, then convert it into Bhat in Thailand. That’s expensive.