In the first study of its kind, we’ve revealed the best value destinations to buy a second home overseas.
Buying a second home abroad continues to be a popular investment option. It provides a holiday haven when you want to get away from it all and can be a useful second income through lettings.
We’ve compared the costs associated with buying a second home, to help you narrow down your search on where you would like to buy. In the FairFX Property Abroad Cost Calculator we compare the average price of a property in over 30 countries, based on the average cost of a two-bedroom apartment. The cost calculator also factors in the cost of buying a car overseas and a year’s worth of petrol, utilities and daily essentials such as food and drink.
Other factors do have to be taken into consideration when buying a property overseas. Political, economic and cultural situations in the country you’re looking at have to be considered of course. But the FairFX Property Abroad Cost Calculator helps you to decide which countries are financially viable.
Turkey for example is the 2nd most affordable destination to buy a second home (the average cost of a two-bedroom apartment is £104,225), but some buyers may be put off by recent political turmoil.
Bulgaria (average property price of £90,734), with its incredible scenery which combines beaches and mountains, is fast becoming a popular holiday destination and tops the list for most affordable country.Other countries featured in the top 10 include Ireland, Czech Republic, Hungary and South Africa.
At the other end of the cost spectrum Monaco tops the list for the most expensive destination – an average apartment, along with utilities, a car and living costs will come in at a whopping £6m. Switzerland is next, with combined average costs coming to more than £1m.
Top tips for making payments overseas
If you’re transferring money overseas to buy a property, plan ahead so that you don’t end up paying over the odds. If you need guidance on getting the best exchange rate for your money, speak to our team and they’ll be able to help you maximise the value of your transfers.
1. Compare rates on a like-for-like basis
The foreign exchange market can be very volatile with rates changing from one minute to the next. If you’re looking for the best rates, remember to compare rates from suppliers at the same point in time. This can be tricky if you’re comparing too many suppliers and is easier to achieve online, but try to keep it within the shortest time frame possible otherwise the market might have moved by the time you look at provider number five.
2. Don’t leave it until last minute
If you know you’re due to make a payment for your property deposit or mortgage, speak to an expert in advance to make the most of favourable exchange rates or mitigate your risk. This is also the case when you’re visiting your second home overseas, plan ahead with your spending money so that your pounds go further.
3. Consider locking in at today’s exchange rates
Make the most of dedicated payment options from currency experts such as a forward contract. That means if today’s rate is favourable you’re able to lock it in, so make sure you speak to your currency provider to understand your options.
4. Hidden fees add up
Before you use a money transfer service, ask about all the fees and charges involved. What is their foreign exchange fee? Do they charge a transaction fee, a “processing” fee or an “out of currency” fee. Don’t get caught out by hidden fees.
Don’t choose between security and speed when transferring money overseas. Move money in real time, wherever you are.
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