Words: Ashley Rigg
Published: 20th February 2008
US now more popular than Italy, according to new figures
According to figures published by
Rightmove.co.uk, the US is now more popular than both Italy and Portugal among users looking for overseas property. Property searches increased 42% year on year to take the United States third in the list, just behind Spain and France.
| Country |
Searches in January 2008
|
Year-on-year change |
| France |
292,742 |
6% |
| Spain |
284,596 |
21% |
United States
|
227,948 |
42% |
| Italy |
114,398 |
33% |
| Portugal |
100,374 |
2% |
| Average |
|
25% |
According to Head of Rightmove Overseas, Justin Figgins, the results partly reflect a significant increase in the number of properties listed on the portal in Florida over the past 12 months, which inflate the US figures. However, there is evidence that the results reflect a general market trend. The five most popular overseas property locations on Primelocation.com mirror those for Rightmove.co.uk but with Italy swapping positions with the US. According to Ann Wright, International Business Development Manager of
Primelocation.com, US searches are up 33% year on year.
Price is a key driver in the holiday home market and declining value of the dollar and increasing value of the Euro is the most likely explanation for the trend. Although the sterling/dollar exchange rate is roughly the same as it was 12 months ago (see graph below), this is due to a rapid rise of the dollar against the pound in the last quarter of 2006. Interestingly, the rising dollar has coincided with a sharp upturn in people searching for
“property in Florida” on Google. Maybe buyers are reasoning that the dollar is not going to get any lower and now is the best time to buy?
User Comments
This is the time to buy in Florida. However there is a trick to this. The best way to buy property here is paying cash. US banks and private residential lenders are actively replenishing their losses of the last two years offering higher rates and requiring higher down payments. If a UK investor is looking for a US-based mortgage, down payment is between 40% and 45% with a rate of 8.75% or higher.
I very much prefer European private lenders these days than US private and wholesale lenders. More on US foreign national loan programs and immigration requirements at http://www.moneybrokering.net
Sal Antsipenka,
www.MoneyBrokering.net