Monday, January 08, 2007

Cheap flights, expensive property - by Nic Cicutti

January 04 2007

Everywhere a Brit goes, expect a house and rental price boom to follow -
even abroad. That, at least, appears to be the impression given by a
succession of statistics published in the past year or so. The latest, by
a large UK estate agent and rental firm which acts on behalf of overseas
property owners, has found that second homes abroad which are located near
airports served by low-cost airlines are nearly 40% more valuable than
others. ( Perugia / Stanstead opened just 2 weeks ago and the prices haven’t risen, in the Upper Tiber Valley of Umbria, this year…………..yet!)

The survey questioned 12,000 owners of overseas property and found
that the average price of a property served by a low-cost airline is 39%
higher than those near an airport without a low-cost airline carrier.

The survey also found that properties served by low-cost airlines also had higher average rents than
those without. The additional rent was as much as 30% for properties within
10-20 miles of airports.

At one level, the figures quoted above are hardly contentious. They back
research earlier last year by
a foreign currency exchange firm, which found that homes in south west
France near Bergerac Airport - a popular Ryanair and Flybe destination - had
risen by 157% since 2001.

Request free brochures about investing in overseas property and the key attraction, it is emphasized again and again, is the availability of
cheap regular flights from the UK, offering the potential for significant
rental yield and capital appreciation as a result.

Purchasing a property abroad "anchors" the buyer. If you buy a home near
Bergerac airport, it stands to reason that you are more likely to be flying
out there several times a year.

Demographics suggest that more and more people from the UK would like to
live abroad. A survey by the insurer Prudential in 2004 found that up to
14.7 million pre-retired Brits wanted to make the move and retire abroad.
Although about half of them admitted that they were unlikely to achieve
their ambition that still leaves 7.5 million who are actively considering
the notion.

There are now 95 low-cost carriers serving airports within Europe. Their passengers
are Germans, Italians, Spanish, Dutch and French people, all flying to
similar locations in each others' countries.

……………….so, if you’re really set on buying something in sunny Umbria, don’t leave it too late, have a look now on, be quick, I can hear another RyanAir jet coming in!

……………..and for rentals, and accommodation don’t forget and