UK House Prices -The next bubble waiting to burst ??

Top overseas property hotspots revealed

Monday, 19 Dec 2005 14:36


Cyprus, Bulgaria, France and Greece are set to be the best places for buying overseas property in 2006, a new report predicts


But property investors should avoid buying second homes in Spain, Florida, and South Africa, property investment firm Assetz advises.

"Southern Cyprus is set to become the overseas investment hotspot of 2006, with deposit levels falling to just 15 per cent in many areas for higher income clients and with Swiss Franc mortgages now available with rates of just 3.25 per cent, making borrowing even more affordable," said Stuart .....

.....Turning to the areas to avoid, Mr Law predicts that after 17.2 per cent growth in house prices in the 12 months to June 2005, Spanish properties will not continue to grow in value.

"Valuations on Spanish property have overshot the mark and investors may come down to earth with a bump in 2006 as prices fall back into line," he explained.

Florida was described as "one of the riskiest investment zones" as US interest rates rise and buyers realise hard times could be ahead. Additionally, properties in the Gulf of Mexico are proving difficult to insure due to natural disasters.

South Africa could also prove problematic for investors, with an oversupply of high-density apartments coupled to a fall in demand for rental space. This has led to a halving of rental yields in 2005 as house prices double. .....