'Little Britain' on the Costas?

Many Britons are snubbing the chance of buying homes in Spain because it's too full of UK ex-pats already. Despite this, 4 in 10 mortgage advisers see Spain as the best long term market for investment - ahead of France and Portugal, according to a new report from GE Money Home Lending.

Overall, Spain remains the top place for people looking to buy abroad, with people citing its good climate, cheap travel and bargain property prices - some 36% claiming they would consider buying a property there. However, the research indicates that many others are being put off by the 'Little Britain' feel of the Costas and are increasingly focusing on lifestyle areas like climate, culture and food - as well as practical issues like affordabe property and cheap travel.

France and Italy are good examples of these changing priorities - these countries being the second and third most popular respectively; and specifically picked out by consumers for their attractive culture, convenient travel links and having the best cuisine of all countries.

When it comes to other countries, perceived danger is the leading reason why Britons would avoid a particular country when considering buying a foreign property. Almost 1 in 5 claimed they would steer clear of a country if they thought the language was too hard to learn and, perhaps unsurprisingly for this island nation, 14% wouldn't buy in a particular country as they don't like the people in it.

So despite many pundits predicting good growth in this region, Dubai tops the list of the most unappealing countries to buy a property in, with some 15% of those questioned claiming they wouldn't invest there. It was branded too hot, too dangerous and too far away for most, while others said the language was too hard to learn.

Meanwhile, independent mortgage brokers predict Bulgaria will have the strongest house price inflation in the next year, followed by Spain, Romania, France and the Czech Republic.

Despite strong growth in emerging Eastern European markets, brokers maintain that countries such as Spain and France represent the most solid investment.

Developing territories such as Dubai, Florida and Croatia rate strongest in terms of high inflation in the coming year, but it's the constant trend of the British desire to move to Spain that secures the Western European market. Even though short term property inflation may not be as high in these countries, the security of investing in areas that are familiar to foreign investors, factored with a reliable climate and fewer language barriers, push these countries ahead of the rest.

When looking at longer-term house price inflation predictions, the research shows that Britons would do well to stick to tried and tested countries like Spain, France and Portugal when considering a foreign property.

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2007-07-12 10:39:00 © Moneyextra.com