04 August, 2013

By VIVA Team

1 in 4 holiday home hunters are likely to choose to buy in Spain when they retire

A recent survey by HSBC has revealed that the number of Britons aged between 45-64 who are planning on buying a holiday home for retirement has increased to 38 per cent – an eight per cent rise since the last survey seven years ago…

The bank’s research also revealed that of that 38 per cent, one in four would choose Spain for their retirement holiday home. Yet the majority of would-be expats would opt to stay living in the UK rather than relocate permanently overseas.

Instead, two-thirds would use their holiday home for three to six months a year, with one-fifth likely to use it for just three months a year.

“The economic downturn has had an impact on the income and savings of many, but it has also helped lower the price of property in numerous overseas locations,” said James Yerkess, Head of Foreign Exchange for HSBC. “Many of the baby-boom generation, who are now approaching retirement, are fortunate enough to remain relatively asset-rich despite recent economic frailties, and this has opened up opportunities to take advantage of lower property prices abroad.

“That said, the weakness in many overseas property markets has created some caution among those considering purchasing a property abroad with many saying they would now look to buy smaller properties or homes in less expensive locations.”

Spain tops the popularity charts (followed as ever by France and Italy), and two-thirds of those in the market for a home overseas would opt for a coastal location, compared to one in four who would choose the countryside.

The vast majority of those surveyed believe they will be in a position to purchase a property outright, rather than with a mortgage, with the average spend estimated at approximately €130,000.

A quarter of those surveyed would hope to downsize in the UK in order to free up funds for their dream home abroad.