A strong exchange rate and low fees mean that Florida is a promising place to buy holiday property, research has revealed. Banking group HSBC looked at the options available in ten different holiday hotspots worldwide, establishing just what £125,000 will get you abroad.
That amount will get you a two-bedroom apartment in Pisa, Italy or Paphos, Cyprus, but only secure one-bed accommodation in Palma de Mallorca, or Nice, France. Yet over the Atlantic in Florida, £125,000 can buy a four-bedroom house with a garden and a private pool.
HSBC says Florida properties are currently great value as prices are only just beginning to recover after the 2007 crash. On top of this, tax levels are low and the exchange rate between dollar and sterling has been relatively stable for six months.
“The pound received some indirect support as a safe haven, with the government’s commitment to tighten finances attracting investors into the UK bond market,” as spokesman for the lender explained.
“This helped the pound to keep pace with the more traditional safe haven of the US dollar, which now has markets increasingly wary, especially as the U.S. elections approach.”
Yet the economic struggles in the eurozone have caused another significant drop in property prices – especially in Spain. The spokesman went on: “As the mood on Greece improved, fears regarding Spain intensified, centred on its weakened banking system in the wake of a burst property bubble and on-going recession.”
Homes on the Spanish Costa Blanca are now proving to be a particularly attractive proposition. Spending £125,000 on a Costa Blanca property can now typically buy a three-bedroom house with shared pool.