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Expat Investor : December 2007
Focus, our award-winning, innovative and cost-effective platform, is a fully integrated banking and investment service. Designed to make your life easier, Focus can save you time and money. To find out more about our first class wealth management services, call us on+44 (0) 1624 645000 or visit www.fairbairnpb.com Focus Have Focus. Achieve More. (EXINV) First class service from the Best International Investment Platform Provider 2007 Winner Best International Private Bank Best International Investment Platform Provider 2006 Winner Best Offshore Bank Best Commitment to Service 2005 Winner Best Offshore Bank Best Offshore Bank Product (FOCUS) Best Internet Service 2004 Winner Best Offshore Bank 2003 Winner Best Offshore Bank Best Offshore Bank Product (FOCUS) 2002 Winner Best Offshore Bank Best Offshore Bank Product (FOCUS) 2001 Winner Best Offshore Banking Product Range distinctly different Fairbairn Private Bank is a registered trade name of Fairbairn Private Bank (IOM) Limited and Fairbairn Private Bank Limited. Fairbairn Private Bank (IOM) Limited is licensed by the Isle of Man Financial Supervision Commission for Banking and Investment Business and its principal place of business is in the Isle of Man. Fairbairn Private Bank Limited is regulated by the Jersey Financial Services Commission to carry on deposit-taking and investment business under the Banking Business (Jersey) Law 1991 and Financial Services (Jersey) Law 1998 respectively. Registered office: Fairbairn House 31 The Esplanade St Helier Jersey. Latest audited accounts are available on request. PROPERTY INVESTMENT December 2007 EXPAT INVESTOR 21 Fast Facts 10016 Fast Facts 10450 Fast Facts 10451 This year's dismal summer has prompted record numbers of Brits to look at buying property in sunnier climates. According to Yo r kshire Bank's research, this year's soggy summer has now got more than two in five Brits (43%) considering the idea of buying a place in the sun as a holiday home, a place to retire, an investment or even as a cheaper way on to the property ladder. Research shows that the number of Brits who already own properties abroad rose 45% to 800,000 in the last couple of years. The most popular destination continues to be Spain, with the majority going to the Costa Blanca and the Costa del Sol. Yo r kshire Bank found the biggest draw for foreign living is the guarantee of sunny weather (66%) and the dream of a more relaxed pace of life (55%). Biggest Concerns Buying a house in the UK can be a daunting prospect but, according to Yo r kshire Bank's research, Brits have greater concerns when it comes to buying property abroad. 44% fear being ripped off as they don't understand the buying process abroad. 35% would find it stressful trying to find all the necessary professionals, such as solicitors and estate agents, to make the purchase of a retreat in the sun a success. 34% have concerns about how they would even go about negotiating the Soggy summer sees dreams of sun, sea, sand and second homes sale in a foreign language. 33% are worried that they might be taken advantage of as they wouldn't fully understand what their foreign speaking legal advisors were really saying to them. 35% have concerns after hearing about the 'Spanish Land Grab', where legal loopholes could see property owners no longer owning the land their property is built on. Steve Reid, Yorkshire Bank's director of retail banking said: "Buying a house, let alone buying one in a foreign country, can be a challenging business. Despite this, Brits are still convinced that owning property in Spain is a financial decision worth pursuing. It's therefore important that buyers can use a trusted UK bank and deal with an English-speaking representative who will see them through the process from start to finish. "We have partnered with a UK law firm, Davies Arnold Cooper, who have a practice in Spain to provide customers with a comprehensive service. This means people can avoid the worry of having to deal with numerous people or negotiate in a different language. With an appointed Yorkshire Bank representative to take them through the entire process, customers won't face baffling conversations with Spanish lawyers or be unclear about the house buying process in Spain." facilities, while investors have been attracted by the steady increase in university populations. The best ranked university towns, including Oxford and Cambridge, tend to trade at a premium in comparison to surrounding towns. www.rightmove.co.uk University towns see strong house price rises Rightmove is tracking house price movements in over 80 university towns across the UK. More than one quarter of university towns have seen house price increases of at least 20% over the past year. University towns are popular choices because they usually have a wide range of local AVERAGE HOUSE PRICE IN ENGLAND'STOPUNIVERSITY AREAS: Area (University) Current average asking price Oxford (University of Oxford) £354,927 Cambridge (University of Cambridge) £315,803 London borough of Kensington (Imperial College) £1,449,385 London borough of Camden (LSE & UCL) £662,649 Warwick (Warwick University) £287,263 Bristol (University of Bristol) £240,075 Durham City (University of Durham) £144,438 Renting now cheaper than buying The cost of renting a house in England and Wales is cheaper than the cost of buying it with a mortgage, says market analysts Hometrack. Private rents in 2006 were two- thirds the cost of a 100% mortgage on a two- or three-bedroom house, for a young household on average incomes. For many years, renting a home was thought to be just as expensive as buying one. But that position has been changed by the rapid rise in house prices. Professor Steve Wilcox of York University, who carried out the research, said, "Not too long ago, there was little difference between the costs of buying and renting. But while house prices tripled in the years since 1994, private sector rents only increased in line with earnings, and the costs of renting have as a result fallen relative to the costs of buying." The impact of the buy-to-let phenomenon on the property market is one reason why rents have been kept down, as a huge supply of properties to rent have come on the market in the past decade. An average house in Britain now costs £176,300, according to Hometrack's figures.
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