Property investment > Resources

 
A study by the Institute for Public Policy Research, to be published later this week, calculates that more than 3.3 million British pensioners will make their home abroad by the middle of the century.  It is a threefold increase to the 1.02 million pensioners now living overseas.
 
The report, Brits Abroad, is the first comprehensive assessment of the number and profile of Britons living abroad.  Researchers have collected census and other data from nearly 20 countries.
 
The study will throw new light on the implications of Britain’s ageing population, an issue that Gordon Brown has put at the centre of next year’s comprehensive spending review.
 
Based on the performance of the UK buy to let market, and impressive growth in places like France and Cyprus, property investment specialist Assetz believes that emerging markets will be less appealing to UK investors next year.
 
Cyprus’ high capital growth is partly a result of lenders halving the deposits required to invest in property to just 15% coupled with strong economic growth as they look to join the euro currency in 2008.  The cost of borrowing is also a major part of Cyprus’ appeal, it said: “When Cyprus adopts the Euro in 2008 it will have to decrease interest rates to the currently lower Euro rate, making borrowing cheaper, which is likely to further strengthen the property market”.
 
A survey from FC Exchange predicts that the best countries to invest in next year will be Bulgaria, Cyprus, Central Portugal, America and France.  Based on its knowledge of finance and international markets, the specialist has considered a range of criteria for its predictions. These include consideration of individual economies, the strength of each currency, and the supply and demand that is already present in each market.
 
FC Exchange said that Cyprus’ tax environment would attract more buyers (only 5% flat rate of income tax).   Inheritance tax was abolished in Cyprus many years ago and capital gains tax is levied at 20% of the profit which is good news for UK residents looking to leave the UK for warmer climates.
 
There is a strong British presence in Cyprus (the expat community is estimated at around 60,000).  Cost of living is low and inflation is around 3%.  Average temperatures in Cyprus only dip below 70F (21C) between November and April and it boasts over 300 days of sunshine per year.  English is widely spoken by much of the local population and the Cypriots also drive on the left hand side of the road –making life very convenient for British visitors.
 
Given the strength of the property prices in Cyprus, the low cost of living, favourable taxation system and the temperate climate, it is hardly surprising to find that Cyprus is one of the top destinations being considered by both the overseas investor and the British retiree this year.
 
For further information on our latest development at Arcadia Gardens which offers a 15% deposit and an 80% non status mortgage with rates of around 3.5%, please visit www.arcadiagardensonline.com.