10 April 2008
With less and less 100 per cent mortgages available in the UK, first time buyers find it difficult to get on the property ladder and prefer investing in profitable foreign markets.
According to FirstRungNow.com, first time buyers prefer riskier markets such as Cape Verde or Turkey because their markets are extremely profitable, whereas traditional foreign property markets such as France and Spain tend to offer less capital growth.
FirstRungNow.com managing director, Helen Adams, has explained that first time buyers investing in places such as Cape Verde are hoping to make important profits to gather a deposit for their first property in the UK.
"There are countries out there where property [prices] are growing quite considerably. This means you can increase a small deposit to a larger one a lot more easily," she said.
According to the FirstRungNow, a two-bed apartment in the Cape Verde islands could cost as little as £50,000 compared to an average of around £174,000 in the UK
Research from Fair Investment Company has found that almost half the respondents (44 per cent) said they would consider buying their first property abroad.