Poland, Denmark and Bulgaria are attractive overseas investments

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by Kay Murchie

It is becoming increasingly difficult for first-time buyers to take their first steps onto the property ladder so a 2-bedroom flat for £40,000 in Bulgaria is a bargain compared to property prices in the UK where the average cost of a home is currently is £196,745.

Not only are first-time buyers looking at buying property abroad, Europe is also enticing people looking for a second home, thanks to cheaper property prices and the rise in budget airlines. The number of UK households owning a second property has nearly doubled in the past 7 years.

According to statistics from the Halifax, potential buyers are looking at parts of Europe in the hope that they will make enough profit to eventually purchase a property in the UK. The majority of these are in France and Spain but this is changing. Spain is suffering from declining property prices and in Marbella, 4,500 houses may be demolished as they were built illegally on public land.

The Royal Institution of Chartered Surveyors researched house price growth in 26 European countries during 2006 and the biggest increase was in Krakow, Poland at a huge 58%. In second place was Denmark at 22% and Bulgaria at 20%. Half of the 26 countries showed double digit growth.

Budget airlines are a good marker for predicting up and coming destinations. When new routes are introduced, it is likely that property prices will increase.

Rules on property ownership, tax and conveyancing vary in Europe. Good advice, renowned estate agents and qualified legal advisers is crucial.