‘OVER HALF’ OF TOP CITY BONUS EARNERS WILL INVEST IN OVERSEAS PROPERTY
14th January 2006 – Overseas Property Professional

A poll of City high-flyers conducted by Populus for Pure International has found that 51% will invest their bonuses in international property during 2007.

Average salaries of £331,000 in this group are set to earn average expected bonuses of £294,000. While 51% say they intend to invest in property overseas this year, a quarter of these say they have a budget of £500,000 or over to spend. This is more than twice the UK average house price of £200,000 and four times the average overseas property purchase price of £98,000 (according to figures from the Association of International Property Professionals).

The survey also found that 57% of these City-based bonus recipients already own at least one overseas property, and 29% say these properties account for at least half their investment portfolio. Furthermore, 84% of the group say they are either planning or considering moving abroad for tax purposes at some point in the future.

Established markets are still in vogue with these high earners, with 28% naming France as a favoured destination, followed by 23% opting for the US and 21% preferring Italy. This was followed by Spain (19%), Switzerland (18%), and Canada (15%). Identifying preferred property and location type, 41% wanted a beach property while 31% would opt for a ski property. However, among under 35s, 35% would choose an urban dwelling as a second home, more than twice the number (15%) of over 35s doing the same.

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