Record levels of Brits interested in buying abroad

Interest among future pensioners in buying a holiday home in an overseas idyll for their retirement has reached higher levels than before the financial crisis, HSBC has said.

The economic slump has not deterred millions of upcoming retirees in considering purchasing abroad to either live in during their twilight years, or have as a base for holiday visits.

Spain is still the most desired location, accounting for more than a quarter of 45 to 64-year-olds surveyed by HSBC who are planning a property purchase, followed by France and Italy.

And while many have struggled to put aside decent sums of money during the slump of the last five years, HSBC thinks that asset-rich baby boomers on better pension plans are in an ideal position to take advantage of property prices lower than pre-2007.

On average, 45 to 64-year-olds would spend on average just under £117,000 on a property abroad, with the majority saying they would buy the property outright rather than take out a mortgage.

HSBC's James Yerkess said: 'The economic downturn has had an impact on the income and savings of many but it has also helped lower the price of property in numerous overseas locations.

'Many of the baby-boom generation, who are now approaching retirement, are fortunate enough to remain relatively asset-rich despite recent economic frailties and this has opened up opportunities to take advantage of lower property prices abroad.

 'That said, the weakness in many overseas property markets has created some caution among those considering purchasing a property abroad with many saying they would now look to buy smaller properties or homes in less expensive locations.'

In spite of the tempting prospect of spending retirement in warmer climes - the last few weeks of blazing British sunshine notwithstanding - four out of five don't see themselves moving abroad permanently even if they do buy a property.

Two-thirds said they would spend between three and six months there, while a fifth would use it for no more than three months.

Spain is still the destination of choice for Britons, in spite of recent anti-tax evasion law that affects British expats being brought in recently.