House Hunter: Buying Abroad

'I want a pad with budget airline access'

The problem

ELAINE BEETHAM OF ENFIELD WRITES: I have been pleasantly shocked to see how much other homes in my street sell for, despite the slowing market. I am therefore going to fulfil a long-term dream to buy a house overseas.

My criteria are that it should be affordable from the equity I can pull down from my north London home, should be at a destination with relatively frequent cheap flights taking no longer than three hours from one or more London's airports, and be quite close to the airport at the far end.

The property therefore needs to be in Europe, near budget airline routes, and cost no more than £200,000. It should also get a lot of sun and be large enough to accommodate visiting friends - a major reason behind my plan.

I will often fly from Stansted as it is quite convenient for my Enfield home, or from Gatwick if I go to an airport straight from my office in Victoria.

The advice

GRAHAM NORWOOD WRITES: There are 50 European budget airlines and you could visit www.attitudetravel.com to see which locations have most flights. In terms of airports (as opposed to countries), Palma de Mallorca is top followed by Paphos in Cyprus and Pisa, Italy; all have direct services from London airports.

But because budget transport is by definition simple and cheap - I travelled from Budapest to Bristol for £8 last week on Easyjet - property prices in these most popular locations are already fetching premiums. It is easy to see why.

Ryanair's daily service from Stansted to Newquay, challenging BA on a route that used to cost more than £100 return, now costs as little as 99p for a single ticket. In the first year after Ryanair arrived the average property price in the Newquay area jumped over 20% according to the Land Registry. Estate agents in those areas of Spain, France, Italy, Cyprus and Portugal with budget routes relate the same story.

Mallorca has intentionally gone up-market, with strict building controls making prices of existing properties rocket. "In 2004 increases averaged 15%. The Economist magazine put the Balearics third worldwide behind Hong Kong and South Africa for increases," according to a spokesman for estate agency Kuhn & Partner.

At least 24 budget airlines fly to Mallorca's Palma airport including Easyjet from Gatwick, Stansted and Luton for as little as £19.99.

Paphos prices have risen 30% since 2002 and this area remains Cyprus's best bet for rentals with returns averaging 5% to 8%. Most new homes being built there are for the British, with two-bedroom apartments from £80,000, while a three-bedroom villa with pool will start from about £120,000. Older homes will be dearer.

Most flights to Paphos are charters so usually involve booking returns for one week or more after flying out - but these can cost as little as £24 single. FlyThomasCook.com has more frequent flights from Gatwick to Paphos from £42.

Pisa in Tuscany is another budget airline favourite although until now travellers have not been buying homes. But that is changing - the area has seen rises up to 10% rises in recent years as more buyers have stepped forwards. Ryanair has flights from Gatwick to Pisa for as little as £14.99.

The solution

Property one: Mediterranean villa in Geroskipou village, southern Cyprus.

Price: £225,000

Agent's details: This second-hand two-storey villa on a development is within a five-minute walk of the beach and a selection of local tavernas, features a balcony and sea view, has a private garden and private pool, and even solar heating. The development is just 15 minutes from Paphos airport.

Agent: Ultra Villas, 0800 180 4890.

Property two: Two-bedroom apartment in a 500-year-old building at La Cisterna, one hour from Pisa.

Price: £173,500.

Agent's details: This first-floor apartment was restored some years ago but it still maintains most of its traditional character. Tiled floors and big wooden beams dominate the interior, although the panoramic views over the surrounding hills and an open-air terrace steal the show.

Agent: Savills, 020-7016 3744.

Property three: Three bedroom stone villa at Fornalutx, Mallorca.

Price: £210,000.

Agent's details: A townhouse in a cobbled pedestrian street in this beautiful valley town, which is 30 minutes from Palma airport. The split-level ground floor has a living room, dining room and open kitchen. On the first floor there are two bedrooms and a studio with a terrace, with panoramic views of the surrounding mountains. The top floor houses another bedroom and bathroom, also with spectacular views.

Agent: Engel & Volkers, 0034 971 633063

Fact file

Budget airlines have revolutionised foreign property ownership but they have shattered home owners' dreams too.

EUJet, which flew from the UK to 22 destinations, has just called in administrators. It was based at Kent International Airport so many owners with UK homes nearby must find new ways of getting to mainland Europe. Three more budget carriers (Volare, Duo and Air Polonia) collapsed in 2004 while several others are fighting to survive.

Ryanair regularly scraps European locations that have too few passengers or charge too much for airport services. It has switched take-off airports in the UK too, notably moving many flights from Birmingham to East Midlands last year.

Before buying a house on a budget route, ensure you have at least one reliable alternative carrier between a convenient UK airport and the destination closest to your foreign home - otherwise you might be in for a long drive.