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Can BARBie find KEN? - 7 March 2007

A newly-published study on the state of the property industry has identified a new group of buyers in the market, though their existence is questioned in some quarters. Specialist insurer Hiscox has tagged this new breed of entrant into the market as ‘BARBie’ (Buying Abroad, Renting in Britain), and claims that almost 40 per cent of young people would consider buying abroad as a first step to getting on the property ladder.

The high, and rising, property prices in the UK, along with fears about interest rates are driving young people to look abroad for their first foray into the housing market. Many of them fear that they will never be able to make a significant impression in the marketplace with their current buying power. Almost a third had real concerns that the housing market would crash in the next couple of years.

The apparent emergence of the BARBies is shown by the 35 per cent of those in the survey sample, taken from a pool of 18 – 24 year olds, who feel they may never be able to afford a house in the UK. Most of these BARBies are looking for good investment potential overseas, along with the prospect of better rental income than they would get in the UK, and a simpler buying process.

A specialist website for first-time buyers, Firstrung, refers to BARBies as an ‘illusory group’ and a ‘deeply flawed concept’.

Marketeers adore putting people into socio-economic groups in order to apparently target them better with the appropriate products and services. Another study conducted by travel technology group Amadeus and the Henley Centre HeadlightVision, a global futures consultancy, has identified four traveller ‘tribes’ that will apparently shape the travel industry up to and beyond 2020. The four tribes will apparently comprise Global Executives, Active Seniors, Cosmopolitan Commuters and Global Clans. Essentially the overseas property market will straddle at least three of these tribes, with wealthy, older travelers (Active Seniors), people commuting from their overseas property to work (Cosmopolitan Commuters) and family members visiting each other on different continents (Global Clans).

Whether BARBie will be able to find KEN (Knows Every New market), or whether she would prefer to spend her time with some Active Seniors, only time will tell.

 

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