CANNY property investors are becoming so disillusioned with the low-return, UK buy-to-let market they are now choosing to buy their real estate overseas.

The so-called jet-to-let generation is purchasing property in familiar destinations, such as France, Spain, Italy and Portugal; however, buyers are becoming increasingly attracted to the rock-bottom house prices in countries that have yet to join the EU, knowing that once they do, prices will soar.

Young people are also jumping on the bandwagon with 47 per cent of 18-29 year-olds planning on buying abroad, in comparison to just 33 per cent of the over 50s.

Oceanico Developments, a company that specialises in overseas developments, says the UK jet-to-let market is worth more than £58 billion and is beginning to catch the imagination of the Welsh investor.

At the moment 22 per cent of Welsh people who own a property abroad rent it out on a regular basis and nearly four in ten Welsh residents are planning to buy a home abroad in the near future: of these 75 per cent are buying-to-let.

Nearly two-thirds of young investors expect their foreign purchase to be their first foothold on the property ladder as they have been forced out of the overpriced UK market.

They plan to spend an average of £101,000 on a foreign property compared to £160,000 if they bought one in the UK.

Oceanico Developments director Simon Burgess said: "As property prices in the UK remain prohibitively high and the rental market approaches saturation, it's only natural that investors turn to foreign shores to make their pound travel further.

"With lower property prices, healthy capital appreciation rates and strong lettings markets, it's no wonder jet-to-let is emerging as the new property investment trend.

"And the benefits are two-fold, not only are you buying a place in the sun, but by letting it out, investors are also generating income to cover their mortgage costs."

More than a quarter (28%) of Welsh people chose to buy a property abroad because they felt it was a better investment than buying in the UK, while an additional 18 per cent use their foreign property as a pension alternative.

Penny Simpson from Abergav-enny is just one Welsh investors who has taken the plunge into the Turkish property market.

In December 2004 she bought a two-bedroom apartment off-plan with a shared swimming pool in an up-and-coming area of Turkey for the same price as a small terraced house in Ebbw Vale.

She said: "I would definitely recommend jet-to-let to those people who are happy to take a gamble.

"The financial risk is quite low as long as you take good legal advice."

Turkey and Bulgaria are becoming increasing popular to Welsh investors. Bulgaria is all set to join the EU in January 2007, while discussions regarding Turkey's membership begin on October 3, 2005.

Estate agents Davis & Sons in Caerleon, which specialise in selling Bulgarian and Turkish properties, said that one-bedroom coastal apartments in Bulgaria can currently be bought for around £30,000 and a three-bedroom apartment with pool in Turkey can be purchased for about £40,000.

Davis & Sons partner Amanda Jones said: "When Bulgaria and Turkey become members of the EU, house prices will rocket, even now house prices are increasing by about 35% per year."

Mr Burgess said: "One of the most promising property markets in Europe is Portugal, where the UK jet-to-let market is already worth around £2.9 billion and is well positioned to grow.

"In 2003 property prices in Portugal rose at a rate of 22 per cent, faster than any other country in Europe (excluding Latvia)."

And according to the Association of Hotels and Tourist developments in the Algarve, the occupancy rate for a four-star property in the Algarve is 67 per cent: an average of 35 weeks rent per annum.