Do you want to invest in the global property market?
International property investments have in the last 30 years become more and more important. It has now become within reach of the average person that has substituted his holiday package for a home abroad.
Low cost travel and tourism has been the main drive behind the international property market.
This started in Europe by people like Freddy Laker who was a pioneer of low cost travel back in the 70’s, this combined with the intrigue of the tourist to go where they have not been before! Forced the appearance of more and more destinations!
Europeans tend to feel much more comfortable than there American counter parts to travel and therefore international property investments hot spots appeared early in Europe. Now they can be found all around the world but they are normally driven by tourism, and they are coming from the same key buying countries of the world.
Today over 4 million British people live in southern Spain and this has had a dramatic effect on the Spanish property market. It is not just the British that are happy to relocate many other counties in Europe have followed suite.
Therefore there is a direct connection between tourism and international property business.
Another great example of this is Florida, Miami could be regarded as the American capital of South America with its high density of Hispanic's. Yet most people don’t realize that the Uk purchased 1 billion dollars worth of properties in Florida during 2005 which meant they out spent the whole of the south American countries put together.
But you barely see a British person buying property in Miami, so where are they ???
The answer is Orlando, strange as it sounds Disney has done a great job with airlines selling package deals and that is exactly what was sold to the UK market through tourism.
This has driven the property market in Orlando and it can be seen in many other destinations around the world.
Whilst housing markets around the world are “local” in terms of values this can change when the tourist arrives to town. In cites around the world that have the ingredients to become a tourist attraction the prices of property in that specific tourist location are generally going to be higher that they seen in other areas of the same country.
In cities such as London and New York, the financial institutions and jobs are the main drive behind property prices.
Obviously they have tourism too but it’s not the main force behind the city’s economics’.
The answer is simple where there is an attraction for tourism there will be a property investment serge, probably the best example of this is Dubai. Centrally located in the world and heavily publicized as one of the worlds major tourist attractions.
The question is where is next ?
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Rudrapur Industrial Development Increases Property Investments
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One of the most potentially profitable investment properties ever sold out recently. Luckily the Mountain View development in Rudrapur has been closely followed by another development just up the road, and it is the location that makes these developments such hot investment properties.
Since Rudrapur was made a Special Economic Zone by the Indian government, the tax incentives have attracted some 458 companies to build factories in a massive industrial estate on the outskirts of Rudrapur. Mountain View sold out in record time as people realized the shortage of affordable housing all the new factories were going to create, the fact that it was right by the new bypass making the factories a five minute drive away also helped.
The new development, Orchard View is also on the bypass, and also a five minute drive from the factories. The apartments are finished to a high standard, with luxurious interiors including marble floors, with the hope of attracting the factory managers. But one of the biggest selling points of both developments has to be the price.
1 and 2 bedroom apartments are available in the Orchard View development, with prices starting from just $45,000. Like Mountain View the grounds were designed by a leading Indian architect, and the complex and grounds are maintained and serviced by a team of professional gardeners and handymen.
Owing to the low prices, and the aforementioned massive short-fall of affordable housing for all the factory workers and managers, buyers of Orchard View apartments can easily expect rental yields of around 6-10%, and capital appreciation certainly not less than 15% per year, and potentially anywhere up to 30%.
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Cambodia Re-launching National Airline, Increased Tourism and Property Investment
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The Cambodian government has announced plans to re-launch the national airline, which was scrapped with massive losses on 2000. This time however the airline is being launched with the backing of massive Indonesian conglomerate Rajawali, and will be able to tap into the massively growing number of tourists to Cambodia.
Visitor numbers to Cambodia grew to 2 million in 2006, 60% of whom flew into the country. And with Cambodia being hailed as the new Thailand, because of its virgin white sandy beaches, and undiscovered tropical locations prompting a further 20% rise in tourism for 2007, it is hoped the new airline will be an added boost to the clearly flourishing Cambodia tourism market.
Even though Cambodia property has been among the hottest for the past two years, it seems the surface has barely been scratched on the country's property investment profitability.
The main growth in Cambodia property has centered on Phnom Penh thus far. Phnom Penh's massive growth in the past few years means the market is looking like it might level out, and property is not as cheap as it once was. That said, there is still plenty of room for capital appreciation; as Phnom Penh's business and commercial sectors continue to see massive levels of growth, rising affluence as well as a rapidly emerging tourism sector will see property prices continue to rise by at least 15%-25% per year.
Bear in mind there is still very little in the way of off-plan development in Phnom Penh; these coming onto the market could see spectacular growth. The Cambodian governments new plan to re-launch the national airline, as Cambodia tourism begins to see massive growth, is likely to spread growth, and new Cambodia property hotspots will start to emerge, especially around Cambodia's beautiful unspoiled coastline, which is beginning to rival Thailand and Bali as a regional tourism hotspot.
Tiger is a word that is used a lot when talking about emerging markets -- especially Asian ones. But when used tiger to describe Cambodia it also has an additional meaning to the norm, in that Cambodia is primed and ready to pounce. Most of you interested in investing in a Cambodian property may already know that foreigners can't buy property freehold there because of government restrictions - and that apart from that fact, Cambodia is one of Asia's best property investment markets.
So you will be glad to know that the government is currently coming under increasing pressure to abolish the restrictions on foreign ownership, and the possibility of buying freehold in Cambodia may be just around the corner. Current law leaves potential foreign investors with two options, leasehold of up to 99 years, or forming a company, and taking on Cambodian nationals as partners sharing 49% of the company -- the foreigner has the controlling 51% share.
Perhaps most attractive about the properties is that they come with a 10% guaranteed rental yield for the first two years. But because of Cambodia's recent popularity with tourists, and the shedding of its skin as a destination for back-packers, to attract more of the middle-high end of the tourism market, with more disposable income, earning a 10% yield after 2 years shouldn't be all that difficult. Capital appreciation on the properties is conservatively estimated at 20% - 25%.
Also on the plus side is the fact that Cambodia's rental laws are pro-landlord, and there is no income tax on rental income, other than the tenant withholding 14% of the land-lords rent is what is unsurprisingly called withholding tax. Also on the plus side are the low-moderate total transaction costs of 3.9% - 6.5%.
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Canary Islands Growing Popularity on Property Investments
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In a recent study, using keyword analysis tool word-tracker, to analyze the most popular searches for overseas property by country, the Canary Islands proved one of the biggest shockers, with Tenerife making it into the top-ten, Fuerteventura not far behind, and even the localities of Costa Teguise (Lanzarote), Palm Mar (Tenerife), and Caleta de Fuste (Fuerteventura) all making it into the top 70.
This is a major insight into the Canary Islands growing popularity as a property investment destination.
Though never scorching, the Canary Islands is warm all year round, and Tenerife tourism is on the rise again as Spain gets too hot, sticky and crowded, so occupancy on Tenerife property will be between 80 and 100%, allowing investors to make rental yields of between 8 and 10% depending on how much the use it themselves.
Capital appreciation on these apartments is likely to be around 10%-15% per year. Tenerife property prices are slightly higher than some of the new emerging markets, but you are paying extra for the safety of buying an existing property that you can use/rent-out straight away, and in a secure, established market, which also has a well developed infrastructure already geared up for tourism, making it the property easy to market for holiday rentals.
Planning permission was recently passed for a new five star hotel, an artificial beach and a spa, indicating that Costa del Silencio is a new growth area. The Parque don José resort itself has just received an EU grant, to be used for making massive upgrades to the resort, which will push up prices. Now is the time to buy.
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| Isla Margarita Rising Economy and Property Investment |
After first rearing its head towards the end of 2005, Margarita Island, off the north coast of Venezuela is finally starting to get the attention it deserves from international tourists and investors. The only Caribbean island outside the hurricane belt, Margarita has knocked the Dominican Republic of the spot as the cheapest location to buy a Caribbean beach house. And with Margarita visitor numbers increasing by hundreds of thousands per year, attracted by its all year round warm climate, Margarita's economy, and property prices will grow massively in the next 2-5 years.
An off-plan development, where you can now buy a 1 bedroom for under $30,000 will be worth anywhere between 50% and 100% more in 2 years time. Rental yields will go up from the current 6-8%, to 8%-12% over the same period.
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Fiji’s Affordable Properties
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Fiji is going to be massive for much the same reasons as Margarita Island. Australia and New Zealand have both been massive on the property investment front, but they are now established markets and property is now on the pricey side. Fiji already has their climate, beautiful turquoise warm seas, as well as coral reefs and all the water wildlife that inhabits them and the waters surrounding them. The infrastructure and holiday amenities are developing at a rapid rate, as is visitor numbers to these beautiful pacific islands, where the cost of living is so low, and you can do anything from basking in the sunshine to swimming with turtles. As tourism grows massively so does the economy, but the biggest benefit to Fiji's growth potential is the incredibly low prices of off-plan property.
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Thailand’s Continuing Growth
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The Thailand economy got off to a scintillating start, with 1st quarter growth up six percent on the same period last year, and up 5.7% on the last quarter of 2007. After two years of political turmoil culminating in a coup last year, it seems the new government is finally settling in, and has made economic growth its top priority. The main courses of its efforts are centered on generating internal and regional investment, with global investment currently slowing.
In March the finance ministry said government efforts would push private investment up to 9.7% from 0.5% last year, and that private consumption should grow to 4% this year from 1.4% last year. The finance ministry predicted six percent growth in the 1st quarter of 2008 and its predictions were right on the money, but for those who need a little more convincing the Institute of International Finance (IIF) said growth would accelerate in Thailand this year, as growing exports to non-U.S. countries off-set falling demand from the States.
The IIF predicted Thai GDP growth would expand to 6% from 4.8% last year. The IIF also said that rising inflation caused by the rising cost of basic materials was the biggest challenge facing Asian economies, but in a refreshing statement it said that the problem would subside shortly and that worry over the problem had been greatly exaggerated.
The two reports are good news for investors who are looking to Asia, as it is seen as having the best chance of weathering the global storm, a sentiment again backed up by the IIF. The leading emerging markets in Asia are well-positioned to weather uncertain and less favorable global conditions.
Continued growth in Asia is excellent news for property investment in Thailand, especially in the emerging markets of Thailand's islands of Koh Samui and Koh Phangan, where growth is primarily fuelled by spiraling regional tourism. Property prices in Koh Samui, an island with more five and six star resorts than any other in the world, grew by 50% per year, in 2006 and 2007. Continuing growth in Asia will see tourism growth continue and capital appreciation stay at similar figures. Koh Phangan is the new kid on the block, and luxury resort property there is just as hot for investment, growth figures are unclear as it is a really new market, but with Phuket and Samui as comparisons growth will not be any less than 25% per year, and could hit 50% in 2010.
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Montenegro Emerging Market
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According to many various reports, Montenegro is shaping up to be the next big thing in European tourism and property investment. Last month direct flights began between London airports and Montenegro, which immediately made the country more popular with tourists and property investors, and Montenegrins are gearing up to fully capitalize in the increased popularity of the country.
Plans are being drawn up to turn Montenegro's coastal areas into massive tourism resorts, and the masses of money being poured into the infrastructure since last year, is beginning to take effect, and work is still ongoing across the country.
Tourism revenues for such a tiny country were over 1billion dollars last year, and visitor numbers were far higher than the small countries population.
Property prices have risen considerably since Montenegro became popular, but you can still get a real bargain if you know where to look.
The Lakeside Park apartments are the second release on the Lakeside Park developments, following the incredibly popular Lakeside Park chalets, which sold out recently. The development is, as the name suggests, on the banks of Slano Lake, near Montenegro's second largest town, Niksic. But you would never know it; the location is like a snapshot advertisement for the beauty of Montenegro's countryside, rolling hills, sweeping valleys and an environment that you can really relax in.
Of course for those who want to be active, there is fishing and water-sports on the lake, bird-watching, walking, and Niksic has all amenities and facilities for a perfect family holiday. Prices start at just $45,000 for a 1 bedroom apartment.
Most potential investors will have heard about the massive boom that property markets across Eastern Europe have recently been experiencing. Right now three Eastern European countries in particular, Ukraine, Albania and Montenegro have become three of the most popular and favorable of today's hot, new emerging markets. Montenegro has always been sought after with second home buyers, who favored areas on Montenegro's beautiful Adriatic coastline. But since the country voted for independence in a referendum late 2006, and the country split from Serbia, prices have risen around 20% in that 2 year period, and the country has become one of the best for an overseas property investment.
Montenegro joined the European Union's (EU) Competitiveness and Innovation Programme Monday 05 March 2008. Their membership will see the European Commission (EU's executive arm) actively promoting innovation, entrepreneurship and growth in Montenegro's small and medium size enterprises (SME's).
The European Commissioner responsible for the EC's industry and enterprise policies Gunter Verheugen, said Montenegro had affirmed its European aspirations by joining the CIP program. Participation in CIP and in particular the cooperation in the new Enterprise Europe Network, which Montenegro has already successfully entered, will help Montenegro to increase the competitiveness of its enterprises, in particular SMEs.
Since it split its loose political union from Serbia in 2006, Montenegro has joined several world institutions in its own right, including the World Bank and International Monetary Fund the latest two are in preparation for its eventual entry into the EU.
The privatization of their largest industry, Aluminum, has been good for the economy, as well as increased Foreign Direct investment through tourism. The latter will be further increased now that the government has relaxed the laws preventing foreigners from buying land in the country. Now that foreign entities can buy actual plots of land for development, I foresee possibly a trump towers in Podgorica, maybe a Hilton, but definitely some of the major tour operators buying up land for development as tourism to the country increases as it has.
If the global market slow continues, the developing world's most beautiful places, like Montenegro, Albania, and others will become even more popular with tourists because they offer cheaper holidays because of the low cost of living. It would be wise to invest in a property there and wait for the changes ahead.
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Emerging Market Property Investment
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Emerging markets are the safest place to invest in the current global economic slowdown especially alongside major investments into the emerging market of Brazil, as they put their money where their mouth is.
Emerging markets are currently excellent investment locations, because the two big emerging markets, China and India, are massive importers of the basic materials that the new emerging markets are exporting cheaper than any of the established markets.
For a long time now the global market slowdown will actually be good for emerging markets, because as people and businesses tighten their belts, they will increasingly turn to the lower cost of the new emerging markets, to relocate their operations to, outsource to, import from, and holiday in.
This can only be good news for emerging market property. When you buy a property in an emerging market, you are buying to capitalize on either the influx of businesses, the influx of tourists, or, if you're lucky, both.
You are relying on these things because incoming tourists and businesses importing their top level management, translates to lots of people to rent out your property. But also, because the incoming money, be it from tourists or new business and the employment thereof, increases the affluence of the area, this causes living costs and the cost of building materials to rise, which then means wages have to go up, translating to increases in the costs of building properties, all of which pushes house prices up, sometimes by as much as 50% per year.
You will only get growth like that in an emerging market. Well respected people in the industry, say that emerging market property is cheap, and likely to stay that way.
Once a market starts to emerge, be it triggered by growth in new businesses or tourism growth, the cycle I laid out above begins and it is a cycle that has perpetual motion; increasing house prices means more money in tax revenues, wealthier developers putting money back into the economy, thus continuing to increase affluence, not to mention members of the local communities getting promoted, small business becoming big from rising tourism, all translating to rises in living costs, higher wages and keeping house price growth strong.
Some would say that investing in an emerging market property is a bold move, but in that case fortune favors the bold has never been truer of anything, than it is of an emerging market property investment in the current climate.
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Philippines Growing Developments in Makati Financial District
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The number of Philippines properties being bought by Filipinos based in the U.S. and other countries has began to fall because of U.S. economic woes, but development continues to grow, as the shortfall is picked up by increasing sales to Filipino's from within the country. This is a massively important report for the Philippines, because it means that the efforts to resolve issues over the distribution of wealth in the country are beginning to pay off. Most of the development is happening in Manila, specifically in the Makati financial district, and especially high rise condominiums and apartment hotel complexes.
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| Britons Investing Outside of England |
Canada, Australia, New Zealand and United States, are the most popular destinations with emigrating Brits. This number has increased extremely rapidly in the last few years, as people tire of yobbish behavior, deteriorating housing estates, the government, rising cost of living, and others emigrate seeking career opportunities in growing economies like Montenegro.
The yobbish behavior and living costs are unlikely decreasing anytime soon (short of a miracle), so the number of Britons moving abroad will continue to rise. As people emigrating are usually looking to buy existing houses, as oppose to off-plan, this is great news for secondary housing markets, especially in the most popular countries mentioned above.
This is also great news for the overseas property investment industry, as overseas investors usually buy off-plan in order to make the biggest gains, and a frequent worry is whether they will be able to sell for their projected profit; will there be anyone to sell to, and according to this report, the answer in Canada, the U.S., Australia, and New Zealand is a definite yes.
Britons investing in property overseas continues to rise, despite falling U.K. house prices, prices still haven't fallen substantially enough for first-time buyers, and this is also great news for them.
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American’s Boost of Property Investment
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2008 could be the year that American property prices bottom out and begin recovering. America's big banks, spending about 1billion dollar investment fund on purchasing hundreds of properties that had been reclaimed by the banks, with a view to selling in 3-5 years.
Many analysts have already put their money where their mouth is and stated that they believe 2008 will be the year of the U.S. recovery, a massive property investment specialist will confirming their research to make their statements a virtual reality in the eyes of international property investors.
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| Malaysia Property Investment Growth Related to Asia Emerging? |
There are reports on the web saying that Malaysia property market is set to plateau this year but it just isn't true. Everyone knows that Asian markets are going to continue to grow throughout any global slowdown, and Malaysia is one of the biggest benefactors of its growth. Areas like Sabah, Borneo are seeing massively rising tourism numbers from Asia's rapidly expanding middle class, and Kuala Lumpur is developing into a chique commercial hub, on par with any of the world's great capital cities.
The rising cost of building materials had people running for the hills shouting about how it would cause developers to wait and see what the market held in store before bringing their new Malaysia property onto the market. But that has not been the case; there are still plenty of new developments being unveiled in Malaysia.
With global markets and economies having become so intertwined, when a big market like the U.S. starts to wean, it does trigger a domino effect, and that makes it easy for everyone to start battening down the hatches. But global markets becoming intertwined, and companies becoming so multinational as flights got cheaper and the massive growth in internet use, means there is sufficient money in global business, even in the likes of China and India alone, to regenerate global economies through foreign direct investment. For instance: China and India buying massive amounts of grain from Brazil because it is the cheapest supplier.
Malaysia grows because Asia is growing, not least through regional and medical tourism, the former increasing by around 20% per year, as the Asian Middle Classes grow, (In India, the number of people earning more than $5000 will double to 20million in the next two years), through new employment, promotion, and rising affluence in start-up businesses.
Not to mention, the massive number of graduates from Asia's shining educational systems some, going off to be doctors and high-earning lawyers, but some starting up businesses and becoming the next wave of property tycoons, or any other business they think up. Make no mistake, Malaysia property will continue to grow in value, the only effect the global slowdown may have is bringing capital growth down from 15-20% to 10%, which is still solid growth for an established market. Rental yields will continue to be strong at around 8%."
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| India foreseeable Property Growth |
The India property market is on the cusp of a massive change. Land prices in India have quadrupled over the past three years as developers paid major sums for land to build developments of luxury housing, with starting prices upwards of $250,000 per unit. The number of people earning over $5000 per year is expected to double to more than 20 million in the next two years, not least because of the 2.5 million students teaming out of Indian universities each year. And land prices are expected to fall again in the near future, as developers realize that the real demand in India is for affordable housing.
There are those who got in on the new trend early with their Mountain View development in Rudrapur, in which 2 bedroom apartment were available for under $45k. Mountain View is almost completely sold out now but another development is being built just up the road, and it will also offer affordable housing, ready to capitalize on the massive demand there will be for such housing in the next two years.
Demand which there will certainly be in Rudrapur, which was designated a Special Economic Zone by the Indian government, offering tax incentives for companies to move into the area. And move into the area they did, with some 450 new factories being built, or already trading on what will become a massive industrial estate on the outskirts of Rudrapur.
These factories will employ 300,000 people when they are finished, at least 50,000 from outside the area and who will definitely be looking for affordable housing to rent, meaning owners of Rudrapur apartments will cash in on the residential lets. But it is also a fairly safe bet that even those employed in the new factories from within the area will be looking for affordable rented accommodation; people living with parents using their new wage to fly the nest, and staff members pairing off and seeking accommodation to move in together.
The latter will also probably mean people from the area looking for homes to buy in 2-5 years, people getting promoted will also bring home sales in the foreseeable future. All in all the future is bright for Rudrapur, and India property as a whole.
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| Berlin Becoming a Sellers Market? |
The Berlin property market has become one of the most depressed in Europe, high unemployment, shrinking population and economic growth have cause continual erosion of prices. There is opportunity to make good money from residential rentals, with only 45% of the population owning their own homes, (15% in Berlin).
The trend towards renting instead of buying makes it hard to make money from re-selling your investment property, as you are likely to be selling to other investors, but if the market and the population turns toward buying their homes, then Berlin property owners could start to make some serious gains.
Research conducted gave us something to think about on the potential for such a change in Berlin property:Rental rates in Berlin have been rising in almost all districts for the past year, as rental becomes more expensive, and closer to monthly mortgage rates, then people will realize it is more cost effective to buy their property. When that happens property prices in Berlin will start to be driven up. On top of rising rents, the government has just approved a subsidy program, allowing people to use their government subsidized pensions to buy property. When the bill is passed, it will provide another potential trigger to create a seller's market in Berlin.
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| Berlin’s Depressed Property Market |
A little while back money week ran a story on how all the big financial institutions like Meryl Lynch, have been buying German apartments in bulk -- tens of thousands at a time. They have been given this opportunity by Germany's privatized industries selling of their property stocks to reduce costs. And they have taken the opportunity because Germany has the most depressed property market of all industrialized, "western" countries.
These major players buying thousands of apartments throughout Berlin and Germany are likely to use their considerable financial clout to create somewhat of a seller's market, and/or to increase incentives for people to buy. Most notably raising rents, and increasing the availability of finance packages, as well as the percentage thereof.
With the recent economic woes keeping many people awake at night, where can investors find a low-risk overseas investment property? In the midst of the financial storm, Berlin is a safe harbor.
In contrast to other prosperous German cities, low rent and abundant supply of space are drawing companies to Berlin. At the same time urban regeneration efforts have led many neighborhoods in the former East Berlin to become increasingly fashionable. Jam-packed with cafes, boutiques and a thriving art scene, Mitte, Prenzlauer Berg, Kreuzberg, and Friedrichshain are now among Berlin's most sought after addresses for young professionals. With over 80 percent of Berlin residents renting, demand for these areas is likely to remain strong, particularly for the lower priced segment of the market.
At the same time, changes in the law have allowed landlords in the city to increase rents up to 20 percent in a three year period. Publicly owned housing stock is increasingly being bought by prominent private investors, which is beginning to drive prices up. Savvy investors who get into the market while prices are still low can expect a healthy return on their investment, finally seeing some real growth, the latter triggering an upsurge in people willing to buy their property as oppose to just renting.
Berlin then, currently presents one of the best investment opportunities on the global market, because property there is more affordable than any other established market. Put simply, you can buy into the safety of an established market, with the price and potential of an emerging market property.
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| Goa Continuing Growth on Property Investment |
Goa is not getting anywhere near the hype it was a year ago, but those that do pay attention will find that units from last year's off-plan developments, are now coming onto the secondary market, and selling for almost 50% more than they were last year.
Despite the price, the resale units are being bought just as readily, by those who want to see what they are buying, rather than take the risk of buying an off-plan development.
However, for those in the mood for taking a palpable risk, there are this year's off-plan developments coming onto the market at very reasonable prices. Though, property is worth massively more on the secondary market, the new off-plan developments are being sold now at not much more than similar off-plan units were being sold last year. And with those units now on the secondary market, as a guide to the kind of profit you can make in the space of a year, these new off-plan properties present a great opportunity.
Goa has proven itself as a place where you can make incredibly successful short-term property investments. But to be honest, buying a Goa property, a property purchase would do so for a long term investment, because when the development scene has slowed down a bit, then sales in the secondary market will be a very easy event indeed, and by that time the value will have increased by even more.
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| Credit Crunch in UK Forcing Britons to Buy Property Overseas |
All the signs point to the overseas property market continuing to remain incredibly strong for the foreseeable future. A survey has revealed that nearly 50% of Britons said they would consider buying their first property abroad, and 8 percent had already done so. A similar survey last year revealed that 25% of Britons would consider buying their first property abroad, and the 25% rise is excellent news for the U.K. overseas property industry.
Property abroad is becoming even more popular, not least because of the people who can't get onto the property ladder, and who buy a property abroad to use the rental income to increase their buying power back home, and/or to use the lump-sum from the profitable resale as a down-payment, or towards paying off their mortgage.
With the credit crunch and UK property prices now falling, you could say that this soon won't be as necessary, but another consequence of the credit-crunch is that it is making mortgages harder to get in the UK, which means buying property abroad will remain a necessary part of some people's path onto the property ladder.
Another big advantage property abroad now has is the fact that profits are proven. I can give examples of Goa properties we sold last year, that are now on the secondary market, and selling for over 40% more than they were last year. Of Thai island Koh Samui properties selling at the end of last year for 100% more than they went for at the end of 2005.
And with investment banking reports that emerging markets will continue to grow strongly throughout global turmoil, because of India and China's need to buy bulk basic materials at low prices, which they buy from the new emerging markets, property abroad has a bright future, a rarity in the present world.
Property abroad has another string to its bow: the security of putting your money into bricks and mortar. Stocks and shares are fine when they are doing well, but they can go from being worth millions of pounds, to not even being worth millions of pence overnight. Property cannot do that. So, if you buy property abroad to make a profit, and you do that's great, but even if you don't you are unlikely to be hurt too badly by it, of course assuming you have chosen carefully in the first place.
Of course, if you buy a property abroad as a holiday home only, then you have nothing to worry about as it will almost definitely be a nice nest egg for those you leave behind, or to pay for kids college fees etc.
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| Philippines and Thailand Property Investment Hotspots |
Despite the fears of a global market slowdown by what many analysts are already calling a recession in the U.S., the overseas property investment sector continues to flourish. While research into overseas property markets is ongoing; their 2008 research is finally at a point where they are willing to present their top two investment destinations and the reasons why
This will be the first part in a serious that will first cover the top five destinations for short-term investment, and then the top five destinations for long-term investment. Doing them in groups of two allows far more detailed explanation of why we favor each one as a destination for property investment.
Philippines:
The Philippines is an incredible destination for a short-term property investment. Using other countries in the region as a guide, and considering the fact that the Philippines real estate growth is based on the same strengths, it is a safe bet that Philippines real estate will grow in value by 20-25% per year. Take Bangkok, where we can now see real estate being sold for twice what they were 3-4 years ago. And Phnom Penh, Cambodia is seeing strong 24%-25% growth year on year.
Philippines real estate growth is fuelled by massive growth in its business and industry sectors, primarily in Manila as major companies flock in to build cheap office towers, inhabited by a cheap work-force, working with manufacturing goods bought just as cheaply. This brings in retail chains in preparation for the increasing affluence of the population. The big corporations tend to relocate the top-level management, and the incoming executives are looking for quality rented accommodation, the same is true as the affluence of local people increases in their new jobs.
Units now going for $45k will be worth at least 60k in 2 years, and in the region of 80k in 4 years. Even after the Philippines substantial taxes are paid, there will be sufficient profit margin to make this an excellent short-term investment, ideal for a first-timer looking at an entry level investment. As a testament to the growth potential of Philippines investment property, the price of these apartments is going up by 17% on April 16th, so anyone fired up by the Philippines should act quickly.
Thailand - Koh Samui Island:
Following the success of Thai island Phuket, Koh Samui emerged onto the property investment scene in a big way just over two years ago. It is now a semi-mature market and the resort properties which make the biggest profit are rarely available for less than $350,000. However, research of late last year showed that people who had bought a resort property in Koh Samui in late 2005 as a short-term investment, sold last year for twice what they paid. This showed that capital appreciation had been solid at an incredible 50% per year for the two previous years.
Thailand's incredible growth is fuelled primarily by incredible tourism figures. As the number of people flocking in for the white sandy beaches, tropical climate and tropical atmosphere increases by 20% per year, resort properties on the beautiful island of Koh Samui will continue to attract a great proportion of the visitors, and property prices continue to grow strongly.
Koh Samui now has more 5 and 6 star resort developments that any other island, and the competition in the market is good for buyers because it is forcing developers to find ways to make their developments stand-out.
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| Dominican High Crime and Instability has Influence Property Investment |
The travel giant has announced new routes in their premier range, the crème de la crème of package holiday experiences. One of the new packages is to Samana in the Dominican Republic, which is great news for the Caribbean Republic trying to emerge onto the global property scene.
The announcement will help the Dominican Republic in that aim no end, because one of the only downsides of holidaying or buying property in the Dominican Republic is the high crime rate, including corruption, which the government and population have been working hard to bring down to a level less detrimental to the country's future.
The fact that Thompsons plans to send its Platinum customers to the country, tells the world in no uncertain terms that the government and population at large have been largely successful in their aims. This will do massive good to the Dominican Republic's reputation on the world stage and now the country can be looked at purely on its strengths.
Dominican Republic was previously the most affordable location to buy a Caribbean beach house, but that title has just been stolen by Margarita. Nevertheless, Dominican Republic's new found peace and stability will increase the chances that, despite its prices being slightly higher than Margarita, it will be able to hold its own and attract more than its fair share of international property investors.
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| India’s Business Boom Increases Property Investment |
Rudrapur is one such place that is taking off in terms of investment in business. The government has made the area a tax free zone and there are over 450 global corporations planning to set up businesses there in 2008.
We are seeing businesses flocking to the area since the government designated it as a Special Economic Zone (SEZ). This means businesses pay no income tax for the first five years and receive a 30% discount over the following five years."
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| Margarita Best Investment in Caribbean |
There are so many good things to say about the Caribbean island of Margarita, it is hard to know where to start.
Margarita is one of the few Caribbean islands outside the hurricane belt, and property on Margarita is less expensive than any other Caribbean island. The Dominican Republic has become big in the investment world, as the cheapest place to buy a Caribbean beach house, but that hot-spot is now inhabited firmly by the Isla Margarita.
Margarita is one of the few truly early-bird investment opportunities on the global market, and people who get in now will be able to sell in 4 years for twice what they paid, maybe even do so in just under 4 years.
A property near a Caribbean beach at these low prices, properly marketed, lets you charge less than competing properties elsewhere in the Caribbean, while still getting at least an 8% yield, possibly even as much as 12% or more. Visitor numbers to margarita have been increasing by 300,000 - 500,000 per year since 2004. On the back of the increasing tourism, Margarita's average GDP growth has been 11.4% per year over the same period.
As Margarita emerges as the next hot holiday destination, the developing tourism industry will continue to spread affluence throughout the island, living costs will rise including building materials, wages will rise including builders and laborers, and house prices will be driven up rapidly. Given the low starting point, rapidly means by at least 30% per year, based on similar locations in recent years, making doubling your money in 4 years, actually, quite a conservative estimate.
Margarita is the most affordable place to buy a property in the Caribbean.
The one thing people could consider a downside of Margarita, is the fact that the island belongs to Venezuela, what with Hugo Chavez talking about expropriating property, or regulating secondary house prices etc.
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| Emerging Markets Potential to Survive Global Slowdown |
A report just released displays how emerging markets have overtaken many established ones, as the safest place to make investments.
Brazil was quoted as a safe place to invest because, its production of grain and other basic materials, combined with the low cost of said materials, has led to the country benefiting massively from the major emerging markets like China and India, who are importing massive amounts of basic materials to sustain their own economic growth. Russia, Africa and other Latin American countries also got a mention in the report.
Many emerging markets have the potential to survive a global slowdown, because business will increasingly move their operations into cheaper locations, import their goods from cheaper places, and tourists will start to look out for places where they can holiday cheaply.
Brazil ticks all those boxes; but Brazil is not the only country that is, and will continue to benefit from the changing global economy. Albania, Montenegro, the Philippines, Cambodia, Costa Rica and Panama as well as the Thai islands of Koh Samui and Koh Phangan, are the emerging markets we are focusing on, because for us, their affordable attractiveness to businesses, and/or tourists puts them in prime position to not only survive the global slowdown, but continue to see substantial growth.
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| Costa Rica’s Medical Tourists Phenomenon Increase Property Market |
Costa Rica has been named as one of the top destinations for health tourism, a growing industry of people travelling abroad to have cosmetic surgery that is too costly back home. Other countries in the top 5 were Malaysia, Panama, India and Brazil.
These countries are most popular because of their advanced, high quality health services, and low costs. Malaysia and India attract people from all over the world, as do Costa Rica Brazil, and Panama, but the latter three attract the most U.S. citizens, because of the above reasons as well as their Americanized cultures.
Costa Rica's medical tourism industry is one part of the economy that has been growing lately, and experts predict this is a market sector that will continue to see growth for the foreseeable future, especially given that these places are developing people's trust having been popular with medical tourists for a few years now, and benefiting from word of mouth. Trust is an integral part of a developing country becoming popular with medical tourists.
The factors not mentioned were, that countries like Costa Rica, in order to maintain their reputation as a medical tourism destination, must make themselves attractive to specialist surgeons from more advanced countries. To do this they rely on the ability to provide high quality rented accommodation. This is excellent news for the Costa Rica property market.
Medical tourism is yet another growing string to Costa Rica's economic bow, which already has unique tourist attracting features, like the fact that it boasts five percent of the world's ecology, in only 0.003% of the world's land mass; Costa Rica is set apart by its stability and safety, making it ideal for family holidays.
Costa Ricans readily boast that their country has no need for an army, the country is so peaceful that schoolchildren oversee election parades, and there are more doctors in the country than policemen and women. Perhaps the latter feature played a part in Costa Rica ranking above the U.S. in a recent study into world health services, and also plays a part in Costa Rica's success in the new medical tourism phenomenon.
The Costa Rican government has announced that its economy will not suffer a downturn from the U.S. slump. For the first time in 50 years the Costa Rican government was left with a $174million budget surplus. It is expected that the U.S. slump will do no more than limit Costa Rica's growth to 3.8%, down from 6.8% last year. Costa Rica has long been one of the best developed Latin American countries, because of forward thinking leadership.
Disbanding the military in the 70s freed up millions of dollars to develop the country's health and education sectors as well as the infrastructure. Thanks to that move, Costa Rica has a 95% literacy rate and one of the best educated populations in the Southern Hemisphere.
From starting life as a banana republic reliant on Banana and coffee exports, Costa Rica now has flourishing hi-tech and medical manufacture and export sectors, and services sector, on top of a rapidly growing tourism sector and successfully diversified agricultural export sector.
The hi-tech sector has attracted companies like Panasonic and Intel, the latter having invested some $800million into Costa Rica's coughers, with plans to invest a further $90million this year. 11,000 Costa Ricans are employed in the hi-tech industry, and hi tech exports were valued at over $2million in 2005. The fact that Intel has invested so heavily and continues to invest shows that it is still a growth sector. Working from developing countries like Costa Rica keeps costs down and profits up -- a portion of which is then reinvested in said developing country thus keeping the growth cycle going.
The agriculture sector has had to diversify because of regional competition and a changing global economy.
Costa Rica's perhaps less talked about industry is its flourishing services sector, with companies like Western Union, Microsoft, Unisys and Oracle operating call centers in the country.
Tourism to Costa Rica grew by 10.6% 2006-2007, receiving over 1.6 million visitors last year. Costa Rica has also been clever enough to diversify its tourism industry to keep up with demand, and is now offering eco-tourism holidays and medical tourism (plastic surgery) holidays.
This ability to adapt to changes in the global economy makes the outlook for Costa Rica's economy bright, and a property investment there even brighter.
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| Canada Most Stable Property Investment |
Canada was recently named as the most affordable English speaking country in which to buy a property.
Let’s call Canada, the only established market in the world, where the property market is only semi-emerged; meaning there is room for emerging market level growth on carefully chosen Canadian property.
Even on the developments with much higher prices, properties are being snapped up because of the excellent location. Being almost smack bang centre between Montreal and Mt Tremblant, means you can attract rentals from tourists and visitors being drawn in by both places. Property at prices like that in such a fantastic location gives me the ability to make almost a guarantee instead of a prediction: Rouge River properties will not grow by less than 20% per year for the foreseeable future, and could grow by a whole lot more. The low starting price means you can rent your property for cheaper than Montreal and Mt Tremblant accommodation, and still make an impressive 10%+ yield.
Rouge River developments stand above the others in that 100 miles of the Rouge River runs straight through the developments, a 100 mile bicycle trail runs along its bank, the latter becoming a cross-country ski trail in winter. From skiing to pick-nicking, cycling to kayaking, not to mention just enjoying the beauty of nature, or taking a short drive to Montreal, or Mt Tremblant, -- the latter to go Alpine skiing when you get bored of cross country -- the Rouge River developments truly have something for everyone.
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| Berlin Safe Property Investment |
The reports are true; Berlin is currently one of the safest countries in the world to make a property investment, but a new report also hints at it being one of the best.
According to a major study into the Berlin housing market in the first quarter of 2008, rental rates are growing in every district in the city. It is 50/50; in 6 of the 12 districts rental rate growth is accelerating, and in the other 6 it is slowing, but in none are rents bottoming out or falling.
In the same report last year, rental rate growth was accelerating in only three districts; Spandau, Charlottenburg-Wilmersdorf, and Treptow-Köpenick, in all the rest rents were either bottoming out or falling.
In Spandau, which displayed the fastest growing rental rates in last year's report, rental rate growth has begun to slow according to the recent report, but in the other two districts that saw accelerating rental rate growth last year -- Charlottenburg-Wilmersdorf and Treptow-Köpenick -- rental rate growth is still accelerating.
Mitte and Neukölln, two districts that saw falling rental rates this time last year, along with Pankow and Steglitz-Zehlendorf, that both saw rental rates bottoming out last year, have joined Charlottenburg-Wilmersdorf and Treptow-Köpenick in the rental rate accelerating bracket in this year's report.
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| Manila Increasing Property Investment |
As everywhere in the world, the credit crunch causes most people in most countries to tighten the grip on their pockets, the Philippines, well to be honest, Manila, money is being thrown about by the million. All of Philippines major newspapers this week covered the report by the Thrift bank, which announced a massive increase in mortgage lending for 2007, up by 11% to 84.4 Billion Philippine Pesos. And that was only one story of many that mentioned multi-million or multi-billion peso sums.
Asia as a whole is predicted by analysts to be the world region most likely to see continued and strong growth throughout the turmoil endured by the global economic infrastructure, but the Philippines is even exceptional for being within Asia.
Panama city property prices grew by 50%, between early 2006 and early 2008 putting capital appreciation at 25% per year for the past two years, in Cambodia, many people have bought and sold 6 months later for 12% more than they paid, and bought and sold in a year for 24% more than they paid, putting Cambodia capital appreciation at 24-25% year on year. Manila is showing similar economic growth, and attracting similar new businesses and development as both those cities did at the start of their growth cycles. If a property bought now and sold in four years time an expectation to be left with double of what was paid, even after paying taxes.
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| Panama Property Investment Sees Growth Each Year |
Property prices in Panama City have been growing at an average 25% per year for the last two years. This is based on the fact that prices in 2006 were $1700 per sqm, the average price of a Panama City property is now $2910, an appreciation of fifty percent in two years.
This is a good sign for the City of David, which is currently seeing a lot of development, and similar potential for growth as Panama City. Development's here are all very new and it is very early on the growth cycle, so prices are still low, but likely to grow at the same rate Panama City has enjoyed for the next few years.
Rental income in Panama is taxed at 15%, plus an education tax of 2.75%, sellers can choose how they are charged capital gains tax from two different schemes:
1) 5% of the sum of the: the property's cadastral value + improvement costs + 10% of the property's cadastral value for each year of owning the property.
Under this scheme capital gains tax and transfer tax are consolidated, so there is no further tax to be paid on capital gains.
2) 2% of the higher either: the sales price OR the sum of the property's cadastral value at the time of acquisition + improvement costs accrued during ownership + 5% of the property's cadastral value (including the improvement costs) for each year of ownership -- whichever is higher.
The second option incurs a further tax on the capital gain. The taxable gain is the selling or transfer price less the acquisition cost or the cadastral value + transfer costs + 10% of the acquisition cost for each year of ownership. The final gain is calculated by dividing the above by the number of years the property was held and is taxed at the standard income tax rates.
The second option is subject to the 2% initial tax on the selling price, but this can be credited as real estate transfer tax, and as such deducted from the sale price. Total transaction costs in Panama are 7 to 10% and the 7 processes can be completed in around 44 day.
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| Argentina Top Tourist Destination |
Almost all of the newest emerging markets have warm climates and great beaches. As more people tire of the crowded Spanish beaches and start to look further afield for their holiday in the sun, it gives the boldest property investors the chance to make a small fortune. Argentina is a great example; it has a humid tropical climate all year round, sunny in holiday season with beaches that easily rival those of Spain, and wet but warm in rainy season.
South America has one shining advantage over most of its competitors: its rain forests, which make even rainy season a great attraction to tourists, as that is when the rain forest and its wildlife truly thrive. When a country like Argentina begins to grow into a top tourism destination, development in the economies, starting in the major cities is rapid.
Argentina's Buenos Aeries is fast developing into one of the world's great cities, on par with L.A. and Madrid. Buenos Aires is becoming a smaller version of Hollywood, because after the economic boom Buenos Aires began to rival Madrid and Toronto as a low cost but fantastic location for film and T.V sets, and began to attract many T.V. and Movie production companies.
The bulk of that action has centered on Palermo Viejo, which is now known as Palermo Hollywood and even has its own Soho. Those knowledgeable in the area's property market compare Palermo Viejo to Manhattan's lower east side, as it develops into one of the most happening districts in Buenos Aires, with things like Tango dance clubs, hip boutiques, and coffee shops that could also bring comparisons to Venice.
You will note that from the beginning and throughout this release I have drawn many comparisons to the world's major cities, mostly Spain. People who invested in Spain years ago have made a fortune both in rental yields and capital appreciation. But as Spain's downturn in popularity continues and the other countries attract more and more of the sun-chasers, shrewd property investors should be on the look-out for the next Spain, and that could well be Argentina, or one of the other South American countries.
Living costs are far lower in Argentina than in Spain which means tourists can have a far cheaper holiday. Rental yields are already around the 10% mark, and capital appreciation is conservatively estimated at 15%.
There are no restrictions on foreign ownership other than needing a tax number, speaking of which Argentina has excellent tax benefits: no Capital Gains Tax and no inheritance or gift tax. Rental tax is 21% of the gross annual income for non-residents, and an additional 21% if monthly income exceeds 1500 Pesos (approx £250).
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| Costa Rica Top Ten Destination For Property Investment |
Costa Rica made it into the top ten destinations in the world to make a property investment in, and is certainly a contender for the country to become as popular and as successful for property investors as Spain is and has been respectively.
The property isn't the cheapest but there is massive potential for profit. Costa Rica is a gorgeous place -- positively vibrant. It has both a Caribbean and Pacific coastline, which not only gives it fantastic beaches, but also allows visitors and property investors a choice of climate, humid heat or dry heat -- it is cool in the centre.
Lush vegetation, jungles, tropical plant-life, and awe-inspiring volcanoes, as well as sun, sea and surf are all attracting tourists and property investors. On top of its aesthetic benefits Costa Rica is one of the most secure and stable of all the Central American countries. It also has a really good infrastructure.
In fact, the stage is set for Costa Rica to enjoy massive and sustainable growth for the foreseeable future -- in every industry. Costa Rica just signed the CAFTA, Central America Free Trade Agreement, its major export: micro-processors is a growth industry, on top of all other famous South American export goods like Coffee and Cocoa, and that is before we even mention tourism.
Costa Rica's emerging state means living costs are low so it provides an excellent low-cost Caribbean holiday. Little wonder that rental yields are very rarely fewer than 12%.
Dominican Republic offers the cheapest Caribbean holiday, and the cheapest property, but for the extra money Costa Rica surpasses because of its infrastructure and stability. Costa Rica also has a very competitive taxation system; the first $2,698 earned from rental is exempt from taxation, after that it is taxed progressively between 10% and 25%. Capital Gains tax is not charged unless it is from a recurring (habitual) transaction, inheritance and gift tax is only 1-2%, and total round-trip transaction costs are a moderate 8.58 - 13.58%.
In short Costa Rica is doing everything right to ensure it sees continued growth, in its export industry in foreign direct investment and GDP growth, making it well worth considering as a destination for an overseas property investment.
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| Malaysia’s Economic Expansion is Increasing Property Investment |
Some will say that Malaysia shouldn't be called an emerging market because, as an ex-British colony it has been popular with overseas investors for a while, and because prices are already slightly higher than other emerging markets in Asia and around the world.
However, as Asia continues to be the world's biggest economic growth hotspot, there is still plenty of room for economic expansion in Malaysia, specifically from the ever growing tourism industry, which will see house prices grow strongly in the coming years. For that reason, I have felt compelled to include it as an emerging market and also because in my opinion, for those with a fairly big overseas property investment budget it is one of the best places in the world to make an overseas property purchase.
The government has and is always taking steps to encourage foreign investment, and this has led to a whole host of benefits for overseas investors:
There are no restrictions on foreign ownership, in fact foreigners are automatically granted residency in the country upon completing their purchase. Many of the laws are left over from the British colonial era, which is reassuring for people because they can easily understand the laws governing their purchase; it also means the buying process is easier than in other Asian countries. There is no inheritance or gift tax, and capital gains tax is on a sliding scale, from 30% at the beginning to zero after five years of ownership.
This economically friendly environment and easily understandable judicial and financial systems have also led to another massive plus for an investment in Malaysia: western banks like HSBC, United Overseas Bank, and Standard charter have set up shop in the country. That and the fact that the big Malaysian banks like Maybank will happily provide mortgages to foreigners, meaning that unlike many of the other emerging property markets, and/or highly desirable destinations, buyers can easily get 70% Loan To Value mortgages to finance their Malaysian property investment.
This unrestrictive and westerner friendly economic and judicial environment is also undoubtedly a reason for Malaysia's booming tourism industry though probably not as much of an attraction as its tropical climate and the sheer beauty of the place.
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| Albania Safe Investors Destination |
At April's NATO meeting in Bucharest, U.S./Russia relations caught the international spotlight, but property investors should have been watching the other news. NATO extended a full invitation to Albania and Croatia to join the fold.
This is a major step in Albania's integration into Europe, and a pivotal point in its path to achieving full membership to the European Union.
Though, much work is necessary on the part of Albania, the invitation proves that the steps already taken have been the right ones, and that the desire is there to do everything necessary to achieve full EU membership as soon as possible.
Due to its growth, potential and having things like NATO and EU membership on the horizon, Albania has become property investor's favorite within Europe.
In the last 2-3 years Albania has put political and ethnic tensions behind it and began to see some really solid economic growth, with around 8% GDP growth on average. I personally believe watching other countries in the region like Bulgaria and Montenegro start to flourish on the international investment stage, triggered the government and the entire population to take the necessary steps to end the tension for the good of them all. Albania has been growing even on its own strengths, but EU grants and loans to help prepare the country for full membership will only generate even greater growth.
In that respect, the long road and work needed to gain EU entry is actually good for property investors, because property bought now at low prices, will continue to grow in value throughout the period when EU money is bolstering economic growth in the country. This makes Albania a safe investment destination, even in the face of global adversity.
It is always difficult to predict capital appreciation for a market that springs onto the global scene such as Albania has, but in Albania this is not a bad thing. Albania is one of the poorest countries in Europe, and it hasn't attracted global attention because of it's tumultuous past; the problems with Albanian and Kosovo having over it like a dark cloud. The reason Albania has leaped up and made the world take notice is because recently it has made huge steps in resolving those issues using democratic reforms and systems. It is now a safe country to go on holiday to, and once tourism starts to increase, generally everything else follows.
Increasing flights increases access to the country, budget airlines make it cheap to fly there and the low living costs make the whole holiday cheap. Therefore people can have a holiday in Albania, who otherwise mightn't have been able to afford a holiday abroad. This gets the tour operators interested and before you know it you have major hotels employing locals and the economy is then regenerating itself. The newly employed people get better wages, which they then can put into either rented accommodation or buying their own houses.
Other factors that trigger capital appreciation are the increasing cost of building materials as the economy develops; on top of that house builders will need to start paying their tradesmen and laborers higher wages to keep up with the increased living costs.
In short, an emerging market like Albania is just emerging. Once a market starts to gain the name "emerging market" the chances are that prices are already beginning to rise, and will continue to do so for the foreseeable future. Therefore the key is to get in early.
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| Costa Rica Economic Power-House |
Latin America is like one big emerging market, with a couple of exceptions it is booming across the board. Take Costa Rica for example, real GDP growth is around the 6% mark.
Emerging markets are fuelled by increasing levels of tourism; something usually triggers people to view the country as a good holiday destination. Tour operators always on the look out for new and exotic destinations to offer low price holidays to, favor emerging markets because low cost of living means low cost holidays.
Latin America's Costa Rica, Argentina, Brazil, and Panama are all benefiting from being new tourism hotspots, with a Hilton hotel being built in Panama and a trump towers on the way, rental yields going through the roof in Argentina's capital Buenos Aires, and Brazil tipped to become the world's fifth largest economy. But Costa Rica has as much potential to soar on the world stage as any of them because of the amount of additional strings to its economic bow.
For a start Costa Rica is one of the world's most stable democracies, which means it is a safe place to take your kids on holiday to see the-must-see-sites that Latin America is famous for like tropical rain forests.
Speaking of tropical jungles, Costa Rica's rich bio-diversity attracts eco-tourists from around the world in an addition to its tourism market. But Costa Rica's strong economic growth comes not only from rising tourism, but from being a globally active producer of electrical goods, most notably micro-processors.
As we all now know computers are becoming an everyday part of everyone's lives, and even fridges are going digital, micro-processor production is therefore as big an expanding market as tourism for Costa Rica's economy.
Another thing Costa Rica has done to help sure up its path to becoming an economic power-house is joining the US-Central American Free Trade Agreement (CAFTA), after the population voted in favor of signing the agreement last year. The implementation of CAFTA is to be completed by 1 March this year, experts predict it will result in an "improved investment climate"
Costa Rica is already a growing property investment hot-spot, one of the new hot emerging property markets, and an emerging market is a force to be reckoned with. Like Panama, Costa Rica has a coastline on the North Pacific Ocean and the Caribbean ocean; this means it has a vastly varied climate, humid on one coast, dry-heat on the other, and cooler in the centre -- something for everyone.
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| Brazil Semi-Mature Market has Proven to be Safe Property Investment |
Currently several regions in the world have in common the fact that they contain multiple emerging markets. One region though, has something that none of the others share. In Latin America, the emergence of Brazil, Panama, Costa Rica, and Argentina have energy; like the Mardi Gras has spilled out of Rio de Janeiro and they are sambaing into some of the world's most economically vibrant property markets.
Across those four countries the level of new development, rapidly rising land-prices and high rental yields lead to start believing that Asia now has competition as the world's main growth centre and as the region most likely to see strong and continued growth over the next ten years.
Brazil especially is making the headlines, and again it is Brazil's reputation for a carnival atmosphere that has turned it into one of the world's most popular tourism destinations, and the world's most popular destination for young male overseas property investors.
The Mardi Gras is probably the most popular and best known street carnival in the world, but Rio de Janeiro is world famous for its nightlife that retains the Mardi-Gras atmosphere all year round. Young male property investors are also flocking to Brazil for its tropical climate, world-class beaches, world-class football and world-class women.
Brazil is not a new emerging market; in fact the capital Rio de Janeiro is semi-mature having been popular with foreigners, both for property investment and tourism for a while now. But as is a trend with emerging markets, growth begins in one or two of the major cities, but only in the strongest and most promising markets does it spread to other parts of the country -- as is currently the case with Brazil.
So now, those who have a little bit more to spend for the security of buying in a semi-mature market that has proven itself capable of seeing continued and strong growth will buy in Rio. But those looking for an entry level property will buy in one of Brazil's emerging hot-spots.
A particularly good place to make an entry level investment is Carapibus. A quaint little fishing town surrounded by world-class beaches. Its recently increasing popularity with tourists has prompted the Brazilian government to launch a major spending plan that could well see Carapibus become one of the world's most popular tourist destinations.
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| Finland Growing Property Investment |
The growing popularity of skiing and adventure holidays as people tire of simply lying on a Spanish beach year in year out, has seen resorts like Lapland's Levi go from strength to strength.
Drawing ski and snowboard enthusiasts, is the world class Levi ski slopes, the site of the Alpine skiing world cup, and the fact that Lapland, Finland is the only place in Europe where you are guaranteed 6 months of excellent skiing conditions per year.
But those of you not into skiing perk up, there is far more on offer at Levi than it's world class slopes: Reindeer rides for the kiddies, hot-air balloon rides, husky-dog rides, ice-fishing and skidoo rides, in summer there's Nordic walking, canoeing, fishing, and a wide range of other on and off water activities -- of course for the ladies, shopping in the new mall. Realistically the 24 hour darkness in Lapland might be seen as a downfall by some. This is easily made up for by the 24 hour daylight in summer, and the crowd drawing Northern Lights Phenomenon (ref 1). 15 out of the 44 Levi are floodlit, so the 24 hour darkness really isn't a problem for skiers.
As for those of you who are looking for an overseas property as an investment only: property prices in Finland are set to grow by an expected 300% over the next ten years. This forecast is based on the current figure for Capital appreciation, which is strong at 35% per annum - that and the growing popularity of skiing holidays.
Another great thing about Finland property is the buyer protection offered by the government. Deposits made on off-plan properties are held by the government until the property is built and the keys are handed over, meaning buyers can change their mind and simply get their deposit back minus a small administration fee, unlike most cases where the buyer would have to market and resell their property. This protection would also be beneficial if for any reason work should stop on the properties.
As for the rental market, the sheer number of outdoor activities, Lapland's mystique, 24 hour summer daylight, and beautiful scenery, to compliment the obvious strengths of the winter market and Northern lights attraction, as well as the properties being managed, should make earning an all year round rental income child's play. One rental agency reports summer visitors to Lapland more than trebled to more than 1500 between 2002 and 2005.
Lapland is truly one of the world's growth areas. Further helping this is the poor skiing conditions in the Alps for several seasons, prompting tour operators to look for better options, making Levi's six months of great conditions a firm favorite. This has prompted a growth in the availability of flights to Lapland, with British Midland now offering flights from Heathrow to Kitilla, just 14km from Levi, and many more operators have packages from U.K. airports in the pipeline.
This will see the popularity of Levi continue to grow, and combined with the growing popularity of skiing, making a holiday home on perhaps Europe's best ski resort: Levi, an incredibly wise investment indeed.
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| Croatia Established Market |
Croatia is currently one of the best countries to make an overseas property investment in because there are so many things you can look at and compare it with, and they all point to the likelihood of making strong returns now and in the future.
As so many countries in Eastern Europe take off economically, their expansions fuelled by rising tourism, trade, foreign investment, and overseas property investment, Croatia is perhaps the best of the bunch in that it has all the strengths of the rest, like an Adriatic coastline, cheap living costs, cheap property and proximity to popular established markets, and a little more.
Croatia is not only close to an established popular market, it is right next door to one of the world's most popular established markets: Italy. Also, when the other countries currently making names for themselves on the property investment scene began to expand in the early nineties, Croatia was held back by war. So, now it has some of the best value property considering its location, and some of the most impressive potential for big returns on investment.
With all these extra strengths it is easy to predict what effect Croatia's ascension into the EU will have on the economy. Based on countries nearby like Estonia and Ukraine, where the already expanding markets took on pace anew in their development, it is therefore likely Croatia will do the same.
Croatia has a strong tourism market. Capital Gains tax and rental income tax are both 20%. However, foreigners can only rent their property out through a company.
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| Increase in Overseas Property Investment |
Latest research regarding financial investment proves that the rewarding overseas property market certainly is enticing more and more investors to its alluring and ultimately unrivalled yields. In light of the recently released figures, the global property market is currently expected to see an astonishing 13% annual increase over the coming 5 years. It's also said that the market could potentially double in this short time.
The global property arena is constantly expanding, offering potential investors new and unbeatable opportunities throughout the marketplace. The fantastic returns offered are no longer secret or confined to professional buyers, so it's something of a natural progression for such a profitable area of investment to attract everyday people looking to change their financially challenged lifestyles.
Around 4 million Brits now own overseas property outright, with over a quarter of those actually residing abroad. This illustrates just how many of those investors are simply reaping their just rewards from the rental returns of their second property amidst a market that's now valued around an astounding £45 billion. It's thought that its massive appreciation has been reinforced by the number of younger investors looking to generate extra income so as to afford UK property. Around 70% of investors get involved simply to improve everyday lives, leaving the remainder to appreciate their holiday homes with more recreational usage.
Emphasis has been placed on the particularly attractive and profitable emerging markets found in the Black Sea region, Asia and the Americas. European countries like Croatia, Montenegro and the Ukraine, Asian countries such as Cambodia, Malaysia and Thailand and American countries such as Brazil, Panama and even Canada are rapidly increasing in value and popularity. Long time heavyweights like the Canary Islands or perhaps Germany still host great opportunities too of course, though the international investors focus has noticeably shifted to what were once considered as more exotic locations.
It's a fact that the key element preventing people from attaining financial freedom through overseas property investment is simply fear of the unknown.
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| Albania Property Investment of 2008 |
It's commonly thought throughout the overseas property investment marketplace that Europe has few remaining opportune locations from which to reap a worthy reward. This year, Albania could be the country to disprove that preconception. It's true that more and more investors are looking further afield to the emerging property markets of what were once considered as being 'exotic' countries, like Thailand, Morocco, Philippines and Malaysia to name a few.
And whilst the indisputable facts prove the profitability of those markets, there's one greatly overlooked yet clear contender for the title of Europe's number one money maker of 2008.
Newcomers to the property investment arena like Montenegro, Switzerland, Ukraine and Finland have outperformed their European counterparts in recent years and in some cases still do. Long established investment heavyweights like Italy, Spain, France and Germany have perhaps been neglected, with the term 'emerging market' stirring frenzy amongst avaricious investors looking for the next big thing.
Albania has fast become a realistic and affordable option for novice and savvy investors from around the world. Rising tourism has led to increased demand for quality accommodation, which has prompted an upturn in property construction to meet the increased demand.
Eastern Europe is a massively overlooked part of the world with an enigmatic timelessness that put simply, goes criminally underappreciated. And its there we find a country that borders both Adriatic and Ionian Seas and neighbors Montenegro, Macedonia, Kosovo and Greece. Under three hours away from Western Europe via any direct flight, we find low cost Albania and its many beneficial attributes. Albania's low profile is set to stand proud amidst its 'equals' with its North Atlantic Treaty Organization (NATO) unification later this year and upcoming European Union (EU) membership of 2014.
If we strive beyond any commonplace misconceptions relating to Albania and focus in on its rewarding aspects specific to property investment, we just might be more than a little surprised. With the exception of agricultural land which can be leased for ninety nine year periods, Albanian property purchase is predominantly free from restriction and open to both native and foreign investors alike, as it is for private or professional purposes. It undercuts any local European property prices and despite applicable public notary fees of around 1% and minimal capital gains tax, there's no transfer, inheritance, state or wealth tax, no withholding tax on repatriation or value added tax (VAT) attached to any transaction.
Capital appreciation has been known to reach 30%. Tourism figures have shown increases as high as 10% and by 2008 has equated to over one million economy boosting pounds
Last but not least, the forty million pound expansion of Tirana International Airport now sees British Airways operating regular flights into Albania, with twenty nine worldwide destinations also available through other agents.
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| Italy An Established Market |
Tuscany is one of the most popular locations in the world for British emigration, this too gives another rental opportunity from family members wanting to go out and spend time with their ex-pat relatives. But it is also testament to the many wonderful sights and charming characteristics that Tuscany is world renowned for:
Tuscany's abundance of nothing but period style property gives it a charm all of its own. Its Mediterranean climate and world class beaches are also attractions to tourists and property investors from around the world.
Buyers of these properties will enjoy the stability and security of knowing they have bought a fine property in one of the world's best and most established markets, making strong if not spectacular capital appreciation a given.
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| Thailand's One of the Best For Overseas Property Investment |
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