Buying Property Abroad 2007 Review

As 2007 comes to a close, many investors interested in buying property abroad have found that market conditions made them a little squeamish this year about going through with the prospect.  Others however, have reassessed the trends and found the time for buying was perfect.  Whilst deal closing is actually down throughout Europe in the fourth quarter, according to the Wall Street Journal, the landscape is not completely bleak.  There are areas that show some real potential in the coming year.  Even some older markets that are a little down and out at present still offer opportunity if the right strategies are applied.

In this article we’ll explore some of the challenges buyers faced in 2007.  We’ll also take a look ahead at the coming year and at the property hotspots for 2008 and where sluggish areas are likely to be.

Challenges That are Likely to Remain…

Whilst buying property abroad in the coming year is likely to remain of high interest to investors, retirees and would be expats, they are likely to face some challenges that weren’t necessarily present before 2007.  As banks become more hesitant to approve mortgage loans at home and abroad, financing is getting a little harder to come by.  Issues also are presenting where buyers and sellers are not able to agree upon prices.  Still, motivated investors can and will find ways to make their purchases happen.

Hotspots That Will Shine In 2008

There are a number of destinations that property experts are watching closely and pegging as the potential stars of 2008.  Areas where property investors are likely to realise decent if not phenomenal return include Cyprus, Bulgaria, Turkey, Belize, Canada and certain areas of France, Portugal and Italy.  These markets have been strong and are likely to remain so.  Cyprus in particular, is pegged to enjoy more than a 35% rate of pricing growth after it adopts the euro in 2008 according to some experts.

Areas That Might Stagnate

With only a few exceptions, traditional European markets are not likely to show incredible growth potential in the coming year.  Places like Ireland and Spain for example, are expected to see prices actually fall.  Whilst this will no doubt be bad news for current investors, the prospect does open some doors for would be buyers.

Spain’s star has been falling throughout 2007 with regard to growth.  Despite this however, some investors are finding the potential for buy-to-let or second home purchases remains high.  This is especially so since prices have started to tumble.

Ireland is also seeing growth come to a screeching halt, but as prices drop some investors are becoming rather keen on buying green!  The best strategies here are the same for Spain – buy-to-let or buy-to-hold for resale later.

Whilst 2007 brought its share of challenges and 2008 is likely to do the same, those who want to buy property abroad will still find the potential is there.  Financing might be a bit trickier heading into the new year, but those who can swing it can still enjoy rewards.