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Saturday, November 22nd, 2008
Summary: This guide explores why - over the long term - investment in property is seen by many as a way of successfully diversifying savings away from the higher risk, inconsistent stock markets. Furthermore, if you are interested in exploring the overseas investment property market this guide examines some of the emerging markets for 2005 and an interesting commercial property investment fund.
Which overseas property markets are looking hot for 2005?
The latest EU entrants are proving of continued interest to the property investor as are those countries in line for EU accession in 2007.
The likes of Malta, Poland, the Czech Republic and Cyprus who joined the EU in 2004 were hot before they joined and have proved solid for investors already in the market and are looking like safe bets for 2005 as well. Growth is set to be steady, the economies of these countries are improving and investor confidence is strong.
Hungary, Slovakia, Bulgaria, Croatia, Turkey and even North Cyprus who are lining up for accession consideration in 2007 have solid emerging property markets which are proving of interest to the property speculator. Clearly the risk involved in investing in countries not already in line with EU fiscal and legal legislation is greater, however, so are potential returns.
The attraction of such markets to property speculators is quite simple - these countries are working hard to improve infrastructure, attract inward investment, stabilise their economies and promote tourism, and ultimately they are hoping for EU accession as this brings with it vast potential for economic advancement. In the meantime these countries often have deflated property markets offering incredible real estate ‘bargains’ and undiscovered and under exposed tourism potential - all of which adds up to potentially significant returns for anyone in on the property investment game.
Eastern Europe is opening up thanks to the budget airlines carving swathes of routes into all corners - from Ljubljana to Salzburg, from Krakow to Riga - and also thanks to overseas property investment clubs. It is now possible to invest in overseas property funds meaning your money can go far further than you ever have to!
Should I consider property investment funds?
Property investment funds are growing in popularity, after all, they allow for general diversification within an investment portfolio - the key to a portfolio’s potential success - and they also allow an individual to make his or her money go far further through the pooling of investors’ resources.
But of far more interest to us all - they offer real potential for satisfying returns at very low risk to the investor.
The Frontier Commercial Property Fund is a commercial property investment opportunity with a bit of a difference!
When it comes to investing in property it has long been accepted that commercial property offers the prospect of attractive, stable income with the potential for significant long term capital growth - but at the same time it has been very hard for individuals to truly benefit from the opportunity.
Why?
Because of the high outlay costs and the need for a spread across different commercial property types to balance risk.
And then came the investment funds where a fund manager would invest pooled sums of investor’s money across various different commercial properties, and these funds have been massively popular and successful.
The Frontier Commercial Property Fund is a new breed offering multi dynamic diversity.
The reason the fund is exciting and a breath of fresh air is because it brings to the individual private investor (people like you and me) benefits that have only previously been available to institutional investors.
With this fund you get access to 3 underlying funds, each managed by separate experts in the field (UBS, Schroders and New Star) who each apply different but complimentary strategies and techniques...and all this adds up to strength through diversity - AND - the fund has been running for a while now and is providing returns that have beaten the FTSE by up to 80.5% - AND - there is no initial charge meaning that 100% of an investor’s money will be allocated to shares in the fund immediately.
If you’d like more information, let us know and we’ll send you the details we have.
Are the proven overseas investment property hotspots sold out?
There is still room for expansion in the popular property hotspots of Spain, France, Italy and Portugal. The markets in these countries are proven, strong and ever popular, and if you head off the beaten track, away from the main tourist destinations and airports you are still likely to find significant property investment opportunities.
New flight routes and new areas of interest in these European destinations are attracting more property investors month on month and the word in the market is that if you are interested in these countries you should consider the northern parts of Costa Almeria or Costa Calida in Spain for example, the Costa de Prata in Portugal or Languedoc, the Cote d’Azur and surprisingly, Paris in France.
Further a field Dubai and Florida are established, proven markets with room for growth, Bahrain and Canada are countries worth considering, as are New Zealand and South Africa. The latter is of particular interest to speculators as it is set to host the world cup in 2010, the Rand is weak, the political situation is stable, it is possible to buy yourself out of crime hotspots and the scenery is diverse, breath taking and stunning and the property market is definitely hot!
Conclusion
If you are considering property investment for the first time or are keen to increase your presence in the real estate investment market place, make sure you are comfortable with any investment before you go ahead and sign on the dotted line. Read around and do plenty of research - the internet is a great place to start - research the country you are considering investing in, and any investment, real estate or legal company you are considering getting involved with.
Seek independent advice and always keep in mind that the value of any investment can go down as well as up.
If we can in any way assist you in your endeavours, please with your requirements. We’ll do our best to help you.
If you would like a guide to purchasing overseas property, check out “Buying Property Abroad - The Guide” which is part one of our International Property Guide. It includes the legal, financial and tax aspects of buying abroad and it details the overseas purchase process as well.
To your success - cheers!