Property Investment in the World’s Capital Cities

When it comes to property investment abroad, for many of us the first thought is for the typical holiday/second home property investment: a villa or an apartment close to a beautiful seaside resort often with compulsory extras like a swimming pool and within walking distance of a lush green golf course.

While there’s no denying that a well located second home can indeed furnish us with a very attractive and appreciating investment, property investment is often better driven by the head than the heart.  If it’s investment you want and it doesn’t have to double up as a holiday or second home then why not consider property investment in some of the world’s major capital cities?

Forget about beautiful vistas, turquoise seas and sunny blue skies for just one minute; let’s talk about making cold hard cash from property, after all isn’t that what property investment is all about, finding a property wherever or whatever it is that is able to offer you a significant return on your initial cash input?

Investment is all about making your money work for you; villas and homes in beautiful resorts may well be idyllic but if the season isn’t 365 days a year they’ll also be empty and costing you money.  While on the other hand, a well located city apartment in any of the world’s capitals could prove to be an extremely valuable asset, not only appreciating in value rapidly as the squeeze on inner city property continues, but the sheer demand for property in the city will mean that you’ll be able to charge a healthy rental premium for you property to the many professionals and companies searching for quality inner city properties.

The art of city investment is to become an expert about the city you intent to invest in, initially don’t focus too much on the type of apartment or flat that you would maybe like for yourself or that fits into your idea of city living.  Instead research the market thoroughly, spend time comparing property prices from district to district and balance the purchase prices against the rental yields in each district.  Build an understanding of the dynamics of the city, find out about new up and coming areas that may have the potential for rapidly appreciating rental yields.

Don’t take the path of least resistance by simply finding a property in a good well established district, the better investments will always exist in previously unexploited locations. Consider for example the potential the 2012 Olympics will bring to East London, while the potential may not exist for a large rental yields from day one, the steep increase in yields over the next 7 years coupled with the comparatively less costly property purchase prices may make this soon to be rejuvenated area on London a very attractive proposition for the savvy property investor.

In further articles we will look in more depth at the world’s primary capital cities and the potential that they offer investors who are looking to increase or build their overseas property portfolio.