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The
Hottest Countries For Property Investment in
2005
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by:
Rhiannon Williamson
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Whether
you are a property investor looking for a steady and ‘safe’ investment
in a proven market or a property speculator willing to gamble on the
unknown and undiscovered in the hopes of gaining a significant ROI
(return on investment), this article covers the property investment
hotspots for 2005.
A recent UK government report discovered that there was a 250% increase
between 2000 and 2004 in the number of Britons buying property abroad
solely for investment purposes, and this trend does not seem to be
limited to the UK nor does it seem to be slowing down!
The global stock markets seem to be in decline, there is a worldwide
pension crisis looming and we have uncertainty in the Middle East, in
the UK the housing market is unaffordable, possibly over inflated and
unlikely to bring significant returns for investors late in on the game
and so more and more of us are looking further afield for our
investment opportunities. This has led us to look around the world for
the ‘next big thing’ - the next property boom.
So what’s hot for 2005?
The latest EU entrants are proving of continued interest to the
property investor as are those countries in line for EU ascension 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 ascension 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 ascension 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!
It’s possible to invest in funds which purchase and manage property in
Spain, Slovenia, Poland, Bulgaria, Croatia etc., etc. These funds work
just like any other general investment fund. The investors’ money is
pooled and the fund managers then purchase a range of investments – in
this case a range of properties in various locations – and manage them.
Anyone looking to invest in such a property fund should expect a
minimum investment of around 10,000 - 20,000 with a 1% upfront fee, a
1% management fee and a performance fee. Obviously charges and
investment rates vary from fund to fund and returns are not guaranteed.
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 afield 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!
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.
To your success – cheers!
About the Author
Rhiannon Williamson is an experienced publisher
who has produced articles for leading travel and tourism guides and
financial magazines. Her specialist knowledge about both travel and
finance gives www.ShelterOffshore.com the unique ability to literally
cover every single aspect of moving & living abroad - including
the often less discussed offshore tax advantages that can be available
when leaving our homeland.
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