11.27.07
Posted in Articles, Cape Verde at 3:16 am by admin
The past few years has seen significant increases in the number of UK and Irish buyers investing in property abroad.
Quiet simply, there are numerous established and new emerging locations that can offer more affordable properties, better climate and higher standard of living.
For investors, some of these emerging markets offer excellent buy-to-let opportunities and significant property appreciation over a short period of time. This year, estate agents are raving about the likes of Cape Verde, Budapest, Dubai, Morocco, Estonia, Saint Vincent & the Grenadines, Barbados, Thailand and Brazil.
Despite the much-hyped property “crash”, Spain and the Canary Islands are still doing quite well. Although, the market has slowed, both have good long-term potential – the Canary Islands in particular with their year-round sunshine.
The Spanish Property Market (2007)
Over the past decade Spain’s property prices have increased by a staggering 200%. According to the Daily Telegraph, at one point in 2005, there were “7,000 estate agents on the Costa Blanca”.
Not anymore though. This year 300 of the Costa Blanca’s real estate offices have closed their doors. The bubble has definitely burst. During 2007 the rise of property prices has been below the rate of inflation, for the first time in ten years.
Effects of the Crash
The outcome is both god and bad. What we’ll probably end up with in the long-term is a more realistic and stable market.
Spanish property owners could see their assets drop as the market struggles and get-rich-quick investors are definitely in for a hard time – most likely offloading their properties at a loss.
On the other hand, Spain is again a buyer’s market; a great opportunity to buy in low from the many anxious sellers. Anyone looking to buy property is in a position to bargain with vendors and developers who need to exchange their stock for cash. There are now some great bargains to be had.
Spain still has excellent long-term potential. It’s a vast country with everything going for it – amazing beaches, fantastic climate, a spectacular and varied landscape and a very easy going pace of life. For anyone looking to buy and live here the property crash is a blessing and for long-term investors, they can still make substantial yields through letting out their properties.
The New Canary Islands (Cape Verde)
With their stunning beaches, lush green vegetation, spectacular volcanic landscapes and perfect year round climate, the Cape Verde Islands are set to rival and possibly surpass the Canaries tourism trade.
As you’ll find on countless websites, Cape Verde is one of this year’s hottest investment locations. Prices are still low but experts agree that as soon as it becomes a mainstream holiday destination and the infrastructure improves they’re expected to skyrocket.
Santiago is the largest of the Cape Verde Islands and home to the country’s capital city – Praia. It’s predicted that in the coming years Santiago will become the world’s new luxury tourism destination.
Johnathan Grepne, Managing Director of a Cape Verde based development company, comments on the opening of the new airport on Santiago – it “puts Santiago on course not only to become a popular tourist hub, but also to offer imaginative British property investors an excellent financial return, and a high-quality environment for their personal enjoyment”.
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Posted in Articles, Emerging Markets at 3:04 am by admin
Buying overseas property has become an increasingly popular investment option with many Britons. Although it can be quite a challenge (depending on the location) most agree that it’s a very rewarding and enjoyable experience. Now is one of the best times to invest. Favourable interest rates and the spread of the European Union have created ideal conditions for western Europeans. Instead of the traditional stocks and shares, UK investors are choosing to invest in bricks and mortar in everywhere from the Costa del Sol to Estonia!
Information Gathering
Finding the right information can be a challenge – especially when it comes to buying in emerging markets. The internet is unquestionably one of the greatest resources when it comes to property listings & descriptions, local area information and market trends etc. It’s got everything from luxury villas in Brazil to apartments in Budapest.
Popular Locations
Europe is still the most popular locations with UK investors, largely because of the proximity. Having said that, the amount of new investment areas is growing all the time. Hungary and Bulgaria offer some excellent investment opportunities that are being snapped up by record numbers of Brits.
Shrewd investors have made huge profits in Bulgarian property and now the idyllic Hungarian countryside is seeing rapid development to accommodate the increasing demand for properties.
Top Locations (2007)
The old favourites remain as popular as ever – France, Spain, Portugal, The Canaries, Greece, Florida etc.
Cape Verde (beneath the Canary Islands) is widely regarded as one of this year’s hottest investment areas – offering significant returns on investment.
Other hot spots include: Brazil, Thailand, Australia, Thailand, Turkey, Slovakia, Bulgaria, Budapest, Dubai, Morocco, Estonia, Saint Vincent & the Grenadines and Barbados.
European Property Market
All throughout in Europe prices are dropping. France, Ireland, Spain and the UK have taken already taken some hits and policymakers are predicting deeper adjustments in the future.
The recent property crisis in Spain was partly due to overbuilding, especially in the popular coastal areas. Prices are now dropping significantly as developers work hard to unload their properties. It’s quite easy to find a good bargain in Spain at the moment.
In Ireland however, they’re not exactly bargains yet. Although prices have dropped, they were so high to begin with that they’re still unrealistic.
The EU is confident that overall growth will continue, just not as fast as they had initially anticipated. The good news for homebuyers and investors is that they can expect many potential bargains in the near future.
Overseas Investment Property Advice
Be realistic. The days of getting fast high returns in markets like Spain are probably over (for the moment). Investors are taking advantage of the low prices. They’re buying properties and either renting them out or simply holding on to them in order to make a profit through long-term appreciation – which most experts agree is inevitable.
Do the research. If it’s a buy to let investment, make sure you choose a property and area that will rent well. Obviously, locations with a high holidaymaking demand and a year-round warm climate are generally good choices – places like Cape Verde, Canary Islands and Barbados. Try and ascertain the long-term potential of the location before taking the plunge, either as a place to permanently live or just as an investment.
Choose a stable country. Have a look at the housing market and its growth potential as well as the political and economical situation. Rock bottom prices in an idyllic island paradise, surrounded by crystal clear warm waters, are no good if the country is on the brink of civil war or has virtually no infrastructure.
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