I just read an article headlined: 2008 overseas property hotspots revealed. The article was based on recent research by property portal Homesgofast, and the countries listed as property hot-spots for 2008 were the countries most frequently purchased in by users of the portal: Brazil, Dubai, Egypt, the U.S. and Turkey. As far as I'm concerned there is a big distinction between what is popular with buyers on a portal and what can be predicted as a property hot-spot for the year ahead.
In my opinion what should be called property investment hot-spots are the places where investors are likely to make the biggest profit, and/or the highest rental yields, with the top hot-spots having the most potential for strong returns in rentals and capital appreciation.
While most buyers are looking to make some sort of return on their investment, some buyers are primarily buying a holiday home; it being let when not in use is nothing more than an added bonus. For those buyers, where they can make the biggest yields is of secondary importance to where they would most like to holiday.
According to my analysis of rising tourism, rental yields and capital appreciation around the world, the only country on that list that can truly be called a potential property investment hotspot is Brazil. I would include Brazil in my top-ten property investment hotspots for 2008, in fact it is number one on mine, if buyers aren't primarily focusing on finding finance in the country they are buying in my list is in this order:
For those who are looking for finance the list would change a little in that Malaysia and Canada would move to take position 1 and 2.
One thing I did agree with from the article was the up-turn in people looking to buy property at the lower end of the price scale, that is because the lower priced properties offer the most potential for high rental yields for letting when not in use.
Brazil, Cambodia, Philippines and Canada are in the top-positions, because they have the combination of high quality property priced at far less than they should be on the global market, and the potential for massive and sustained growth in the next 1-5 years.
Property in those countries has a good chance of being worth 25% more than you paid for it after the first year and even having doubled in price after four years. In the current market, investments like that, with the potential for excellent short-term gains are going to be all the rage with so much talk of credit crunches etc.
Why I would move Malaysia into the top two for those looking for finance abroad is because, although property costs comparatively more, Asia's potential for strong sustained growth is world renowned, and foreigners being able to get 70% LTV mortgages from banks in Malaysia makes a purchase there accessible to a lot more investors.
In my opinion what should be called property investment hot-spots are the places where investors are likely to make the biggest profit, and/or the highest rental yields, with the top hot-spots having the most potential for strong returns in rentals and capital appreciation.
While most buyers are looking to make some sort of return on their investment, some buyers are primarily buying a holiday home; it being let when not in use is nothing more than an added bonus. For those buyers, where they can make the biggest yields is of secondary importance to where they would most like to holiday.
According to my analysis of rising tourism, rental yields and capital appreciation around the world, the only country on that list that can truly be called a potential property investment hotspot is Brazil. I would include Brazil in my top-ten property investment hotspots for 2008, in fact it is number one on mine, if buyers aren't primarily focusing on finding finance in the country they are buying in my list is in this order:
- Brazil
- Cambodia (Phnom Penh)
- Philippines(Manila)
- Canada
- Argentina
- Costa Rica
- Thailand's island: Koh Samui
- Thailand's island: Koh Phangan
- Malaysia
- Albania
For those who are looking for finance the list would change a little in that Malaysia and Canada would move to take position 1 and 2.
One thing I did agree with from the article was the up-turn in people looking to buy property at the lower end of the price scale, that is because the lower priced properties offer the most potential for high rental yields for letting when not in use.
Brazil, Cambodia, Philippines and Canada are in the top-positions, because they have the combination of high quality property priced at far less than they should be on the global market, and the potential for massive and sustained growth in the next 1-5 years.
Property in those countries has a good chance of being worth 25% more than you paid for it after the first year and even having doubled in price after four years. In the current market, investments like that, with the potential for excellent short-term gains are going to be all the rage with so much talk of credit crunches etc.
Why I would move Malaysia into the top two for those looking for finance abroad is because, although property costs comparatively more, Asia's potential for strong sustained growth is world renowned, and foreigners being able to get 70% LTV mortgages from banks in Malaysia makes a purchase there accessible to a lot more investors.
1 comment:
Brazil property is taking its place at the top of emerging markets and investment..and as experts says Property prices are skyrocketing in Brazil..one the main reason behind this price is..the one the fastest growing economy in the world..
Newbuy
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