I want to invest in property, where is best

[investalot]

"Capital growth has been minimal" hmm. You are buying two identical villas for nearly 27% less than you paid two years ago, because the developer is 'in a quiet period'. Priceless !!!. Wake up & smell the coffee, or should that be bananas ?. Everywhere is in a downturn. Your post proves the Caribbean is not immune.

I am more than happy to buy at a discount and still get the same returns on my investment that I was receiving before.

Can you tell me where you can earn 10-12% on your investments ??

Do you have any experience of buying in the Caribbean ??

Check historic property values and you will find that there has very rarely been boom and bust here unlike the USA and UK.

Got to go now and pick a bananna for lunch

 

[Lysos]

If you really are getting a positive return of 10 - 12% after costs in today's market you are to be congratulated, and should be advising the so-called financial experts where they are going wrong !.

However, let's take a look at the figures in very simple terms: you have been getting an average return of 11% (after costs ?) per annum for two years i.e. total return 22%. Meanwhile the value of your property has dropped by @ 27%. By my reckoning that means you have a nett loss of @5%, ignoring what your capital might have been earning in interest in the meantime, say 6% p.a. before the current crisis. Viewed in that respect, not such a great return.

 

[investalot]

If you really are getting a positive return of 10 - 12% after costs in today's market you are to be congratulated, and should be advising the so-called financial experts where they are going wrong !.

However, let's take a look at the figures in very simple terms: you have been getting an average return of 11% (after costs ?) per annum for two years i.e. total return 22%. Meanwhile the value of your property has dropped by @ 27%. By my reckoning that means you have a nett loss of @5%, ignoring what your capital might have been earning in interest in the meantime, say 6% p.a. before the current crisis. Viewed in that respect, not such a great return.

I think I may have confused you. The two new villas are identical but in different locations on smaller lots, hence the lower price. The original two are worth slightly more than I paid for them (possibly 5%) but I know from past experience here that capital growth is similar to the German market but rental income is always high due to the transient workforce of the island and that is what I look for in my investments.

The builder is usually very busy with the local market but because of the banks new tight criteria for lending caused by the extravagant spending of the modern world the islanders are forced to suffer the consequences.

Their loss is my gain.

 

[Lysos]

Thanks for clarifying the situation.

 

[peteark]

In the current climate I would wait six months then look at London

 

[judithscott]

I would suggest Croatia or Bulgaria these are up and coming holiday resorts after the troubles and the property is cheap and it will help with the tourism.

 

[sextant]

Property investment in France

As you can see in those day nothing is certain.

France has a reputation to be a safe market and it is still the case, the prices decreased by 10-15% until April and now the developers do not accept discount any more. Some of them even decide to increase the prices by 2% because the demand is stronger than the offer

 

[tylerbabe]

I would like to suggest Turkey as it is the up and coming now with the euro fallen.

Hisaronu Ovacik is very popular holiday resort

 

[smell.the.coffee]

In response to Pyramid James, and his initial question. Simply put, keep your money on your pocket. Global Financial situation suggests many projects are still in danger of going broke. Real Estate values across the globe are falling, so why buy now?

 

[edsilpuno]

I would suggest Philippines. The cost of living here is affordable and property appeciation is high in the country's epicenter of social, cultural and financial activity - Makati City.

 

[clarenash]

Where do you live and how much is your budget? The UK property market has a lot to offer at the minute with prices being reasonable and affordable for anyone looking to invest.

 

[Propertyzone]

Dubai is a wonderful and fun place to purchase - However the region has been hit considerably hard with the global crisis, with properties devaluing by 50% or more in a very short space of time. You would be wise to choose carefully, and certainly it would be worth a visit before committing to any purchase. Any properties that are off-plan, or under construction should warrant a site visit to make sure that construction is still progressing. No developer should mind, and if there are workers on site it is always a good sign.

The Real Estate Regulatory Association are ensuring that developers now follow strict new guidelines, which has helped to take away some of the uncertainty of investment in the region, and is going some way to ensuring that rogue developers do not get a foothold. Make sure that any developer with which you are considering purchasing is registered with RERA.
Also bear in mind what is going on around any development that you are considering - Dubai is still a mass of building sites - and some may not be quite so quick to complete than others.

With the prices reducing, as Palm points out, there are bargains to be had - take your time, have a look around, do your research and visit would be my advice.

If you are looking for something closer to home, Southern Spain is offering some bargains, and over the water there are some excellent investments in Morocco.

 

[NathanJacob]

The best place for property investment

Buying property in UK for investment a superb opportunity for big capital gains. The country was recently voted one of the top 5 overseas investment destinations and investors are looking at property investment in UK. If you are awaiting more information you can get it here at buyproperty4lessdotcom.

 

[Lyn Grand]

I suggest Bulgaria, the weather in Bulgaria is incredible

 

[essepi74]

in Calabria (Italy) the weather is incredible too.

 

[JMBroad]

Interesting debate and nice to hear the opinions of so many property professionals.

As there may well be people out there who are in the same position now as James was back in February 2008, I'll add my 2 cents to the debate.

In my opinion - Brazil is the best option, for three very simple reasons, other than the fact that the legal requirements for building are very strict so if you do your due diligence your investment is very safe:

1) Huge population and massive housing deficit means there is a demand for over 8.000.000 homes right now, not counting for population growth, increase in domestic and international tourism brought about by the 2014 FIFA world cup.

2) The Brazilian government has implemented a social benefit programme (which was launched earlier this year in May 2009) which offers first time home buyers huge benefits when they buy "government approved housing". The programme also offers developers many benefits when they build "government approved housing". This, together with the fact that the Brazilian economy weathered the crisis much better than any other economy (we hardly noticed the crisis here) has further boosted the already massive demand with the local population.

3) The first 25 year mortgage was launched in October 2007 so saying that "the mortgage market is in it's infancy" is an understatement. It's only just been born. This presents a challenge for some overseas investors as they need to raise capital for their purchase outside of Brazil (which isn't necessarily a huge problem as the prices of property geared towards the local population are very low). What this does mean is that developers are forced to be creative to raise finance - so the true essence of off-plan building is actually happening - Developers sell off-plan at a discount to market value to overseas investors and then handle resales to the local market in order to free up the original investor to move their capital into the developer's new project.

Of course it doesn't hurt that the weather is a constant 31º C, the water is as warm as a bath tub and the food, people and general atmosphere are a clear response to the age old question of "how the heck did someone think up a dance like the Samba"?

 

[Propertyzone]

Well, quite a choice there - you did ask!!!!

As for the comment about Morocco not being safe, Im with Soup Dragon and Investy on this one. Never had a problem in Morocco, and not heard about anyone who has. There are good deals to be had and some interesting opportunities for rental income, either guaranteed or with excellent backing. Depends if you want the security of a guaranteed rental scheme and have this factored into the price you pay, or opt for a well managed scheme which does not limit your income, but also does not give you the guaranteed minimum.

Certainly worth investigating in more detail

 

[Jolie]

Hi

Do you think investing in overseas property is a good option?

 

[rowlandsbb]

Startinng to be
Certainly for life style buyers who also want a long term investment
In Spain just now there are some very good deals which I suspect will look cheap in the years to come
For pure investment then everywhere is difficult at the moment
The old off plan days where the early birds did make some money are dead in the concrete for quite some time to come-no prospect of profit between contract and completion
But in Spain, if you can find a front line beach property which is a distressed sale then holding and renting for a few years should produce a decent return
However, you have to do your research and it takes hard work to get a rental return out of any property where ever it is
Dubai has shown everyone how quickly everything can change
So if you are buying to use yourself and make a bit of money medium to long term then a selective purchase in Spain will certainly give you the life stye benefits and should produce a profit...and I can help you with this
France and other EU countries with established economies the same Keep away from anything ' emerging'
As a pure investment then I would suggest that you look at UK ...BTL has many advantages as you would be buying in a depressed market which is about to recover..I can not help ypou with this ..well I suppose I could advise but only look at houses which need a bit doing to them before letting...experienced dealers in UK are having a good time just now if they have the finance

 

[JMBroad]

For pure investment then everywhere is difficult at the moment
The old off plan days where the early birds did make some money are dead in the concrete for quite some time to come-no prospect of profit between contract and completion

Try looking at Brasil - product geared towards the domestic market. Investment is anything but difficult and early birds are making plenty of money - our last two developments (100% sold, completed and delivered) have recorded capital appreciation in two years of:

Development 1 = 66% to 83% from 2007 to 2009 (33% to 41% per annum)
Development 2 = 57% from 2007 to 2009 (28.5% per annum)

Development 3 is 95% sold and currently in construction (three months left),Cap appreciation so far has been: 50% from 2008 to 2009 (50% per annum)

So it's still very possible.