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What Will Be A Property Hotspot For 2008???

Discussion in 'New and Emerging Property Markets' started by deedee1, Sep 6, 2007.

  1. deedee1

    deedee1 New Member

    :)Hi all,

    THE MILLION DOLLAR QUESTION..!!!!

    What will be a property hotspot for 2008!!

    Me personally I think that ALBANIA and NICARAGUA Will start to see lots of changes and development!!

    Albania with its EU support and funding and full EU membership preducted by 2014!

    Nicaragua- Being located in central america next to the likes of costa rica with natural coastlines!

    As I think that every year we are running short of options as so many markets are evolving rapidly and expanding on to the property investment radars!!

    See ya D :)
     
  2. fuzz

    fuzz New Member

    I think Italy, Panama and Russia
     
  3. europeanproperty

    europeanproperty New Member

    Second cities

    I would look at second or third cities in countries with established markets, that way theres no risk. Ostrava or Brno in the Czech Republic, or Wroclaw in Poland.
     
  4. Kim

    Kim New Member

    emerging markets vs emerging sector

    The USA is fearful of recession and the markets are fearful that the trillions of personal debt will at last have an effect on the economy.
    If the current UK banking situation and the USA problems continue in to be big news it will threaten the emerging markets first and what money is spent will be put into safer markets.
    I think the emerging market is now overplayed and we are saturated with new emerging markets that are cheap and likely to stay cheap.
    In my view the smart money is going to made by investing in development projects and taking a share of the developers profit in more traditional markets than relying on rising prices of built or off-plan in new emerging markets.
    Kim
     
  5. The Soup Dragon

    The Soup Dragon Senior Member

    Kim, I agree that being the developer / funding the developer is a better way to go. That way we aren't reliant on house price inflation to see a healthy return. Most will always prefer to own bricks and mortar, particularly after the rises in house prices witnessed at home. (We all know people that have made money doing Buy2Let and many will simply try replicate that rather than look at the climate in which the Buy2Let phenomenom occured and the climate applciable to where they are considering investing.)
     
  6. Kim

    Kim New Member

    Developers profit versus buy2let growth.

    You are right most follow like sheep until the grass runs out then one sheep goes of and finds new grass and the rest follow again.
    Buy2let,offplan,guaranteed rental income are great but it has become too overcrowded and so marginalised. The next phase has to be sharing in the developers profit or better still to buy into a buy2let or guaranteed income at an early stage so that you benefit from a share of he developers profit as well asthe buy2let growth. This is the new area to invest in especially if your invetsment is backed by owning a plot that is developed into a villa; so if it goes tits up you at least own the plot. Kim
     
  7. Stingo

    Stingo New Member

    Kim - I agree but being an agent selling both investment opportunities for "off plan" developments with finance, long construction periods and rental guarantees as well as land and soon, fractional ownership of land through to development and sale, I see benefits for a cross section of individuals. Those wanting out and out investments often say that they are in it for the long term and they just want to hold, not necessarily use it and ride out any storms. The truth is most investors actually like these tangable investments as they do aspire to one day be able to use that property. Buying land as part owner of a subsequent development is a good investment at the right place right time but it does not give you the glamour ( although more so than the stock market of course).
    We at will be marketing funds for emerging markets in the very near future to compliment the "off plan" deals as we do feel investors need the options to come in at a low level and make the strongest profits from build but without the hassle.
     
  8. Kim

    Kim New Member

    Stingo, I would be interested to learn about your funds how can I do this?. Kim
     
  9. MichelleAlison

    MichelleAlison New Member

    Hot Spots

    Now that I am living in Argentina (after leaving London a year ago), there are definitely some bargains here. I live 250 miles south of Buenos Aires on the Atlantic ocean and properties are still really good value. You can pick-up a studio apartment in the centre of town for as little as US$25,000 and a luxury 5 bed/5 baths detached house with swimming pool and maid quarters in the best area for US$300,000. :)
     
  10. Stingo

    Stingo New Member

    Hi Kim

    PM me and let me know your limit for investment. I will register your interest and when I have more concrete details and the necessary paperwork has been signed , then we can discuss further. Speak soon.
     
  11. theguvner

    theguvner New Member

    North Cyprus the last Mediterranean hotspot

    Everybody knows that most areas of the Mediterranean are finished, the numbers are dropping and there is no more money to be made.

    I came to North Cyprus Last year and personally i feel this is going to be the next major hotspot in Europe, Property value is rising on average 25-30% per year with land value rising upto 50% and this has been the case for the past 3 years.

    As North Cyprus is NOT in the EU yet prices are still low for example you can pic up a 3 apartment for around £40 to £50k and 4 bedroom villas with private pool for around £150,000 currently bringing in returns of between 7 to 11%, when you compare this to South Cyprus or Spain you would struggle to find a 3 bedroom apartment for £150k on the beach front.

    I have just been looking for a small plot of land myself and a came up with 1 donum (aproxx 1300m2) touching the sea with a private beach and permission to build a hotel for £200k.

    this will be the next european hotspot!!!
     
  12. Gerry Pridham

    Gerry Pridham New Member

    Deedee,

    I think the hotspots (UK residential) will be
    1 where current high yield properties (not HMO) exist. This will be terraced houses in good condition currently yielding over 7%. If and when the UK market flattens out, the race will be on for yield (cash flow) instead of perceived capital growth (psychologically negative growth).
    2 where suburbian properties have been overpriced for some time (yields less than 4%). In a tight market, or a falling market, the sub-£500K properties will present some interesting BMV opportunities for those not stretched to 85% debt.

    Overseas: Same thinking here.
    1 Berlin. Severely underpriced apartments which can command long term stable tenancies
    2 Spain. Distress sales approaching 50% BMV

    All present interesting possibilities for a shift in portfolio strategy.
     
  13. deedee1

    deedee1 New Member

    :)Hi all,

    I totally agree with you also theguvner- As North cyprus is starting to boom and is beautiful and unspoilt!!
    It is the prettiest side of the island with plenty of tourist attractions!!

    Its cheap in comparison to others and is the last untapped med destination for investments and still has alot to offer!!

    The only thing is just make sure you know your title deeds and any possible risks, seek independant legal advise, and be prepared to take a risk due to the future uncertainty!!

    Take care-D
     
  14. dHeinwitz

    dHeinwitz New Member

    The answer is ALL OVER. The bottom line to me is always cash flow. As long as the yield is good, and the property is in good shape, then it's a good buy. Anyone who buy real estate property hoping for capital appreciation (hoping the housing price goes up) will be in for a rude awakening when the negative monthly cash flow force you into bankruptcy.

    IMHO, real estate is a "local" investment. If you don't know the area and only read about the "boom" in the paper, chances are you'll lose money. The problems are many people don't share their bad experience. So the success often skewed the failure stories.
     
  15. pablo1uk

    pablo1uk New Member

    I am a Brit who has been living in Moscow for 2 years, and was fortunate enough to buy my property in the centre of Moscow just at the beginning of a surge in prices, which saw our place rocket over 200% in around 16 months. Prices since have stabalised. I would say that Russia unless you have a huge amount of money to invest is no longer even worth a look, especially Moscow.

    eg. 40m2 apartment USD320,000 - justifying its reputation for being one of the most expensive places to buy now. And this isn'tto mention the state of the building and entrance you will find...definately not an elite building for such price..
     
  16. fiona1

    fiona1 New Member

    I believe you are spot on deedee1 about Albania. Things in this country can only get better - and the coastline is magical!
    Also more and more people are going to be looking for the REAL hotspots in Brazil, where the locals are buying, particularly down South.
    Also Argentina property will attract some attention too.
     
  17. EDP24

    EDP24 New Member

    No new Markets I am afraid for some time the so called credit crunch still has to be played out in full. I remain convinced that Land is the way forward and that we will need to study micro and regional economies to obtain the best deals, i am concerned for example by over supply in countries like Bulgaria
     
  18. thebest

    thebest New Member

    Thanks for this interesting thread. I think Vancouver BC (Canada) is still a hot market. It has been ranked as best place on earth to live and top of that Vancouver is going to host 2010 Winter Olympics, Property is still hot here now and will get more hot as Olympics get closer and closer.

    Thanks
    gobesthome member
     
  19. moe sizlak

    moe sizlak New Member

    i agree with canada, canada is only really in the early stages of its property boom , it began less than 3 yrs ago in real terms as far as i know , its economy is doing well and the olympics in vancouver are sure to help an already great and thriving city

    i would say india is a good bet , booming economy in a relatively politically stable country
    im hoping that dubai will stay good as i own an off plan apt over there which will be completed next yr at which point if not before i inted to flog , when america attacks iran , i can see the likes of dubai sufferring big time
    i also own property in budapest which right now is a disaster , im sorry i ever bought it and will sell as soon as i can break even which could be difficult as you cannnot give away property in hungary right now

    having said all that i believe property is not the great investment it was , personally i if i had money of my own to spend right now , id put it in commodities , specifically food
     
  20. EDP24

    EDP24 New Member

    Moe What was the problen in Hungary? a couple of developers were in touch earlier this year and were providing government/local authority details of the redevelopment in Budapest, the strongest sales point was the potential strength of the domestic rental market.
     
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