There is currently a lot of doubt over the future of the emerging property market. A while back when talk of the credit crunch first began, there were reports that people were increasingly investing in established markets like Germany. Currently some people who are knowledgeable in the field are advising that most of the money invested in the foreseeable future will go into established markets. Recent research, however, shows otherwise.
Investment property portal The Move Channel has just revealed that most of its visitors are buying in emerging markets. The countries listed as most popular were Brazil, Dubai, Egypt, the U.S., and Turkey.
As I wrote in a recent article, the popularity of a country with buyers is not a good indication of a market's potential. This is because most people are buying a holiday home with a view to letting it out when not in use, so the potential for rental income and capital appreciation is of secondary or possibly equal importance to where they want to take their holidays.
As far as I'm concerned, the top ten property investment hot-spots in the world for 2008 are Brazil, Cambodia (Phnom Penh), Philippines(Manila), Canada, Argentina, Costa Rica, Thailand's island: Koh Samui, Thailand's island: Koh Phangan, Malaysia, and Albania. I am not saying that every potential investor should buy in one of my top ten countries or avoid the established markets where possible because that would be foolish. What I am saying is that where you should buy your property depends on what type of purchase you are making.
If you are looking for a stable income from rental, possibly to approach a bank with for some buy-to-let finance, then you will want it be as risk free as possible. For these investors, established markets may prove a little bit better because their rental market has a proven track record. Germany's Berlin is especially good for those who want to approach buy-to-let financing because of the housing demand exceeding the supply, giving way to a strong residential rental market.
Article comments
1 - Andy investing shaw
Yes you are right investing in property will give huge profits within a short duration, when it is done in a proper manner.
2 - roulette strategy man
I'm interested in investing in properties throughout the world. I live in australia, but every time a property is purchased here, I am hit with stamp duty which is a very large government tax - I can often pay $50,000 just in tax for one property. This is needless to say unfair, and it substantially reduces profits. I would therefore like to buy property offshore where the tax is at least reasonable. I am a professional roulette system player so I travel extensively and can visit any country. What countries jurisdictions are best for property investing? Rather than pay my solicitor a fortune to determine this, perhaps someone can help me for free. Anyone with any appropriate advice of information can contact me through my site or email me. thanks.
3 - Props
I agree that there are emerging markets around the globe and these can represent opportunities, but if you're inexperienced in buying property in other countries you should do you research and be wary. I think if you look carefully, you can probably find emerging property markets in your own country and therefore invest with less risk.
Darren.