Rental investors ’should look to the future’

Investors in buy-to-let accommodation have been encouraged to think about how the market is likely to develop.

The Sun stated that overseas property buyers need to consider what may take place in their chosen location in the next few years.

According to the newspaper, the level of supply and demand in a certain place could determine the overall success of any investment.

For example, it said that a rental property is less likely to appreciate in value if it is located in a place with a large number of available residences.

By contrast, a house in an area with limited supply would be far more likely to become highly sought-after.

The Sun commented: “Many buy successfully, but only because they follow the golden rules.”

This comes after BuyAssociation recommended that short-term investors come up with an exit strategy if they wish to make money from their property.

According to the website, people are less likely to make a profit if there is not a sizeable resale market in their chosen location.

Expats look abroad for cheaper cost of living

The high cost of living in the UK is creating widespread disillusionment among many Britons, to the point where many are considering emigrating, a newspaper has said.

A report in the Telegraph stated that many British people are thinking of packing up and leaving for another country.

This was largely attributed to the current state of the UK economy, which has led to increases in the prices of groceries, fuel and other necessary expenses.

People were also said to feel unhappy with their rising tax burden, with council tax in particular flagged up as a particularly unpopular charge.

Therefore, many are looking to overseas property as a way of avoiding these payments and reducing their outgoings.

The Telegraph commented; “It’s hardly surprising many British homeowners are seriously thinking of selling up and moving overseas.”

Earlier this week, a poll of expatriates by NatWest revealed that the vast majority believe they are financially better off now that they live abroad.

According to the organisation, the average person in the UK earns £47,000 a year, whereas a typical salary in the United Arab Emirates can be as high as £79,000.

Brazilian investment could be lucrative

Overseas property buyers could find Brazil a lucrative investment, a newspaper has suggested.

According to the Times, Latin American countries are well-placed to deal with the current problems in the global economy.

This has prompted the publication to state that this may make places such as Brazil very safe investment options.

As well as offering a growing economy and political stability, Brazil is also enjoying considerable growth in its housing market.

This was said to be partly because new flights are opening up the country and leading to interest from overseas investors.

In addition, the newspaper said Brazilian authorities are preparing to host football World Cup in 2014, a development which further enhances its desirability.

The Times commented: “Latin America is high on glamour but low on prices – the perfect mix for investors.”

Brazil’s government recently revealed that the country’s economy expanded by 5.4 per cent last year.

Spanish property problems not affecting whole country

Problems in the Spanish property market are not affecting the whole country, a media outlet has insisted.

According to the Daily Mail, some parts of Spain are currently dealing with a drop in demand from foreign property buyers, while the credit crunch is slowing down the overall rate of house price inflation.

However, the publication said that this is not a uniform trend and that some areas still offer bargains and potential investment opportunities.

This point of view was reiterated by Liam Bailey of Knight Frank, who told the newspaper that house prices went up by varying amounts across the country last year.

He commented: “Madrid saw rates below two per cent, but this contrasts sharply with 8.1 per cent growth in Murcia.”

The Daily Mail added that lifestyle buyers do not need to worry about market performance and can purchase when and wherever they wish.

According to A Place in the Sun magazine, Spain is currently the most popular location among overseas property buyers in the UK.

France offers returns on investment

Owners of property in France could be in line to collect substantial returns, industry analysts have stated.

ShelterOffshore.com commented that during the last few years, property values in the European country have gone up by a significant amount.

This means that anyone who chooses to sell their French residence at a future date could potentially collect a tidy profit.

The website highlighted a number of reasons for the value increases, including strong demand for buy-to-let accommodation.

ShelterOffshore.com added that interest in the French market among property buyers was also fairly high, which in turn led to prices going up.

The website observed: “If you have a home in France, it should not be too difficult for you to raise an income or a profit from it.”

Earlier this month, currency exchange firm HiFX said that last year, France accounted for more than a quarter of all the enquiries it received from prospective property buyers.

Airport to drive up house prices in Spain

The Spanish city of Murcia could be set for a property boom once its revamped airport is up and running, experts have suggested.

According to the Telegraph, Corvera Airport is currently undergoing a major upgrade and should be fully operational in two years time.

The newspaper believes that the opening of the facility could lead to growth in the local property market, as the introduction of new flights should boost international interest in the region.

However, house prices in Murcia are currently much cheaper than in many other parts of Spain.

This means that people who enter the market early could stand to collect considerable returns when the market experiences its anticipated growth.

The Telegraph observed: “Property prices in certain ‘emerging’ parts of Spain compare favourably with newer rivals such as Cape Verde and Bulgaria.”

According to A Place in the Sun magazine, Spain is currently the most popular location among overseas property buyers in the UK.

British investors advised to look abroad

Property investors from the UK have been advised to look overseas if they wish to collect good returns.

Homes Worldwide recommended that Britons avoid the domestic market as mortgage rates are rising while house prices are falling.

The website has suggested that investing on the other side of the English Channel could be a more lucrative move, as the French market is currently experiencing growth.

According to the website, house prices in France went up by four per cent last year, while their values are about a third cheaper than the UK.

This means that investors could collect the proceeds of capital growth in a relatively cheap market.

Furthermore, Homes Worldwide believes that France is holding firm in the face of global economic problems.

The website said: “The market does not seem to have been affected by the so-called credit crunch that has unsettled the US and UK markets.”

This comes after currency exchange firm HiFX said that last year, France accounted for more than a quarter of all the enquiries it received from prospective property buyers.

Dubai’s Olympic Bid

Sheikh Mohammed bin Rashid Al Maktoum, vice president and prime minister of the UAE, recently announced his intentions to begin studying an Olympic bid. The leader, who recently visited China, expressed his initiative during a conference to journalists on a flight from Beijing to Shanghai.

The Olympic bid will be welcomed by avid investors who have already purchased property in Dubai’s Sports City, which is to become the largest sports complex in the UAE and probably the world once it is completed. The custom-built complex, which will feature a 25,000-seater cricket stadium, a 60,000-seater outdoor arena that could hold track and field events, and a 10,000-seater multi-purpose indoor arena, is most likely to hold a key role in UAE’s Olympic bid.

Currently, Dubai hosts many major sporting events, including the Dubai World Championship, a golfing event with a grand prize of US$10 Million. Likewise, this year the Emirate enjoyed the Barclays Dubai Tennis Championship, where American Andy Roddick captured his 25th career ATP singles title and second trophy in three weeks, with a victory over unseeded Spaniard Feliciano Lopez. The biannual cricket internationals are also held in Dubai as well as major sporting conferences such as the 3rd Dubai International Sports Conference to be held this year, May 31 – June 1, 2008.  The UAE’s capital, Abu Dhabi, will also host its first ever Formula 1 Grand Prix next year.

Award-winning property portal, propertyshowrooms.com, registered record investor interest in Dubai in January 2008, quadrupling traffic figures in comparison with the 2007 average. Sara Romera, analyst at propertyshowrooms.com, explains: “In the last four weeks we have seen a huge increase in unique visitors to our Dubai pages. This falls in line with the success of Dubai products in our International Property Investment Network, where Bermuda Views, a development in Dubai Sports City, is performing outstandingly well.”

Regarding the Olympic bid, Sheikh Mohammed refused to give any further details or pinpoint a target year.

Investors reassured about Bulgaria’s prospects

Overseas property buyers have been reassured about the investment potential of Bulgaria amid the ongoing crisis in the global economy.

According to Balkan Holdings, British investment in the Bulgarian property market has slowed down as a result of the credit crunch.

However, managing director Chris Northam said that while off-plan properties may be a risky investment, there are still many safer alternatives across the country.

Prospective investors were advised to look at the rural parts of the country as prices are often much lower in these areas.

Therefore, anyone who may need to make staged payments will be less vulnerable to market fluctuations.

Mr Northam added that overall, Bulgaria is still a good place in which to buy a property.

He commented: “I would say it’s very much still a valued destination, if you know where to look and you know what you’re doing.”

According to the Association of International Property Professionals, Bulgaria was the fourth most popular foreign destination for UK buyers last year.

Cheap foreign property attracts first-time buyers

Cheap property prices overseas are proving to be very enticing to first-time buyers in the UK, according to an expert.

Paul Collins, property editor of the BuyAssociation website, said that many people are having difficulty in getting on the British housing ladder because house prices are too high.

This has led to many people seeking various means of generating wealth to afford a purchase, including investing in a foreign property market.

Mr Collins said that places that offer relative bargains have proved to be especially popular, particularly those where prices have been going up quickly.

He commented: “They’re finding that it’s better off going overseas and building up a little more equity and owning a property.”

Mr Collins added that Spain has been one of the most popular locations among this group of buyers during the last few years.

Fair Investment Company recently revealed that nearly one in ten first-time buyers have already bought their first property overseas, while 44 per cent are thinking of doing so.