Property Ro-mania grips investors

An increasing number of overseas property investors have turned their attention to Romania's booming property market.

Land prices in the former soviet republic have risen by an astonishing 700% in the last year, according to Romanian estate agent Chindia Estates. "For those wishing to make a shrewd and early move, Romanian land investment offers a truly exceptional opportunity," commented Chindia's Dave Wellen.

In April this year Romania signed a treaty to join the EU in 2007 and entered NATO last year.

Chindia Estates claims that house prices in Bucharest, Constanta, Brasov, Cluj, Timisoara, Oradea, Ploiesti and Targoviste rose 40% in 2003/4. Yet property prices remain relatively low, with property prices starting from as low as £20,000.

Be Wary of South Africa's BTL market

Investors should be wary of the South African buy-to-let market, according to Colin Young, fund manager of Old Mutual's listed property funds.

"Over the past three years the buy-to-let market has been negative because too much supply has been coming on board (except Johannesburg)," says Young.

He adds: "Overall, demand has not kept up with supply, setting off alarm bells and sending signals to investors to be careful."

Beware of fluctuating rates

Fluctuating currency rates is catching out many overseas property investors. This is especially the case with some investors making staged payments over a period of time.