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Property investments further afield
Although the European property can offer some great
investor rewards, even greater investor returns can
be achieved by investing in long haul destinations outside
of Europe, according to some exhibitors at the Property
Investor Show (23-25 September, ExCeL London).
Brazil
The fifth largest country in the world, Brazil covers
almost half of South America and with vast natural resources
and a large labour pool it is South America's leading
economic power. The annual economic growth rate is around
7% and tourism has increased by 30% in the last year,
giving a realistic guarantee of future market stability
and providing security for developers and investors
who are rightfully wary of volatile markets. House prices
are a fraction of the cost of the UK and the cost of
living can be as little as 20% of the UK.
Caribbean
The Caribbean islands continue to attract visitors
and residents from around the world because of the idyllic
climate, warm waters, deserted beaches and relaxed lifestyle.
In the Dominican Republic land ownership restrictions
have been eliminated and there is no property tax, which
has fuelled inward investment from foreigners. The Caribbean
boasts booming tourism and therefore huge interest in
property from both foreign and local investors. The
property market has rocketed by over 20% in the past
year and land is selling incredibly fast.
Thailand
Despite the Asian tsunami having hit a large part of
Thailand, the property market has not been badly affected.
The market has remained steadfast and buyers from all
over the world continue to be lured by what Thailand
has to offer. As property prices in the Mediterranean
become more expensive, Thailand provides an alternative
at a fraction of the cost. The cost of living is around
a third of the UK, attracting retirees in particular
who are drawn by the tropical lifestyle, affordable
property and cheap medical services. A sea view property
can yield up to 8% and properties built around a golf
course yield between 4 and 5%, with the east coast being
approximately 25% cheaper than the west coast.
Shanghai
Shanghai is booming in trade, finance and property
and by 2020, plans to rival and overshadow places such
as New York, Tokyo and London. The economy has grown
by over 9% GDP per annum over the last 10 years, it
joined the World Trade Organisation in 2001, the currency
is still said to be undervalued and the Olympics will
be held in China in 2008 - all strong indicators that
the boom will continue. In 2002 property prices grew
by 19.5%, in 2003 by 24% and in 2004 by 27.5%.
Nick Clark, MD of Homebuyer Events, comments: "Canny
investors are looking further afield when choosing a
destination for their investment property, as infrastructure
and transport links continue to improve in countries
that were not previously considered as viable options.
High economic growth and future rental potential are
key factors in these markets, attracting investment
and tourism.
"European markets are still incredibly popular,
but those who are keen on taking a bit more of a risk
are snapping up properties in exotic locations which
promise even higher yields and capital growth."
Property Investor News will be exhibiting at stand
number 107
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