Although there are still some markets in crisis, on the whole the economy is showing signs of recovery which will only serve to provide potential investors with the confidence to take the final step by committing to a purchase.
It would be impossible to single out one country to meet the individual requirements of every investor, and it would be as difficult to make distinctive groups of investors. Some will be looking for a holiday home with rental potential whilst others could be looking to start a business. However there is one aspect that remains the unchanged, everyone is looking for a bargain that they see as a good deal with future prospects.
The major factors and greatest influences when investing in overseas property are finding a bargain with potential that is located in the sun. Taking these factors into consideration has made it possible to find the top six countries with the capability to offer numerous opportunities in 2015. Although no investment is guaranteed, the available information confirms that these countries still offer investors the bargains that they are seeking with a high probability of a return on their initial investment at any given time.
It is important to note that the countries are listed in no specific order, but are also in the list of top investment options for 2015.
TurkeyThe popularity of Turkey has grown substantially in the past few years and it is now seen as one of the most fashionable holiday destinations. 2014 saw property sales exceed $4 billion in the first 11 months with momentum showing no signs of waning.
2008/2009 saw the property market in the majority of countries struck hard and when this downturn peaked, and while Turkish properties in Istanbul did see prices drop, the prices recovered within 18 months and went on to show appreciation of 10 – 15% year on year, a trend which is expected to continue over the next few years.
These impressive rates of appreciation could easily lead investors to the conclusion that they have little chance of finding a bargain property. Surprisingly Istanbul real estate continues to impress when compared to other cities around the world. It also offers numerous property bargains that come to market with an average price of $1,100 per square metre. Not only does this highlight the investment potential but also confirms that Turkey continues to offer what investors are looking for.
The GDP growth rate combined with inflation has been a major contributory factor to the appreciation to property prices, however the speed of the price rises are in response to the big local demand which continues to increase. Statistics and research into the current population status confirms that at least 50% of the population is under the age of 30. It can be deduced from this one fact that Turkey is a country of the future that must commit to ensuring there are adequate housing options to meet the needs of the population. There is also a requirement for half of the current housing to be renovated or replaced as it still falls short of current day standards.
For those considering investing in the Turkish property market, the positives combined with the future prospects look extremely good. Last year saw big changes applied to the property laws in Turkey. What had always been a long and complicated process that discouraged foreign investors is now a quick and simple process that is combined with an extremely warm welcome to all.
With the proven evidence, it is fair to conclude that the positives Turkey has to offer far outweigh any negatives. Like all countries there are areas potential investors should avoid and others that still hold potential and bargains.
There are no guarantees that any investment will increase, however the safest option is tipped to be a pre-constructed apartment in the city of Istanbul. Not only does this provide the investor with a wide audience of buyers that continues to grow should they wish to sell their investment within 5 years of purchase but also offers a central location that is constantly improving. The ideal situation for an investor to currently consider would be purchasing the property in the early stages of construction, this not only secures the best price often substantially discounted but it will also provide them with an increase in value through the 2 – 3 years of construction and offers the best potential for return on their investment.
BrazilBrazil would not immediately spring to mind as a country with investment potential, this is probably due to the assumptions which would lead investors to the conclusion that it was beyond their price range and property bargains were snapped up years ago. You may be pleasantly surprised that your preconceptions are completely misguided.
Beyond the facade and misconceptions, Brazil is a country that has continue to gain strength in the past few years and managed to side step the major economic crisis that brought many countries to a standstill.
Brazil has been one of the most attractive propositions for foreign investors looking for the highest return on their investment for years, and whilst the property market has sustained growth year on year, the concern most investors may have is could this particular success be about to crash?
Whilst there is no guarantee the information that is available confirms that there is very little chance of Brazil experiencing anything other than continued growth. The emerging market of Brazil still sees the majority of the population seeing property not as an investment but simply somewhere to live and borrowing money to invest in a property is still a very new concept. Due to the growing wealth of the population, there are increasing numbers of middle class Brazilians borrowing to invest in the best houses that they can afford, however this appears to be the group of people taking this route.
The country of Brazil is larger than the whole of Europe and boasts large natural coastlines which have remained unspoilt and a superb climate. Travelling to and from the country can prove to be a lengthy plane journey, though.
Investing in the majority of cities in Brazil is an easy process with the main areas of Rio and Sao Paulo already well known. Brazilian real estate in 2012 – 2013 saw the GDP and property values settle and was much needed as the economy was in danger of overheating. This resulted in renewed interest from investor looking to profit from a long term investment. 2014 showed signs of slowing in 2014, with the majority of property values achieving under the typical 20% increase in value seen in the previous years.
Dominican RepublicThe most unexpected country to make the top six in terms of bargain investment opportunities is the Caribbean, more specifically the Dominican Republic, best known as a top all inclusive holiday location favoured by tourists from all over the world. Surprisingly the market for any would be foreign property investor is ridiculously cheap in comparison to any other area of the Caribbean.
The reality is that 2015 is set to see more people looking at investing in property in the Dominican Republic. The reasons behind the predictions are the combination of foreigners choosing to relocate or retire and the vast increase in those purchasing a second home. Ultimately it is the bargain prices that lure numerous investors, with a brand new one bedroom apartment within 5 minutes walk of the beach still commanding a price of less than $100,000. With the potential to rent the property and achieve a good and reliable income whilst at the other end of the scale multimillion dollar properties are still exceptional bargains when compared with the same property in any other country.
The most developed resort area is Punta Cana whilst Puerto Plata on the north coast has been developed specifically for retirees. Currently the most appealing area in terms of investment potential is the Samana Peninsula, which is home to numerous expats and offers seclusion, stunning scenery and easy access to the beautiful beaches nearby.
ColombiaFor the past 6 years Colombia has offered great potential for those looking to invest in an overseas property. With the value of property increasing by as much as 10% year on year and 2015 set to see even further increases.
Those looking to invest in overseas property there could not be a better time and few other places that show the potential Colombia does. Property prices are still far lower than Europe and with the currency making vast improvements to around 2,300 to the dollar opens a window of opportunity for investors to take advantage of this dip.
Santander and The Coffee Region have recently experienced new waves of foreign investment and this is a trend that is set to continue. However the city that holds the most potential must be Medellin as it is growing in terms of reputation and opportunities. Although the prices in this area are beginning to rise above the main city of Bogota it still offers great value and a worthwhile venture.
Bogota itself is currently busy becoming established on the world market and as the business capital of the country and holds a certain allure with investors and a potential that is still the country’s best kept secret.
ArgentinaArgentina’s economy has been constantly up and down and 2001 saw it at an all time low. Whilst it made good progress and picked itself up currently this is a market that is close to a repeat of 2001 in terms of financial activity.
Potential investors should not let the manic economy put them off as the downs are always followed by good ups. Argentina is amongst the most beautiful countries in the world that offers a certain charm and appeal. Investing in property in this country is all about timing and there has never been a better time than now.
For those considering investing a wise choice to start with would be an apartment situated in the city of Buenos Aires which offers a wide choice of classic apartments that offer great rental prospects. Investors wanting to look further afield would be wise to consider vineyard opportunities with Mendoza being an ideal place to embrace this fantastic country and provide long term investors with a good return on their original investment.
SpainIt has been common knowledge that Spain has experienced serious blows leading to dramatic falls in the property market. 2015 is set to be the best time in 20 years for property investment. Although locally driven markets remain unsettled and may fall a little lower, the expat market is solid and beginning to show signs of appreciation. The crash has also seen some new constructions over the past 6 years.
If you are looking for an investment that provides opportunity and potential you cannot go wrong with the town centre of Malaga. Not only does Malaga offer broad appeal there are various property options priced as low as 2,000 Euro per square metre, which is the lowest for many years and particularly appealing to those paying in dollars.
ConclusionUltimately, when you invest in the overseas property market you should have a clear idea regarding how you intend to use the property and whether you are looking at a short term or long term investment.
There are bargains in many of the countries that have seen dramatic price cuts, however you must be aware of exactly what buying a property will entail with regards to the regulations and laws of the chosen country.
For investors looking to let their investment property it is important to purchase in an area that has easy access, good local amenities and is popular with tourists. Remember to take into account any months that may be out of season and factor this into your costing appropriately.
Investors that are looking at a long term investment with the intention of renting must include the income tax that will be due on the rent received. Whilst there are national agreements which mean that you should not have to pay the same tax twice this must be considered as there are situations where your tax liability will apply in the country where you have invested and in the UK. There are expenses that can be set off against the rental income to reduce the taxable profits but these are only direct costs associated with letting the property.
Make 2015 the year you join savvy investors across the world and take advantage of the current investment bargains offered. There is never a better time in terms of value for money, potential and opportunity, and don’t forget a minimal risk.
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