Overseas Property Investment

Overseas property investment is more popular than ever, as the UK property market looks to start slowing down, and investors realising the massive potential in property investment, have started to look abroad to continue to gain the same excellent capital growth.

I personally started to look at overseas property investment about 5 years ago, and have transferred about half of my investments and capital from the UK to overseas markets over the last 2 years as have been attracted by some excellent capital growth and the growth potential over the next 5-10 years, as the UK market slows down after some excellent capital growth.

So after deciding to look at overseas markets and properties overseas for sell, which countries would I recommend?

It is very difficult to generalise, as is a bit like saying, buy anywhere in UK and it will be a good deal, or a bad deal. For example some areas in Spain are growing well, and some are not. You may buy at an inflated price in the rush to snap up a place in the next “in” place when looking at properties overseas for sell.

So again I repeat do your due diligence. This is no different when looking at overseas property investment, or property investment in the UK. It is very difficult to decide when looking at glossy brochures, and the best way to do your due diligence is always to go to the country and check out the location and build quality - otherwise have someone/a company you trust carry out the due diligence.

But there is no reason to be scared of overseas property investment, and with estimated capital growth of 10-20% per annum in many countries, just as the UK has enjoyed over the last 3 years or so, it has to be considered by any serious property investor.

There are some economies growing at 3-5 times the rate of the UK economy as a whole, and there are many housing markets at very early stages – with finance markets only just opening up – offering huge potential. I would always look for a combination of undervalued markets, growing economies, a stable legal and political environment, and significantly strong leverage – the rates of borrowing – available to foreign investors.

Combine all these factors and several countries and cities will stand out.

Countries like the Czech Republic and Poland, Turkey and 2-3 others will be prominent for us this year - and it will be the cities rather than coastal resorts we shall be targetting.

Make sure you have a clear idea of the buying/selling costs and costs to finance, or sell, the property when looking at buying property overseas. Have a clear strategy and be sure any overseas property investment you make fits in with your overall strategy. It is very easy to go off track when you see what looks a fantastic deal - but be sure this fits what you are trying to achieve over the next 3-20 years. If you do this correctly you can do very well with overseas property investment.

It is probably even more important when looking at a overseas property investment that you are confident with the builder, agent and lawyer to ensure your investment is safe. However just like with UK off plan purchases, there are companies that specialise in getting good deals abroad for UK investors.

I will briefly review my most popular countries to invest in currently,

Spain

Check out why I think Spain is the most popular country, and will continue to be the most popular place for overseas property investment for the British, and check out my tips for recommended companies/regions to invest in at Spanish Property Investment

Czech Republic

The Czech property and mortgage market has really opened up over the last year with foreign investors able to borrow 85% LTV (loan-to-value), and even potentially up to 90%!

Borrowing rates are around 4-4.5%. This is key as this opens up fantastic leverage options in the Czech property market.

The rental market is good – with gross yields of 6-8% - so cashflow is good.

Locals are beginning to buy more, and beginning to understand the potential of mortgages!

There is still a huge shortage of new Czech property for the local market, ensuring prices will continue to rise.

Developers of Czech property are happy to take just 15% deposits - and allow the remainder to be mortgaged on completion – so again excellent leverage and use of your money with deposits as low as £8,000!

Czech Republic for me is offering some outstanding overseas property investments right now, for more on new deals go to Czech Republic - outstanding property investment opportunities!

Poland

The size of Poland, and the number of major cities there means it is almost essential for any property investor to have properties in Poland in their overseas property investment portfolio.

Poland is a leader on the continent in terms of economic transformation. Since joining the European Union in 2004 the country continues to implement bold political and economic changes. The effective absorption of EU funds has meant improved infrastructure which is key for the successful implementation of large scale investments. It is simply the youth, determination and excellent qualifications of the workforce that continue to lure FDI into Poland.

Investment statistics:

- Ranked number 1 in Europe in terms of planned investments*

- Ranked number 4 in the world for R&D investments*

- Ranked number 5 in the world in terms of best locations for FDI** Values calculated on a 0-3 scale

- GDP growth (5% in 2006) two times faster than western Europe. Human Capital

- 50% of Poles are under the age of 34

- 35% of Poles are under the age of 25

- 427 higher education institutions train more than

- 2 million university-level students.

Polish market figures

- Poland’s population: 38 million

- Retail market boasts 10% annual growth rate

- 250 million consumers within 1,000 km span

- Poland bridges key markets to the east and west

With 90% deposits available, up to the age of 80, this offers the chance to gain excellent returns on investment!

We have targetted several opportunities in POland - for more information, call us on 0115 9474155 or go to Poland Property Investment - buy in with just £5000!

My aim was to wait until mortgages were available to foreign investors before entering the market personally. With the recent availability of 65% LTV mortgages investors can now benefit from the use of leverage in a rapidly growing economy.

For our latest Istanbul opportunity, download at Exclusive New Deal

Why Istanbul?

Istanbul accounts for over 40% of the Turkish economy.

Istanbul is a city with massive growth potential for the future. It is the financial capital of Turkey and is split in half by the famous Bosphorus river. Major multinational companies have relocated their workforce to Istanbul due to its strategic position as a bridge from the eastern to western world.

The demand for residential units in Istanbul is massive with a shortfall of 250,000 units per year - and this reason alone means when looking at the Turkey property market, Istanbul should be the first place to target. Land prices in recent years have grown at a tremendous rate due to the restricted availability of residential land to developers. A large number of multinational commercial developers have entered Istanbul in recent years.

The Dubai based investment group Sama Dubai made a $705 million dollar investment in commercial land in Istanbul alone. Istanbul has a buoyant rental market for mid market property, and the potential for even further capital appreciation is predicted due to the recent availability of mortgages to the local population. The opening of mortgage markets is a crucial indicator for growth in most emerging markets.

Capital appreciation forecasts

Residential values grew by 33% in 2006 and similar figures are set to continue in 2007/2008. Due to the chronic shortage of housing stock in Istanbul the demand for housing is at an all time high. The growth in capital appreciation will be further accelerated by the ready availability of mortgage products to the local market, this will make the possibility of home ownership available to a much wider population - so this is the time to enter the Turkey property market!

I now highlight overseas property investment deals that I think are amongst the best deals available to investors. These are offered by developers/agents that I feel offer the best value for money and customer service.

Check these out at Current Recommended Overseas Property Investment Deals!

These deals will not just be from one developer or in one country - they will be deals I genuinely believe offer investors the best value for money. To ensure you always receive email alerts as soon as I recommend a deal, go to Property Investment Deals - recommended overseas property investment deals! and sign up. That is a separate subscription to this one at Property Investment Tips - but is also free!

Estonia

Look at why I think Estonia is a cracking place to look right now, at Estonia Property Investment deals!

Any questions on investing in any of these countries, or any of the deals mentioned, email me at info@property-investment-tips.com

Summary

"Global real estate will be the only major asset class that could deliver double digit returns over the next 5 years."

So do your due diligence, but do research your options as are plenty of good options for overseas property investment.

Remember to Check out My Recommended Investment Properties overseas for sell!

Check out our latest deal in Eastern Europe!