Planning Your Next Property Investment
So, you’ve completed your latest overseas property deal, what next? There is no doubt that the global real estate market currently offers plenty of attractive opportunities for investors, despite persistent economic uncertainty in many major countries, but what is the best way to make the most of these prospects?
For many people, the wisest move will be to simply take their time and plan a strategy, rather than rushing into another investment with the proceeds of the latest sale.
Consider transferring money back to the UK, to ensure that all of your funds are safely stored in one place while you mull over your next move. Take a look here to learn more about the benefits of international currency exchange services.
Once you feel content about your financial affairs and ready to look into your next purchase, you can start to assess the opportunities available in some of the world’s most exciting markets.
There are plenty of reasons to be excited about Brazil in the coming years, not least the Fifa World Cup and the Olympic Games, which the South American nation will host in 2014 and 2016, respectively.
These events will have a number of knock-on effects that will prove beneficial for investors, including improved infrastructure and more tourism.
An article in the spring 2013 edition of A Place in the Sun magazine identifies Brazil as one of the top five destinations to buy property this year, noting that American business magnate and billionaire, Warren Buffett has called the country “one of the world’s greatest investment opportunities in modern times”.
Hong Kong’s property market enjoyed impressive growth in 2012, with an annual increase of 23.6 per cent in real estate values placing it at the top of the Knight Frank Global House Price Index.
The trend was driven by a shortage of supply, which led to stiff competition between investors eager to get their own slice of the market.
While price rises are expected to continue in 2013, a recent increase in stamp duty on property purchases means growth is not likely to be as extreme as last year.
Dubai was ranked second behind Hong Kong in Knight Frank’s home value rankings for 2012, with prices going up by 19% across the whole year and by nearly 10% in the final six months.
The emirate’s housing market has a reputation for volatility, with periods of intense growth being followed by steep downturns, but recent trends suggest that the industry is settling down and finding its feet.
There is certainly no shortage of investment opportunities, with work starting to resume on many developments that ground to a halt when the global financial crisis was at its worst.
Global real estate solutions provider Cushman & Wakefield has predicted that global property investment volumes will exceed $1 trillion (£642 billion) in 2013, with North America one of the markets set to drive the increase in buying activity.
The company cited the US and China as two of the “key engines” of the industry’s strong finish to last year, with American buyers rushing to beat year-end capital gains tax rises.
Speaking to the Property Abroad website, investment agent Property Frontiers recommended areas such as Buffalo, Baltimore, eastern parts of Florida and Cleveland for buyers searching for a bargain this year.
In its global property outlook for 2013, IP Global cites Istanbul, Turkey’s largest city, as one of the brightest investment prospects, noting that the destination’s housing sector saw year-on-year price growth of nearly 18% in September last year.
The country as a whole is expected to be the fastest-growing economy in the Organisation for Economic Cooperation and Development by 2017, with gross domestic product forecast to increase by an average of 6.7% a year.
Both Knight Frank and the Global Property Guide website put Turkey’s annual house price growth for 2012 at more than 10%.