Sports city

This is a very interesting post which covers the Sports City development in Dubai, an area of the world which always splits the opinions of investors – is it safe, are prices too high, why subject yourself to the political risk? In truth these are not new arguments against investment in Dubai real estate , but they are probably more relevant today than they have been for some time. There also seems to be some concern about the standard of some developers in the area, with some of the newer companies struggling to complete developments on time.  This post reflects many of the concerns you should consider when dealing in any overseas market especially at a time of increased security risks in the area of the Middle East.

While there are few areas such as Dubai which can split investor opinions down the line, there are valid points on both sides.  Dubai has long been seen as the business gateway to the Middle East, and as such it has attracted a barrage of western world investment both in properties and business.  However, there is a real political risk in the area at the moment, and at some point (were this to continue) it may well dampen demand in the property market.  On the positive side, we hear about prices being too high compared to other areas of the world, well did you know that Dubai prices are substantially lower than London? At this moment there is still demand, but the amount of developments soon to come on line will hoover up a great chunk of this demand.  At some stage prices will steady, if not drop back a little, and the serious investor may look to take advantage of any fall back.

Moving away

Over the last few years we have seen a large increase in the number of Brits moving overseas to live, with many attracted by the weather, the prospects and investment opportunities.  This thread offers an interesting array of areas to consider from Portugal to the Gold coast of Australia! Each and every location mentioned seems to have merits, and the majority already have an ex-pat community which can be a big help.  The internet seems to be playing more than bit part in the increase in Brits moving overseas, with many now able to explore potential areas of the world in great detail.

A question such as “Looking for inexpensive, warm place away from UK” was always likely to encourage an array of different opinions, views and options and this thread has not disappointed!  It will open the eyes of many Brits who are looking to move overseas, with a surprising number of areas around the world already housing a large ex-pat community.  It also offers a very useful comparison of the UK housing market with that in other areas of the world, where property can be a fraction of the UK price.  Until you actually begin to look, it can be difficult to appreciate how expensive the UK market is (in places) to that of many overseas countries. 

Everybody loves to hate Bulgaria

Unfortunately this thread seems to have started a battle between those for and against Bulgaria, and the impact which forums can have on the reputation for a particular area.  Many seem to have over looked the actual potential which Bulgaria has for the future, and highlighted potential problems with advisors and agents in the area.  While this is a common problem for many people investing in foreign markets, rightly or wrongly the Bulgarian market seems to have received more criticism than most.  Once you have stripped out the personal attacks from the various contributors, there is an interesting underlying subject which is vital to any investment – Trust.

While a little unsettling to see such an aggressive post, the value of forum moderators has been shown to the full, with a number of attempts to defuse the situation.  As mentioned on a number of occasions there is a very fine line between personal opinions and potential libel, something which we are all keen to avoid.  Unfortunately the personal attacks overshadow what is a very important subject for any investor, the value of a good agent, good advisor and the trust you put in them.  As they say, it only takes one bad apple to spoil the barrel, and this post is a perfect example of such a scenario.  The minority seem to be taking the headlines, and the trustworthy agents seem to be suffering. 

Property in Brazil - General buying and selling tips for Brazil

Brazil seems to be very much an up and coming area of the world for property investment, having received a fair amount of coverage on the forum of late.  As informative posts go, there are very few which can beat this thread for detail and useful information, whether you are looking for confirmation of the laws, finance restrictions or just information on the country.  For a country which has received more than its fair share of bad press with regards to sky high inflation in the past,  the property market seems fairly well developed and structured.  This thread contains some great tips and advice for investors looking at this area of the world.

It can be no coincidence that Brazil is proving more and more popular on the forum, with a number of members expressing interest, and many publishing very detailed information on various aspects of the country and property purchase process.  However, many people seem concerned that Brazilian agents are tending to try and steer buyers away from legal representation, which would be suicide in a market alien to the investor.  The only weakness in the property investment chain seems to be finance, but there are signs that the domestic mortgage market is progressing, and increased overseas interest can only speed up this process.  A very interesting and most informative post. 

What Will Be A Property Hotspot For 2008???

An interesting question which is sure to appear more and more over the next few months, and has also prompted a number of differing opinions.  Is it time to look at new markets? Is it time to look at expanding older markets? Or is it time to look at land, rather than actual property? It seems as though the recent credit crunch in the US (which has subsequently  spread across the world) has spooked a number of potential investors.  Quite correctly, a number of potential investors suggest that the credit crunch episode is not yet over and caution should be the watch word.

A very interesting and topical thread which shows that some investors are taking a more cautious approach as we move towards 2008.  The credit crunch, market saturation and potential slowdown in worldwide property markets all feature heavily in this thread.  It is interesting to see investors looking at buying property and funding developers, all early stage property development.  Are some people looking for new markets which are not there? There is no doubt that the risk / reward ratio for the 2008 property market has moved, with many now looking towards rental income and firm cash flow, rather than capital gains. 

How can you invest in Egypt? when you cant even find a flight from London

As you will guess from the title of the thread, this post is about flights to Egypt and how this may effect your investment decisions.  The interesting thing about this thread is the fact it takes out the whole argument about whether you should or should not invest in Egypt and concentrates on how access to an area can effect the thoughts and decisions of many investors.  While there appear to be some flights available from London, they seem to be few and far between.  However, with tourism on the up in Egypt and the likelihood of more direct air links in due course, it does beg the question, is it a risk worth taking now?

This post is a very interesting take on how access to an area will effect the present and future value of a property investment.  It also poses the question, if you are certain that direct access will increase (due to increased tourism in this instance) is it an interesting risk to take? As and when direct access from places such as London goes live, that has the potential to open up markets to many more investors, agents, and developers.  While not exactly the same, it has similarities with Northern Cyprus, which was for many years cut off from direct links to Europe, etc.  Are we about to see a major shift in the property market of Egypt? Will the direct access factor have a substantial impact? 

What will US$1 million buy overseas?

An interesting question which has received some very interesting answers! Where would you invest $1 million? The suggestions have come thick and fast on this thread, with Portugal, Brazil and the Philippines to name a few fairly prominent names.  It does show that a large amount of money to invest does open a lot of doors, with opportunities a plenty.  The post has also attracted the attention of a number of sales led members (surprise, surprise), which again highlights the potential assistance available on the board.  I would guess from the wide range of answers currently on the thread that the potential investor needs to give more detail about what they are looking at, i.e. their own preferences.

What would you do with $1 million? This thread opens up an interesting discussion in that would you, put all of your eggs in one basket and buy one property, or would you spread the risk over different properties and different areas? Does $1 million actually give you the potential to spread your investments, or is it borderline? The strange thing is that with smaller amounts the risks are there, but with $1 million the risks and potential rewards are larger.  Do you go conservative, do you mix strategies or do you wait and see? In order to give a relevant answer to the question we probably need a little more detail from the forum member who started the thread.  However, it is a very interesting question!

Adriatic Coastline investment from £20k!!

In what may surprise many readers of the forum it seems that Albania may well be an up and coming "hot spot" within the new look Europe.  The thread is full of believable figures, not the kind of hard sell "must buy now" material, more of an "interest is growing" scenario.  However, there is still some dispute as to when the secondary property market will make an impact and whether properties aimed at the growing tourist market can be rented out during the year to at least cover finance costs.  An interesting if not unexpected market may be about to open up, but it seems that this will not happen over night.

While not one of the more commonly mentioned "hot spots" of Europe, it looks as though a compelling case for the country is starting to materialise.   It still seems that Albania  is being held back by its past reputation, and the heavy communist influence of old.  However, under the watchful eye of the EU the country seems to be slowly moving away from the past, and offers some interesting coastal investment opportunities.  While it may be a little soon to throw a significant amount of your investment funding into the Albanian property market, a small structured exposure to the area may well prove to be a good long term investment. 

Thinking of buying property in India, anyone done similar?

Oh how such a simple question can prompt so many responses, options and advice.  While India has been mentioned as potentially one of the largest economies in the world over the next decade, it does not often get mentioned in property investment forums.  While tourism is growing in the country, it tends to be seen as more of an industrial / business area, something which some investors seem to be steering clear of.  Is this a mistake? Well, the property market seems to be booming, the economy is going full steam ahead, and the reputation of India is growing day by day.

India is a country which looks set to grow and grow for the next decade or so, but yet the difference between the rich and the poor seems to be widening.  As a property investment market it has been shunned by many, possibly because of mis-information or the fact that it does not conform to the traditional tourism business model.  Either way, India is a boom economy at the moment and it is attracting overseas investment in a  whole host of business sectors.  However, the location, location, location principle will be vital in a country which has so many different standards of living.  If you are looking for a good long term investment, India is a place you should be checking out as soon as possible. 

Anyone Ever Bought A Forest?

While this thread seems to have been missed by many, it offers a great alternative use for land, and the potential to make a steady income over time.  Forestry investments have been common place in the UK for some time, and while the tax incentives have been reduced over the last couple of decades, they still offer a decent tax efficient investment.  Some posters mention looking at some of the newer members of the EU and the prospects for forestry investment over there.  While some of the figures quoted are similar to the UK, these appear to be in markets where the property developers have already been very active. An interesting alternative use of land, with the potential for good returns.

While forestry investments have always been mentioned in the same breath as tax efficiency, they do have attractions on their own.  Timber, as mentioned by some on the thread, is a commodity and while prices have fallen dramatically since 1995, the new eco age we are entering does offer potential.  The replacement of your carbon footprint is an aspect of the green campaign which will surely go from strength to strength.  Even though it may not be as simple as planting a few trees and watching them grow, slowly but surely you would expect overseas markets to develop and prices to rise as their economies grow. As with any investment there are pitfalls, such as the location of the forest, the type of tree and the cost of up keep, but all in all, a very interesting thread. 

Where to buy in Portugal (Portugal)

As you might guess, a thread about Portugal has brought out many news, views and comments from all areas of the globe.  The country has long been a particular favourite amongst UK investors who have had a presence in the area for many years.  It is interesting to see the comments about the next hot spots, and the prospects for the Algarve.  There seem to be two different camps here, those looking at cheap property in an area which may pick up in the future, or those willing to pay higher prices for guaranteed tourism numbers in the likes of the Algarve.  Which best fits your risk profile?

Threads about Portugal always prove very popular, and this thread is no different.  However, the comments seem to have highlighted a number of smaller property markets thoughout the country. The Algarve has long benefited from increased tourist numbers, and some investors seem willing to pay that little extra for that safety net of visitors.  However, some investors seem a little more attracted to the risk of areas unknown - the possible hot spots of tomorrow.  While the Algarve is very expensive, it does offer a certain degree of safety to an investor, whereby people have been trying to guess the next hot spot for the last 20 years!

How to buy with a proper discount

There are few posts which actually tell you directly how to save up to 52% on the purchase cost of your dream property.  This member actually comes from Bulgaria and explains in detail how buyers are able to save thousands of Euros when purchasing a property.  The ways in which the price can be reduced, using a mixture of efficient investing and solid negotiating, seem straight forward on paper, but are they as easy in real life? As you might expect, the thread has been met with caution by some members, but even the smallest of savings will fall into the buyers pocket!

Surprisingly this thread has not provoked more comments from the forum members, because there are some very interesting points.  While a saving of up to 52% on a purchase price would be a buyers dream, there are some interesting ideas about actually reducing the cost to you.  Tax efficient investment vehicles such as limited companies are common place in the property market, but tend to be more efficient the larger investor you are.  The bottom line is, if you do not try to negotiate a deal for yourself, the agents are not going to hand it to you on a plate - many will be willing to reduce their commission to keep you “onside”, so always ask the question! 

Turkey, I love the place and the people

While Turkey has been in the news for some months, with the prospect of further economic growth, and a strong property market, it seems that a lot of the property hot spots may be fuelled by overseas buying - with UK investors highly visible. The thread makes some good points about trying to find local representatives, but not always going for the first that you find.  It also opens up the possibility of buying direct from construction companies, which although cheaper than buying through agents, also carries extra risks.  Further integration into the EU seems to be the focus of many investors minds, something which has been well received.

There seems to be a great difference of opinion as to whether Turkey really is a good place to invest.  Interestingly some members of the forum seem to be suggesting that the economic growth is perhaps not as wide spread as you would think.  There is also some debate as to whether economic growth has greatly influenced the wealth of Turkish nationals, although it would seem unlikely that the economy can rise so much without locals benefiting.  Turkey has always been an area which atracts many differing views, but it really is hard to ignore the substantial economic growth of late, and the forecast for further improvement in the short term. 

Buying in North Cyprus

We have yet again come across the controversial subject of buying property in Northern Cyprus, which is just now coming back into the international fold, after a long period of isolation.  The thread contains obvious references to the fact that many Greek Cypriots claim to have been rail roaded out of the North when the island split, and were effectively forced to flee their properties. It has been rumoured for some time that many will return to reclaim their lost properties, and while some believe that this would never happen, it is hampering the property market.  Everything else is in place for growth, the economy is doing well and tourism is on the up.

The subject of North Cyprus is never too far away, and while there has been an agreement with regards to relatively new builds on the island, the legal ownership of some of the older properties is still unclear.  Until this situation is resolved once and for all, with no rumours and not counter rumours, it seems high unlikely that all but the most determined property investors will descend upon the island’s old properties.  This is a great shame because everything else is set for a sustained period of growth, with the economy doing well, direct travel to the country now in place and an expanding tourist industry. 

Brazil: Hotspot Or Not..?????

This interesting thread about Brazil brings in a number of different angles to consider including travel, property bubbles,  the future and the potential for this area of the world.  Like many “new bubbles” the development in the country is very  concentrated in certain areas, and investors need to be sure they are looking at the right areas, areas which do have  potential for the future.  There are some concerns about travelling to some areas of the country, with confusion as to  whether direct flights are available - a vital element for any property hot spot.  Brazil has been a favourite of many for  some time, but it seems confidence and demand is growing.

Brazil has been on the lips of many property developers for many years, although historically there have been both economic  and political concerns. The economic and political situations have calmed over the last few years, and it seems as though  Brazil is entering a new era.  Much of the property hot spots in the country seem to centre around the coastal resorts and  business communities, with much of the country still be under developed.  The fact that the country is becoming a popular  venue for tourists is directly connected to the increased property demand, although it is essential investors get feedback  from the “ground” via agents with good local knowledge. A good starting point would be to talk to some of the advertisers in  our Overseas Property For sale section.

Dubai International City Smells Awful!!!!!

While the title of this thread may be a little too blunt, “Dubai Expert ” has brought a number of discussions to the table.  The first being the relationship between the local authorities (who operate the sewage works) and the developers who are changing the face of the “International City”, and secondly the need to have someone on the ground who can alert you to such issues.  There is no doubt that the constant smell of sewage from the local plant will have an impact upon property prices - simple levels of supply and demand - and something needs to be done.  It also brings up an interesting observation, did the developers not check what was happening around the area, and ultimately do they have any liability?

There is no doubt that the location of the sewage works is having a major impact upon people already living in the effected areas, and driving away possible property investors.  It does also highlight the apparent lack of communication between all parties involved, which is allowing rumours to circulate unchecked.  Any substantial property development  is a joint partnership between both the developers and the local authorities, and the communication lines need to be clear.   Unless both parties are pulling in the same direction, there is potential for enormous harm to not only the local property market, but business in the areas as well.

Be careful with Bulgaria....

This thread was started by “rabarbaro” and is a warning to anyone investing in the Bulgarian market, and any market overseas. It seems that rabarbaro is having major problems with his property investment in Bulgaria, with lawyers not acting correctly, the size of the property reducing and the price increasing!  The cost of the property has increased by nearly 100%, and this does not appear to be the end of the story. However, there are many members on hand to give good advice and comments, comments which can help anyone looking to invest overseas. As well as showing the downside, this thread also shows the collective power of forum members acting together. 

Iraq and Afghanistan property: Started by “robh”, this is perhaps one of the most topical threads on the whole site, taking in high risk investment in Iraq and Afghanistan, areas which many investors would not even consider. While there are threads both in favour of and against investment in such areas, there are some interesting comments from members from that region of the world. The references to property price movements in the area are interesting, although further details would be required to clarify the situation. This is definitely something for investors willing to take that little bit of extra risk, although a member mentions buying land rather than property, which sounds very interesting..

If you are willing to take risks in the property market, then places such as Iraq and Afghanistan may interest you, although they will not be to everyone’s taste. Some of the most successful investors have made their biggest returns from buying in the face of adversity, but it can take time. As and when a market like Iraq turns, it will turn very very quickly with the “herd” mentality coming into play. The shrewd investor will know that they will never catch the bottom of the market, which is why many look to buy on the way down, maybe even staggering their purchases as the market falls further and further - ensuring they have a “position” for the bounce.

This is a very sad post which again brings home the dangers of investing in overseas markets.  It involves the purchase of a property in Spain which seemed to go to plan, with all of the checks carried out, etc.  Unfortunately between agreeing the deal (and settlement) and delivering the paperwork to the new owners, the sellers took out massive loans against the property, with the new owners receiving numerous visits from debt collectors within a matter of only a few weeks.  It appears this may be a flaw in the Spanish system, with paperwork taking up to 30 days to be registered leaving the potential for such heart breaking fraud.