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!

Evaluating a good location for investment and my conclusion

While this thread started off with a very impressive and very detailed report on the Dubai market, it has quickly attracted some very interesting alternatives.  There seems to be a growing consensus that Dubai is nearing its peak, with many seemingly concerned that construction is moving faster than demand, and the market may very soon become saturated.  While this may not be the case for some time yet, the vast majority of investors are in for the long term, not the short term.  There are also some very interesting investment strategies, with one in particular comparing valuations directly to that of valuing stocks and shares.

While there are many many different elements which go into forecasting the performance of property prices in a certain area, let us not forget that a lot of these factors are “guess work” - well, informed guess work, but susceptible to change all the same.  There are some excellent summaries of how to evaluate a particular area, and the original Dubai post is interesting, even if some members do not agree in full.  The comparison between valuing a share and valuing a property is a very valid point, and one which a lot of investors may like to consider further.  Considering all properties on the same basis, as stock brokers do with stocks, gives a more balanced result, which is not as influenced by personal choice as some summaries are.

Thoughts on Canada

While the thread was started, and contains a fair amount of income from a sales persons angle, it does open up a whole new debate about Canada (often seen as the poor cousin of the US).  There are some excellent comments about the country, the economy and the tourist trade.  The fact that Canada seems to be represented at more property exhibitions now than in the past is also a great sign.  Many people seem to have this impression of Canada as a dark, cold wilderness, when in reality it is a thriving area of the world.  An interesting option for those looking at something a little different.

Canada is a country which seems to have been overlooked by the property market for too long.  It has very strong historic trade links with the US, is rich in natural resources and has a strong relationship with various parts of the world - including France.  It seems to be one of the anomalies which is popular with tourists, but does not seem to have been appreciated by the property investment market - perhaps because few have taken the time to visit the country?  By all accounts Canada has a vibrant, growing economy with ever increasing tourist numbers.  Why has it been left unconsidered for so long?

Buying Property in Portugal

As usual a post about Portugal never ceases to attract lots of attention, and this post offers its fair share of differing views, comments and conclusions.  Like so many posts before, Portugal always seems to be compared to an earlier stage Spanish market, with some concerned that both the Spanish and Portuguese markets may be “topping out”.  However, there do seem to be some interesting opportunities in Portugal, where employment prospects are good, and inland property prices still offer good value.  The thread has taken on something of a sales pitch, but with some members looking for specific advice from the “ground”, this thread will prove useful to many.

While there are differing views about the prospects for the likes of Portugal and Spain, this is what makes a market - where would we be if everyone thought the same? There is an interesting comparison between restaurant prices in the tourist areas and the non-tourist areas, something which actually gives a real feel for the underlying market - perhaps this trend is visible in tourist area property prices? While there have been peaks and troughs in the ever popular Spanish and Portuguese markets, they have attracted lots of investment over the years.  Some areas have seen property prices “over heat”, but it seems that there are still opportunities if you are willing to look hard enough.

Marrakesh

While Morocco has been mentioned on the board in a number of threads, this thread offers a very interesting comparison between Marrakech and northern Morocco, where perhaps the property market is a little more undeveloped.  On the whole there are a number of detailed opinions about the areas, and it seems the final investment decision for Morocco may come down to the amount of risk which you are willing to take.  Do you go for the strong tourist base of Marrakech, or do you take a little more risk in the northern area of the country, where many developments of differing quality are being built?

We seem to have two markets within one country here, with Marrakech being compared to the northern Morocco property market - a market which is still fairly new.  As mentioned above, it all seems to come down to the risk / reward ratio an investor is looking for, as to which area they may consider.  While the general consensus seems to be that the northern property market will grow, there are risks associated with picking the best developments - if you get it wrong, you may lag behind the general market.  Morocco looks to be a country which has good prospects, and there seems to be something there for all risk category investors.