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. 

What is "Due Diligence"

This thread opens up a whole new area of property investment, who actually does due diligence on behalf of an investor, and how deep is their research?  The writer makes a very valid point in that due diligence is mentioned frequently, but nobody ever specifies exactly what it is (although this may be because it is different for every property market around the world).  We also get into the realms of legal liability, potential compensation for bad advice and what you are actually covered for.  This thread will prove to be an interesting eye opener for those who often take due diligence for granted.

While due diligence is a term which is thrown into a whole host of situations and scenarios, what exactly does it mean? Who does it? These are all valid questions and ones which some investors may find difficult to answer.  The bottom line is that whatever legal practice you employ, or agent to work on your behalf, you really do need to do some due diligence yourself.  You need to know the markets you may be operating in, the advantages and the drawbacks, and what you should expect.  Those who go into a market blind are opening themselves up to all kinds of potential problems, problems which could be very expensive.

City of Arabia

While in the State of Dubai, Dubai City seem to get all of the plaudits, many are now putting forward the City of Arabia as a plausible alternative.  However, just as soon as the post was planted, we have seen a number of people come forward mentioning potential delays in the completion of various projects.  There is also a little known fact that many property developments in the area have a clause which allows delays of up to 12 months without compensation to the investor.  It seems that delays of this nature are fairly common place in the region, and something which investors should be aware of.

Even though Dubai City continues to receive all of the praise in the property press, there are other areas of the state which deserve further consideration.  The City of Arabia seems to be one of these such areas, an area which has been over looked by many, but does offer great potential.  However, there is one note of caution with regards to the possible delays of up to 12 months - if the property market were to stall or demand fall back then investors may be left with property they cannot sell at acceptable prices.  While there are no signs of a slowdown as yet, the region is surrounded by potentially volatile flash points, something which all investors should consider carefully.

Which coast is best?

A simple yet very important question which in this instance shows the many basic principles behind finding your ideal investment area.  There are some very useful comments regarding access, current property market, prices and potential for the future. It also questions the developed markets of some of the more popular areas of Morocco, with suggestions that some of these may be past there recent best.  As ever the basic considerations are the same, tourism, prices, access and weather, which is a very popular theme throughout the whole property investment industry.  Once you grasp the basic elements which make a good market, it can be applied anywhere in the world.

While often in the past Morocco has prompted a whole host of differing opinions and views, it seems that the members on this thread agree that there is potential in the country.  Some are looking towards new, up and coming areas, while others are looking to secure a respectable rental income stream in popular areas.  As with the majority of property investment decisions, it basically boils down to the risk / reward ratio you would consider.  There seems to be something for everyone here, but the basic elements of a property market need to be there, tourism, access and the weather.  After that, it is really down to a personal choice.

Property in Goa

This is an intriguing post which highlights the surprising lack of control and regulation in the Indian property market, a market which has the potential to become one of the largest in the world.  While many emerging and developed economies see no problem with overseas investment adding to the mix of local investment, it seems that India is different.  The over obstructive regulations appear to all but eliminate the legal acquisition of property by non-nationals, something which is a little surprising in a greatly developed nation.  While there is great potential in the country, it is unclear when overseas investors will be able to participate fully.

It is difficult to understand how a country which is so prominent in the business community can have such a confusing property market.  While the level of overseas participation in any local market will vary around the world, an element of overseas investment can be very beneficial to a local economy.  Also, the fact that so many agents seem to be advertising Indian property to overseas investors has the potential to cause more problems in the long run, with many investors unaware of local rules and regulations.  In reality, at the moment the Indian property market is effectively a no go area for non-nationals, but surely this will change in the long term?