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!

Buying at auction (Germany)

While this thread concentrates on the auction process in Germany, and recent changes regarding deposits, etc, there are some very useful comments and observations on auctions in general.  It seems that many investors are putting a lot of emphasis on the guide  book and guide prices, when in reality this is perhaps not the case.  Auctions are notoriously difficult to predict and the same property may bring two different prices within the same week - it really depends on many factors.  That said, some members seem to have picked up some interesting properties, which have the potential to increase in value.  

Many new investors to the world of property seem to think of auctions as places where property can be bought below market value - this is wrong.  Auctions are very difficult to read as it depends who is there on the day as to what price many of the properties will go for.  A common analogy in the investment world is “If it looks to good to be true, then it probably is”.  Cheap properties sell at low levels because of their situation, the current trends, etc.  Do not be sucked into thinking that even the cheapest properties will rise with the general market - this is not always the case.  Investigate your targets carefully, stick to your budget and do not get carried away in the emotion of the moment.

Insurance in Egypt

In the excitement of securing that excellent property overseas, many investors have been known to give areas such as insurance very little time for consideration. This thread shows some very interesting avenues down which investors can move, in order to get the best rates and the best cover.  Cheapest is not always best and it is vital that you also know the company providing the insurance have not created issues in the market.  It seems as though there may be a large difference between local insurance cover prices and third party overseas cover.  More investigation is needed at the point of purchase.

Insurance is an area which many investors seem to neglect, or give very little time too, even though it is vital - what is the point of investing a substantial amount of money only to see your investment go up in flames?  As the property sales market continues to get ever more crowded, it seems that a number of property agents are branching out into the insurance world, where they may be able to offer a better rate than local companies, as well as an all round package.  As with any type of investment you need to do your home work on the people you are dealing with - even the insurance companies! 

Which Country (Buying Overseas)

While this is a fairly open thread it does demonstrate the criteria that many would be property investors would like to adhere to.  This thread has opened up some very interesting counter arguments, such as can you actually take in a high rental income and also offer exposure to a decent capital gain? There seem to be a few queries as to whether these requirements are actually compatible with one market.  The vast array of countries mentioned also offers some great depth to the subject matter.  An interesting and thought provoking thread, which has the potential to run for some considerable time.

While always interesting to see why people are actually in the property market, this thread has given some of the more experienced investors a chance to add their considerable input.  There are some areas of investment which are not compatible without taking on excess risk, such as low interest rates but cheap property, to high rental income and the opportunity for substantial capital growth.  Above all this thread demonstrates why it is essential to have a balanced portfolio offering exposure to different areas of investment return, whether this be capital growth or high level rental income - or even a mix of the two

Eastern Europe (Buying Overseas)

It seems as though Eastern Europe may be the place to be, judging by some of the investment returns mentioned in this thread! The EU effect has long been recognised in the overseas property market, with investor adding more value to a particular area which is part of the EU.  It seems that if you get in at the right time (not without substantial risks) then there is the potential to make substantial gains in places such as Montenegro and Latvia.  Interestingly there are also a few comments which demonstrate how quickly these markets can turn, in only a matter of months.  Thought provoking, and well worth a look.

When you consider investing in areas such as Montenegro and Latvia, all investors should go in with their eyes wide open, and aware of the risks.  Membership of the EU has opened up massive development income for many of these countries, but improvements will not happen overnight.  We have seen a number of instances whereby the property market has looked a little too far ahead, and risen a little too sharply.  These short term spikes can very quickly rectify themselves, leaving the inexperienced investor high and dry.  As ever, caution is the catch word!