Sunday, 10 July 2011

Investing In Overseas Property

By Pauline Felward


Anyone you ask will acknowledge that most of the time property is the safest investment that a person can make. It used to be a universal truth that every investor acknowledged, but in the last few years, since the massive crash in the property market, this has ceased to be true. The knock-on effect of the global economy crash has been a dramatically decreased amount of capital available to invest in property markets, as well as a severe reduction in property values. This is likely to be felt for an extended period, causing gains to be deferred and further reducing the amount of investment in property markets throughout the world.

However, there are some property markets that are already showing signs of recovery, which can provide those who are willing to invest with medium or long term returns.

Spain: A traditionally strong property market, Spain saw extremely inflated property values, particularly in popular areas of the country such as around the coast. The deflation in values after the global economic crisis is already starting to be reversed. Spanish property around metro areas such as Barcelona areas suffered less than outlying and seasonal areas and is therefore showing a faster resurgence.

Brazil: Not a traditional property investment market, Brazil is gaining ground on previously reputable property markets as its ties to major economic powers grow. These ties show the upswing that many economic specialists anticipate seeing in Brazil's economy, which will encourage greater investment in the country. This investment will include investment in Brazilian property as the South American region becomes more enticing for investors in the light of the effect of the Arab Spring on property markets in that region.

Australia: It is a property market which spans the gap between the established with low risk and potentially low returns, and higher risks and medium term returns. Australia is already increasing its profile as a property market in a stable region that can provide long term increases in property values which had been overblown prior to the economic crisis. However, the values have been depressed somewhat since the crisis, but the Australian property market is already attracting visitors due to the stability of the region. The improving economic state of nearby countries is also helping to make Australia a ripe target for investment.




About the Author:



No comments: