Buying a property abroad for investment purposes is becoming an increasingly popular pastime, with the latest figures from Worldwide Property Group demonstrating a large rise in interest for overseas property.
The company's March confidence tracker survey showed that 75 per cent of respondents believe that now is a great time to buy a foreign property. In addition, 78 per cent of them are of the opinion that property offers better returns and is a safer option than other forms of investment.
But what should potential owners be looking for before parting with their cash?
Location, location, location…
In this time of global economic recovery there are plenty of destinations which present investors with bargain property prices. However, not all of them are likely to provide healthy returns, with long-term economic issues blighting the chances of a quick-fix.
But there are positive signs in markets which appear to have ridden the crisis well.
Turkey has recently had its economic forecast for this year re-assessed and increased from 3.7 per cent up to 5.2 per cent by the International Monetary Fund, while Brazil is establishing itself as a firm favourite in the eyes of many investors.
The South American destination looks like it could be the biggest winner of the forthcoming 2014 football World Cup
and 2016 Olympic Games, with its tourism and infrastructure both likely to benefit from the potential influx of visitors.
Accessibility, accessibility, accessibility…
Unfortunately it does not quite have the same ring to it, but for those looking to rent out their property to holidaymakers, the accessibility of a location is the key to ensuring that the investment is a profitable venture.
"If you're buying an investment property abroad, no matter where, make sure yours is surrounded by as many routes of swift access from international airports and ferry ports, main roads and trains stations as possible," Shelter Offshore noted earlier this year.
The property publication recommends that 50 miles from the nearest airport is an ideal radius to work within when searching for real estate in far-flung destinations.
Either way, a lot of time and thought needs to be put in before making a decision and ultimately that decision is going to be affected by the overall aims of the investment. Property purchased to be a long-term income generator
will present different challenges to a gamble on an emerging market.
- Monday 07 June 2010