Property Investment

[Nehanda]

I wonder if any of you guys are into property investments or perhaps you work within this field.

If so please lets hear of your view for instance where do you believe property hotspots to be or what type of risks would you recommend one to beware of when building a portfolio.

 

I hear that Eastern Europe (Bulgaria, Hungary and Poland) is currently popular with investors due to low property prices and joining the EU. There is also speculation that American in particular Las Vegas might be a catch for investment in particular for UK investors.

 

UAE is also popular although I believe that this market is quite over rated. I think that the price of rent is likely to decrease in the next 5 years due to supply=demand. Albeit the reverse might be true and property prices might actually stay high making Dubai the Hong-Kong of the Middle East.

 

Well that’s my piece for now but more importantly what are your experiences or views.

 

PS-Please be honest in your views.

[Baluug]

I'd love to invest in property, but I can't even afford my own house and I don't really have a choice other than to take riba, so for now I guess I'm happy being a renter.

[N.O.R.F]

Invest in Sharm Elsheikh in Egypt. Guarabteed rent returns all year round.

 

25k will get you a 1/2 bed.

[N.O.R.F]

http://www.findaproperty.com/searchresults.aspx?edid=09&salerent=0&al=3940

[Ms DD]

I think Morroco, Saidia in particular is quite popular spot for investors. I am looking into it at the moment. Many people are looking for countries close to UK, year round season, sandy beaches, real luxury (there are new governemnt backed resorts), resorts with multiple on site golf courses and resorts with vast marinas. And it is whole lot cheaper than Dubai/Sharjah. Check these websites for more info:

www.lejardindefleur.com

www.oasismorocco.com

 

Although i have heard that Ras al Khaimah is the new hotspot in the UAE as it's just taking off. Not sure about this..Perhaps Northern can shed some lights on this.

 

Not sure if i would invest in Bulgaria or the other counties you mentioned. But a cousin of mine was investing in Croatia a while back.

[Miskin]

I am in the property industry, although not in property development. There is a general feeling that Eat Europe is the new property hotspot. Places like Astonia, Lithuania, The Czeck republic, Hungary, Romania. I have heard Sweden and Germany mentioned few times, but wherever you invest you will get some sort of reward.

 

Is everyone going alone or is there some sort of company formation in the horizons. (just asking)

 

Miskin

[Nehanda]

MX renting is definitely a waste of your income; you are paying someone else’s mortgage! Lakiinse without willing tenant such as you property investments would not be so profitable.

 

I have been to few property shows and there were some unusual projects offered. In Germany there is this scheme whereby the freeholder of a block of flats is selling properties to investors. The incentive of buying into this scheme is that you gain tenants with the purchase.

 

Currently there is this project in Las Vegas where instead of the traditional off-plan purchase, you buy an Option. You are required to put down about 10.5% deposit of the property value. Upon completion, you have the option to buy the property at a discounted price or if you do not wish to buy the developers will return your deposit plus any increases in the value of the property, i.e. up to 70% of the original price. The beauty of this investment is that it is low risk hence even if the property decreases in value you still get your initial deposit returned.

 

I think that Easter Europe looks promising since most of the mentioned countries are emerging markets. Lakiinse as an investor you have to look for the most ideal location to purchase your property for instance in Bulgaria I am informed that Bansko is the place and for Hungary Budapest is the hotspot. You want to make sure that if this is a buy to let investment that you purchase in an area where property prices are reasonable and there is a healthy rental returns. Ideally your investment should pay for the mortgage and there should be a potential growth in property price.

 

What about the UK property market, I am talking about outside London such as Liverpool and Manchester. Is anyone contemplating in purchasing there?

 

Cambaaro, walaal I too heard that Morocco is attracting a horde of investors I was sceptic at the time lakiinse I see I was haste in my dismissal. Believe or not South Africa is also making its mark.