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UK property investors can make profits by braving the global downturn

'I believe that the credit crunch offers an opportunity for people to invest in property abroad at some of the best prices in a generation. There are many in the UK who are not affected by the current economic downturn and who have the money to invest, and it is these people who should really think about taking advantage of the current situation and not let the negative vibe put them off,' said Mark Bishops, overseas property investment expert with A Place in the Sun Live.

He is launching four basic principles at the NEC in Birmingham later this month which he claims will lead to investors making a profit if they are followed.

First he says to avoid following the herd as when property prices are rising you may have missed the boat. But when property values have been falling for some time, the next price trend will be an upturn.

'Many see buying property now as a bad idea as the prices have dropped significantly in many countries but in fact this is exactly the time that many people who have made serious money from investing abroad in the past have jumped in. While it is difficult to spot the absolute top and bottom of the market, buying property during a slump increases the chances of seeing it inflate in time,' he said.

He also suggests identifying under-valued properties. 'When buying a property, if the rental income is more than the cost of servicing the interest on a 100% mortgage then it is fundamentally under-valued. If the reverse applies, then it is fundamentally over-valued. Under-valued assets tend to appreciate,' he said.

Then, he said, use other people's money to invest and while the investment mortgage market in the UK may be restricted at present there are plenty of overseas markets where it's a lot easier to get mortgages on investment properties than the UK.

Finally he advises examining global economic trends. He believes that Turkey, Cyprus and many Eastern European countries may offer the best investment potential because their economies are growing fast and mortgage funding is only now becoming widely available. He also identifies profit opportunities in countries such as the United Arab Emirates and Brazil, which are benefitting from the global growth in commodity prices.

He, and other experts, will be giving advice at the A Place in the Sun Live exhibition at the NEC Birmingham from September 26th to 28th.

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