In the aftermath of house-flips and the global credit crunch, many no longer look to the real estate market as a source of quick returns. However, for the investor willing to invest both money and time, great deals can be found. Many developers are coming to terms with the fact that in this turbulent market it is nearly impossible to move homes without offering deep discounts and other perks.
In this environment it is quite possible for a newcomer to enter the market and build real wealth. Many home buyers are afraid to purchase a home because of the possibility the house will quickly lose value after the purchase. With this in mind, many investors are looking into the buy-to-let investment model. By taking advantage of cheaper properties, some are able to buy a second or even third property to provide rental income.
Others are looking not in their own developed lands but in remote areas, where property markets are losing their value, especially in terms of rental income. While areas like Morocco and Turkey have experienced solid growth for the last several years, many are concerned with the long term sustainability of the rental market. Bearing this in mind, some investors are now looking at rapidly falling prices in Eastern Europe.
Currently many homes are being offered below market value due to an abundance of supply. Analysts feel that in the next few years as the property markets begin to shift once again, areas like Bulgaria could experience a renewed demand. For investors willing to stick around for the long term, this could prove profitable.
Emerging markets are much different from mature property markets. In a mature rental market, many investors will rent a property and also spend time in the home themselves. In the emerging markets, the investors view the property purely as an investment.
