That is the dilemna facing several investors and discussed at length in the property forums this week. On the totallyproperty.com overseas forum two new posting address this issue. One is from an investor with £30,000 to spend and another with €60,000 and both wondering where to look.
Egypt emerges as a good bet for both potential investors. £30,000 will buy a one bed apartment on the Red Sea with around 7% per annum yield, it is suggested. Also indications that developers are offering some good deals for those buying outright and discounts can be negotiated.
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However there are warnings of potential oversupply in Egypt and other alternatives suggested include Romania and Albania or using the money as a deposit in a more stable market like France.
At the other end of the money spectrum an investor with £10,000 a month for the next year to spend on property seeks advice on the Channel 4 overseas property forum. Germany emerges as a place to consider as a 'get rich slow but safe' place. It is suggested there are guaranteed rental of 5% net per year, the chance of good capital growth and prices starting at £40,000.
However a good management company is suggested for anyone investing in Germany as the system favours the tenant. Florida is also mentioned several times due to prices still falling and the Pound being strong against the Dollar.
Buy to Let is a huge subject this week on the singingpig.co.uk forum. The thread delves into the issue of whether or not the boom is over for buy to let. The general opinion is that for those who have been in the business a long time the current economic climate in the UK can be overcome, that it should be regarded as a medium to long term investment and that it is those who have entered the market in the last couple of years who are feeling the pinch.
Typical is poster MrIgnorant who states: 'I agree that for the time being, buy to let has become tough. My appetite to buy more property has declined. Current buy to let mortgage rates are very high, HB has been replaced with LHA. Fortunately, I did loads of remortgages over the last 18months and I fixed for 5 years. I hope the credit crunch is over by 2012. If a tenant does fail to pay me, I have plenty of equity to cover it. I have built up a very good war chest. I am also thinking up ways of dealing with these harder times. The rental market is good at the moment, so this should help us.'
Sharon, a British expat who moved to the Costa Blanca in Spain almost six years ago gives a very honest and interesting assessment of the Spanish property market. Her post this week on the eyeonspain.com forum examines why prices are falling, why people can't sell and concludes that the market will recover given time.
As she states, it is a very personal opinion and relevant to the area around Campo in Albatera, where she stays, but it does address many of the relevant points that anyone investing in or moving to this part of Spain needs to know.
Regular readers of the news articles on this website will know that Canada is becoming more popular with investors seeking new but stable property markets. This is borne out in posting on the totallyproperty.com overseas forum.
It is clear Canada is now coming onto the radar of many property investors. GeorgeYT reports that he has seen more representation of Canada at property exhibitions and from talk around town. 'When browsing around the property Investor Show at Excel a few weeks back there were a few Canadian companies, a few from Eastern Canada, and a few new ones from Western Canada,' he says.
'The way I look at it is Canada is the blue chip to a property investor's portfolio. With a higher price point than markets such as Bulgaria, Romania, Hungary Etc. you are paying for security, stability, a great (young) economy and great returns on investment. Canada is very overlooked and will likely be the next big thing!!' he concludes.
Canada is worth looking at for property investors interested in ski resorts, according to other forum members. Big White is recommended as being what Whistler was like 15 years ago.
Ski resorts in Canada are also busy in the summer so there is good all year round rental prospects. And as the news articles have indicated, with the Winter Olympics coming there will be a positive knock-on effect for property prices.
